STANDARD FOODS

TWSE Code: 1227

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

Standard Foods Website: http://www.sfworldwide.com

活出人生美好的每一刻！

Standard Foods Corporation

2024

Annual Report

Published April 30, 2025

Standard Foods Corporation

Headquarters: 10F., No. 610, Ruiguang Rd., Neihu Dist., Taipei City 114727
Phone: (02) 2709-2323
Website: www.sfworldwide.com
Dayuan Plant: No. 369, Section 1, Heping West Road, Xihai Village, Dayuan District, Taoyuan City, Taiwan 337
Phone: (03) 386-5130
Zhongli Plant: No. 13, Jilin Road, Zhongli City, Taoyuan City, Taiwan 320
Phone: (03) 452-5131

Spokesperson:

Name: Ter-Fung Tsao
Title: Chairman
E-mail: [email protected]
Phone: (02) 2709-2323

Deputy Spokesperson:

Name: Jimmy Chen
Title: Manager
E-mail: [email protected]
Phone: (02) 2709-2323

Stock Transfer Agency:

Name: Transfer Agency Department, CTBC Bank Co., Ltd.
Address: 5F, No. 83, Section 1, Chongqing South Road, Zhongzheng District, Taipei City.
Website: www.chinatrust.com.tw
Phone: (02) 6636-5566

Certifying CPA of Latest Financial Statement:

Name of CPAs: Han-Ni Fang and Zhao-Yu Chen
Firm: Deloitte Touch Tohmatsu CPA Firm
Address: 20F, Taipei Nan Shan Plaza, No. 100, Songren Rd., Xinyi Dist., Taipei
Website: www.deloitte.com.tw
Phone: (02) 2725-9988

Chapter 1. Letter to Shareholders ... 1

Chapter 2. Corporate Governance Report ... 5
I. Information Regarding Directors, Supervisors, General Managers, Deputy General Managers, Assistant Managers, All Departments and Divisions ... 5
II. Remuneration Paid to the Directors, Supervisors, General Manager and Deputy General Managers ... 15
III. Implementation of Corporate Governance ... 18
IV. Information Regarding Audit Fee ... 102
V. Information About Replacement of CPA ... 102
VI. Information About Chairman, General Manager, and Financial or Accounting Manager of the Company Who Has Worked with the CPA Firm or Affiliate to Said Firm in the Most Recent Year ... 103
VII. Any Transfer of Equity Interests and Pledge of or Change in Equity Interests by a Director, Supervisor, Manager, or Shareholder with a Stake of More Than 10 Percent in the Most Recent Year and up to the Date of Publication of the Annual Report ... 103
VIII. Information About the Relationship Among the Company's 10 Largest Shareholders ... 104
IX. Shareholding Status of the Same Reinvestment Business by the Company, Directors, Supervisors, and Companies Directly or Indirectly Controlled by the Company ... 108

Chapter 3. Fund Raising Status ... 109
I. Capital and Shares ... 109
II. Corporate Bonds ... 113
III. Preferred Shares ... 113
IV. Issuance of Global Depository Receipts ... 113
V. Employee Stock Options ... 113
VI. Employee Restricted Stock ... 113
VII. Mergers and Acquisitions, or as Assignee of New Shares Issued by Another Company ... 113
VIII. Implementation of Capital Allocation Plans ... 113

Chapter 4. Operational Highlights ... 115
I. Business Activities ... 115
II. Overview of Marketing and Production & Sales ... 121
III. Information of employees in the Past 2 Years and up to the Report Printing Date ... 131
IV. Information on Environmental Protection Expenditure ... 131

V. Labor Relations... 135
VI. Cybersecurity management... 138
VII. Major Agreements... 142

Chapter 5. Review and Analysis of the Company's Financial Position and Financial Performance, and Listing of Risks... 143

I. Financial Position... 143
II. Financial Performance... 144
III. Cash Flows... 145
IV. Impact of Major Capital Expenditure on Financial Operation in the Most Recent Year... 146
V. Reinvestment Policies, Main Reasons for Its Profits/Losses, Improvement Plans in the Most Recent Year and Investment Plan for the Following Year... 147
VI. Analysis and Evaluation of Risks in the Most Recent Year and Up to the Date of Publication of the Annual Report... 148
VII. Other Important Matters... 152

Chapter 6. Special Disclosure... 153

I. Information on Affiliates... 153
II. Private Placement of Securities during the Most Recent Fiscal Year and the Current Fiscal Year up to the Date of Publication of the Annual Report... 153
III. Other Necessary Supplements... 153
IV. Matters that materially affect shareholders' equity or the price of the Company's securities as specified in Subparagraph 2, Paragraph 3, Article 36 of the Securities Exchange Act occurred in the most recent year and up to the date of publication of the annual report... 154

Chapter 1. Letter to Shareholders

Dear Shareholders, Ladies and Gentlemen,

Standard Food Group has continued to demonstrate operational resilience in the face of pandemic disruptions, volatile raw material supplies, and persistent shocks across the consumer market. Despite short-term market volatility, we remain firmly convinced of the long-term potential embedded in the core proposition of "health and nutrition." Our commitment to a value-driven business philosophy is reflected in continued investments in talent development, market refinement, operational excellence, and sustainable growth. With unified collaboration across the organization, Standard Food Group has maintained steady growth and driven forward with innovation. By adhering to high-level R&D and rigorous production standards, we deliver products that are nutritious, delicious, safe, and convenient, while strengthening consumer trust and long-term brand loyalty.

In Taiwan, Standard Food Group is proactively responding to demographic shifts such as an aging population, evolving family structures, and a growing focus on health. We've rolled out differentiated products tailored to middle-aged consumers, small households, and the fitness-driven lifestyle. Strategic collaborations with world-class ingredient and manufacturing partners have further strengthened our competitive edge. In China, stable edible oil supply and strong product differentiation enabled the company to outpace overall market growth, while earning broad consumer trust and loyalty along the way. On the global front, we are focusing on high value-added categories such as specialized nutrition and medical nutrition, continuously expanding into areas of inelastic demand, demonstrating Standard Food Group's professional strength in the field of health and nutritional foods.

Becoming "every family's nutrition and health partner" has always been Standard Food Group's unwavering mission. Guided by our core values of dedication, innovation, and compassion, we are committed to product innovation, diverse channel development, and strict quality control to deliver complete nutritional solutions for consumers of all ages, from morning to night. At the same time, Standard Food Group is deeply committed to environmental sustainability, social responsibility, and sound corporate governance, while strengthening trust and communication with all stakeholders. Entering 2025, the company will continue to uphold its spirit of innovation and commitment to sustainability, steadily advancing a dual-track strategy of promoting health and nutrition alongside corporate growth. Together with all our partners, we strive to build a more resilient and inclusive future.

The shareholders' trust and support in the management team are highly appreciated.

We hereby outline 2024 consolidated operating results and 2025 business plan as follows:

I. 2024 Consolidated Business Results

Consolidated Revenue and Profit

Unit: NT$1,000

Item	2024	%	2023	%	+/- %
Operating Revenue	28,973,692	100	27,804,118	100	4.2
Operating Costs	21,815,207	75	21,514,418	77	1.4
Gross Profit	7,158,485	25	6,289,700	23	13.8
Operating Income	1,910,589	7	1,360,401	5	40.4
Profit before Income Tax	2,291,608	8	1,603,314	6	42.9
Net Profit	1,802,906	6	1,268,152	5	42.2
Total Comprehensive Income	2,239,169	8	1,012,773	4	121.1

In 2024, Standard Food Group reported consolidated revenue of NT$28.973 billion, marking a $4.2\%$ increase from the previous year—an uptick of NT$1.169 billion. The standalone revenue came in at NT$12.384 billion, up $1.6\%$ year-over-year, adding NT$195 million. Total comprehensive income surged to NT$2.239 billion, marking a $121.1\%$

increase from the prior year, with an absolute gain of NT$1.226 billion. Of this, comprehensive income attributable to the company's owners totaled NT$2.169 billion, representing a 108.6% increase and an additional NT$1.129 billion compared to the previous year.

Research and Development

Standard Food Group’s R&D philosophy has always been rooted in the seamless integration of cutting-edge expertise and evolving consumer needs. In 2024, the company invested NT$194 million in research and development. Backed by scientific rigor, the R&D team leverages innovative technologies and advanced science to drive new product development and clinical trials while continuously refining existing formulations and manufacturing processes. This commitment has earned the company multiple certifications for specialized nutritional products, industry awards, clean-label recognitions, and senior-friendly certifications. Beyond product innovation, we are advancing sustainable packaging solutions, developing lightweight and recyclable materials to enhance resource efficiency and reinforce its long-term commitment to environmental sustainability.

II. 2025 Business Plan and Future Development Strategies

Business Directions

(1) Strengthening Brand Equity. In response to declining birth rates and an aging population, the company is intensifying its brand-building efforts by closely tracking market dynamics and consumer trends in dietary habits and nutritional needs. Leveraging advanced, cutting-edge technologies, it is actively developing a diverse range of professional, innovative, and scientifically validated nutritional and health products. Through product differentiation, the company aims to set new trends and lead the market. While enhancing brand value, Standard Food Group remains committed to sustainable development. With the goal of becoming a sustainability benchmark in the food industry, it continues to advance eco-friendly practices alongside a focus on health and nutrition—offering consumers higher-quality choices and helping shape a better future.

(2) The company is reinforcing the resilience and transparency of its value chain through stringent quality control, meticulous cost management, and enhanced operational agility across both upstream and downstream operations. These efforts are designed to bolster the firm’s capacity to absorb shocks and adapt swiftly to market fluctuations. Adhering to the highest standards of clean-label production, the company avoids added preservatives and unnecessary ingredients. Each product is crafted to deliver optimal quality, refined taste, and maximum safety—ensuring that consumers can trust every bite.

(3) In alignment with corporate development goals, the company has implemented a systematic talent development program that blends cross-disciplinary training with cultural continuity. This framework supports a diverse learning and growth environment while fostering strong employee relations and team cohesion—essential for building a stable and competitive workforce. Efforts to streamline internal operations continue apace, with an emphasis on organizational agility and responsiveness. By boosting team agility and adaptability, the company is positioning itself for steady growth in an ever-changing environment—working collectively toward a future defined by resilience and innovation.

Expected sales volume and important production and sales policies

The estimated consolidated sales volume in 2025 is projected at 413,008 metric tons. Based on this forecast, the company’s forthcoming production and sales policies will focus on the following strategic priorities:

(1) Production

In alignment with the group’s long-term development goals, the company is actively advancing R&D innovation, capital investment, and the optimisation of production scheduling. These efforts aim to ensure operational efficiency and consistent product quality, while continuing to deliver high-quality offerings that meet the nutritional and health needs of the entire family.
The company is strengthening value chain management by carefully selecting a diversified supplier base and deepening strategic partnerships across distribution channels. By fostering mutual trust and close collaboration, it aims to enhance coordination and efficiency throughout the supply chain.
Upholding its core responsibility for product safety and quality, the company enforces stringent traceability systems and quality policies, maintaining tight control over production processes to ensure compliance with the highest food safety standards. The goal is to deliver products that are not only safe and effective, but also convenient and of consistently high quality. In addition, the company is continually optimizing equipment efficiency, driving energy conservation, carbon reduction, and greenhouse gas emissions mitigation as part of its ongoing commitment to sustainability.

(2) Sales

By staying attuned to market trends and listening closely to consumer needs, the company integrates natural nutrition into its product offerings. It continues to expand its range of health supplements targeting specific nutritional requirements, as well as balanced dietary supplements, aiming to meet the diverse needs of different consumer segments. The goal is to become a trusted "nutritional health partner" for more families.
The oil division in China Standard Food is accelerating its market penetration through expanded sales touchpoints and the development of new distribution channels. This strategy aims to fill market gaps and broaden its range of kitchen-related health products, providing consumers with a more comprehensive health-focused dietary solution.
Through digital transformation and strategic partnerships, the company is gaining precise insights into market dynamics and consumer behavior. By leveraging an omnichannel marketing strategy, it collaborates closely with key distribution partners to strengthen brand synergy, enhancing product visibility, penetration, and market share, thereby solidifying its leadership position.
Through its official website, Health GO sales platform, social media engagement, and diverse partnership channels, the company is directly communicating product information and health recommendations to consumers. This approach creates a convenient, personalized one-stop shopping experience, enhancing brand influence and customer loyalty.

III. Impact of External Competitive Environment, Legal Environment, and Overall Business Environment

External competitive environment

As population ages, distribution channels diversify, and retail consolidation accelerates, international brands are scaling rapidly, while contract manufacturing fuels the rise of private labels and emerging brands, intensifying market competition. As a market leader, Standard Food Group continues to drive innovation at its core, advancing research and development and product upgrades to meet the nutritional needs of consumers across different age groups. By closely monitoring market trends and channel development, the company remains agile, navigating disruption and capturing new growth opportunities. With a commitment to professional research, advanced applications, and high production standards, Standard Food

Group ensures rigorous quality control and delivers products that guarantee consumers "every bite is safe," offering both delicious taste and optimal nutrition.

2. Regulatory environment

Standard Food Group upholds its corporate mission as the "every family’s nutritional and health partner," strictly adhering to government food safety regulations and ensuring consumer trust through rigorous quality control. The company recognizes the critical importance of environmental sustainability to both business and society. Beyond meeting regulatory requirements, we proactively disclose climate-related information. In its daily operations, Standard Food Group implements energy-saving and carbon-reduction strategies, promotes water resource recycling, and prevents pollution. Additionally, the company is advancing environmentally friendly packaging technologies to reduce material consumption, systematically minimizing production's environmental impact. These efforts reflect our commitment to corporate sustainability, working toward a healthier, safer, and more eco-friendly future.

3. Overall business environment

Geopolitical shifts, climate change, and the global drive for sustainability are reshaping corporate strategy, bringing both risks and opportunities that influence business models and long-term planning. Looking ahead, Standard Food Group remains firmly rooted in its commitment to sustainable development. While safeguarding financial stability and upholding robust corporate governance, the company continues to deepen its positive impact on the environment and society. By harnessing digital technologies, we are improving operational efficiency, boosting organizational agility, and reinforcing value chain resilience—critical strengths in an increasingly volatile world. In parallel, the company is actively expanding into international markets, aligning with global trends and advancing its version of a healthier, more sustainable future.

Standard Food Group aspires to empower individuals to become their best — both physically and mentally — through lasting support, helping everyone embraces “A Lifetime of Well-being!”

Chapter 2. Corporate Governance Report

I. Information Regarding Directors, Supervisors, General Managers, Deputy General Managers, Assistant Managers, All Departments and Divisions

1. Directors and supervisors

Information on Directors as of April 21, 2025
Unit: per share; NT$1,000

Title	Nationality/Place of Registration	Name	Gender Age	Date Elected	Term	Date First Elected	Shareholding When Elected	Current Shareholding	Directors Shareholding	Spouse & Minor Shareholding	Shareholding by Nominees	Major Experience (Education)	Other Position Concurrently Held at the Company and Other Companies	Executives, Directors or Supervisors who Are Spouses or within the Second Degree of Kinship	Remarks
Shares	Share-holding ratio%	Shares	Share-holding ratio%	Shares	Share-holding ratio%	Shares	Share-holding ratio%	Shares	Share-holding ratio%	Title	Name	Nature of Relationships
Chairman	R.O.C.	Mu Te Investment Co., Ltd. Representative: Ter-Fung Tsao	Male Over 71	2022.06.16	Three years	1986.06.06	22,650,057	2.48	22,650,057	2.48	40,848,203	4.46	0	0	22,688,211
R & D Director of Quaker Oats Co., Ltd.
Factory Director of Taiwan Quaker Co., Ltd.
General Manager of Taiwan Quaker Co., Ltd.
General Manager of the Company CEO of the Company	Chairman, Standard Foods Corporation
Chairman, Standard Dairy Products Taiwan Ltd.
Chairman, Domex Technology Corporation
Chairman, Standard Beverage Company Ltd.
Chairman, Charng Hui Corporation Ltd.
Director, Accession Ltd.
Director, Standard Investment (Cayman) Ltd.
Director, Standard Corp (HK) Ltd.
Chairman, Mu Te Investment Co., Ltd.
Chairman, Chia Yun Investment Co., Ltd.
Director, Chia Chich Investment Co., Ltd
Institutional Directors' Representative, Polytronics Technology Corporation
Director, Green Wall Enterprise Co., Ltd.
Independent Director, PlexBio Co., Ltd.
Supervisor, Crosslink Semiconductor, Inc.
Chairman, Maven Optronics Co., Ltd.	Directors	Wendy Tsao	Sibling	None
Directors	R.O.C.	Mu Te Investment Co., Ltd. Representative: Jason Hsuan	Male Over 71	2016.06.15	0	0	0	0	0	0	0	0	Ph.D. in Systems Engineering, College of Science and Engineering of New York University	Director, Standard Foods Corporation
Chairman and CEO, TPV Technology Co., Ltd.
Chairman, Shanghai Standard Foods Co.
Chairman, Standard Investment (China) Ltd.
Chairman, Standard Foods (China) Ltd.
Chairman, Standard Foods (Xiamen) Co., Ltd.
Chairman, Le Bonta Wellness Co., Ltd.
Chairman, Shanghai New Vitality Health Technology (Group) Co., Ltd.
Chairman, Jiangsu Hua Sun Health Technology Co., Ltd.
Independent Director, Synnex Technology International Corporation	None	None	None	None
Directors	R.O.C.	Mu Te Investment Co., Ltd. Representative: Wendy Tsao	Female Over 71	2016.06.15	0	0	0	0	0	0	0	0	0	Soochow University	Director, Standard Foods Corporation
Chairman, Green Wall Enterprise Co., Ltd.
Chairman, Crosslink Semiconductor, Inc.
Chairman, Sparkle Inc.	Chairman	Ter-Fung Tsao	Sibling	None

Title	Nationality/Place of Registration	Name	Gender Age	Date Elected	Term	Date First Elected	Shareholding When Elected		Current Shareholding		Directors Shareholding		Spouse & Minor Shareholding		Shareholding by Nominees		Major Experience (Education)	Other Position Concurrently Held at the Company and Other Companies	Executives, Directors or Supervisors who Are Spouses or within the Second Degree of Kinship			Remarks
							Shares	Share-holding ratio%	Shares	Share-holding ratio%	Shares	Share-holding ratio%	Shares	Share-holding ratio%	Shares	Share-holding ratio%			Title	Name	Nature of Relationships
Directors	R.O.C.	Chang Hui Ltd. Representative: Arthur Tsao	Male 41-50	2022.06.16	Three years	2016.06.15	6,669,471	0.73	6,669,471	0.73	0	0	0	0	0	0	Master of Business Administration (MBA) of Stanford University, U.S.	Director, Standard Foods Corporation CEO and GM, Standard Foods Corporation Director, Standard Investment (China) Co., Ltd. Director, Shanghai Standard Foods Co., Ltd. Director, Standard Foods (China) Co., Ltd. Director, Standard Foods (Xiamen) Co., Ltd. Vice-Chairman, Shanghai Le Ben Tuo Health Technology Co., Ltd. Chairman, Shanghai Dermalab Corporation Vice-Chairman, Shanghai New Vitality Health Technology (Group) Co., Ltd. Director, Jiangsu Hua Sun Health Technology Co., Ltd. Director, Newtrin Holding PTE. LTD	Chairman	Ter-Fung Tsao	Father	None
Independent Director	R.O.C.	Ben Chang	Male 71-80	2022.06.16	Three years	2016.06.15	0	0.00	0	0.00	0	0	0	0	0	0	Master of Statistical Institute of National Chengchi University (NCCU)	Independent Director, Standard Foods Corporation	None	None	None	None
Independent Director	R.O.C.	George Chou	Male 71-80	2022.06.16	Three years	2016.06.15	0	0.00	0	0.00	0	0	0	0	0	0	Master of Mathematics of Colorado State University	Independent Director, Standard Foods Corporation Independent Director, Yulong Motor Co., Ltd. Independent Director, Yulong Finance Corporation Independent Director, G.M.I Technology Inc.	None	None	None	None
Independent Director	R.O.C.	Daniel Chiang	Male 61-70	2022.06.16	Three years	2016.06.15	0	0.00	0	0.00	0	0	0	0	0	0	Master of Political Economy of University of Texas General Manager of Trend Micro CEO of Huayuan Information Website Chairman of Sina.com	Independent Director, Standard Foods Corporation Chairman, Purestone Capital Group	None	None	None	None
Independent Director	R.O.C.	David Wang	Male 71-80	2022.06.16	Three years	2022.06.16	0	0.00	0	0.00	0	0	0	0	0	0	Master of Computer of Northern Illinois University	Independent Director, Standard Foods Corporation Chairman and CEO, Taiwan Medical Supply, Inc. Director, Lifeline Association Taipei Special consultant to the regional director, Rotary International 3522	None	None	None	None

Major shareholders of institutional shareholders
April 21, 2025

Name of Institutional Shareholder	Major Shareholder	Shareholding ratio %
Mu Te Investment Co., Ltd.	Ter-Fung Tsao	71.25
Charng Hui Ltd.	Standard Foods Corporation	100.00

Major Shareholders of Institutional Shareholders with Corporations as Their Major Shareholders:
April 21, 2025

Name of Institutional Shareholder	Major Shareholder	Shareholding ratio %
Standard Foods Corporation	Mu Te Investment Co., Ltd. Trust Property Account	19.53
	Chia Yun Investment Co., Ltd. Trust Property Account	16.14
	Chia Chieh Investment Co., Ltd. Trust Property Account	12.84
	Ter-Fung Tsao	4.46
	Mu Te Investment Co., Ltd.	2.48
	Lin Junyao	1.91
	Nan Shan Life Insurance Company, Ltd.	1.90
	Charng Hui Ltd.	0.73
	Citibank Taiwan in custody for Norges Bank	0.68
	Advanced Starlight Integrated International Stock Index under the custody of JPMorgan Chase Bank	0.67

Disclosure of Professional Qualifications of Directors and Independence of Independent Directors
April 21, 2025

| Qualification
Name | Professional Qualifications and Work Experience (Note 1) | Independence Criteria (Note 2) | Number of Other Public Companies where the Individual Concurrently Serves as an Independent Director |
| --- | --- | --- | --- |
| Mu Te Investment Co., Ltd. Representative: Ter-Fung Tsao | Professional Qualifications
Working experience in financial accounting, investment, asset management, industry knowledge and risk management.

Work Experience
R&D Director, Quaker Oats Company
GM/Factory Manager, Taiwan Quaker Co., Ltd.
GM, Standard Foods Corporation
Director, Standard Investment (China) Ltd.
Chairman, Standard Dairy Products Taiwan Ltd.
Chairman, Domex Technology Corporation
Chairman, Standard Beverage Company Ltd.
Chairman, Charng Hui Corporation Ltd.
Director, Accession Ltd.
Director, Standard Investment (Cayman) Ltd.
Director, Standard Corp (HK) Ltd.
Chairman, Mu Te Investment Co., Ltd.
Chairman, Chia Yun Investment Co., Ltd.
Director, Chia Chieh Investment Co., Ltd.
Director, Green Wall Enterprise Co., Ltd.
Independent Director, PlexBio Co., Ltd.
Supervisor, Crosslink Semiconductor, Inc.
Representative of the Corporate Director, Polytronics Technology Corporation
Chairman, Maven Optronics Co., Ltd.

Remarks
Not under any of the categories stated in Article 30 of the Company Act. | - | 1 |

| Mu Te Investment Co., Ltd. Representative: Jason Hsuan | Professional Qualifications
Working experience in financial accounting, investment, asset management, industry knowledge, information technology and risk management.

Work Experience
Non-Executive Director, Nanjing Panda Electronics Co., Ltd.
Independent Director, Array Inc.
Director, Standard Foods Corporation
Chairman and CEO, TPV Technology Co., Ltd.
Chairman, Shanghai Standard Foods Co., Ltd.
Chairman, Standard Investment (China) Ltd.
Chairman, Standard Foods (China) Ltd.
Chairman, Standard Foods (Xiamen) Co., Ltd.
Chairman, Le Bonta Wellness Co., Ltd.
Chairman, Shanghai New Vitality Health Technology (Group) Co., Ltd.
Chairman, Jiangsu Hua Sun Health Technology Co., Ltd.
Independent Director, Synnex Technology International Corporation

Remarks
Not under any of the categories stated in Article 30 of the Company Act. | - | 1 |
| --- | --- | --- | --- |
| Mu Te Investment Co., Ltd. Representative: Wendy Tsao | Professional Qualifications
Working experience in financial accounting, investment, asset management, industry knowledge and risk management.

Work Experience
Director, Charng Hui Ltd.
Chairman, Sparkle Inc.
Chairman, Green Wall Enterprise Co., Ltd.
Chairman, Crosslink Semiconductor, Inc.
Director, Standard Foods Corporation

Remarks
Not under any of the categories stated in Article 30 of the Company Act. | - | 0 |

| Charng Hui Ltd.
Representative: Arthur Tsao | Professional Qualifications
Working experience in financial accounting, investment, asset management, industry knowledge, information technology and risk management.

Work Experience
Consultant, McKinsey & Company Taiwan Branch
Chairman, Shanghai Le Ben De Health Technology Co., Ltd.
Chairman, Shanghai Le Ho Industrial Co., Ltd.
Chairman, Shanghai Le Min Industrial Co., Ltd
Director, CEO and GM, Standard Foods Corporation
Director, Standard Investment (China) Co., Ltd.
Director, Shanghai Standard Foods Co., Ltd.
Director, Standard Foods (China) Co., Ltd.
Director, Standard Foods (Xiamen) Co., Ltd.
Vice-Chairman, Shanghai Le Ben Tuo Health Technology Co., Ltd.
Chairman, Shanghai Dermalab Corporation
Vice-Chairman, Shanghai New Vitality Health Technology (Group) Co., Ltd.
Director, Jiangsu Hua Sun Health Technology Co., Ltd.
Director, Newtrin Holding PTE. LTD.

Remarks
Not under any of the categories stated in Article 30 of the Company Act. | - | 0 |
| --- | --- | --- | --- |
| Ben Chang | Professional Qualifications
Working experience in financial accounting, investment, asset management, industry knowledge and risk management.

Work Experience
Vice General Manager, China Development Industrial Bank
Independent Director, Scientech Corporation
Supervisor, Dynapack International Technology Corporation
GM, Hotung International Co., Ltd.
Manager, Far Eastern New Century Corporation
Lecturer at National Chengchi University / Fu Jen Catholic University
Senior Industry Consultant, Asia Pacific Industrial Analysis Association,
Independent Director, Raydium Semiconductor Corporation
Independent Director, Pegatron Corporation
Representative, the Corporate Director, Polytronics Technology Corporation
Independent Director, Standard Foods Corporation

Remarks
Not under any of the categories stated in Article 30 of the Company Act. | An independent director; meeting the following independence criteria:
1. Not a director, supervisor, or employee of the Company or its affiliates; including but not limited to the independent director himself/herself, spouses, or second-degree relatives; not holding shares of the Company.
2. Not holding shares of the Company.
3. Not serving as a director, supervisor, or an employee of a company with which the Company has a specific relationship.
4. Not having received any remuneration for business, legal, financial, and accounting services provided by the Company or its affiliates in the past two years. | 0 |

| George Chou | Professional Qualifications
Working experience in financial accounting, investment, asset management, industry knowledge and risk management.

Work Experience
GM, VIBO Telecom Inc.
GM / COO, Taiwan Fixed Network Co., Ltd.
COO, Enterprise Business Group, Taiwan Mobile Co., Ltd.
CEO, TFN Media Co., Ltd.
Vice Chairman / GM, Taiwan Telecommunications Co., Ltd.
Vice President / Chief Representative,
Executive Vice President / Chief Representative, PCCW Limited
GM, General Manager, Taiwan Branch, HKT Limited
Managing Director, Taiwan Branch,Siemens Nixdorf Informations System AG
Executive Assistant to the General Manager, Siemens Telecommunications Systems ltd.
Representative of the Corporate Director, Kino Co. Ltd.
Representative of the Corporate Director, EasyCard Corporation
Director, Kiwi technology Inc.
Independent Director, Fubon Life Insurance Co., Ltd.
Independent Director, Yulon Motor Co., Ltd.
Independent Director, Yulon Finance Co., Ltd.
Independent Director, G.M.I Technology Inc.
Independent Director, Standard Foods Corporation

Remarks
Not under any of the categories stated in Article 30 of the Company Act. | | 3 |
| --- | --- | --- | --- |
| Daniel Chiang | Professional Qualifications
Working experience in financial accounting, investment, asset management, industry knowledge and risk management.

Work Experience
CEO, Sina.com Online
Chairman, Sina.com Inc.
Vice Chairman / GM, Trend Micro Inc.
Chairman, Purestone Capital Group
Independent Director, TPK Holding Co.,Ltd
Independent Director, Standard Foods Corporation

Remarks
Not under any of the categories stated in Article 30 of the Company Act. | | 0 |

| David Wang | Professional Qualifications
Working experience in financial accounting, investment, asset management, industry knowledge and risk management.

Work Experience
Chairman/CEO, Unison Surgicals Company
Chairman, Great Health Enterprise Corporation
Assistant Director, Rotary International 3520
President, Rotary Club of Taipei Chung-Cheng
Board Member, Taipei American School
Vice President, Unison Company Ltd.
Executive Supervisor, Make-A-Wish Taiwan
Chairman/CEO, Taiwan Medical Supply, Inc.
Director, Lifeline Association, Ta pei
Special consultant, Rotary International 3522
Independent Director, Standard Foods Corporation

Remarks
Not under any of the categories stated in Article 30 of the Company Act. | | 0 |
| --- | --- | --- | --- |

Board Diversity and Independence

(1) Board Diversity

In order to strengthen corporate governance and promote the sound development of board composition and structure, Paragraph 3, Article 20 of the "Corporate Governance Best Practice Principles" issued by the Company in 2016 states that Board members shall be diverse in form, and the corresponding diversity policies shall be formulated in accordance with its own operations, operating patterns and development demands, including but not limited to the following two standards:

I. Basic requirements and values: gender, age, nationality, and culture.

II. Professional knowledge and skills: Professional background (such as law, accounting, industry, finance, marketing or technology), professional skills and industry experience.

The current Board of Directors of the company consists of 8 directors, including 4 directors and 4 independent directors with rich experience and expertise in the fields of finance and economics, business and management. The company also pays attention to gender equality, improves women's participation in decision-making and improves the structure of the Board of Directors. The target of female director ratio is to reach more than one-third of the board seats. At present, there is a female director among 8 directors, which stands for 12.5% of total directors.

To strengthen gender diversity on the Board and align with the Company's goals in corporate governance and sustainable development, the Company has adopted the following measures to gradually achieve the target of having at least one-third of board seats held by either gender :

I. The Company plans to appoint at least one female director in 2025.

II. The Company will continue to actively seek and cultivate female candidates with professional qualifications and diverse backgrounds to serve on the Board.

(2) Independence of the Board of Directors

All independent directors comply with the regulations set by the Securities and Futures Bureau of the Financial Supervisory Commission regarding independent directors. The Company also conducts a qualification check and issues a declaration letter for each independent director at the time of election and obtains a declaration letter for each independent director’s independence and concurrent employment requirements, confirming that there are no circumstances specified in Items 3 and 4 of Article 26-3 of the Securities and Exchange Act.

For details on the independence of the Board of Directors, please refer to pages 8-12 of this Annual Report.

For information on each director's education, gender, and work experience, please refer to pages 5-6 of this Annual report.

Note 1: Professional qualifications and experience: Specify the professional qualifications and experience of individual directors and supervisors. If the person is a member of the Audit Committee with accounting or financial expertise, their accounting or financial background and work experience shall be specified; while stating whether the member meets the circumstances provided in Article 30 of the Company Act.

Note 2: For independent directors, their state of independence must be specified:

Including but not limited to whether they, their spouses, second-degree relatives serve as a director, supervisor or employer in the Company or affiliates.
The proportion of shares held by the independent director himself/herself, their spouses or second-degree relatives (or in the name of others).
Whether the independent director serves as a director, supervisor or an employee of a company with which the Company has a specific relationship (refer to Subparagraphs 5 to 8, Paragraph 1, Article 3 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies).
And the amount of remuneration receives for business, legal, financial and accounting services provided by the Company or its affiliates in the past two years.

April 21, 2025

President, Vice Presidents, Associate Managers, and Supervisors of All the Company's Divisions and Branch Units

Title	Nationality/Place of Registration	Name	Gender	Date Elected	Shareholding		Spouse & Minor Shareholding		Shareholding by Nominees		Major Experience (Education)	Other Position Concurrently Held at Other Companies	Managerial Officer who Are Spouses or within the Second Degree of Kinship
					Shares	% of Shareholding	Shares	% of Shareholding	Shares	% of Shareholding			Title	Name	Nature of Relationships
CEO	R.O.C.	Arthur Tsao	Male	2019.03.22	-	-	-	-	-	-	Master of Business Administration (MBA) of Stanford University, U.S.	Director, Standard Investment (China) Co., Ltd.
Director, Shanghai Standard Foods Co., Ltd.
Director, Standard Foods (China) Co., Ltd.
Director, Standard Foods (Xiamen) Co., Ltd.
Vice-Chairman, Shanghai Le Ben Tuo Health Technology Co., Ltd.
Chairman, Shanghai Dermalab Corporation
Vice-Chairman, Shanghai New Vitality Health Technology (Group) Co., Ltd.
Director, Jiangsu Hua Sun Health Technology Co., Ltd.
Director, Newtrin Holding PTE. LTD	Chairman	Ter-Fung Tsao	father and son	-
General Manager				2020.04.01
Financial Officer	R.O.C.	Lynn Lee	Female	2021.02.28	-	-	-	-	-	-	Master of Business Administration of City, University of London
Director of Finance of the Nielsen Company Taiwan Ltd.	None	None	None	None	None

If the general manager or person of an equivalent post (the highest level manager) and the chairperson of the board of directors of a company are the same person, spouses, or relatives within the first degree of kinship, an explanation shall be given of the reason for, reasonableness, necessity thereof, and the measures adopted in response thereto:

Increasing the number of independent directors and ensuring that a majority of directors do not concurrently serve as an employee or managerial officer.

II. Remuneration Paid to the Directors, Supervisors, General Manager and Deputy General Managers

Remuneration of general directors and independent directors

Unit: NT$1,000

Title	Name	Remuneration Paid to Directors							Sum of A+B+C+D and ratio to net income (Note 1)	Relevant Remuneration Received by Directors who Are Also Employees								Sum of A+B+C+D+E+F+G and ratio to net income (Note 1)		Remuneration received from investee enterprises other than subsidiaries or from the parent company
		Base compensation (A)	Retirement pay and pension (B)	Director profit-sharing compensation (C)	Expenses and perquisites (D)	Salary, rewards, and special disbursements (E)	Retirement pay and pension (F)	Employee profit-sharing compensation (G)				Amount in cash	Amount in stock
									Amount in cash	Amount in stock	Amount in cash			Amount in stock
				Funding		Investment	Investment	Funding							Investment	Investment	Funding	Investment
Chairman	Representative of Mu Te Investment Co., Ltd.: Ter-Fung Tsao	-	-	-	-	1,473	1,473	60	60	1,533 0.09	1,533 0.09	9,601	9,601	440	440	-	-	-	-	11,574 0.67	11,574 0.67	None
Directors	Representative of Mu Te Investment Co., Ltd.: Jason Hsuan	-	-	-	-	1,440	1,440	60	60	1,500 0.09	1,500 0.09	-	-	-	-	-	-	-	-	1,500 0.09	1,500 0.09	None
Directors	Representative of Mu Te Investment Co., Ltd.: Wendy Tsao	-	-	-	-	1,440	1,440	60	60	1,500 0.09	1,500 0.09	-	-	-	-	-	-	-	-	1,500 0.09	1,500 0.09	None
Directors	Representative of Charng Hui Ltd. Arthur Tsao	-	-	-	-	1,440	1,440	60	60	1,500 0.09	1,500 0.09	5,570	5,570	241	241	-	-	-	-	7,311 0.42	7,311 0.42	None
Independent Director	Ben Chang	-	-	-	-	1,440	1,440	60	60	1,500 0.09	1,500 0.09	-	-	-	-	-	-	-	-	1,500 0.09	1,500 0.09	None
Independent Director	George Chou	-	-	-	-	1,440	1,440	60	60	1,500 0.09	1,500 0.09	-	-	-	-	-	-	-	-	1,500 0.09	1,500 0.09	None
Independent Director	Daniel Chiang	-	-	-	-	1,440	1,440	60	60	1,500 0.09	1,500 0.09	-	-	-	-	-	-	-	-	1,500 0.09	1,500 0.09	None
Independent Director	David Wang	-	-	-	-	1,440	1,440	60	60	1,500 0.09	1,500 0.09	-	-	-	-	-	-	-	-	1,500 0.09	1,500 0.09	None
1. Remuneration policy, standards and composition, procedures and the correlation with operation performance and future risks: please refer to page 17 of this Annual Report.2. Other than disclosures in the above table, remuneration paid to directors for providing services (e.g. providing consulting services as a non-employee) for all companies in financial statements in the most recent year: None.

Note 1: Refers to the after-tax net income in 2024 individual financial statement.

2. Remuneration of the General Manager and Deputy General Manager

Dec. 31, 2024; Unit: NT$1,000

Title	Name	Salary (A)		Retirement pay and pension (B) (Note 2)		Rewards and special disbursements (C)		Employee profit-sharing compensation (D)				Sum of A+B+C+D and ratio to net income (%) (Note 1)		Remuneration received from investee enterprises other than subsidiaries or from the parent company
		The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company		All consolidated entities		The Company	All consolidated entities
								Amount in cash	Amount in stock	Amount in cash	Amount in stock
CEO & General Manager	Arthur Tsao	4,298	4,298	241	241	1,272	1,272	0	0	0	0	5,811 0.34	5,811 0.34	None

Note 1: Refers to the after-tax net income in 2024 individual financial statement.
Note 2: Refers to the provision particularly made for pension fund paid to the appointed manager.

3. Name of manager in charge of distributing employee remuneration and the status of distribution

Dec. 31, 2024; Unit: NT$1,000

Title	Name	Amount in stock	Amount in cash	Total	As a % of net profit (Note 1)
CEO and General Manager	Arthur Tsao	0	0	0	0%
Financial Officer	Lynn Lee
Accounting Manager	Thomas Huang

Note 1: Refers to the after-tax net income in 2024 individual financial statement.
(1) If a company listed on the TWSE or the TPEx has the circumstances specified in Sub-item 1 or Sub-item 5 of Item 2, Paragraph 3, Article 10 of the Regulations, it shall disclose the individual remuneration paid to each of its five highest remunerated management personnel: None.

Separately compare and describe total remuneration, as a percentage of net income stated in the parent company only financial reports or individual financial reports, as paid by this company and by each other company included in the consolidated financial statements during the past 2 fiscal years to directors, supervisors, general managers, and assistant general managers, 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) Analysis of the remunerations paid within the most recent two years
Unit: NT$1,000

Title	2023				2024
	Remuneration		Ratio of Total Remuneration to Net Income (%)		Remuneration		Ratio of Total Remuneration to Net Income (%)
	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities
Directors	8,593	8,593	0.70	0.70	12,033	12,033	0.69	0.69
General Manager	4,851	4,851	0.40	0.40	5,811	5,811	0.34	0.34
Total	13,444	13,444	1.10	1.10	17,844	17,844	1.03	1.03

(1) Analysis on the ratio of the total remuneration paid to the Company's Directors, Supervisors and General Manager during the most recent 2 fiscal years to after-tax net income in the individual financial statement: The total remuneration paid to the Company's Directors, Supervisors and General Manager of the Company and all companies listed in the consolidated financial statements in 2024 was equivalent to that of 2023.
(2) Please refer to Item (V) on pages 112-113 of this Annual Report for the payment policy of remunerations to employees and directors

(2) Remuneration policy, standards and composition, procedures and the correlation with operation performance and future risks:

The remuneration ratio for the Company's directors and managers is handled in accordance with Article 38 of the Company's Articles of Incorporation. If there is profit before tax before the distribution of remuneration to employees and directors, the Company may allocate not more than 0.75% of the profit before tax before the distribution of remuneration to directors by resolution of the Board of Directors.

Remuneration to the Company's directors (including independent directors) and managers are determined by taking into account their overall participation in the Company's operations and the performance evaluation. The annual performance of directors and managers is evaluated at the end of a fiscal year in accordance with the Company's "Remuneration Committee Charter". The aspects of evaluation include the implementation and business management abilities (e.g., practices of business philosophy, implementation of corporate culture and demonstration of leadership and management abilities) of company core values, financial and business performance indicators and comprehensive management indicators (e.g., financial and business performances, marketing leadership, innovation and risk management), continuous education, as well as their involvement in sustainable management. In consideration of improving the Company's annual strategic objectives, the achievement rate of the annual contribution and key performance indicator (KPI) of managers are included in the evaluation of performance bonus, which is reported to the Board meeting for approval prior to implementation.

III. Implementation of Corporate Governance

Information on operations of the Board of Directors

In 2024 and up to the publication date of the annual report, seven Board meetings were held (A). The attendance of directors is as follows:

Title	Name	Number of attendance in person (B)	Time of proxy attendance	Percentage of attendance in person (%) [B/A]
Chairman	Mu Te Investment Co., Ltd.
Representative: Ter-Fung Tsao	9	-	100%
Directors	Mu Te Investment Co., Ltd.
Representative: Jason Hsuan	6	3	67%
Directors	Mu Te Investment Co., Ltd.
Representative: Wendy Tsao	8	1	89%
Directors	Charng Hui Ltd.
Representative: Arthur Tsao	9	-	100%
Independent Director	Ben Chang	8	1	89%
Independent Director	George Chou	9	-	100%
Independent Director	Daniel Chiang	6	3	67%
Independent Director	David Wang	9	-	100%

Other matters:

Where the proceedings of the board meeting include one of the following circumstances, then describe the date, session, topic discussed, opinions of every independent director, and their handling:
Matters referred to in Article 14-3 of the Securities and Exchange Act.
In 2024 and up to the publication date of the annual report, nine Board meetings were held. The Board’s resolutions are disclosed on page 98 of this Annual Report. All independent directors passed the matters listed in Article 14-3 of the Securities and Exchange Act.
In addition to the aforementioned matters, other motions resolved by the Board of Directors that are objected to by Independent Directors or expressed reservations and recorded or declared in writing: None.
In regard to the recusal of directors from voting due to conflict of interests, the name of the directors, the proposal, reasons for recusal due to conflict of interests and voting outcomes should be stated:

The proceedings and implementation of conflict of interest in each meeting were in compliance with the Company’s Rules of Procedure for Board of Directors Meeting.

The exchange-listed and OTC-listed companies should disclose the information such as the evaluation cycles, evaluation periods, scope and method of evaluation, and contents of evaluation for evaluating the performance of the board members (on themselves or peers) and fill in the implementation of evaluation for the Board of Directors:

To implement corporate governance and enhance the Company’s board functions, and to set forth performance objectives to improve the operational efficiency of the board of directors, the “Rules

for Performance Evaluation of Board of Directors” was approved at the board meeting on November 20, 2020, pursuant to Article 37 of the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies for compliance. The Company’s board performance evaluation shall be conducted by an external independent professional institution or a panel of external experts and scholars at least once every three years as required by Article 3 of the “Rules for Performance Evaluation of Board of Directors” of the Company. The internal board performance evaluation shall be subject to review at least once a year. External board performance evaluations and internal self-board performance evaluations shall be completed at the latest board meeting of the following year.

External

In 2023, the Company commissioned an external professional and independent organization, the “Taiwan Integrity Management Association,” to conduct an external performance evaluation of the Board of Directors. The evaluation was conducted through questionnaires and individual interviews with all directors. The overall assessment was completed, with all members of the evaluation committee signing a declaration of independence. A report containing overall observations and optimization recommendations was issued and submitted to the Board of Directors in March 2024.

Internal

Basis	The Company’s “Rules for Performance Evaluation of Board of Directors”
Cycles	Conducted once a year
Period	January 1, 2024 - December 31, 2024
Scope	Performance evaluation of the Board of Directors and individual directors
Method	Self-evaluation by board member, the grading criteria for each appraisal item (indicator) are as follows
Five grades: Excellent (5), Good (4), Satisfactory (3), Fair (2), and Needs improvement (1).
Results	In general, the operations of the board members, the Board and the functional committees are sound. Based on the results of the performance evaluations, the Company will continue to strengthen the functions of the Board in order to increase the Company’s governance effectiveness. The results of the evaluations are disclosed on the company website and the annual report.
Report	On Mar. 11, 2025, the Company reported the results to the Board of Directors

(1) "Self-Evaluation Questionnaire of Board Members" is a self-evaluation conducted by all Board members.

The indicators for the evaluation of Board members include six major aspects, totaling 23 indicators. The average score for each aspect was between 4.80 and 5.00 (out of 5), showing that the operation of the Board of Directors as a whole is excellent.

Evaluation Aspects	Question	AVG
Understanding of the Company's goals and mission	3	5.00
Awareness of director's duties	3	5.00
Involvement in the Company's operations	8	4.80
Internal relationship and communication	3	4.88
Director's professionalism and continuing knowledge development	3	5.00
Internal controls	3	5.00
Total	23	4.95

(2) "Self-Evaluation Questionnaire of Board Performance" is a self-evaluation conducted by all Board members.

The indicators for the evaluation of the Board include five major aspects, totaling 45 indicators.

The average score for each aspect was between 4.71 and 5.00 (out of 5), showing that the operation of the Board of Directors as a whole is excellent.

Evaluation Aspects	Question	AVG
Involvement in the Company’s operations	12	4.75
Enhancement of the quality of the board’s decision- making	12	5.00
Makeup and structure of the board	7	4.71
Election of board members and continuing knowledge development	7	5.00
Internal controls	7	4.96
Total	45	4.89

(3) "Self-Evaluation Questionnaire of the Functional Committee Performance" is a self-evaluation conducted by all Committee members.

"Self-Evaluation Questionnaire of the Audit Committee" is a self-evaluation conducted by all committee members.

The indicators for the evaluation of the Audit Committee include five major aspects, totaling 22 indicators. The average score for each aspect was between 4.94 and 5.00 (out of 5), showing that the operations of the Audit committee is excellent.

Evaluation Aspects	Question	AVG
Involvement in the Company’s operations	4	4.94
Awareness of Audit Committee duties	5	5.00
Enhancement of the quality of the Audit Committee’s decision-making	7	5.00
Composition and Member Selection of the Audit Committee	3	5.00
Internal controls	3	5.00
Total	22	4.99

"Self-Evaluation Questionnaire of the Remuneration Committee" is a self-evaluation conducted by all committee members.

The indicators for the evaluation of the Remuneration Committee include four major aspects, totaling 19 indicators. The average score for each aspect was 5.00 (out of 5), showing that the operations of the Remuneration committee is excellent.

Evaluation Aspects	Question	AVG
Involvement in the Company’s operations	4	5.00
Awareness of Remuneration Committee duties	5	5.00
Enhancement of the quality of the Remuneration Committee’s decision- making	7	5.00
Composition and Member Selection of the Remuneration Committee	3	5.00
Total	19	5.00

■ Goals for strengthening the functionality of the Board in the current and the latest year (e.g. establishing the Audit Committee and enhancing information transparency), and implementation status:

Operations of the Sustainable Development Committee:

In order to strengthen the functions of the Board of Directors, practice the Company's sustainable core values, and actively promote and strengthen corporate governance functions related to sustainable operation, sustainable development and corporate social responsibility, the Company established the "Sustainable Development Committee" in May 2023.

The Sustainable Development Committee Charter is adopted in accordance with the Company's "Corporate Governance Best-Practice Principles" and the "Sustainable Development Best-Practice Principles." The Sustainable Development Committee is the decision-making and supervision unit for the Company's sustainable development, including three aspects, Corporate Governance (G), Environmental (E) and Social (S) aspects, strengthening the Company's management system, and devoting to environmental protection and fulfilling social responsibilities. With the help of the Sustainable Development Committee, the Board of Directors fulfills its duties of protecting the rights and interests of the Company, employees, shareholders, and stakeholders.

The Committee consists of three directors, two of whom are independent directors. The Committee convenes at least two meetings a year.

(1) The main duties are as follows:

Establishment of the Company's sustainable development policy.
Establishment of goals, strategies and implementation plans for corporate sustainable development, including sustainable governance, ethical management, and environmental and social aspects.
■ Review, follow up and revise the implementation and effectiveness of the Company's sustainable development, and report to the Board of Directors on a regular basis.
Pay attention to all stakeholders, including the issues shareholders, customers, suppliers, employees, governments, non-profit organizations, communities, and media care about, and the supervisory communication plan.
■ Implementation of sustainability-related information management policies and the quality of disclosure.

(2) In 2024, four meetings were convened, and the discussion topics were as follows :

Date	Discussion Topics
Mar. 19, 2024	“Sustainable Development Committee Charter”Material Topics and Optimization Measures in the 2023 Sustainability ReportReview of Sustainability BudgetProgress Updates from Each TeamSustainable Food Benchmark Analysis
Apr. 15, 2024	Discussion on Sustainability Strategy
Jul. 22, 2024	Report on Coordination Items for the Sustainability ReportProgress Updates from Each TeamSustainability Communication Messaging Framework
Nov. 20, 2024	Sustainability Report Outcomes and Regulatory Promotion2024 Sustainability Project Progress and Outcome Sharing2025 Key Sustainability Projects PresentationESG Budget Utilization and Planning

(3) Information on members of the Sustainable Development Committee.

*Please refer to page 6 of this Annual Report for education attainment and experience.

Member	Job Title	Name	Expertise
Convener	Directors	Arthur Tsao	■ Professional skills in business management, sustainable development, industry knowledge, risk management, and decision-making and judgment
■ Participation in ESG training
■ Practical experience in the implementation of corporate sustainability to achieve sustainable development of the company
Committee Members	Independent Director	George Chou	■ Professional skills in sustainable development, industry knowledge and risk management
■ Serve as an independent director of other listed companies, with professional knowledge in accounting and financial accounting analysis, and understand the importance of corporate sustainable development
■ Participation in ESG training
Committee Members	Independent Director	David Wang	■ Professional skills in business management, sustainable development, industry knowledge, and risk management
■ Participation in ESG training

(4) Matters recently reported to the Board of Directors are as follows:

Date of the board meeting	Reporting matters	Directors’ feedback and opinions
Aug. 07, 2024	■ Description of the Company’s 2023 Sustainability Report.	The directors have not made any major adjustment to the promotion of sustainable development.
The general advice is as follows:
1. Improve the writing of the sustainability report so that stakeholders can understand the
Nov. 04, 2024	■ Continue to promote and implement the Company’s sustainable development.
■ 2024 Key Points for Sustainable Development Implementation
✓ Establishment of the sustainability section on

Date of the board meeting	Reporting matters	Directors’ feedback and opinions
	the group’s official website.
✓ Implementation of internal sustainability learning resources within the group.
✓ Communication and organization of sustainability management concepts and message.
✓ Execution and tracking of various environmental sustainability projects.
✓ Transforming charitable donations into actions for sustainability.
■ 2025 Focus Areas for Sustainability Development
✓ Continuation of strengthening and practicing sustainability policies.
✓ Implementation of the 4G policy
Green manufacturing,
Green products,
Green operations,
Green partner,
to enhance green and low-carbon competitiveness.
✓ Follow-up and update of relevant policies and regulations.	implementation of the Company’s sustainable development.
2. Environmental sustainability projects are progressing steadily, and greenhouse gas inventory has been extended to subsidiaries.
3. Continuously conduct sustainability knowledge training, integrate and share resources to enhance the effectiveness of sustainable development.
4. In response to declining birth rates and an aging population, charitable activities are being transformed to maximize their impact.
5. Implementing and executing sustainability policies.

Establish corporate governance regulations: in addition to the Articles of Incorporation defining the power and function of Board of Directors, “Rules of Procedures for Board of Directors' Meeting,” “Standard Operating Procedures for Directors' Request,” “Corporate Governance Best Practice Principles,” “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies,” “Internal Operating Procedures for Major Information Processing,” “Code of Ethics,” “Ethical Corporate Management Best Practice Principles,” “Procedures for Preventing Insider Trading Management,” “Sustainable Development Committee Charter,” “Policy on Linking Executive Compensation to ESG Performance,” “Succession Planning for Board Members and Management Positions,” “Employee Grievance and Whistleblowing Procedures,” “Internal Control System - Sustainability Information Management,” and many other regulations shall be concluded, to strengthen board operations and corporate governance.

The company has covered directors' liability insurance with the current insurance amount reaching US$ 15 million, so as to disperse the legal liability risks of directors and improve the corporate government ability.
The company shall disclose relevant information on Market Observation Post System set up by the government, and disclose investor information, corporate governance, and corporate social responsibility information on the official website of the company, aiming to fully and promptly disclose information concerned by various stakeholders.
In general, the operations of the Board and the functional committees are sound. Based on the results of the performance evaluations, the Company will continue to strengthen the functions of the Board in order to increase the Company's governance effectiveness. The results of the evaluations are disclosed on the company website and the annual report.

2. Operations of the Audit Committee

The company's Audit Committee is composed of 4 independent directors. At least one meeting is held per quarter. The purpose of the Committee is to assist the Board of Directors in conducting their supervision duties and duties set forth in the Securities and Exchange Act, the Company Act and Bylaws. As well as this, the Committee also regularly communicates with the Company's CPAs as well as the review of the appointment, independence, and performance of CPAs. At the same time, the Company's internal auditors regularly submit audit summary reports to the Audit Committee in accordance with the annual audit plan. The Audit Committee also audits on the Company's internal control system, internal auditors, and their work.

The matters reviewed mainly include:

(1) Adoption or amendment of an internal control system pursuant to Article 14-1.

(2) Assessment of the effectiveness of the internal control system.

(3) Adoption or amendment, pursuant to Article 36-1, of handling procedures for financial or operational actions of material significance, such as acquisition or disposal of assets, derivatives trading, extension of monetary loans to others, or endorsements or guarantees for others.

(4) A matter bearing on the personal interest of a director.

(5) A material asset or derivatives transaction.

(6) A material monetary loan, endorsement, or provision of guarantee.

(7) The offering, issuance, or private placement of any equity-type securities.

(8) The hiring or dismissal of an attesting CPA, or the compensation given thereto.

(9) The appointment or discharge of a financial, accounting, or internal auditing officer.

(10) Annual financial reports and second quarter financial reports that must be audited and attested by a CPA, which are signed or sealed by the chairperson, managerial officer, and accounting officer.

(11) Reviewing various risk management policies.

(12) Reviewing the adequacy of the risk management framework.

(13) Review the early warning and response measures for major risk management issues and supervise improvement mechanisms.

(14) Regularly report to the board on the status of risk management implementation.

(15) Any other material matter so required by the company or the Competent Authority.

In 2024 and up to the publication date of the annual report, six Audit Committee meetings were held (A), the attendance of independent directors is summarized as follows:

Title	Name	Number of attendances in person (B)	Time of proxy attendance	Percentage of attendance in person (%) [B/A]	Remarks
Independent Director	Ben Chang	8	-	100%	None
Independent Director	George Chou	8	-	100%
Independent Director	Daniel Chiang	6	2	75%
Independent Director	David Wang	8	-	100%

Other matters:

For Audit Committee meetings that meet any of the following descriptions, state the date and session of the Audit Committee meeting held, the discussed topics, the content of the objections, reservations or material recommendations on independent directors, the Audit Committee's resolution, and how the company has responded to Audit Committee's opinions.

(1) Matters listed in Article 14-5 of the Securities and Exchange Act In 2024 and up to the publication date of the annual report, six Audit Committee meetings were held. The motions are as the following table. The Audit Committee passed the matters listed in Article 14-5 of the Securities and Exchange rate.

Date of Audit Committee meeting (session)	Discussed topic	The Audit Committee's resolution, and how the company has responded to Audit Committee's opinions
Jan. 24, 2024 the 7th meeting of the 3rd Audit Committee	1. Approved the investment proposal in H2U. 2. Approved the motion for extending credit lines from financial institution.	Submitted to the Board of Directors for resolution and approved by all directors present at the meeting without objection
Mar. 11, 2024 the 8th meeting of the 3rd Audit Committee	1. Approved the motion for the 2024 business plan and budget. 2. Approved the motion for the 2023 financial report and consolidated financial report. 3. Approved the motion for the 2023 earnings distribution. 4. Approved the motion for the 2023 statement of internal control. 5. Approved the evaluation of the independence and suitability of the external auditors with reference to the AQI.	Submitted to the Board of Directors for resolution and approved by all directors present at the meeting without objection
May 09, 2024 the 9th meeting of the 3rd Audit Committee	1. Approved the motion for the consolidated financial statements for Q1 2024. 2. Approved the amendments to the provisions related to the “Accounts Receivable Recognition Procedures” under the Company’s internal control system items.	Submitted to the Board of Directors for resolution and approved by all directors present at the meeting without objection

Date of Audit Committee meeting (session)	Discussed topic	The Audit Committee’s resolution, and how the company has responded to Audit Committee’s opinions
	3. Approved the motion for loaning funds to the subsidiary in China.
4. Approved the motion to lend funds to subsidiary Charng Hui Company Limited.
5. Approved the motion for providing an endorsement guarantee for the subsidiary Charng Hui Company Limited to extend credit lines from financial institutions.
6. Approved the motion for extending credit lines from financial institution.
7. Approved the investment proposal in Sancci Manufacture Food Company.
Aug. 07, 2024
the 10th meeting of the 3rd Audit Committee	1. Approved the motion for the consolidated financial statements for Q2 2024.
2. Approved the establishment of a subsidiary by Shanghai Dermalab Corporation.
3. Approved the motion for extending credit lines from financial institution.	Submitted to the Board of Directors for resolution and approved by all directors present at the meeting without objection
Oct. 03, 2024
the 11th meeting of the 3rd Audit Committee	1. Approved the construction of an automated warehouse facility by the subsidiary, Standard Foods (China) Ltd.( Taicang Plant)
2. Approved the return of idle land at the Taicang Plant of Standard Foods (China) Ltd. to the local government.
3. Approved the proposal by the subsidiary, Shanghai Dermalab Corporation to apply for a foreign exchange derivative product limit with financial institution for hedging purposes.	Submitted to the Board of Directors for resolution and approved by all directors present at the meeting without objection
Nov. 04, 2024
the 12th meeting of the 3rd Audit Committee	1. Approved the motion for the consolidated financial statements for Q3 2024.
2. Approved the motion of the remuneration of the Company’s CPAs for 2024.
3. Approved the motion for the Company’s 2025 audit plan.
4. Approved the amendments to the provisions related to the “Control of Information Security Inspection” under the Company’s internal control system items.
5. Approved the amendments to the provisions related to the “Sustainability Information Management” under the Company’s internal control system items.	Submitted to the Board of Directors for resolution and approved by all directors present at the meeting without objection

Date of Audit Committee meeting (session)	Discussed topic	The Audit Committee’s resolution, and how the company has responded to Audit Committee’s opinions
	6. Approved the motion for the amendment to the “Audit Committee Charter.”
7. Approved the motion for extending credit lines from financial institution.
8. Approved the motion to lend funds to subsidiary Charng Hui Company Limited for reinvestment.
Dec. 26, 2024
the 13th meeting of the 3rd Audit Committee	1. Approved the motion for extending credit lines from financial institution.
2. Approved the motion to lend funds to subsidiary Dermalab S.A.
3. Approved the investment proposal in H2U.
4. Approved the establishment of a subsidiary, Newtrin Holding PTE. LTD. in Singapore by the Company, and reinvestment to establish subsidiaries in Japan and Vietnam.	Submitted to the Board of Directors for resolution and approved by all directors present at the meeting without objection
Mar. 11, 2025
the 14th meeting of the 3rd Audit Committee	1. Approved the motion for the 2024 financial report and consolidated financial report.
2. Approved the motion for the 2024 earnings distribution.
3. Approved the motion for the 2025 business plan and budget.
4. Approved the motion for the 2024 statement of internal control.
5. Approved the evaluation of the independence and suitability of the external auditors with reference to the AQI.
6. Approved the amendments to the provisions related to the “Payroll Operations” under the Company’s internal control system items.
7. Approved the motion for extending credit lines from financial institution.
8. Approved the proposal by the subsidiary, Shanghai Dermalab Corporation to apply for a foreign exchange derivative product limit with financial institution for hedging purposes.	Submitted to the Board of Directors for resolution and approved by all directors present at the meeting without objection

(2) Except the items in the preceding issues, other resolutions which were not approved by the Audit Committee but approved by two-thirds of all Board of Directors members: None.

In regard to the recusal of Independent Directors from voting due to conflict of interests, the name of the Independent Directors, the proposal content, reasons for recusal due to conflict of interests and voting outcomes should be specified: None.
Communication between the independent director and internal audit supervisor and the CPA:

(1) Communication between the independent director and internal audit supervisor

Communication principle: The Company’s head of internal audit convenes an

independent meeting with independent directors at least once a year. The Committee reports on the audit, communicates the audit report, and follows up the implementation of the report to the members of the Audit Committee at the meeting.

Communication status: The Company's independent directors maintain good communication over the auditing operations.
Main communication matters in 2024:

Date	Communication matter	Communication result
Dec. 19, 2024 Meeting for annual business implementation report for internal audit	·Implementation report for internal audit for November to December 2024
·Audit Operations report of 2024
·Description of 2025 audit plan	No objection

(2) Communication between the independent director and the CPA

Communication principle: The CPA convenes an independent meeting with independent directors at least once a year. The review or audit results of the financial statements and internal control audit status of the Company and domestic and overseas subsidiaries are reported to the independent directors.
Communication status: The Company's independent directors maintain sound communication with CPAs.
Main communication matters in 2024:

Date	Communication matter	Communication result
Mar. 11, 2024 Meeting for annual audit results	·Summary of Audit Results and Conclusions for the Consolidated and Individual Financial Statements for the 2023
·Matters of Significant Concern and key audit matters	No objection
Dec. 19, 2024 Meeting for annual audit plan	·Scope and methodology of audit for the Consolidated and Individual Financial Statements for the 2024
·Significant risks and key audit matters
·Regulations on International Code of Ethics for Professional Accountants
·Pre-approval of non-assurance services and independence assessment
·Audit Quality Indicators (AQI) Report
·Explanation of Regulatory Amendments	No objection

(3) Supervisors' Participation in Board Meetings

The company has set up an Audit Committee to replace the supervisors on June 15, 2016.

State of Corporate Governance, Deviations to the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies," and the Reasons for the Said Deviations

Evaluation item	Implementation status			Deviations from the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies" and reasons thereof
		Yes	No		Description
I.	Does the company establish and disclose the "Corporate Governance Best Practice Principles" based on "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies"?	V		The Company has adopted the "Corporate Governance Best Practice Principles", which specifies relevant contents such as protecting shareholders' rights and interests, intensifying the Board's functions, respecting stakeholders' rights and interests and improving information transparency.	None
II.	Shareholding structure & shareholders' rights
(I) Does the company establish an internal operating procedure to deal with shareholders' suggestions, doubts, disputes and litigations, and implement based on the procedure?	V		(I) The Company has formulated internal working procedures in accordance with "Corporate Governance Best Practice Principles"; has established relevant departments (e.g. spokesperson, Stock Affairs Department and Legal Department) to handle shareholders' suggestions or disputes.	None
(II)	Does the company possess the list of its major shareholders as well as the ultimate owners of those shares?	V		(II) The Company shall regularly obtain the latest register of shareholders from the stock affairs agency (Agency Department of CTBC Bank) and acquire the list of major shareholders substantially controlling the Company and their ultimate controlling parties and maintain good interaction with them. The change data shall be declared in accordance with regulations on information declaration of listed companies and disclosed on the Market Observation Post System of public information.
(III)	Does the company establish and execute the risk management and firewall system within its conglomerate structure?	V		(III) The rights and liabilities (e.g. assets, business, and finance) between the Company and affiliates shall be split clearly and operated independently. Besides, the "Supervision Measures for Subsidiaries", "Procedures for Acquisition and Disposal of Assets", "Procedures for Loaning of Funds to Other Parties", "Procedures for Endorsements and Guarantees", and other related measures have been established in accordance with regulations, to implement risk control mechanism and firewall management for affiliates.
(IV)	Does the company establish internal rules against insiders trading with undisclosed information?	V		(IV) The company has adopted "Management Regulations for Prevention of Insider Trading" against insiders trading with undisclosed information.

Evaluation item	Implementation status
	Yes	No	Description
III. Composition and responsibilities of the Board of Directors
(I) Has the board of directors formulated a diversity policy, specific management objectives and are they implemented?	V	(I) The Board of Directors formulates a diversity policy, sets specific management objectives, and ensures their implementation
1. To strengthen corporate governance and promote the sound development of the composition and structure of the Board of Directors, Paragraph 3, Article 20 of the Company’s “Corporate Governance Best-Practice Principles” states: The Company shall diversify Board composition and develop appropriate guidelines on diversity based on the operations, nature of business activities and development needs of the Company, including but not limited to the standards in the aspects below:
• Basic condition and value (gender, age, nationality, culture, etc.)
• Professional knowledge and skills (professional background such as law, accounting, industry, finance, marketing or technology), professional skills and industry experience.
2. The directors should generally have the knowledge, skills and accomplishment required for performing their duties. In order to achieve the ideal targets of corporate governance, the abilities that the board of directors should be equipped with are stated below:
(1) Capability to make sound business judgments
(2) Accounting and financial analysis capabilities
(3) Business management ability.
(4) Crisis management capability
(5) Industrial Knowledge
(6) Global market viewpoint
(7) Leadership skills
(8) Capability to make decisions
3. Implementation of the diversity of the Board members
(1) Basic condition and value (gender, age, nationality, culture, etc.):
The current Board of Directors of the company consists of 8 directors, including 4 directors and 4 independent directors with rich experience and expertise in the fields of finance and economics, business and management. The company also pays attention to gender equality, improves women’s participation in decision-making and improves the structure of the Board of Directors. The target of female director ratio is to reach more than one-third of the board seats. At present, there is a female director among 8 directors, which stands for 12.5% of total directors.	None

Evaluation item	Implementation status
	Yes	No	Description
(II) Does the company voluntarily establish other functional committees in addition to the Remuneration Committee and the Audit Committee?	V		(2) Professional knowledge and skills (professional background such as law, accounting, industry, finance, marketing or technology), professional skills and industry experience.
• Professional knowledge and skills: (Please refer to pages 5-6 of this Annual Report for details of professional background)
• For professional background and competence of the Board members as a whole, please see (Note 1)
4. The Board of Directors and the independent director shall exercise their power in accordance with laws, the provisions of the Articles of Incorporation and resolutions of shareholders' meetings. The diversity policy on the formation of the Board members is disclosed on the company website.
(III) Does the company establish a standard to measure the performance of the Board, and implement it annually?	V		(II) In accordance with legal requirements, the company has established a Remuneration Committee and an Audit Committee. On May 11, 2023, the Board of Directors resolved to establish a Sustainability Committee, which is composed of three board members, including two independent directors. The company is scheduled to submit a proposal to the Board of Directors in 2025 to establish a “Nomination Committee.”

(III) On November 20, 2020, the Board of Directors approved the "Rules for Performance Evaluation of Board of Directors" for employees to follow. The Company’s board performance evaluation shall be conducted by an external independent professional institution or a panel of external experts and scholars at least once every three years as required by Article 3 of the Company’s "Rules for Performance Evaluation of Board of Directors." The internal board performance evaluation shall be subject to review at least once a year. The company’s external board performance evaluation was completed in 2023 and was reported to the Board of Directors on March 11, 2024, and internal self-board performance evaluations of 2024 have been reported to the Board of Directors on March 11, 2025. Please refer to pages 19-20 of this Annual Report for the performance evaluation results, which will also serve as a reference for the Board’s remuneration and re-nomination decisions.

In a bid to improve the Company’s system of remuneration of directors and managers, according to the Company’s “Remuneration Committee Charter,” annual performance of directors and managers is evaluated at the end of a fiscal year. Performance bonus and distribution suggestions will be proposed after taking into account the Company’s strategic objectives, as well as the achievement rate of the manager’s annual contribution and key performance indicator (KPI). Proposals are subject to approval of the Audit Committee. | |

Evaluation item	Implementation status	Deviations from the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies" and reasons thereof
Yes	No	Description
(IV) Does the company regularly evaluate the independence of CPAs?	V
Evaluation item	Evaluation results	Meet independence criteria
1. Is the CPA an employee of the company or the related companies?	No	Yes
2. Does the CPA hold the company's shares?	No	Yes
3. Does the CPA engage in financing activities or guarantee behaviors with the company or its directors?	No	Yes
4. Are there direct or indirect material financial interests between the CPAs and the company?	No	Yes
5. Are there close business relations between the CPA and the company?	No	Yes
6. Are there close business relations between the CPA and the company's management, or other individuals in positions that could seriously impact the audit?	No	Yes
7. Does the CPA provide the company non-audit items that may directly affect the audit?	No	Yes
8. Does the CPA act as the defender of the company or on behalf of the company to coordinate conflicts with other third parties?	No	Yes
9. Does the CPA provide the statement of independence?	Yes	Yes

Evaluation item	Implementation status
	Yes	No	Description
IV. Does the TWSE/TPEx listed company have in place an adequate number of qualified corporate governance officers and has it appointed a chief corporate governance officer with responsibility for corporate governance practices (including but not limited to providing information necessary for directors and supervisors to perform their duties, aiding directors and supervisors in complying with laws and regulations, organizing board meetings and annual general meetings of shareholders as required by law, and compiling minutes of board meetings and annual general meetings)?	V		(I) The Company establishes a corporate governance team and governance officer, who shall promote the Company’s governance affairs, safeguard shareholders’ rights and interests and intensify functions of the Board of Directors. The functions and powers include the contents below:
1. Handle matters in relation to the Board meetings and shareholders' meetings according to law.
2. Keep minutes at the Board meetings and shareholders' meetings.
3. Assist the Directors in taking office and continuous education and training.
4. Provide the information required for the Directors to conduct business.
5. Assist the Directors in regulatory compliance
6. Other matters stipulated in the Articles of Incorporation or contracts.

(II) Business execution in 2024 is as follows:
1. Assisting in compliance of laws of rules of procedure and resolutions from the Board meetings and the Shareholders' Meeting.
2. Assist Independent Directors and general Directors in performing their duties by providing the necessary information.
3. Assist Independent Directors and general Directors arrange for continuing education.
4. Assist in initiating the sustainable corporate development objectives.
5. Draft notice on the agenda for the BOD, convene the meeting and provide meeting data; if interest avoidance is required for a topic, provide a prior reminder, and complete the Board meeting minutes within 20 days after each meeting.
6. Handle the pre-registration of the Annual General Meeting date in accordance with the law; prepare the notice of meeting, the Meeting Handbook the minutes of the Annual General Meeting within the statutory period.

(III) Continuing education of the corporate governance officer: Continuing education hours of the corporate governance officer of the Company reach the statutory hours of continuing education. Please refer to the following attachment: Summary on the continuing education of the corporate governance officer in 2024. | None |
| V. Has the company established a communication channel with stakeholders (including but not limited to shareholders, employees, customers, and suppliers)? Has a stakeholders' area been established on the company's website? Are major Corporate Social Responsibility (CSR) topics that the stakeholders are concerned with addressed | V | | (I) The company has established a spokesperson system and properly uses the public information systems, ensuring shareholders and stakeholders fully understanding the company's financial operations and corporate governance.

(II) The company has also established a special zone for the stakeholders on the website, so the stakeholders may contact the company via telephone or e-mail to reflect different CSR issues of concern. | None |

Evaluation item	Implementation status			Deviations from the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies" and reasons thereof
	Yes	No	Description
appropriately by the company?
VI. Has the company appointed a professional shareholder service agency to deal with shareholder affairs?	V		The corporation has appointed CTBC Bank to handle the affairs of the shareholders' meeting.	None
VII. Information disclosure
(I) Does the company establish a website to disclose information on financial operations and corporate governance?
(II) Does the company adopt other means of information disclosure (such as establishing an English language website, delegating a professional to collect and disclose company information, implement a spokesperson system, and disclosing the process of investor conferences on the company website)?
(III) Does the company publish and report its annual financial report within two months after the end of the fiscal year, and publish and report its financial reports for the first, second, and third quarters as well as its operating statements for each month before the specified deadlines?	V		(I) The Company establishes a website ( https://www.sfworldwide.com/) and discloses relevant financial business and corporate governance information on “Investors”.
(II) The Company also establishes an
1. English website ( https://www.sfworldwide.com/en)
2. Assigns a special person to take charge of the Company’s information collection and disclosure, so as to ensure accuracy and timeliness of the information.
3. Spokesperson and deputy spokesperson
4. Information regarding the road show has been disclosed on a “Investors”.

(III) The financial statements for the fiscal year 2024 are announced and reported within 75 days from the end of the accounting year in accordance with legal regulations and quarterly financial reports and monthly operating conditions are announced within the designated deadlines. | None |
| VIII. Is there any other important information to facilitate a better understanding of the company's corporate governance practices (including but not limited to employee rights, employee wellness, investor relations, supplier relations, stakeholder rights, continuing education records of directors and Audit Committee members, implementation of risk management policies and risk evaluation measures, implementation of customer policies, and participation in liability insurance by | V | | (I) Employees’ rights and employee wellness:
1. The Company formulates work rules in accordance with the Labor Standards Act and related laws and regulations, which explicitly specify employees’ rights and interests and obligations.
2. The Company continuously and systematically improves the quality of talent. In addition to the regular employee education and training, the supply of external training opportunities and funding, the Company also develops talent via job rotations, special project participation, and senior supervisor guidance. Furthermore, the company established the “Succession Planning for Board Members and Management Positions” in 2024. | None |

Evaluation item	Implementation status
	Yes	No	Description
directors and supervisors)?			3. The company has established an Employee Welfare Committee, which gives out birthday or anniversary gifts regularly, arranges employee club activities and provides travel subsidies and allowances for marriage, death, birth and illness. Furthermore, the Company arranges regular health checks and purchases group accident insurance and medical insurance for employees and the premiums are fully borne by the Company.
4. The Company promotes labor safety and health and has established a complete proposal system, encouraging employees to make suggestions on continuous improvement and innovation of the Company. Moreover, the corporate culture emphasizes the steady and practical team spirit and encourages the employees to face challenges with mutual respect and support.
(II) Investor relations: The Company discloses all its relevant information stipulated by regulations on the Market Observation Post System and the Company’s website, so as to safeguard investors’ rights and interests, and establishes liaison information of stock affairs, so as to maintain a favorable and harmonious relationship between enterprise and shareholder.
(III) Supplier relations: The company believes that the sustainable development and success of businesses rely on a robust and integrated supply chain system. Therefore, we consider our suppliers as crucial partners, consistently upholding principles of integrity in our dealings and fostering effective communication channels with them.
The Company has adopted the “Supplier Management Policies.” With regard to how much the procurement collection supplier fulfills sustainable development, suppliers are invited to forge ahead with the Company for continuous improvement in line with the spirit of sustainable procurement. We have also signed the Supplier Code of Conduct to expect suppliers to comply with our expectations in terms of business integrity and anti-corruption, labor practices, health and safety, and environmental management. The Procurement and Quality Assurance divisions also conduct an annual evaluation system of suppliers to screen out excellent supply sources as partners. To implement effective supplier management, the Quality Assurance Division and the Procurement Division carry out annual audits and provide guidance according to the plan. They encourage and assist suppliers in acquiring food safety and quality system certification to ensure that suppliers operate the system and supply products in line with the Company’s standards, meeting the requirements of the Company.
(IV) Stakeholders’ rights: A special area for stakeholders is established on the Company’s website, so as to maintain a favorable two-way communication and

Evaluation item	Implementation status			Deviations from the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies" and reasons thereof
	Yes	No	Description
			interaction relationship with stakeholders. In case of a dispute about stakeholders’ legitimate rights and interests, the Company will deal with it appropriately based on honesty. To know various major topics concerned, the Company analyzes major topics every year, so as to keep a close eye on stakeholders’ thoughts. See the Company’s corporate social responsibility report.

(V) Continuing education of directors and Audit Committee members: Continuing education hours of the directors and Audit Committee members of the Company reach the statutory hours of continuing education. Please refer to the following attachment: Summary on the continuing education of directors in 2024.

(VI) Implementation of risk management policies and risk measurement standards: For the risk management policies, organizational structure and related risk control operations of the Company, please refer to the descriptions on pages 148-152 of “Risk Analysis and Evaluation during the Most Recent Year up to the Publication Date of the Annual Report.” Furthermore, the Company has analyzed, tracked and responded to events that may pose high risks to operating objectives, in order to improve the risk management mechanism.

(VII) Implementation of customer policies: The Company provides diversified customer service channels (e.g. customer service hotline, customer service mailbox and online real-time customer service) and establishes the considerate service process, so as to provide relevant professional services for customers about nutrition counseling and commodities; deal with consumers’ questions actively to maintain their rights and interests.

(VIII) Liability insurance purchased by the company for its directors and the Audit Committee: the company has covered the director liability insurance for all directors and the Audit Committee. | |
| IX. Please state the improved situation according to the corporate governance evaluation results released by the Corporate Governance Center of TWSE in the latest year and put forward priority items and measures for those which have not been improved:
The company regularly carries out corporate governance evaluations in accordance with the regulations of the competent authority, gradually improving governance practices, with the evaluation scores for listed companies increasing year by year. In the future, the company will continue to improve in areas such as protecting shareholder rights and treating shareholders equally, strengthening the structure and operations of the Board of Directors, enhancing information transparency, and promoting sustainable development, with the goal of enhancing corporate governance effectiveness. | | | | |

Note 1: Professional background and competence of the Board members as a whole

| Core items for diversity
Name | Basic composition | | | | | | | | | Industry experience | | | Professional competence | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Nationality/Place of Registration | Gender | Working part-time at the Company | AGE | | | Term of office as independent director | | | Investment | Asset management | Knowledge of the industry | Financial accounting | Information technology | Risk management |
| | | | | 41-50 | 61-70 | >71 | >3 | 3-9 | >9 | | | | | | |
| Ter-Fung Tsao | R.O.C. | Male | V | | | V | | | | V | V | V | V | | V |
| Jason Hsuan | R.O.C. | Male | | | | V | | | | V | V | V | V | V | V |
| Wendy Tsao | R.O.C. | Female | | | | V | | | | V | V | V | V | | V |
| Arthur Tsao | R.O.C. | Male | V | V | | | | | | V | V | V | V | V | V |
| Ben Chang | R.O.C. | Male | | | | V | | V | | V | V | V | V | | V |
| George Chou | R.O.C. | Male | | | | V | | V | | V | V | V | V | | V |
| Daniel Chiang | R.O.C. | Male | | | V | | | V | | V | V | V | V | | V |
| David Wang | R.O.C. | Male | | | | V | | V | | V | V | V | V | V | V |

Note 2: Summary on the continuing education of the corporate governance officer in 2024

Continuing education date	Organizer	Course title	Hours of continuing education
Jan. 31, 2024	The Institute of Internal Auditors	Enhance the sustainable value of the enterprise and optimize the risk management system	6
Feb. 19, 2024	The Institute of Internal Auditors	Interpretation of financial analysis indicators and prevention of business risks	6

Note 3 : Summary on the continuing education of directors in 2024

Title	Name	Continuing education date	Organizer	Course title	Hours of continuing education
Director	Ter-Fung Tsao	Aug. 28, 2024	Greater China Financial and Economic Development Association	Digital Marketing Strategies	3
		Sep. 26, 2024		The Net-Zero Strategy and Low-carbonGovernance Under Climate Emergency	3
Director	Jason Hsuan	Jan. 11, 2024	Greater China Financial and Economic Development Association	Challenges and Opportunities in the Global Economy in 2024	3
		Feb. 21, 2024		Building a resilient supply chain for enterprises	3
Director	Wendy Tsao	Apr. 19, 2024	Greater China Financial and Economic Development Association	Strategic Management in Digital Age	3
		May 8, 2024		Global Economic Outlook for the Second Half of 2024	3
Director	Arthur Tsao	Jan. 23, 2024	Taiwan Institute of Directors Association	Benchmark Learning - How to Quickly Grow by Drawing on the Experience of International Leaders.	3
		Sep. 30, 2024	Taiwan Stock Exchange	Summit on Expanding Taiwan's Capital Market	3
		Oct. 30, 2024	Taiwan Institute of Directors Association	Strengthening Corporate Competitiveness through Strategic Moves Beyond the Comfort Zone	3

Title	Name	Continuing education date	Organizer	Course title	Hours of continuing education
Independent Director	Ben Chang	Aug. 28, 2024	Greater China Financial and Economic Development Association	Digital Marketing Strategies	3
		Oct. 23, 2024		Accelerating Talent Development to Ensure Corporate Sustainability	3
Independent Director	George Chou	Sep. 12, 2024	Taiwan Project Management Association	From digital transformation to AI empowerment	3
				ESG project management sustainable development	3
Independent Director	Daniel Chiang	Aug. 28, 2024	Greater China Financial and Economic Development Association	Digital Marketing Strategies	3
		Aug. 29, 2024		Trends and Common Issues in the Restructuring of Taiwanese Business Supply Chains in Mainland China	3
Independent Director	David Wang	Mar. 21, 2024	Greater China Financial and Economic Development Association	Impact of Carbon Pricing on Business Operations	3
		Sep. 26, 2024		The Net-Zero Strategy and Low-carbonGovernance Under Climate Emergency	3

4. Composition, responsibilities, and operations of Remuneration Committee

In order to implement the rationalization of the Company's remuneration system to protect the rights and interests of shareholders, pursuant to the Securities and Exchange Act, the Company's Board of Directors resolved on December 16, 2011 to establish the "Remuneration Committee" consisting entirely of independent directors.

Professional Qualifications and Independence Analysis of Remuneration Committee Members

| Title | Qualification
Name | Professional Qualifications and Work Experience | Independence Criteria | Number of other public companies at which the person concurrently serves as remuneration committee member |
| --- | --- | --- | --- | --- |
| Independent Director (Convener) | Ben Chang | The Remuneration committee consists of independent directors of the Company. For more information regarding professional qualifications and experience, please refer to page 6 of this Annual Report under section 4, “Disclosure of Professional Qualifications of Directors and Independence of Independent Directors.” | 0 | |
| Independent Director | George Chou | | | 0 |
| Independent Director | Daniel Chiang | | | 0 |

Operational Status of the Remuneration Committee:

The Remuneration Committee members are appointed by the Board of Directors. According to the Company's Remuneration Charter, the Committee must consist of at least three independent directors. The Company's current Remuneration Committee is made up of three independent directors.

The purpose of the Remuneration Committee is to assist the Board of Directors in carrying out and evaluating the Company's overall remuneration and welfare policies, as well as remuneration to the directors and managers.

(1) The company has a Remuneration Committee composed of three members.
(2) Term of office of members of the 5th Remuneration Committee: From Jun. 16, 2022 to Jun. 15, 2025. The Committee held two meetings (A) in 2024, and the qualifications and attendance of the Committee members are summarized as follows:

Title	Name	Number of attendance in person (B)	Time of proxy attendance	Percentage of attendance in person (%)[B / A]	Remarks
Convener	Ben Chang	3	-	100%	None
Committee member	George Chou	3	-	100%
Committee member	David Wang	3	-	100%

Other matters:

■ Discussions and resolutions of the Remuneration Committee

Date of Meeting (Period)	Proposals	Resolution
Mar. 11, 2024
4th Meeting of the 5th Remuneration Committee	(1) Approved the external performance evaluation of the Board for 2023, and the internal performance self-evaluation of the Board members, the Board, and the functional committees of the Company for 2023.
(2) Approved the performance evaluation of the directors and managers of the Company for 2023.
(3) Approved the allocation of director remuneration and employee compensation for 2023.	Submitted to the Board of Directors for resolution and approved by all directors present at the meeting without objection
Nov. 04, 2024
5th Meeting of the 5th Remuneration Committee	(1) Approved the allocation ratio of employee compensation and director remuneration for 2024.
(2) Approved the motion to adopt the Policy on Linking Executive Compensation to ESG Performance.
Mar. 11, 2025
6th Meeting of the 5th Remuneration Committee	(1) Approved the internal performance self-evaluation of the Board members, the Board, and the functional committees of the Company for 2024.
(2) Approved the performance evaluation of the directors and managers of the Company for 2024.
(3) Approved the allocation of director remuneration and employee compensation for 2024.
(4) Approved the motion for the payment of director’s remuneration for 2024.

■ If the Board of Directors chooses not to adopt or revise recommendations proposed by the Remuneration Committee, the date of the meeting, term, agenda, resolution results, and the company's response to the comments provided by the Remuneration Committee shall be described: None.
■ If the resolutions to which the members of the Remuneration Committee have an objection or reservation are recorded or written, please state the date and session of the meeting of the Remuneration Committee, proposals, opinions of the members, and handling of the opinions: None.

Implementation Status and Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons

Item	Implementation status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
I. Has the Company constructed a governance structure to promote sustainable development and established a dedicated (part-time) unit for the promotion of sustainable development, which is managed by senior management by authorization of the board of directors and is supervised by the board of directors?	V		In order to promote the sustainable development of the Company, and promote economic, environmental and social progress to achieve sustainability goals. The company passed a resolution at the board of directors meeting on May 11, 2023, to establish a “Sustainability Development Committee,” which is a functional subcommittee under the board of directors. The CEO served as the convener and chairperson of the meetings. The Committee has adopted the “Sustainable Development Committee Charter”, and based on functional responsibilities, set up the “Corporate Governance Team,” “Food Safety Team,” “Environmental Sustainability Team,” “Supply Chain Management Team,” “Employee Care Team” and “Social Care Team,” to enhance the implementation of sustainable management practices. In October of the same year, the Sustainability Division was established, staffed with dedicated personnel and allocated an independent budget. It is responsible for planning and implementing sustainability strategies and projects, as well as coordinating related initiatives across departments.
In 2024, the Company’s Sustainability Development Committee held a total of four meetings. The meeting agendas covered topics such as the “Sustainable Development Committee Charter,” material topics for stakeholders, sustainability strategies and management policies, the publication of the sustainability report, and progress reports on sustainability initiatives. Major sustainability proposals and the annual sustainability report were submitted to the Board of Directors. Based on the implementation progress, the Board evaluated relevant sustainability issues and oversaw the management of sustainability strategies and goals.	None
II. Does the company follow the principle of materiality, conduct risk	V		(I) Organizational boundaries of Standard Foods are set with its operating activities as the boundary for risk assessment, covering Taipei, Dayuan, Zhongli and Hsinchu Plants.	None

Item	Implementation status
	Yes	No	Summary description
assessments on environmental, social and corporate governance issues related to company operations, and formulate relevant risk management policies or strategies?			(II) In 2024, the Company adopted the principle of materiality and conducted a survey on international trends and benchmark enterprises’ concerns, based on the GRI and SASB indicators, to generate a list of sustainable issues of concern. Subsequently, the Company conducted a survey on internal and external stakeholders and identified the material issues of the year through the Sustainable Development Committee’s discussions and reviews. Then, subject to the review and approval by the Board of Directors, in response to various material topics, the Company formulates relevant risk assessment and management policies and strategies.
III. Environmental issues
(I) Has the company established a suitable environmental management system based on its industrial characteristics?	V		(I) In 2014, we introduced the international standard ISO 14001 environmental management system, completed the revision in 2018, and passed the audit verification every year at a high standard.
(II) According to ISO 14001 operational specifications, we have formulated Air Pollution Prevention Process, Water Pollution Prevention Management Process, Business Waste Management Rules, Control on Toxic Chemical Substances, Noise Control Operating Standards, and Drinking Water Dispenser Management Operating Procedures for operational control in accordance with ISO 45001 operating standards. The results of implementation are also reported online.
(III) The Company has implemented the methodology under the GHG Protocol to establish the GHG Inventory Procedures for the Standard Foods Group in Taiwan, which were approved by the General Manager and issued accordingly. The Company has also conducted its first inspection on the four main fields in 2022 in accordance with the Procedures and increased its inspections on six business locations in Taiwan in 2023. Based on the operational control and management principles, the fields were attributed	None

Item	Implementation status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
			to the Company’s headquarters in Taipei. As the organizational boundaries are adjusted, the first year after the boundary adjustment is used as the base year for the GHG inventory. The base year setting is amended in response to the government policy and the amendment is published upon approval of the President. The scope of inventory covers the Taipei Headquarters of the Group and six business locations of the Standard Foods Group in Taiwan, the Dayuan Plant (including the dormitory) and the Zhongli Plant of Standard Foods Corporation, as well as the Hukou Plant of Standard Dairy Products Taiwan Limited.

(IV) From 2023 until now, the Group has completed the inventory of four major sites in 2022 and 2023 (Taipei Headquarters including the six major business places throughout Taiwan, the Dayuan Plant and Zhongli Plant of Standard Foods Corporation, as well as the Hukou Plant of Standard Dairy Products Taiwan Limited.) The Group also passed the SGS and China Productivity Center verification and obtained the verification declaration.

(V) In 2025, the Company conducted the GHG inventory of the entire field in Taiwan and its subsidiaries in China for 2024 and completed the assurance audit on Deloitte Taiwan in accordance with the plan. The Scope 1, Scope 2 and Scope 3 greenhouse gas emission assurance is completed, and the verification will be completed in May 2025 to help the Group acquire the GHG Assurance Statement.

(VI) The Company’s GHG emissions in 2024 are described as following: 12,461 metric tons for Scope 1, 15,871 metric tons for Scope 2, and 196,124 metric tons for Scope 3, totaling 224,456 metric tons. There is no significant difference between the emission intensity under Scope 1 and Scope 2 in 2024 from 2023. However, for Scope 3, the emission intensity increased due to the increase in the downstream transportation of the goods and distribution. The Group has demonstrated its determination to improve and fully | |

Item	Implementation status
	Yes	No	Summary description
			inventoried the emission sources to formulate emission reduction strategies for promotion.
(II) Is the company committed to improving the utilization efficiency of energy, and using the recycled materials that have a low impact on the environmental load?	V		(I) Each plant of the Company has established an energy-saving management team. The Hukou Plant of Standard Dairy Products Taiwan Limited was certified for ISO50001 Energy Management System in 2024 and obtained the certificate. The Zhongli Plant of Standard Foods Corporation has also implemented the system and is expected to be certified for the system in 2025. The Dayuan Plant of Standard Foods Corporation is also planning to implement this system. This aims to strengthen energy self-management, understand the current status of energy consumption, and seek feasible improvement plans for implementation. By doing so ,we can promote reasonable and effective energy consumption to reduce energy expenditures, further improving competitiveness and achieving energy conservation and carbon reduction targets.

(II) As a means to continue to promote energy conservation, carbon reduction and environmental protection policies, our Zhongli Plant in 2016, Hsinchu Plant in 2017, and Dayuan plant in 2018 have fully switched to using natural gas boilers with high cleanliness. In 2019, the energy intensity of fuel oil (heavy oil) of the Standard Foods Group in Taiwan was reduced to zero. As a responsible operator, we strive to do our utmost for the environment.

(III) A total of NT$15,579 thousand was invested in the completion of nine energy saving and carbon reduction projects and the implementation of the total productive maintenance (TPM) equipment maintenance plan in 2024 for the three factories of Standard Foods. | None |

Item	Implementation status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description

Dayuan Plant	Replaced and updated the chiller used on the production line of health products on 4F	1. Replaced with the refrigerant type that conforms to the current environmental protection regulations, and the model may be applicable for a long time.
2. Use energy-efficient compressors to achieve the energy-saving purpose.	223.48

Item	Implementation status
	Yes	No	Summary description
			Replaced the chiller at the R&D Building.	1. Replaced with refrigerant type that conforms to current environmental protection laws regulations. R134a, which may be applied for a long time.
2. Use energy-efficient compressors to achieve energy-saving purpose.	60.20		29.74	2023	3,349.45
			Public area air conditioning replacement project on 3F of the Quality Assurance Building.	Replaced the old chiller with a high COP unit.	89.60	44.26	2023	2,530

Item	Implementation status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description

Zhongli Plant	100HP Fixed Frequency Air Compressor Replacement Project	Two fixed frequency air compressors with a service life of more than 20 years will be replaced with variable frequency air compressors to improve efficiency and achieve the energy-saving target. The electricity may be saved by 970 kWh per day.

Implementation status
Yes	No	Summary description
		Hukou Plant	Change frequency of the cooling tower fan in the pre-process 7.5HP*2	The water tower fan is controlled according to the water temperature of the water panel.	26.83	13.26	2023	112.85
			Variable frequency added to the ice water pump	The frequency control is conducted according to the set pipeline pressure of the ice water pump.	58.81	29.05	2023	148.3
			Before the product is sprayed, the air pressure used for the water is reasonable.	Suspension of the conveyor and compressed air nozzle from delivering air during the planned shutdown, crash and meal break.	35.49	17.53	2023	50

Implementation status
Yes	No	Summary description
		Uniformly lubricated water recycling and reuse for the manufacturing process equipment.	The optimization solutions include hot water sterilization and frequency reduction sterilization of oatmeal blanking tanks and filling barrels, and recycling of washing water from the can washing machine.		7,200.00		2023	0
		Total:		532.81	7,642.00	263.21		15,579.1
		(IV) The above improvements as compared to 2023: 1. Save 532.81 thousand kWh. 2. Conserve 7,642 metric tons of water. 4. Reduce 263.21 metric tons of carbon emissions.

Item	Implementation status							Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
(III) Does the company assess the potential risks and opportunities of climate change for the company now and in the future, and take measures?	V		We have adopted the disclosure and management framework proposed in the Task Force on Climate-related Financial Disclosures (TCFD) to evaluate and review the impact of climate change on us. By taking this approach, we further formulate short-, medium- and long-term governance policies for climate change issues in order to tackle the impact brought about by climate change. Consequently, we also identify the Group’s key risks and opportunities, including rising raw material costs, using production and distribution processes that are more efficient, R&D and innovation of developing new products and services, increasing stakeholder concerns and negative feedback, change in rainfall (water) patterns and extreme climate changes, as well as rising average temperatures. The evaluation results and relevant countermeasures adopted are disclosed in the Sustainability Report.					None
(IV) Does the company count greenhouse gas emissions, water consumption and the volume of total waste in the past two years, and formulate policies for greenhouse gas reduction, water management or other waste management?	V		Greenhouse gas emissionsThe 2024 GHG intensity is 1.7105 (mt of CO2e/NT$ million), which is significantly improved compared to the 2023 GHG intensity of 1.7507 (mt of CO2e/NT$ million).					None
			Issue	Indicator	2024
			Environmental Aspect		Data	Scope of data	Assurance Institutions
			Greenhouse gas emissions	Direct GHG emissions (scope 1) (tons CO2e)	12 397 7508	Standard Foods Group’s headquarters and 6 business premises throughout Taiwan, the Dayuan and Zhongli Plants of Standard Foods Corporation, and the Hukou Plant of Standard Dairy Products Taiwan Limited.	Deloitte & Touche

Item	Implementation status
	Yes	No	Summary description
			Energy indirect (Scope 2) (tons CO2e)	15,228,0121
			Other indirect (scope 3) (tons CO2e)	192,327,1656
			Greenhouse gas emission intensity (tons CO2e/NTD 1 million of revenue)	1,7105	Scope 1 + 2
			Strategy, method, and goal of greenhouse gas management	(I) Corporate strategies in response to climate change or greenhouse gas management
1. Continue to promote the sustainability strategies formulated by the Group in 2022.
2. The Company continues to promote sustainability-related activities, education, and training to cultivate employees’ sustainability awareness and build consensus.

Item	Implementation status
	Yes	No	Summary description
				(2) Introduce the CDP Carbon Disclosure Project.
(3) All factories implement proposal improvement projects and conduct carbon emission control for carbon emission hotspots to effectively reduce carbon emissions.
(4) By 2026, Standard Foods Group in Taiwan will reduce carbon intensity by 3%. (based on 2023, unit: metric tons/NTD 1 million of revenue)
(5) In 2025-2027, we will assist subsidiaries in inheriting and completing the ISO14064-1 greenhouse gas inventory and setting the group’s long-term carbon reduction goals.
2. Mid and long-term goals
(1) By 2028, Standard Foods Group in Taiwan will reduce carbon intensity by 5%. (based on 2023, unit: metric tons/NTD 1 million of revenue)
(2) In 2028, Standard Foods Group in Taiwan plans to use green building materials for the new plant, green building materials will be used, greening around the plant will be expanded, gravity transportation will be adopted to reduce power consumption, and efficient public equipment will be planned.
(3) In 2029, we adopt the SBTi Science-Based Carbon Reduction Targets initiative to advance carbon reduction intensity scientifically.
(III) GHG Management Performance of the Standard Foods Group in Taiwan
The plants have implemented energy-saving and carbon reduction measures such as equipment replacement, renewal, or process improvement. A total of 263.21 metric tons of CO2e were reduced in 2024, saving 532.81 kWh.

Item	Implementation status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description

Environmental Aspect	Data	Scope of data
Greenhouse gas emissions	Direct GHG emissions (scope 1) (tons CO2e)	12,435.2359
Energy indirect (Scope 2) (tons CO2e)	15,588.6567
Other indirect (scope 3) (tons CO2e)	95,523.4371
Greenhouse gas emission intensity (tons CO2e/NTD 1 million of revenue)	1.7507	Scope 1 + 2

Item	Implementation status
	Yes	No	Summary description
			Strategy, method, and goal of greenhouse gas management	(I) Corporate strategies in response to climate change or greenhouse gas management
1. Continue to promote the sustainability strategies formulated by the Group in 2022.
2. The Company continues to promote sustainability-related activities, education, and training to cultivate employees’ sustainability awareness and build consensus.

(II) Based on the Group’s sustainability strategy, adjust the short-, mid and long-term goals for the inventory of greenhouse gas emissions:
1. Short-term goal
(1) Completion of greenhouse gas emission inventory and verification for the Standard Foods Group in Taiwan, including its four major sites and six new business premises in Taiwan by 2024.
(2) Introduce the CDP Carbon Disclosure Project.
(3) All factories implement proposal improvement projects and conduct carbon emission control for carbon emission hotspots to effectively reduce carbon emissions.
(4) By 2025, Standard Foods Group in Taiwan will reduce carbon emissions by 3%. (based on 2023, unit: metric tons/NTD 1 million of revenue)
(5) In 2025-2026, we will assist subsidiaries in inheriting and completing the ISO14064-1 greenhouse gas inventory and setting the group’s long-term carbon reduction goals.
2. Mid and long-term goals
(1) By 2027, Standard Foods Group in Taiwan will reduce carbon emissions by 5%. (based on 2023, unit: metric tons/NTD 1 million of revenue)
(2) In 2028, Standard Foods Group in Taiwan plans to use green building materials for the new plant, greening around the plant will be expanded, gravity transportation will be adopted to reduce | | |

Item	Implementation status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description

(3) In 2029, we adopt the SBTi Science-Based Carbon Reduction Targets initiative to advance carbon reduction intensity scientifically.
(III) GHG Management Performance of the Standard Foods Group in Taiwan The plants have implemented energy-saving and carbon reduction measures such as equipment replacement, renewal, or process improvement. A total of 4,103 metric tons of CO2e were reduced in 2023, saving 7,984 kWh.
■ Water resources management
Issue	Indicator	2024
Environmental Aspect	Data	Scope of data
Water resources management	Water consumption (metric tons)	636,367.2657
Water intensity (metric tons/NTD 1 million of revenue)	39.4011

Item	Implementation status					Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
			Water resource management or reduction targets	(I) The groundwater utilization rate of three plants of Standard Foods Group in Taiwan was 50%, and a reasonable margin was reserved. In the event of droughts or water shortages, the three plants are capable of mutual water dispatch and support. Each plant has established water use management measures and comprehensive water quality monitoring standards to monitor the quality and quantity of water resources thoroughly.

(II) During 2024, the implementation of the manufacturing process equipment at the Hukou plant, recycling and reuse of homogeneous machine lubricant (HOMO4), hot water heat reduction frequency and hot water washing machine cleaning and other optimization solutions at the Yilan Plant helped save water consumption by 7,200 metric tons/year. The production line of refinery oils and fats of Dayuan Plant implements the optimization of air pollution prevention and control equipment operating parameters and complies with environmental emission standards. Eventually, the water consumed for cleaning reduced from 3.7 metric tons per day to 2 metric tons per day, saving 45.95% per day. In 2024, the actual water consumed was 442 metric tons. | | |
| | | | | | | |

Item	Implementation status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description

Environmental Aspect	Data	Scope of data
Water resources management	Water consumption (metric tons)	678,317.9000
Water intensity (metric tons/NTD 1 million of revenue)	36.48
Water resource management or reduction targets	(I) There was no significant increase in water intensity due to production line adjustments and new product additions in 2023. The groundwater utilization rate at three plants of the Standard Foods Group in Taiwan was 65%, and a reasonable margin was reserved. Each plant has established water use management measures and comprehensive water quality monitoring standards to monitor the quality and quantity of water resources thoroughly.(II) During 2023, Dayuan Plant completed installation of an LCC-S sealed cooling tower (LCC-V-125S) in the nourishing drinks production line to replace the old open cooling tower, and the recycling project for water used for the production line of nourishing drinks. Zhongli Plant completed the installation of a 300RT energy-saving low-noise cooling tower. The related investment amounted to NTD 6,749 thousand for the water tower project, which actually saved 13,937 tons of water.

Item	Implementation status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description

Issue	Indicator	2024
Environmental Aspect	Data	Scope of data
Waste management	Hazardous waste (metric tons)	4.7700
Non-hazardous waste (metric tons)	6,006.3300
Total weight (hazardous + non-hazardous) (metric tons)	6,011.1000
Waste intensity (metric tons/NTD 1 million of revenue)	0.3722
Waste management policy or reduction target	(I) Waste management is carried out in accordance with the ISO14001 environmental management system, waste classification is strictly implemented, and the recycling rate is maintained at 94% in 2024.

Item	Implementation status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description

Environmental Aspect	Data	Scope of data
Waste management	Hazardous waste (metric tons)	5,1300
Non-hazardous waste (metric tons)	5,877.2350
Total weight (hazardous + non-hazardous) (metric tons)	5,882.3650
Waste intensity (metric tons/NTD 1 million of revenue)	0.3675
Waste management policy or reduction target	(I) Waste management is carried out in accordance with the ISO14001 environmental management system, waste classification is strictly implemented, and the recycling rate is maintained at 88% in 2023. (II) In 2023, the Dayuan Plant implemented an industrial chain of reuse, sorting and providing 1,239 metric tons of by-products to processors to produce biodiesel and feed, and effectively reduce waste.

Item	Implementation status
	Yes	No	Summary description
			Refer to the Company’s 2024 Sustainability Report for the greenhouse gas reduction, water use reduction, or other waste management policies.
IV. Social issues
(I) Has the company developed the relevant management policies and procedures in accordance with relevant regulations and international human rights conventions?	V		(I) In accordance with Taiwan’s “Labor Standards Act,” we have formulated the “Work Rules,” which are in line with the “International Covenant on Economic, Social and Cultural Rights” regarding the right to freedom of association and to form trade unions. We have also established women worker-related rights and obligations, which are in line with the “Convention on the Elimination of All Forms of Discrimination Against Women.”

(II) The Company’s Work Rules
1. Article 13 of Chapter 3 states: “The Company shall not discriminate against applicants or employees because of their race or gender in the course of recruitment, screening test, hiring, placement, assignment, performance evaluation or promotion.”
2. Chapter 4 states that working hours, breaks and holidays are carried out in compliance with the Labor Standards Act.
3. Chapter 9 states that women workers’ related rights and obligations are in compliance with the Labor Standards Act.
4. Chapter 13 states communication means for labor opinions.
5. Chapter 14 states sexual harassment prevention. | None |
| (II) Has the company formulated and implemented reasonable employee welfare measures | V | | (I) The Company’s main benefits are as follows:
1. In accordance with the law and regulations, we take the initiative and notify employees upon occurrence of various insurance benefits and provide guidance on their application for such benefits in order to protect the rights and interests of employees. | None |

Item	Implementation status
	Yes	No	Summary description
(including salary, vacation and other benefits), and appropriately reflects business performance or results in employee compensation?			2. All full-time workers (including spouse and children. including life insurance, accident insurance, medical insurance, and cancer insurance) are covered under employee group insurance. The premium of insurance is fully paid by the Company.
3. Annual appraisal bonuses are subject to the Company’s operation and performance. In 2024, the Company also adopted the “Policy on Linking Executive Compensation to ESG Performance”, which was approved by the Board of Directors.
4. The Company has formulated retirement measures for full-time workers: For colleagues who opt for the new pension system, the Company will make monthly contribution as pension fund to be deposited into their personal account of the Bureau of Labor Insurance as required by the Labor Pension Act. Those with seniority of the old system before July 1, 2005 and those who opted for the old pension system will be subject to the provisions of the Labor Standards Act.
5. Holidays and leave and various types of leave are provided as stipulated in the Labor Standards Act.
6. Periodic health examinations are provided to employees.
7. Gifts are given on Mid-Autumn Festival, Dragon Boat Festival, Spring Festival and Labor Day. Employees are also provided with shopping discounts.
(II) The benefits handled by the Company’s Staff Welfare Committee are as follows:
1. Festive cash gift: Cash gifts are given before the Spring Festival, Dragon Boat Festival and Mid-Autumn Festival.
2. Cash gift for colleagues.
3. Marriage, childbirth, funeral, disability allowances.
4. Travel subsidies.
5. Club activity subsidies.
6. Organization of festive activities.

Item	Implementation status
	Yes	No	Summary description
			(III) Workplace Diversity and Equality
The Company values diversity and equality in the workplace and is committed to creating a fair development environment for employees. According to year-end employee data, female employees accounted for 32.12% of the workforce, and women held 42.44% of managerial positions at the assistant manager level and above.
(III) Has the company provided a safe and healthy work environment for the employees, and related education on occupational safety and health for the employees at regular intervals?	V		(I) It is the Company’s responsibility and commitment to ensure the physical and mental health and safety of each employee at work. Every year, based on employees’ work patterns and health check-up reports, we continue to identify workplace hazards, implement employee health management, organize various health promotion activities, and promote comprehensive health and joyful living, in order to maintain the physical and mental health of employees, while continuing to improve the overall health performance, as outlined below:

Conduct employee health check-up – Hospital health check-ups are held every two years. The contents of the check-ups exceed the statutory requirements. Hospital health check-ups are combined with the four-cancer screening tests conducted by the Health Promotion Administration.
Implement employee health management – Contract consultant medical staff and full-time nurses analyze and evaluate the health check-up reports, and conduct graded management based on the abnormal standards of each item. High-risk cases are included in the health tracking. At the same time, based on the overall health check-up report, health seminars and smoking cessation management activities have been organized.
Implementation of the employee health protection plan – A health questionnaire survey is conducted in conjunction with the annual health check-up and the results are analyzed. Cases with high-risk abnormal workload and abnormal | None |

Item	Implementation status
	Yes	No	Summary description
			musculoskeletal aches are included in the health tracking, and the employees are arranged for health consultation and guidance. Maternity healthcare assessments are conducted for pregnant and breastfeeding employees, and care and interviews are arranged.
4. Health promotion activities – Diet and exercise are health promotion activities that must be promoted within the Company every year. Nutrition and exercise-related competitions are held to encourage employees to achieve physical and mental health via healthy diet and regular exercise habits.
5. Promote health and career growth – The Company organizes various health promotion courses according to the needs of employees and makes use of the internal extensive training system of self-development, through which employees may learn about health courses, stress-relieving activities, exercise, and healthcare. Encourage employees to achieve a balance between health, work, life, and healthy family.
6. Conduct four major programs: Conduct questionnaire surveys on employees’ overload and human factors in the workplace. Provide individualized care according to the results of the questionnaires, hire physical therapists through the contract company for counseling, and promote illegal workplace abuse courses and employee awareness.
7. Establish a friendly and healthy environment – The Company is equipped with fitness space, shower rooms, breastfeeding rooms, a bright and comfortable office environment, an open workspace design, employee kitchen island and dining area, health consultation room (health center), body fat scale and sphygmomanometer.
(II) At Standard Foods, we follow five major management policies to implement the work of safety and health management to prevent personnel accidents and injuries. We make

Item	Implementation status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
			every effort to achieve the goal of safety first and zero disasters: Regulatory compliance, consultation and communication, risk control, pollution prevention and continuous improvement.

Education and training:
In order to enhance the knowledge and awareness of our employees on workplace safety and strengthen their response capability in the face of a disaster and accident, we organize occupational safety education and training and disaster exercises on a regular basis.
Important certification:
In 2009, Standard Foods’ Dayuan Plant obtained TOSHMS (Taiwan Occupational Safety and Health Management System) and OHSAS 18001 certification at the same time; passed the CNS 15506 certification renewal assessment in 2012 and 2015, respectively; passed the CNS 15506 national standard; OHSAS 18001 annual audit from 2013 to 2019; passed the ISO/CNS45001 Taiwan Occupational Safety and Health Management System National Standard certification renewal assessment in 2020; and passed the ISO/CNS45001 annual audit every year since 2021.
Quantitative indicator:
The total working hours at three factories of the Standard Foods Group in Taiwan in 2024 were 2.14 million hours, with 18 annual recordable occupational injury records. In 2024, the number of serious occupational injuries was 0, and the number of fatal accidents due to occupational injuries was also 0.

(III) Analysis of the accident types throughout the year revealed that unsafe personal actions and inappropriate actions without complying with SOP accounted for the largest number of occupational injuries (60%). Most of them occurred in unconventional situations such as car washing, troubleshooting, and failure to comply with SOP. In 2024, we will | |

Item	Implementation status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description

The statistics on the Frequency-Severity Indicator (FSI) of the three plants of the Standard Foods Group in Taiwan show that there is no significant difference in the last three years within the ideal control range.
The statistics on the FSI of the three plants in the past three years:
Year	Worker type	Number of working days lost due to disabling injury
111	Employees	119
Non-employees	90	4.28
112	Employees	87
Non-employees	61	3.97
113	Employees	77.69
Non-employees	22	5.34

Item	Implementation status
	Yes	No	Summary description
			(IV) There was no fire incident in 2024, and the number of injuries or deaths due to fire was zero. Each factory conducts personnel education, training, and drills in accordance with the “Emergency Preparedness and Response Procedure” and “Fire Protection Plan.”
(IV) Does the company establish an effective career development training program for employees?	V		Standard Foods is committed to cultivating talents to ensure the continuous development of its employees and enhance their professionalism and work efficiency.

(I) New employees
We provide a series of physical and online courses to introduce the company’s culture, values, policies, procedures, and provide professional training courses for job roles. In addition, the direct manager or the senior employee designated by the direct manager will provide personal guidance and support for new employees to help them adapt to the new work environment.

(II) In-service employees
The Company offers various professional courses and training courses to help employees improve their professional knowledge and skills. These courses cover communication skills, job-related competencies and more. We also encourage employees to participate in external training courses and seminars to broaden their horizons and gain new perspectives and ideas.

(III) Management staff: Leadership training is planned for different levels to help supervisors develop their leadership skills, learn effective team management and motivation skills, and improve their leadership skills. | None |
| (V) In terms of issues such as customer health and safety, customer privacy, marketing and labeling of products | V | | (I) Product packaging and labeling/information transparency and non-rendering: The Quality Assurance Division of Standard Foods has set up the Labeling and Regulation Section under the Group Food Safety Management Department, which is responsible for packaging, labeling, and advertising review. In addition to complying with the Food Safety and Sanitation Act and the “Packaging and Labeling Review Process,” | None |

Item	Implementation status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
and services, does the company comply with relevant regulations and international standards, and does it formulate relevant consumer or customer protection policies and appeal procedures?			information on trademarks, brands, recycling, production, and manufacturing sources must also be reviewed to ensure compliance. Multi-stage reviews including first draft, second draft, and final draft were conducted to reduce the black hole of labeling and review and maintain labeling safety.

In addition to reviewing packaging and labeling, the Labeling and Regulation Division also reviews advertising copywriting related to marketing communications to ensure that consumers have a correct understanding of the product. Internal education and training are held on a regular basis every quarter, including labeling, advertising related regulatory changes and explanations.

The Labeling and Regulation Division raises relevant personnel’s awareness and understanding of laws and regulations, improves the efficiency and accuracy of review and promotion, better protects consumer rights, and enhances brand image and value.

(II) To protect consumer personal data and relevant rights of customers, we abide by the Personal Data Protection Act and bylaws and allocate considerable resources to formulate and carry out security protection plans for personal data files. From time to time, we organize education and training and legal awareness promotion on personal data protection. As well as this, we formulate privacy rights policies and legal terms which are disclosed on our website/e-shopping mall. We will continue to carry out security protection plans for personal data files and related matters, implementing the personal data protection of our customers.

(III) Our 0800 customer service hotline answers nearly 100 calls per day, hoping to solve whatever questions consumers may have as quickly as we can. Consequently, we hope consumers feel our sincerity as it is our dedication to gain an understanding of their expectations. | |

Item	Implementation status
	Yes	No	Summary description
(VI) Has the company formulated supplier management policies, where suppliers are required to follow relevant regulations on issues such as environmental protection, occupational safety and health or labor and their implementation?	V		(I) To ensure the sustainable development of the supply chain and uphold our commitment to social responsibility, the Company has adopted the “Supplier Management Policies.”Suppliers are required to comply with relevant regulations regarding environmental protection, occupational health and safety, and labor and human rights, and conduct regular management and assessments.
(II) Raw material suppliers wishing to be our partners must be willing to make continuous progress. At the same time, we constantly encourage and require suppliers to pass quality system certifications, such as ISO 22000, SQF (Safe Quality Food), BRC (British Retail Consortium), FSSC 22000 and IFS. Through a systemic continuous assessment mechanism, we select decent and quality suppliers to ensure the quality of raw materials, further producing products that give consumers peace of mind.
(III) Supplier audit: The Company has established an audit team and a counseling team to track down the progress of improvements for supplier deficiencies, working together to improve quality, technology, and environmental, safety, and health performance.
(IV) In 2024, the organization and suppliers of the supply chain maintained a stable partnership, and there were no significant changes.	None
V. Does the company refer to the internationally prepared reporting standards or guidelines, preparation of sustainability reports and other reports and disclose the company’s non-financial information? Did the preliminary report	V		(I) The structure of the 2024 sustainability report was compiled in accordance with the latest GRI Standards issued by the Global Reporting Initiative (GRI).
The report also discloses the sustainable accounting standards indicators for the food processing industry issued by the US Sustainability Accounting Standards Board (SASB) and the information provided by the Task Force on Climate-related Financial Disclosures (TCFD) of the International Financial Stability Board (FSB). In addition, we also complied with the provisions of Table 1-1, Article 4 of “Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies” promulgated by the Taiwan Stock Exchange to explain the sustainability disclosure	None

Item	Implementation status
	Yes	No	Summary description
obtain the confidence or assurance opinion of the third-party verification unit?			indicator requirements for the food and catering industries whose income accounts for over 50% of their total operating income, as well as climate-related information according to Table 2 in Article 4-1.
(II) The 2024 Sustainability Report will be entrusted to Deloitte & Touche for a limited assurance engagement, performed in accordance with ISAE 3000 – 'Assurance Engagements Other than Audits or Reviews of Historical Financial Information', to provide limited assurance on the subject matter information.
VI. If the Company has instituted the sustainable development best-practice principles in accordance with the “Corporate Social Responsibility Best-Practice Principles for TWSE/TPEx Listed Companies,” specify the implementation of these principles and the variation with the Sustainable Development Best-Practice Principles for the TWSE/TPEx-listed Companies: None.
VII. Other important information to facilitate understanding of the promotion of sustainable development operations:

(I) Public Welfare Project :
As the leading brand of nutritious and health food in Taiwan, the Company, focusing on nutrition as the core, is committed to staying with each civilian and identifies health as a sustainable development goal, in order to build a “good” state and promote the sustainable development of the overall society. In the face of the two major sustainable risks, namely “super-aging” and “few childbirth rate” in Taiwan, the Company has launched the two major sustainable actions, “caring for the elderly” and “caring for the young children,” to support nutrition requirements and nutrition health education and to link the vertical and horizontal powers of diverse stakeholders to establish a sustainable ecological circle with good status.

1. Nutrition Project for Children
Standard Foods Group has been focusing on the calcium deficiency issue among children from 2020 to 2022. Based on this, we initiated the “Calcium with Love” three-year welfare activity, inviting children of rural areas to take part in painting competitions at schools, which are voted by consumers online. Anyone purchasing Fresh Delight milk also made a contribution to collecting milk for children in rural areas. Eventually, Standard Foods Group achieved the goal for donating millions of bottles of milk in three years. Starting in 2023, the Company reorganized and upgraded its plans. Focusing on the core functions of the Company’s core business, it | | | | |

Item	Implementation status
	Yes	No	Summary description
combined with the many products and stakeholders of Standard Foods Group. The Company called on the public to pay attention to the issue of the broken chain of nutrition for children in rural areas during the summer and launched the “Calcium with Love” children nutrition independence program.
In 2024, the Company will further expand its plan. In addition to continuing the design of the “Nutrition Education Box” for the nutrition subsidy granted to students, the Company donated 5,179 boxes to the school this year, in order to address the applications for distribution of the boxes to the disadvantaged schoolchildren in remote areas and the disadvantaged children of the Boyo Social Welfare Foundation to support their nutrition. In terms of promotion of nutrition education, the “Nutrition Knowledge Panel” and “Nutrition Education Manual” were prepared, and a total of 17,653 copies thereof were provided to primary schools upon request, tutorship systems, educational camps, and case study competitions. The Company also organizes the brand new design of “Nutrition Education Camp” for disadvantaged children in remote areas, which comprehensively improved the nutrition, health, and literacy of children. In order to strengthen the contents of the nutrition education, the “teaching plan competition” was held for the primary school children to prepare nutritious and healthy communication content suitable for learning. A total of 44 entries joined the competition. The tutorship system is the most important support for children in remote areas. The “Tutorship Workshop” was organized to train 56 seed teachers specialized in nutrition education to help with the after-school care for the nutrition and health of disadvantaged children.
2. Nutrition Project for the Elderly :
In 2023, Standard Foods Group launched the “Live with Love” nutrition and elderly care program, and joined hands with Alliance of Taiwan Foodbanks, Hondao Senior Citizen’s Welfare Foundation, and Old Five Old Foundation to protect nutrition and health of disadvantaged elders. According to the observation, the average life expectancy of the elderly is 10%. Meanwhile, the labor shortage is also a problem. The elderly in remote areas are facing more severe nutrition and health problems.
In order to establish a comprehensive network of health protection for the elderly, the Company has been promoting the three major aspects, including nutrition, health, and volunteer recruitment. These include 20 “Nutrition Workshop” sessions organized in 2024 to help the local elderly people and volunteers with physical fitness tests, nutrition, health awareness, and social engagement. A total of 590 people participated in it. Meanwhile, the Company also prepared a balanced nutrition course and learning tools for the elderly, including production and distribution of 20,000 “Nutrition Education Pads” and the learning tool “Build My Plate” reaching a total of 590 people. Meanwhile,

Item	Implementation status					Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description

nutrition experts were invited to design the “Standard Foods Nutritious and Delicious Cycle Menu” for the elderly to help them develop a balanced diet habit and meet the needs of the volunteers preparing the meal.

Standard Foods nutrition team designs the “Nutrition Supply Box” for the elderly. The Company also worked with social welfare units to provide nutrition to the elderly in the remote area in addition to their daily meals. In 2024, a total of 7,511 boxes were donated. In response to the problem about the lack of volunteers in social welfare organizations, the Company has developed a volunteer matching platform to solve the manpower shortage of the NGO for elderly care. The plan is to help Taiwan face the challenge of an aging society and create a wonderful senior citizen society.

(II) Public Welfare Donations

We not only provide in-depth care for children and the elderly through charity projects, but also support various charity organizations for a long time by donating materials from time to time. In 2024, the Company made major donations/sponsorships to a total of 56 public welfare organizations. Recipient units are as follows:

NO.	Recipient	NO.	Recipient	NO.	Recipient
1	Taiwan Fund for Children and Families	21	Parents’ Association for Persons with Intellectual Disability, Taipei City.	41	Corner Love Association
2	The Mustard Seed Association	22	The First Socail Welfare Foundation	42	Yilan You Yu Zhai Charity Association
3	Boyo Social Welfare Foundation	23	Yu-Cheng Social Welfare Foundation	43	Kaohsiung Social Welfare Association
4	Hope Foundation	24	Syin-Lu Social Welfare Foundation	44	Taitung County Indigenous Ebenezer Holistic Care and
5	House of The Little Angels Kaohsiung	25	Chensenmei Social Welfare Foundation	45	Taiwan Literature Development Foundation
6	Taiwan His Hands Christian Home	26	Yu An Care Institution	46	The Garden of Mercy Foundation

Implementation status						Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
		Yes	No	Summary description
7	Changhua Christian Happy Children’s Home			27	Hsin Miao Care Institution	47	Harmony Home Association, Taiwan
8	Good Shepherd Social Welfare Foundation			28	Happy Mount Social Welfare Foundation	48	Lourdes Association
9	Huashan Social Welfare Foundation			29	Lan-Chui Social Welfare Foundation	49	Taipei Mental Rehabilitation Association
10	Hondao Senior Citizen's Welfare Foundation			30	Mu-Kuang Rehabilitation Center for The Blind	50	Wise Love
11	Mennonite Socail Welfare Foundation			31	Cherng Shin Love Home	51	ROC Child and Senior Care Association
12	Old Five Old Foundation			32	Kindgarden Love Home	52	X5 Charity Foundation
13	Elder Welfare Concerned Association			33	Dann Center for Individuals with Developmental Disabilities	53	The Garden of Hope Foundation
14	Taiwan Gospel Home Care Association			34	Pingtung Christian Victory Home	54	Taichung Prison Fellowship Christian Ministry
15	Hai Ching Nursing Center			35	Jen Ji Shiang Social Service Institute, Taipei City	55	Agape House
16	Juan-Ilan Nursing Home			36	Taiwan People’s Food Bank Association	56	Changhua Veterans Home
17	Catholic Marian Long-Term Care Center			37	Alliance of Taiwan Foodbanks
18	Bor-ay Home			38	Chinese Christian Relief Association-1919 Food Bank
19	Chiayi City Disabled Service Association			39	United Way of Taiwan
20	Nantou County Comprehensive Disability Rehab Center			40	En-You Love Association

Item	Implementation status					Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
(III)Green Investment 1. The Company's annual investment in green bonds is as follows, with each bond having obtained green bond certification from the Taipei Exchange.
Investment Year	Bond Code		Bond Abbreviation	Bond Type	Amount (NTD 10 thousand)
2024	B50187		P13 遠東新 7	Green Bond	NT$5,000
2023	B618DG		P12 台積 2A	Green Bond	NT$5,000
2. Energy-saving investment
Year	Electricity Saved (kWh)		Water Saved (tons)	Carbon Emission Reduction (tons/year)	Comparison Year	Project Cost (NT$1,000)
2024	532.81		7,642.00	263.21	2023	15,579.1
Note: For detailed information, please refer to pages 46-50 of this Annual Report.

Climate-related information of TWSE and TPEx Listed Companies:

Implementation of climate-related information

Item

Implementation Status

(1) Describe the board of directors’ management oversight and governance of climate-related risks and opportunities.

The company passed a resolution at the board of directors meeting on May 11, 2023, to establish a “Sustainability Development Committee,” which is a functional subcommittee under the board of directors. The committee is appointed by the board of directors and consists of at least three members, with at least one director participating in the oversight.The Committee has adopted the “Sustainable Development Committee Charter”, and based on functional responsibilities, set up the “Corporate Governance Team,” “Food Safety Team,” “Environmental Sustainability Team,” “Supply Chain Management Team,” “Employee Care Team” and “Social Care Team.” The Committee is responsible for formulating, promoting, and strengthening the development of sustainability-related issues and tracking the results, and regularly reports the progress and effectiveness of climate-related projects to the Board of Directors. After the board confirms the short-, medium-, and long-term goals, the committee evaluates climate-related risks and opportunities based on the progress of the environmental sustainability task force, managing and overseeing the sustainability strategy and goals.In response to the high degree of climate uncertainty, the Company’s Sustainable Development Committee and Environmental Sustainability Team convene relevant departments periodically to discuss the impact of various climate-related issues on internal and external issues of the organization. After identifying and assessing climate-related impacts, the Committee and Team hold meetings with senior executives to discuss climate-related risks and opportunities. Improvement suggestions and measures are put forward based on the possible harm caused by the risks, in order to adapt and mitigate climate-related financial risks, and corresponding climate-related financial opportunities are identified.

(2) Describe how the identified climate risks and opportunities will affect the Company's business, strategy, and finances in the short, mid, and long run.

Financial Impact of Climate-Related Risks, Response Strategies, and Management Goals
▼ Physical Risks

Types	Climate-related risks	Potential impact on the Group	Potential financial impact	Response strategy
Immediacy	The severity and frequency of typhoons and flooding events have increased.	Typhoon caused transportation obstacles/disruption, plant/warehousing equipment damage or water/energy stoppages.	• The transportation cost of raw materials and finished products increased and so did the operating costs.
• The power outage caused damage to the plant equipment and assets, which increased the maintenance cost.
• The power outage caused damage to the plant equipment and production interruption, resulting in a decrease in income.	• Within 2–3 days before the typhoon or heavy rainfall alarm, complete the supply chain planning.
• Establish diversified transportation and delivery fleets.
• The electricity system inventory is activated to confirm the year of life and performance of the equipment.
• Postpone or communicate for the substitute products in channel activities.	• Adjust the supply chain plan within one week prior to the typhoon or heavy rainfall warning.
• Regularly complete the electricity system inventory every year to improve electricity efficiency and availability.
• Review the Company’s accident insurance policies annually to reduce the losses posed by financial impacts.
Immediacy	Water Resources Shortage	The prolonged drought in Taiwan during summer causes the underground water level to fall and thereby affects the production plan of dairy and beverage manufacturers.	• The shortage of water resources has prevented production lines from operating normally and has also reduced the operating revenue. Meanwhile, the shortage has also resulted in an increase in inventory penalties and operating costs.	• Increase the depth of the wells.
• Increase the water storage capacity and establish a contingency management mechanism.	• Monitor the quality and volume of groundwater every day to ensure that they meet the standards.
• Review the water efficiency annually to reduce the water consumption per million NT dollars of the operating revenue.
Long-term	Changes in rainfall (water) mode and extreme climate	• Drought has affected the production of oatmeal in Australia, olive oil in Italy and	• The decrease in output of raw materials caused a rise in price and operating costs.	• Increase the inventory of bulk raw materials.
• Activate the raw materials substitution project.	• Control the number of days and quality of the bulk material inventory.
• Control the price and supply stability

| | | changes | cocoa powder in West Africa.
• Drought has affected the supply of grass and milk, which in turn affects the output of milk powder.
• The prolonged rainfall has affected the output of sugar. | • R&D of alternative materials to increase the adaptive cost. | | of the key raw materials or alternative raw materials. |
| --- | --- | --- | --- | --- | --- | --- |
| | Long-term | Average temperature rises. | The supply of raw materials is unstable due to the impact on the growth cycle of agricultural products and the output of milk sources. | The shortage of raw materials will affect supply and prices. Continued price increases will affect profits sought by the products and increase operating costs. | • The Company will confirm the raw material (M+6) inventory status of the suppliers every month to ensure the stability of the supply chain.
• Develop and increase the sources of raw materials to mitigate the risk of over concentration of purchase from a single source and increase the flexibility of supply. | • The Company has completed the raw materials supply plan for the next year.
• Establish an alternative raw material mechanism. |
| | Long-term | Average temperature rises. | The rising demand for air conditioning, cooling systems, and water resources leads to increased energy costs. | Energy consumption increases carbon emissions, thereby driving up related costs. | Take an inventory of energy-consuming equipment and pipelines, assess them, and replace them with energy-saving equipment. | • Enhance the energy efficiency of energy equipment to reduce power consumption, water consumption and carbon emissions.
• In 2028, three plants passed the ISO 50001 Energy Management. |

▼ Transition Risks

Types	Climate-related risks	Affected period	Potential impact on the Group	Potential financial impact	Response strategy	Management goals
Policies, laws and regulations	Increase in GHG emission cost	Short-term	To reduce carbon emissions, carbon inventory and replacement of high energy-consumption equipment shall be included.	• Carbon inventory and assurance result in the increase in operating costs.
• The investment in energy-saving and carbon-reduction equipment results in the increase in capital expenditure.	• Assess the tools used for carbon inventory to shorten the time of inventory.
• Participate in the ESCO energy-saving project to ensure the maximum investment efficiency.	• The Scope 3 inventory was completed in three steps.
• The Company shall complete all the projects and meet the acceptance criteria as scheduled.
• The Company has completed the internal carbon pricing process.
Policies, laws and regulations	Requirements and supervision standards for existing products and services are improved/changed.	Short-term	The refrigerated goods have been adjusted from 7°C to 4°C or below in response to the customer’s product acceptance temperature requirements, which results in an increase in the energy consumption of the warehousing and transportation system.	The delivery fails to meet the customer’s specifications, thereby resulting in the return of goods and a shortage penalty; in order to improve the service standard, losses on energy consumption are generated and operating costs increase accordingly.	The transportation service providers are required to replace the old vehicles and the design of multi-temperature layers for the vehicles to meet the customer’s acceptance criteria.	• No delivery rejection is allowed.

| | Policies, laws and regulations | Requirements and supervision standards for existing products and services are improved/changed. | Mid-term | To meet the sustainable management goals of the environment, energy management in the GHG Scope 1 to Scope 2 needs to be more efficient. | To meet the carbon reduction goals. If the carbon reduction goal is not met, then it is necessary to purchase green electricity, thereby resulting in an increase in operating costs. | • Implement energy-saving and carbon reduction projects to improve energy efficiency.
• Practice the TPM and implement the ISO 50001 energy management system. | Each plant continues to complete the implementation of the ISO 50001 energy management system and improves energy efficiency through systematic energy source inventory analysis and other actions. |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | Policies, laws and regulations | Renewable energy laws and regulations | Mid-term | The new factory construction shall comply with the “Renewable Energy Development Act,” and then the application for a construction permit and an occupation permit may be filed. | The installation of renewable energy will increase capital expenditure and the operating cost of subsequent maintenance. | The new plant plans to implement the green building project to meet the requirements under laws and regulations. | The proportion of renewable energy in new construction planning shall reach 10%-20%. |
| | Policies, laws and regulations | The government has strengthened its reporting obligation on emissions. | Mid-term | The Scope 3 of the GHG inventory is the focus of future laws and regulations, and it is necessary to research the inventory tools and methods earlier to avoid future non-compliance with laws. | If the government’s future legal requirements are not met, the Company will invest more capital or pay carbon fees in the short term, thereby resulting in an increase in operating costs. | • Pay close attention to the drafts of the government’s policies and laws and regulations, and adjust action plans quickly.
• Work with upstream and downstream supply chains to collect relevant carbon emission data, and provide | • Pay attention to the information about the government laws and regulations on a monthly basis and respond to it in a timely manner to comply with regulatory requirements.
• Strengthen the cooperation with upstream and downstream |


	Technology	Transformation to low-carbon/plastic reduction technology cost	Short-term	The plastic reduction and carton reduction project for the packaging materials of oil, grain beverages, and dairy products affect the transportation and existing production equipment and process adjustment.	• Increase the costs related to research and development/development of new technologies.
• Increase the capital expenditure related to the investment/purchase of equipment.	Continue to optimize the weight and volume reduction of packaging materials.	Continue to report the development and execution of the optimized product lightweight package materials every year.
	Technology	Low-carbon/plastic reduction products have emerged to replace existing products and services.	Short-term	The paper-based straws and the exterior bag materials for long-life milk may be unified to increase the recycling of waste, thereby affecting the process capability of suppliers and the process adjustment of production equipment.	• Increase the costs related to research and development/development of new technologies.
• Increase the capital expenditure related to the investment/purchase of equipment.	Continue to optimize the alternative packaging material plan (single material or paper-based packaging material).	Continue to report the development and execution of alternative green packaging materials every year.

| | Market | The costs of raw materials and supplies increased. | Short-term | The climate change causes fluctuations in raw material prices, which increases the difficulty in the procurement of raw materials. It is necessary to search and test alternative raw materials to reduce reliance on high-cost raw materials and supplies. | In order to search and test alternative raw materials and supplies, the Company needs to invest resources in the research and development and testing of the formula. In the short term, the Company might increase the cost of R&D and production. | • Look for alternative raw materials with similar properties and lower cost.
• Conduct the supplier assessment to select partners with stable supply capabilities. | • Complete the alternative formula design.
• Complete the development of the second supplier of key materials. |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | Market | Changes in consumer demand and preferences | Mid-term | The climate change has led to an increase in consumers’ demand for environmental protection and convenience in different fields of food. The Company needs to strengthen product innovation, launch products that are more in line with market trends, and eco-friendly packaging. | • The use of eco-friendly packaging materials or functional components may increase production costs and affect the gross margin of products.
• If the Company successfully launches innovative products that meet market demand, it will gain a competitive advantage in the market, attract more consumers, and increase its operating revenue. | • To meet the needs of consumers, the Company develops nutritious and healthy products to satisfy the needs of consumers for healthy diet.
• Design simple and safe packaging to reduce the use of packaging materials and improve the convenience of consumers.
• At the product development stage, the consumer test is conducted to understand the needs and preferences of consumers, and | Develop new product categories and build the by-product brand to expand the leading position; and deploy all channels to expand the penetration rate and create sustainable profits. |
81


	Goodwill	Increasing stakeholder concerns and negative feedbacks	Long term	Stakeholders are paying increasing attention to the Group. If they do not participate in environmental sustainability, the Group's goodwill will be damaged and the consumers' loyalty will be affected accordingly.	• The enterprise's goodwill impairment results in the loss of consumers and affects the overall operating revenue.
• The stakeholders' willingness to invest declines.	• Use diversified channels to actively disclose information and respond to environmental sustainability activities.
• The Company continues to promote sustainability-related training and activities, and has established and strengthened employees' sustainability awareness and innovative product development.	• Strengthen the communication channels with stakeholders and respond to the sustainability-related issues in a timely manner.
• Take the sustainable practices of related industries into consideration and continue to improve the Group's sustainable actions.

▼ Financial impacts of climate-related opportunities, response strategies and management goals

Types	Climate-related opportunities	Affected period	Potential impact on the Group	Potential financial impact	Response strategy	Management goals
Resource efficiency	Use of a more efficient production and distribution process	Short-term	The speed of production equipment may be accelerated or the EOQ can be enlarged to shorten the working hours of the machine.	Cut the working hours of the machine to reduce the expenses in consumption of energy.	Continue to improve the production rate, efficiency and quality of the manufacturing process.	Establish the flexibility of different production batches

	Resource efficiency	Use of a more efficient production and distribution process	Mid-term	Optimization of the distribution of primary and secondary logistics to improve the efficiency of the supply chain.	The optimization of distribution helps reduce the overall transportation costs.
	Resource efficiency	Enhance resource utilization efficiency through recycling and reuse	Short-term	Through recycling and reuse (such as the packaging of certain online shopping goods replaced by recycled boxes), the Company may reduce the demand for and waste of consumables and thereby improve the efficiency of resource utilization.	• Reduce waste of packaging materials and reduce the cost of consumables.
• Reduce the cost of waste disposal to help cut the operating costs.	• Increase the proportion of packaging materials and online shopping products delivered using recycling boxes in the plant.
• Recycle the pallets in the imported containers.	Establish an annual plan and complete monthly implementation status tracking.
	Energy source	Adoption of the incentive policy	Short-term	In response to the government's low-carbon incentive plan (e.g. energy-related subsidies), the Group's carbon emissions are reduced to improve energy efficiency.	• In response to the ESCO project, the Company will increase capital expenditure in the short term, but in the long term, the Company may reduce energy consumption and operating costs.
• After the project certification, the Company can receive rewards and subsidies, reduce carbon emissions, and increase carbon income based on	• Assess the capital expenditure with respect to the energy-saving equipment or development of new technology.
• Collect the information on low-carbon incentives from the government and propose related plans.	The Company will continue to plan and implement the new system each year, and disclose the results of the implementation to gain the attention of stakeholders and learn together with the peers.

				the internal carbon pricing.
	Products and services	Development of low-carbon products and services	Mid-term	In response to the market consumption trend, the Company develops low-carbon and plastic reduction products to help improve the brand image and increase market and stakeholder attention.	• Increase the costs related to research and development/development of new technologies.
• Increase the capital expenditure related to the investment/purchase of equipment.
• The development of low-carbon products or reusing by-products helps create operating revenue on the market.	• Pay attention to the domestic and foreign industry trends, and observe the impact posed by sustainable issues on the market.
• Incorporate the concept of low carbon into the research and development of new products, such as circular economy and development of biodiversity projects.
	Market	Access to new markets	Short-term	In response to the excessive raw materials due to climate change, the Company developed new product specifications and accessed new market channels.	The rapid development of new specifications and new markets can help increase operating revenue.	Pay attention to the dynamics or trends of new markets, establish a project team quickly, integrate and assess, and decide to access the market quickly.

Item	Implementation Status
(3) Describe the financial impacts of extreme climate events and transitional actions.	Please refer to the description of item (2) for details.
(4) Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.	The Company’s risk management includes “strategy,” “operation,” “finance,” “environment,” and “legislation.” Through the participation of the Board of Directors and senior management, the Company supports and establishes a risk management unit, and builds a sound risk management framework. Each business unit integrates various strategies related to climate change risks specified by the Sustainable Development Committee based on the duties it is in charge of and considering various risks that might affect achievement of the corporate goal. Each business unit identifies, evaluates, and builds a comprehensive climate management procedure, including identification, assessment, management, recovery, adaptation and other steps, and executes continuous monitoring. The risk management promotion team compiles the risk information provided by each unit, issues risk management reports to the Audit Committee and the Board of Directors every year and establishes a dynamic management and reporting mechanism to supervise the effective implementation of risk management. By integrating risk management into operating activities and daily management processes, the Company shapes a comprehensive corporate risk management culture to achieve corporate goals, improve management efficiency, and provide and effectively allocate resources.
(5) If a scenario analysis is used to assess the resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors, and main financial impacts used shall be described.	The Company has evaluated the impact of climate disasters that may occur at 2.4°C to 4.4°C based on the RCP climate scenario it selected and then simulated climate scenarios as RCP2.6–RCP8.5 based on the “TCCIP” (https://tccip.ncdr.nat.gov.tw/), the “3D Disaster Potential Map” (https://dmap.ncdr.nat.gov.tw/1109/map/), and other public climate model/chart websites. It is estimated that the average and maximum daily rainfall increase at the end of the century did not exceed the disaster-causing standard of the “3D Disaster Potential Map”: 650 mm of rainfall in 24 hours. Therefore, the Company has no immediate flood risk. But there are still typhoons and other natural disasters that may cause line stoppage, transportation difficulties, supply chain interruption, and personnel absenteeism.
The Company estimates the financial impact of future electricity costs according to the Nationally Determined Contributions (NDCs) of the Paris Agreement and relevant domestic laws and regulations (such as the “Greenhouse Gas Reduction and Management Act” and the “Renewable Energy Development Act”).
The Ministry of Economic Affairs held the “Electricity Charge Review Committee” meeting for 1H of 2024 on March 22, 2024. After the thorough discussion, based on the principles of “reflecting costs, caring for life, stabilizing prices, saving energy and reducing carbon, and user pays,” the Committee resolved that the average electricity charge should increase by about 11%, and the adjusted overall average electricity charge should be NT$3.4518 per kWh. The new charge will be implemented on April 1 and reviewed annually.
Based on the statistics on the aggregation of the factories and headquarters of the Standard Foods Group in Taiwan,

Item	Implementation Status
	the total amount of purchased electricity in 2024 was 31,557 kWh, resulting in the increase in the electricity bill by NT$10,615,662 from 2023. Based on the analysis of this scenario, in the long run, Taiwan's electricity charges will continue to rise based on such range. The Group's electricity bill will increase by about 10–11% each year. For the possible impact posed by the purchased electricity, the Company will continue to implement various energy-saving measures to reduce the impact of the electricity consumption costs.
(6) If there is a transformation plan in place to manage climate-related risks, specify the content of the plan, and the indicators and targets used to identify and manage physical risks and transformation risks.	The company has taken the potential impact of climate change into consideration for overall operations. This is to estimate the probability of risk occurrence and the degree of impact. The goal is to formulate a risk response and mitigation plan and identify physical and transformation risks and opportunities based on business type, risk strategy, and financial planning status. Scenario simulation (physical risk: RCP 2.6, RCP 8.5, transition risk: NDCs, domestic regulations) will be conducted for possible future climate financial impact. Prospective and positive climate actions will be planned, and risk response and mitigation measures will be formulated. Crisis management mechanisms have been developed, such as promoting green energy and environmental protection policies, transforming supply chains to low-carbon manufacturing, expanding the use of renewable energy, and developing innovative carbon reduction technologies. These measures will comprehensively reduce the carbon footprint of corporate operations, product production, and sales. In response to global climate change and the greenhouse effect on the environment, the Company has formulated energy-saving and carbon reduction measures, promoted energy-saving management in offices and public areas, reduced waste, implemented green procurement, purchased products with energy-saving and green labels, and truly fulfilled energy saving and carbon reduction according to government regulations. Please refer to the description of item (2) for the main short, mid, and long-term risks and opportunities of the Company.
(7) If internal carbon pricing is used as a planning tool, the basis for setting the price shall be stated.	Not applicable.
(8) If climate-related goals are set, the activities covered, the scope of greenhouse gas emissions, the planning period, and the progress of each year should be explained. If carbon offsets or renewable energy certificates (RECs) are	Please refer to 1-1 and 1-2 for the scope and planning period of greenhouse gas emission, and annual progress.
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Item	Implementation Status
used to achieve the goals, the source and quantity of offset carbon reduction credits or quantity of RECs must be explained.
(9) Greenhouse gas inventory and assurance status, as well as reduction targets, strategies, and concrete action plans (please refer to 1-1 and 1-2).	Please refer to 1-1 and 1-2 below.

1-1 The Company's greenhouse gas inventory and assurance in the recent two years

1-1-1 Greenhouse gas inventory information

(1) 2024 Standard Foods Group in Taiwan greenhouse gas inventory table

Category	Sub-category	Total emissions equivalents (tons CO2e/year)
		Taipei headquarters	Standard Foods Dayuan Plant	Standard Foods Zhongli Plant	Standard Dairy Hukou Plant	Total
Category 1	1.1 Direct emissions from stationary combustion sources	0.0000	5,011.7011	2,993.5252	2,789.3485	10,794.5748
	1.2 Direct emissions from mobile combustion sources	1,048.8789	103.8936	9.1077	1.6166	1,163.4968
	1.3 Direct process emissions and removals from industrial processes	0.0000	0.0222	0.0159	0.1094	0.1475
	1.4 Direct fugitive emissions from greenhouse gases released by the man-made system	34.1571	274.2331	62.2526	68.8889	439.5317
Category 2	2.1 Indirect emissions from imported electricity	269.9406	6,230.9731	5,152.5696	3,574.5288	15,228.0121
	2.2 Indirect emissions from imported energy	0.0000	0.0000	0.0000	0.0000	0.0000
Category 3	3.1 Emissions from upstream transport and distribution for goods	0.0000	0.0000	0.0000	0.0000	0.0000
	3.2 Emissions from downstream transport and distribution for goods	0.0000	1,236.1310	7,768.9594	4,167.6182	13,172.7086
	3.3 Emissions from employee commuting	155.8301	257.4909	45.9453	69.4789	528.7452
	3.4 Emissions from client and visitor transport	0.0000	0.0000	0.0000	0.0000	0.0000
	3.5 Emissions from business travels	0.0000	0.0000	0.0000	0.0000	0.0000

Category	Sub-category	Total emissions equivalents (tons CO_{2e}/year)
		Taipei headquarters	Standard Foods Dayuan Plant	Standard Foods Zhongli Plant	Standard Dairy Hukou Plant	Total
Category 4	4.1 Emissions from purchased goods	331.4092	114,531.7572	44,028.4256	19,349.2544	178,240.8464
	4.2 Emissions from capital goods	0.0000	0.0000	0.0000	0.0000	0.0000
	4.3 Discharge from the disposal of solid and liquid waste	1.7945	113.4887	145.8349	123.7473	384.8654
	4.4 Emissions from the use of assets	0.0000	0.0000	0.0000	0.0000	0.0000
Category 5	5.1 Emissions or removals from the use stage of the product	0.0000	0.0000	0.0000	0.0000	0.0000
	5.2 Emissions from downstream leased assets	0.0000	0.0000	0.0000	0.0000	0.0000
	5.3 Emissions from end-of-life stage of the product	0.0000	0.0000	0.0000	0.0000	0.0000
	5.4 Emissions from investments	0.0000	0.0000	0.0000	0.0000	0.0000
Category 6	6.1 Indirect greenhouse gas emissions from other sources	0.0000	0.0000	0.0000	0.0000	0.0000
Total emissions of Category 1 (tons CO_{2e}/year)		1,083.0360	5,389.8500	3,064.9014	2,859.9634	12,397.7508
Total emissions of Category 2 (tons CO_{2e}/year)		269.9406	6,230.9731	5,152.5696	3,574.5288	15,228.0121
Total emissions of Category 2 to 6 (tons CO_{2e}/year)		758.9744	122,369.8409	57,141.7348	27,284.6276	207,555.1777
Total emissions of Category 3 to 6 (tons CO_{2e}/year)		489.0338	116,138.8678	51,989.1652	23,710.0988	192,327.1656
Total emissions equivalents of Category 1 to 6 (tons CO_{2e}/year)		1,842.0104	127,759.6909	60,206.6362	30,144.5910	219,952.9290

(2) 2023 Standard Foods Group in Taiwan greenhouse gas inventory table

Category	Sub-category	Total emissions equivalents (tons CO2e/year)
		Taipei headquarters	Standard Foods Dayuan Plant	Standard Foods Zhongli Plant	Standard Dairy Hukou Plant	Total
Category 1	1.1 Direct emissions from stationary combustion sources	0.0000	4,961.6692	2,891.9865	3,076.2336	10,929.8893
	1.2 Direct emissions from mobile combustion sources	1,011.0868	42.8604	5.6925	1.8964	1,061.5361
	1.3 Direct process emissions and removals from industrial processes	0.0000	0.0222	0.0099	0.1140	0.1461
	1.4 Direct fugitive emissions from greenhouse gases released by the man-made system	28.7246	267.0373	70.0128	77.8897	443.6644
Category 2	2.1 Indirect emissions from imported electricity	272.8970	6,357.1685	5,206.9576	3,751.6336	15,588.6567
	2.2 Indirect emissions from imported energy	0.0000	0.0000	0.0000	0.0000	0.0000
Category 3	3.1 Emissions from upstream transport and distribution for goods	0.0000	0.0000	0.0000	0.0000	0.0000
	3.2 Emissions from downstream transport and distribution for goods	0.0000	0.0000	0.0000	0.0000	0.0000
	3.3 Emissions from employee commuting	85.1054	255.8563	42.4857	77.9841	461.4315
	3.4 Emissions from client and visitor transport	0.0000	0.0000	0.0000	0.0000	0.0000
	3.5 Emissions from business travels	0.0000	0.0000	0.0000	0.0000	0.0000
Category 4	4.1 Emissions from purchased goods	312.6613	64,984.7268	24,609.9061	4,753.5615	94,660.8557
	4.2 Emissions from capital goods	0.0000	0.0000	0.0000	0.0000	0.0000
	4.3 Discharge from the disposal of solid and liquid waste	0.9766	114.9738	143.5123	141.6872	401.1499
	4.4 Emissions from the use of assets	0.0000	0.0000	0.0000	0.0000	0.0000
Category 5	5.1 Emissions or removals from the use stage of the product	0.0000	0.0000	0.0000	0.0000	0.0000
	5.2 Emissions from downstream leased assets	0.0000	0.0000	0.0000	0.0000	0.0000
	5.3 Emissions from end-of-life stage of the product	0.0000	0.0000	0.0000	0.0000	0.0000
	5.4 Emissions from investments	0.0000	0.0000	0.0000	0.0000	0.0000

Category	Sub-category	Total emissions equivalents (tons CO_{2e}/year)
		Taipei headquarters	Standard Foods Dayuan Plant	Standard Foods Zhongli Plant	Standard Dairy Hukou Plant	Total
Category 6	6.1 Indirect greenhouse gas emissions from other sources	0.0000	0.0000	0.0000	0.0000	0.0000
Total emissions of Category 1 (tons CO_{2e}/year)		1,039.8114	5,271.5891	2,967.7017	3,156.1337	12,435.2359
Total emissions of Category 2 (tons CO_{2e}/year)		272.8970	6,357.1685	5,206.9576	3,751.6336	15,588.6567
Total emissions of Category 2 to 6 (tons CO_{2e}/year)		671.6403	71,712.7254	30,002.8617	8,724.8664	111,112.0938
Total emissions of Category 3 to 6 (tons CO_{2e}/year)		398.7433	65,355.5569	24,795.9041	4,973.2328	95,523.4371
Total emissions of Category 1 to 6 (tons CO_{2e}/year)		1,711.4517	76,984.3145	32,970.5634	11,881.0001	123,547.3297

1-1-2 Greenhouse gas assurance information

The Company has implemented the methodology under the GHG Protocol to establish the Group’s GHG Inventory Procedures, which were approved by the General Manager and issued accordingly. The Company has also conducted its first inspection on the four main fields in 2022 in accordance with the Procedures, and increased its inspections of six business locations in Taiwan in 2023. Based on the operational control and management principles, the fields were attributed to the Company’s headquarters in Taipei. As the organizational boundaries are adjusted, the first year after the boundary adjustment is used as the base year (2023) for the GHG inventory. The base year setting is amended in response to the government policy, and the amendment is published upon approval of the President. The scope of inventory covers the Taipei Headquarters of the Group and six business locations, the Dayuan Plant (including the dormitory) and the Zhongli Plant of Standard Foods Corporation, as well as the Hukou Plant of Standard Dairy Products Taiwan Limited. For the 2024 GHG inventory, the qualified third-party assurance agency, Deloitte Taiwan, was contracted to complete Scope 1, Scope 2 and Scope 3 GHG emission assurance. It will complete the verification in May 2025, and then the GHG Assurance Statement will be received.

The Company’s GHG emissions in 2024 are described as follows: 12,461 metric tons for Scope 1; 15,871 metric tons for Scope 2; and 196,124 metric tons for Scope 3, totaling 224,456 metric tons. There is no significant difference between the emission intensity under Scope 1 and Scope 2 in 2024 from 2023. However, for Scope 3, the emission intensity increased due to the increase in the downstream transportation of the goods and distribution. Notwithstanding, this further demonstrates the Group’s determination to improve and fully inventory the emission sources to formulate emission reduction strategies for promotion.

1-2 Greenhouse gas reduction goals, strategies, and concrete action plans

(1) Short-term plan:

Complete the greenhouse gas emissions inventory and verification by 2025 for Standard Foods Group in Taiwan, including its four major sites, six business premises in Taiwan, and factory sites of subsidiaries in China.
From 2026 to 2027, the Group will continue to complete the full inventory of the Group’s greenhouse gas emissions (including its subsidiaries) in accordance with ISO 14064-1 and set the Group’s long-term carbon reduction target.
Introduce the CDP Carbon Disclosure Project.
Implement proposal improvement projects and conduct carbon emission control for carbon emission hotspots to effectively reduce carbon emissions.

(2) Mid- and long-term plan:
- From 2028 to 2030, the full assurance of the Group’s greenhouse gas (including its subsidiaries) has been completed.
- By 2028, Standard Foods Group in Taiwan will reduce carbon emissions by 5%. (based on 2023, unit: metric tons/NTD 1 million of revenue).
- By 2030, Standard Foods Group in Taiwan will reduce carbon intensity by 10%. (2023 as the base year, unit: metric tons/NT$ million).
- Use green building materials, expand greening around the plant, adopt gravity transportation to reduce power consumption, and plan efficient public equipment.
- Adopt the SBTi Science-Based Carbon Reduction Targets initiative to advance carbon reduction intensity scientifically.

Note 1 The scope of the company’s inventory data for 2023 and 2024 covers Standard Foods Group in Taiwan, including its four major sites and six business premises across Taiwan.

Note 2 For more climate-related information, please refer to the Company’s 2024 Sustainability Report.

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

Evaluation Item	Implementation Status
	Yes	No	Description
I. Establishment of ethical corporate management policies and programs
(I) Has the company specified its policy and method for the implementation of ethical corporate management in its internal rules and regulations and external documents, and have the Board and the management of the company promised to pursue the policy of ethical corporate management?
(II) Has the company established an assessment mechanism for the risk of dishonesty, regularly analyzing and evaluating business activities with a high risk of dishonesty in the business scope, and formulated a plan to prevent dishonesty, and cover at a minimum the preventive measures for various acts under Article 7, Paragraph 2 of “Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies”?
(III) Does the company specify the operating procedures, behavior guidelines, disciplinary penalties, and grievance system in the plan to prevent dishonesty, and implement it, and regularly review and revise the pre-disclosure plan?	V
V
V		The Company has formulated its “Ethical Corporate Management Best-Practice Principles” serving as the basis for the establishment of its corporate culture and management philosophy of ethical corporate management. We also implement sound ethical corporate management policy and corporate governance which the Board of Directors and management are committed to. The Company’s “Ethical Corporate Management Best-Practice Principles” are disclosed on the MOPS and the Company’s website.
According to the formulated “Ethical Corporate Management Best Practice Principles”, the Company specifies employees shall not ask for entertainment, gifts, kickbacks or other benefits by abusing functions and powers and advocates “running business in good faith and maintaining the clean, transparent and responsible business philosophy” is the Company’s important policy upon the registration of employees. Meanwhile, to ensure business secret and IPR policy, employees should sign the “Commitments”, warranting they never accept commissions, kickbacks, rebates, cash, loans or other improper benefits from any manufacturer having transaction with the Company, competitor or other manufacturers that are striving for the Company’s business, including but not limited to entertainment, tourism or gift). The Company has also formulated the directors’ interest avoidance system in “Rules for Procedure for Board of Directors Meetings”.	None

Evaluation Item	Implementation Status
	Yes	No	Description
II. Fulfillment of ethical corporate management
(I) Does the Company evaluate business partners’ ethical records and include ethics-related clauses in the business contracts signed with the counterparties?
(II) Has the company set up a special unit under the board of directors to promote corporate ethical management, and does it regularly report (at least once a year) to the board of directors on its ethical management policies and plans to prevent dishonesty and supervision and implementation?
(III) Has the Company established policies to prevent conflicts of interest, provide appropriate communication channels, and implement them accordingly?
(IV) Does the company have an effective accounting system for the implementation of ethical management, internal control system, and the evaluation result of the risk of dishonesty by the internal audit unit, to formulate relevant audit plans, and check the compliance with the plan to prevent dishonesty, or entrust an accountant to perform the audit?
(V) Does the company regularly hold internal and external educational pieces of trainings on operational integrity?	V		The Company does not accept cash gifts or kickbacks in any transaction with suppliers, in hope that the opposite party could provide a reasonable price and favorable quality.
The HR Division is Company’s dedicated (part-time) unit for the promotion of ethical corporate management. The promotion is carried out pursuant to the provisions of the “Ethical Corporate Management Best-Practice Principles.” All related policies and internal and external education and training are implemented, and the implementation status is regularly reported to the Board of Directors.
Pursuant to the “Ethical Corporate Management Best-Practice Principles,” stakeholders should adopt appropriate recusal measures in the face of a conflict of interest.
The Company has established a sound internal control system. The internal auditors regularly audit the implementation of each unit in accordance with the audit plan. The audit results are reported to the Board of Directors.
In addition to periodic education and training, the HR Division performs relevant ethical corporate management promotion on new employees upon their report to work. To provide employees with relevant legal knowledge, we have established a section dedicated to laws on the Company’s intranet.	None

Evaluation Item	Implementation Status			Deviations from the Ethical Corporate Management Best Practice Principles for Exchange-listed and OTC-listed Companies and Reasons Thereof
	Yes	No	Description
III. Operation of the whistle-blowing system

(I) Does the company establish both a reward/punishment system and an integrity hotline?
Can the accused be reached by an appropriate person for follow-ups?

(II) Has the company established standard operating procedures for accepting complaints, follow-up measures to be taken after the investigation is completed, and relevant confidentiality mechanisms? | V | | The company has established integrity-related regulations, including a whistleblowing system, which includes:
(I) This is coordinated by the HR Division. We have a dedicated hotline and email for reporting. The reporting, incentive system, investigation operating standards and whistleblower protection measures are carried out pursuant to the “Ethical Corporate Management Best-Practice Principles”, “Employee Grievance and Reporting Regulation” and personnel-related regulations.
The whistleblowing hotline (02-27092323 ext.10701) and mailbox ([email protected], [email protected] )

(II) The company has clearly defined the procedures and principles for handling whistleblowing cases, investigation avoidance, follow-up actions after the investigation report, and the protection of whistleblowers in the “Ethical Corporate Management Best-Practice Principles” and the “Employee Grievance and Reporting Regulation.”
Grievances (whistleblowing) may be submitted in writing, via email, or by telephone. The unit or personnel responsible for handling all grievance (whistleblowing) cases must adhere to the principle of confidentiality regarding the identity of the involved parties. For anonymous grievances (whistleblowing), the responsible unit reserves the right to decide whether to accept the case. If the person handling the case has a relationship within three degrees of kinship with the complainant or the person being complained about, has an interest in the | None |

Evaluation Item	Implementation Status			Deviations from the Ethical Corporate Management Best Practice Principles for Exchange-listed and OTC-listed Companies and Reasons Thereof
	Yes	No	Description
(III) Does the company provide proper whistleblower protection?	V		matter being complained about, or has other factors that could affect the impartial investigation or handling of the complaint, the person handling the case should proactively recuse themselves. The complainant or the person being complained about also has the right to request the recusal of that individual.

(III) Our company, in accordance with the “Ethical Corporate Management Best-Practice Principles” and the “Employee Grievance and Reporting Regulation” has established a whistleblower protection system and is committed to protecting whistleblowers from improper treatment as a result of their reporting.

The parties involved in the complaint (whistleblowing), the complainant (whistleblower), and the relevant personnel handling the case must not disclose information to external parties and are responsible for maintaining confidentiality. This is to prevent unfair treatment, retaliation, or threats against the complainant (whistleblower). Violations will be handled according to the disciplinary regulations of the respective regions.

In 2024, there were zero reported cases. | |
| IV. Enhanced disclosure of ethical corporate management information
Does the Company disclose its ethical corporate management policies and the results of its implementation on the company’s website and MOPS? | V | | The Company's Ethical Corporate Management Best Practice Principles for Exchange-listed and OTC-listed Companies” and “Code of Ethics” have been disclosed in investor information on the Company's website. The Company also discloses relevant and reliable information on ethical corporate management in the Annual Report and Sustainability Report. | None |

Evaluation Item	Implementation Status
	Yes	No	Description
V. If the Company has established its own ethical corporate management principles based on the Ethical Corporate Management Best Practice Principles for Exchange-listed and OTC-listed Companies, please describe the implementation and any deviations from the principles : None.
VI. Other important information to facilitate a better understanding of the Company's ethical corporate management (e.g., review of and amendments to ethical corporate management policies) (I) The Company adheres to the Company Act, the Securities and Exchange Act, the Business Entity Accounting Act, and relevant regulations in relation to the exchange-listed and OTC-listed companies and other related business law and regulations, as the foundation for ethical corporate management. (II) The Company's "Rules for Procedure for Board of Directors Meetings" clearly outlined the directors' interest avoidance system. Directors should excuse him or herself in relation to matters which directly related to themselves or any juristic person which they represent. If the matter is harmful to the Company's interests, it shall be properly explained and answered at the Board meeting. The Director is abstained from discussion or vote nor vote on behalf of another Director in this regard. (III) The Company has adopted the " Management Regulations for Prevention of Insider Trading " to stipulate that the Directors, managers and employees shall not disclose the internal material information to other parties. It is not allowed to inquire or collect information from persons who are aware of material information within the Company that is not related to personal duties. It is also not allowed to disclose to other people that private information acquired due to the business execution, in which the Company does not disclose the information.

Other Information Providing a Better Understanding of the Company's Corporate Governance Status:

(1) The Company's website: http://www.sfworldwide.com Disclose and update information regularly.
(2) Information on the Company's website is collected and maintained by a specially assigned person. The regulations such as "Corporate Governance Best Practice Principles" are disclosed on the website for reference.

Implementation of Internal Control System

(1) Statement of Internal Control System

Please refer to the Market Observation Post System (MOPS) > Individual Company > Corporate Governance > Company Regulations/Internal Control

> Internal Control System Statement Announcement

(Link to MOPS: https://mops.twse.com.tw/mops/#/web/t06sg20)

(2) If a CPA has been hired to carry out a project review of the internal control system, the CPA audit report shall be disclosed: None

Major Resolutions of Board of Shareholders and Board of Directors During the Most Recent Year Up to the Date of Publication of the Annual Report:

(1) Major Resolutions of 2024 Shareholders' General Meeting and Implementation Status:
2024 and up to the publication date of the annual report, the Company has convened one shareholder’s general meeting. The Company’s 2024 shareholders’ general meeting was held on Jun. 19, 2024. The summary of matters approved via resolution is as follows:

Matters Approved	Implementation Status
(1) Approval of 2023 Business Report and Financial Statements	Upon the approval in shareholders’ general meeting of the proposal via a resolution, the relevant statistical forms were declared to competent authority according to regulations.
(2) Approval of the Distribution of Earnings for 2023	Upon the approval in shareholders’ general meeting of the proposal via a resolution, the cash dividends of NT$1.25 share, totally NT$1,143,861,989 were distributed, with the ex-dividend base date of Jul. 24, 2024. The dividends were granted on Aug. 16, 2024.

(2) Major Resolutions of the Board Meetings in the Most Recent Period and the Implementation are as follows:

Date	Major resolution matters	Opinions of independent director opinions and how the company has responded to such opinions
Jan. 24, 2024 the 10th meeting of the 14th Board	1. Approved the motion for extending credit lines from financial institution.
2. Approved the investment proposal in H2U.	Approved by the Audit Committee and approved by all directors attending the meeting without objections.
Mar. 11, 2024 the 11th meeting of the 14th Board	1. Approved the motion for the 2024 business plan and budget.
2. Approved the motion for the 2023 financial report and consolidated financial report.
3. Approved the motion for the 2023 earnings distribution.
4. Approved the performance evaluation of the directors and managers of the Company for 2023.
5. Approved the allocation of director remuneration and employee compensation for 2023.
6. Approved the motion for the 2023 statement of internal control.
7. Approved the evaluation of the independence and suitability of the external auditors with reference to the AQI.
8. Approved the motion for the date for the 2024 annual general meeting of shareholders and agenda as well as related matters.	Approved by the Audit Committee and approved by all directors attending the meeting without objections.

Date	Major resolution matters	Opinions of independent director opinions and how the company has responded to such opinions
May 09, 2024
the 12th meeting
of the 14th Board	1. Approved the motion for the consolidated financial statements for Q1 2024.
2. Approved the motion to adopt the “Sustainable Development Committee Charter.”
3. Approved the amendments to the provisions related to the “Accounts Receivable Recognition Procedures” under the Company’s internal control system items.
4. Approved the motion for loaning funds to the subsidiary in China.
5. Approved the motion to lend funds to subsidiary Charng Hui Company Limited.
6. Approved the motion for providing an endorsement guarantee for the subsidiary Charng Hui Company Limited to extend credit lines from financial institution.
7. Approved the motion for extending credit lines from financial institution.
8. Approved the investment proposal in Sancci Manufacture Food Company.	Approved by the Audit Committee and approved by all directors attending the meeting without objections.
Jun. 19, 2024
the 13th meeting
of the 14th Board	Approved the motion regarding the ex-dividend record date as resolved by the Board of directors.	Approved by the Audit Committee and approved by all directors attending the meeting without objections.
Aug. 07, 2024
the 14th meeting
of the 14th Board	1. Approved the motion for the consolidated financial statements for Q2 2024.
2. Approved the 2023 sustainability report.
3. Approved the establishment of a subsidiary by Shanghai Dermalab Corporation.
4. Approved the motion for extending credit lines from financial institution.	Approved by the Audit Committee and approved by all directors attending the meeting without objections.
Oct. 03, 2024
the 15th meeting
of the 14th Board	1. Approved the construction of an automated warehouse facility by the subsidiary, Standard Foods (China) Ltd.( Taicang Plant)
2. Approved the return of idle land at the Taicang Plant of Standard Foods (China) Ltd. to the local government.
3. Approved the proposal by the subsidiary, Shanghai Dermalab Corporation to apply for a foreign exchange derivative product limit with financial institution for hedging purposes.	Approved by the Audit Committee and approved by all directors attending the meeting without objections.

Date	Major resolution matters	Opinions of independent director opinions and how the company has responded to such opinions
Nov. 04, 2024
the 16th meeting
of the 14th Board	1. Approved the motion for the consolidated financial statements for Q3 2024.
2. Approved the motion of the remuneration of the Company’s CPAs for 2024.
3. Approved the motion for the Company’s 2025 audit plan.
4. Approved the amendments to the provisions related to the “Control of Information Security Inspection” under the Company’s internal control system items.
5. Approved the amendments to the provisions related to the “Sustainability Information Management” under the Company’s internal control system items.
6. Approved the motion for the amendment to the “Audit Committee Charter.”
7. Approved the motion for the amendment to the “Rules of Procedure for Board of Directors Meetings.”
8. Approved the allocation ratio of employee compensation and director remuneration for 2024.
9. Approved the motion to adopt the “Policy on Linking Executive Compensation to ESG Performance.”
10. Approved the motion for extending credit lines from financial institution.
11. Approved the motion to lend funds to subsidiary Charng Hui Company Limited for reinvestment.	Approved by the Audit Committee and approved by all directors attending the meeting without objections.
Dec. 26, 2024
the 17th meeting
of the 14th Board	1. Approved the motion for extending credit lines from financial institution.
2. Approved the motion to lend funds to subsidiary Dermalab S.A.
3. Approved the investment proposal in H2U.
4. Approved the establishment of a subsidiary, Newtrin Holding PTE. LTD. in Singapore by the Company, and reinvestment to establish subsidiaries in Japan and Vietnam.	Approved by the Audit Committee and approved by all directors attending the meeting without objections.
Mar. 11, 2025
the 18th meeting
of the 14th Board	1. Approved the motion for the 2024 financial report and consolidated financial report.
2. Approved the motion for the 2024 earnings distribution.	Approved by the Audit Committee and approved by all directors attending the meeting without objections.

Date	Major resolution matters	Opinions of independent director opinions and how the company has responded to such opinions
	3. Approved the motion for the 2025 business plan and budget.
4. Approved the performance evaluation of the directors and managers of the Company for 2024.
5. Approved the allocation of director remuneration and employee compensation for 2023.
6. Approved the motion for the payment of director’s remuneration for 2024.
7. Approved the motion for the 2024 statement of internal control.
8. Approved the evaluation of the independence and suitability of the external auditors with reference to the AQI.
9. Approved the amendments to the provisions related to the “Payroll Operations” under the Company’s internal control system items.
10. Approved the motion for the amendment to the “Articles of Incorporation.”
11. Election of the 15th batch of board of directors (including independent directors).
12. Approved the motion to set the nomination period, the number of seats to be elected, and the place of acceptance for candidates for the 15th-term Board of Directors (including independent directors).
13. Approved the motion to review the list of directors (including independent director) candidates nominated by the Board of Directors.
14. Adopted the proposal to submit to the shareholders’ meeting the release of newly elected directors from the non-competition restrictions.
15. Approved the motion for the date for the 2025 annual general meeting of shareholders and agenda as well as related matters.
16. Approved the motion for extending credit lines from financial institution.
17. Approved the proposal by the subsidiary, Shanghai Dermalab Corporation to apply for a foreign exchange derivative product limit with financial institutions for hedging purposes.

Major contents of any dissenting opinions on record or stated in a written statement made by Directors or Supervisors regarding key resolutions of the Board of Directors' meeting during the most recent year up to the publication date of the Annual Report: None.

102

IV. Information Regarding Audit Fee

Information on fees for CPAs
Unit: NT$1,000

CPA firm	Name of CPAs	Audit period	Audit fee	Non-audit fee	Total	Remarks
Deloitte & Touche	Han-Ni Fang Zhao-Yu Chen	2024.01-2024.12	4,975	1,313	6,288	1. Non-audit fees related to transfer pricing report : NT$616,000.
2. Greenhouse gas inventory consulting services fees : NT$275,000.
3. Online shopping packaging reduction achievement verification fees : NT$221,000.
4. Consulting services fees for Article 25, Paragraph 1 of the Income Tax Act: NT$201,000.

Change of auditing firm with reduced audit fees compared to the previous year : Not applicable.
Audit fees decreased by over 10% from the previous year : Not applicable.

V. Information About Replacement of CPA:

(I) Former CPAs

Date of Replacement	January 2023
Replacement Reasons and Explanations	Internal job adjustments of Deloitte & Touche
Termination by the Company or the CPAs	Party
Condition		CPA	Client
	Termination by the Company		N/A
	Termination by the CPAs
Unqualified opinion of issuance in the latest 2 years Opinions and reasons other than the audit report	N/A
Deviation from the Issuer	Yes		Accounting principles or practices
			Disclosure of financial statements
			Audit scope or steps
			Others

	None	V
	Remark
Other Revealed Matters (Additional Disclosures under Item 1-4 to Item 1-7, Subparagraph 6, Article 10 of the Guideline)	None

(II) Successive CPAs

Name of CPA Firm	Deloitte & Touche
Name of CPAs	Han-Ni Fang, Zhao-Yu Chen
Date of Appointment	January 2023
Inquiries into Accounting Treatments or Principles for Specific Transactions and Possible Opinions on Financial Statements before Appointment	N/A
Succeeding CPA's written opinion of disagreement toward the former CPA	N/A

(III) Former CPAs' Reply to Disclosures under Items 1 and 2-3, Subparagraph 6, Article 10 of the Guidelines: N/A.

VI. Information About Chairman, General Manager, and Financial or Accounting Manager of the Company Who Has Worked with the CPA Firm or Affiliate to Said Firm in the Most Recent Year: None.

VII. Any Transfer of Equity Interests and Pledge of or Change in Equity Interests by a Director, Supervisor, Manager, or Shareholder with a Stake of More Than 10 Percent in the Most Recent Year and up to the Date of Publication of the Annual Report:

(I) Share changes by directors, supervisors, managers, and major shareholders: None.
(II) Information of Stock transfers to related parties: None.
(III) Information of pledge of stock rights to related parties: None.

VIII. Information About the Relationship Among the Company's 10 Largest Shareholders

April 21, 2025 Unit: Share, %

| Name
(Note 1) | Current Shareholding | | Spouse & Minor Shareholding | | Shareholding by Nominees | | Name and relationship among top ten shareholders with anyone who is a related party or the spouse, or a relative within the second degree of kinship
(Note 3) | | Remarks |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Shares | Share-Holding Ratio%
(note 2) | Shares | Share-Holding Ratio % | Shares | Share-Holding Ratio % | Item | Nature of Relationships | |
| Mu Te Investment Co., Ltd. Trust Property Account | 178,727,315 | 19.53 | 0 | 0 | 0 | 0 | Ter-Fung Tsao | Chairman of Mu Te Company | |
| | | | | | | | Chia Yun Investment Co., Ltd. Trust Property Account | The chairman of Mu Te Company is the chairman of Chia Yun Company | |
| | | | | | | | Chia Chieh Investment Co., Ltd. Trust Property Account | The chairman of Mu Te Company is the director of Chia Chieh Company | |
| | | | | | | | Mu Te Investment Co., Ltd. | Mu Te Company is the trustee | |
| | | | | | | | Charng Hui Ltd. | The chairman of Mu Te Company is the chairman of Charng Hui Company | |
| | 40,848,203 | 4.46 | 0 | 0 | 22,688,211 | 2.48 | Chia Yun Investment Co., Ltd. Trust Property Account | Chairman of Chia Yun Company | |
| | | | | | | | Chia Chieh Investment Co., Ltd. Trust Property Account | Director of Chia Chieh Company | |
| | | | | | | | Mu Te Investment Co., Ltd. | Chairman of Mu Te Company | |
| Charng Hui Ltd. | | | | | | | Chairman of Charng Hui Company | | |
| Chia Yun Investment Co., Ltd. Trust Property Account | 147,677,489 | 16.14 | 0 | 0 | 0 | 0 | Ter-Fung Tsao | Chairman of Chia Yun Company | |
| | | | | | | | Mu Te Investment Co., Ltd. Trust Property Account | The chairman of Chia Yun Company is the chairman of Mu Te Company | |
| | | | | | | | Chia Chieh Investment Co., Ltd. Trust Property Account | The chairman of Chia Yun Company is the director of Chia Chieh Company | |
| | | | | | | | Mu Te Investment Co., Ltd. | The chairman of Chia Yun Company is the chairman of Mu Te Company | |
| | | | | | | | Charng Hui Ltd. | The chairman of Chia Yun Company is the chairman of Charng Hui Company | |

104

Name (Note 1)	Current Shareholding		Spouse & Minor Shareholding		Shareholding by Nominees		Name and relationship among top ten shareholders with anyone who is a related party or the spouse, or a relative within the second degree of kinship (Note 3)
	Shares	Share-Holding Ratio% (note 2)	Shares	Share-Holding Ratio %	Shares	Share-Holding Ratio %	Item	Nature of Relationships
Representative: Ter-Fung Tsao	40,848,203	4.46	0	0	22,688,211	2.48	Mu Te Investment Co., Ltd. Trust Property Account	Chairman of Mu Te Company
							Chia Chieh Investment Co., Ltd. Trust Property Account	Director of Chia Chieh Company
							Mu Te Investment Co., Ltd.	Chairman of Mu Te Company
							Charng Hui Ltd.	Chairman of Charng Hui Company
Chia Chieh Investment Co., Ltd. Trust Property Account	117,539,583	12.84	0	0	0	0	Ter-Fung Tsao	Director of Chia Chieh Company
							Mu Te Investment Co., Ltd. Trust Property Account	The director of Chia Chieh Company is the chairman of Mu Te Company
							Chia Yun Investment Co., Ltd. Trust Property Account	The director of Chia Chieh Company is the chairman of Chia Yun Company
							Mu Te Investment Co., Ltd.	The director of Chia Chieh Company is the chairman of Mu Te Company
	5,871	0.00	0	0	0	0	Charng Hui Ltd.	The director of Chia Chieh Company is the chairman of Charg Hui Company
							Mu Te Investment Co., Ltd.	Director of Chia Chieh Company

Name (Note 1)	Current Shareholding	Spouse & Minor Shareholding	Shareholding by Nominees	Name and relationship among top ten shareholders with anyone who is a related party or the spouse, or a relative within the second degree of kinship (Note 3)	Remarks
Shares	Share-Holding Ratio% (note 2)	Shares	Share-Holding Ratio %	Shares	Share-Holding Ratio %
Ter-Fung Tsao	40,848,203	4.46	0	0	22,688,211
Chia Yun Investment Co., Ltd. Trust Property Account	Chairman of Chia Yun Company
Chia Chieh Investment Co., Ltd. Trust Property Account	Director of Chia Chieh Company
Mu Te Investment Co., Ltd.	Chairman of Mu Te Company
Charng Hui Ltd.	Chairman of Charng Hui Company
Mu Te Investment Co., Ltd.	22,650,057	2.48	0	0	0
Mu Te Investment Co., Ltd. Trust Property Account	Mu Te Company is the trustee
Chia Yun Investment Co., Ltd. Trust Property Account	The chairman of Mu Te Company is the chairman of Chia Yun Company
Chia Chieh Investment Co., Ltd. Trust Property Account	The chairman of Mu Te Company is the director of Chia Chieh Company
Charng Hui Ltd.	The same person as the chairman.
Representative: Ter-Fung Tsao	40,848,203	4.46	0	0	22,688,211
Chia Yun Investment Co., Ltd. Trust Property Account	Chairman of Chia Yun Company
Chia Chieh Investment Co., Ltd. Trust Property Account	Director of Chia Chieh Company
Charng Hui Ltd.	Chairman of Charng Hui Company
Lin Junyao	17,488,000	1.91	0	0	0
Nan Shan Life Insurance Company, Ltd.	17,385,000	1.90	0	0	0
0	0.00	0	0	0	0
0	0	0	0	0	0

Name (Note 1)	Current Shareholding	Spouse & Minor Shareholding	Shareholding by Nominees	Name and relationship among top ten shareholders with anyone who is a related party or the spouse, or a relative within the second degree of kinship (Note 3)	Remarks
Shares	Share-Holding Ratio% (note 2)	Shares	Share-Holding Ratio %	Shares	Share-Holding Ratio %
Charng Hui Ltd.	6,669,471	0.73	0	0	0
Mu Te Investment Co., Ltd. Trust Property Account	The chairman of Mu Te Company is the chairman of Charng Hui Company
Chia Yun Investment Co., Ltd. Trust Property Account	The chairman of Chia Yun Company is the chairman of Charng Hui Company
Chia Chieh Investment Co., Ltd. Trust Property Account	The director of Chia Chieh Company is the chairman of Charng Hui Company
Mu Te Investment Co., Ltd	The same person as the chairman.
Representative: Ter-Fung Tsao	40,848,203	4.46	0	0	22,688,211
Chia Yun Investment Co., Ltd. Trust Property Account	Chairman of Chia Yun Company
Chia Chieh Investment Co., Ltd. Trust Property Account	Director of Chia Chieh Company
Mu Te Investment Co., Ltd	Chairman of Mu Te Company
Citibank Taiwan in custody for Norges Bank	6,260,799	0.68	0	0	0
Advanced Starlight Integrated International Stock Index under the custody of JPMorgan Chase Bank	6,160,849	0.67	0	0	0

Note 1: The top ten shareholders' names shall be identified separately (in the case of corporate shareholders, the corporate shareholders' names and representatives' names shall be identified separately).
Note 2: The ratio of shareholding is calculated in terms of own shareholdings, shares held by spouse & children under age or shareholdings under the title of a third party respectively.
Note 3: Relationship between the aforementioned shareholders (including juristic and natural persons) shall be disclosed according to Regulations Governing the Preparation of Financial Reports by Securities Issuers.

IX. Shareholding Status of the Same Reinvestment Business by the Company, Directors, Supervisors, and Companies Directly or Indirectly Controlled by the Company:
April 30, 2025; Unit: Share

Reinvestment Businesses (Note 1)	Ownership by the Company		Investment by the directors, the supervisors, the managers, or another business that is controlled by the Company directly or indirectly		Total Ownership
	Shares	Percentage of Ownership	Shares	Percentage of Ownership	Shares	Percentage of Ownership
Standard Dairy Products Taiwan Ltd.	30,000,000	100%	-	-	30,000,000	100%
Standard Beverage Ltd.	7,907,000	100%	-	-	7,907,000	100%
Charng Hui Ltd.	24,100,000	100%	-	-	24,100,000	100%
Domex Technology Corporation	10,374,399	52%	-	-	10,374,399	52%
Standards Foods, LLC.	N/A (Note 2)	100%	-	-	N/A (Note 2)	100%
SF NUTRA PTE. LTD. (Note 3)	400,000	100%	-	-	400,000	100%
Newtrin Holding PTE. LTD.	500,000	100%	-	-	500,000	100%
Newtrin Healthcare Foods Japan Co., Ltd.	-	-	10,000	100%	10,000	100%
Accession Ltd.	123,600,000	100%	-	-	123,600,000	100%
Dermalab S.A.	-	-	4,050	100%	4,050	100%
Shanghai Standard Foods Co., Ltd.	-	-	N/A (Note 2)	100%	N/A (Note 2)	100%
Shanghai Le Ben De Health Technology Co., Ltd.	-	-	N/A (Note 2)	100%	N/A (Note 2)	100%
Swissderma SL	-	-	3,000	100%	3,000	100%
Standard Investment (Cayman) Ltd.	157,147,892	100%	-	-	157,147,892	100%
Standard Corporation (Hong Kong) Limited.	-	-	157,021,892	100%	157,021,892	100%
Standard Investment (China) Ltd.	-	-	N/A (Note 2)	99%	N/A (Note 2)	99%
Standard Foods (China) Ltd.	-	-	N/A (Note 2)	100%	N/A (Note 2)	100%
Shanghai Dermalab Corporation	-	-	N/A (Note 2)	100%	N/A (Note 2)	100%
Le Bonta Wellness Co., Ltd.	-	-	N/A (Note 2)	100%	N/A (Note 2)	100%
Standard Foods (Xiamen) Co., Ltd.	-	-	N/A (Note 2)	100%	N/A (Note 2)	100%
Shanghai Le Ho Industrial Co., Ltd.	-	-	N/A (Note 2)	100%	N/A (Note 2)	100%
Shanghai Le Min Industrial Co., Ltd.	-	-	N/A (Note 2)	100%	N/A (Note 2)	100%
Shanghai New Vitality Health Technology (Group) Co., Ltd.	-	-	N/A (Note 2)	99%	N/A (Note 2)	99%
Jiangsu Hua Sun Health Technology Co., Ltd.	-	-	N/A (Note 2)	100%	N/A (Note 2)	100%
Rotiva International Limited	-	-	7,544	100%	7,544	100%

Note 1: Investment using the equity method by the Company.
Note 2: It is a limited company with no issued shares.
Note 3: Standard Great Foods Singapore Pte. Ltd. was renamed SF NUTRA PTE. LTD. in February 2025.

Chapter 3. Fund Raising Status

I. Capital and Shares

(I) Source of Capital

Month / Year	Par Value	Authorized Capital		Paid-in Capital		Remarks
		Shares	Amount	Shares	Amount	Source of Capital	Capital Increase by Assets Other than Cash	Others
June 1986	100	50,000	5,000,000	47,883	4,788,300	Establishment	None	June 6, 1986 J.T.S. (75) G.S.Z. No. 2799
June 1986	100	50,000	5,000,000	47,884	4,788,400	Capital increase by cash NT$ 100	None	June 27, 1986 J.T.S. (75) G.S.Z. No.3149
September 1986	100	150,000	15,000,000	150,000	15,000,000	Capital increase by cash NT$ 10,211,600	None	September 22, 1986 J.T.S (75) G.S.Z. No. 4718
April 1988	100	450,000	45,000,000	450,000	45,000,000	Earnings were transferred to capital increase of NT$ 30,000,000	None	April 9, 1988 J.T.S. (77) G.S.Z. No. 1831
May 1990	10	16,200,000	162,000,000	16,200,000	162,000,000	Earnings were transferred to capital increase of NT$ 117,000,000	None	May 16, 1990 J.T.S. (79) M.Z. No. 3425
July 1991	10	19,440,000	194,400,000	19,440,000	194,400,000	Earnings were transferred to capital increase of NT$ 32,400,000	None	May 15, 1991 (1991) T.C.Z.(I) Letter of No. 00935
March 1992	10	30,715,200	307,152,000	30,715,200	307,152,000	Capital increase by cash NT$ 48,600,000
Earnings were transferred to capital increase of NT$ 64,152,000	None	February 17, 1992 (1992) T.C.Z. (I) Letter of No. 00269
July 1993	10	43,001,280	430,012,800	43,001,280	430,012,800	Earnings were transferred to capital increase of NT$ 122,860,800	None	April 13, 1993 (1993) T.C.Z. (I) Letter of No. 00771
February 1994	10	60,201,792	602,017,920	60,201,792	602,017,920	Earnings were transferred to capital increase of NT$ 172,005,120	None	January 14, 1994 (1994) T.C.Z. (I) Letter of No. 49242

Month / Year	Par Value	Authorized Capital		Paid-in Capital		Remarks
		Shares	Amount	Shares	Amount	Source of Capital	Capital Increase by Assets Other than Cash	Others
March 1995	10	84,833,857	848,338,570	84,833,857	848,338,570	Earnings were transferred to capital increase of NT$ 240,807,170 Employee bonus was transferred to capital increase of NT$ 5,513,480	None	January 7, 1995 (1995) T.C.Z.(I) Letter of No. 52905
February 1996	10	119,116,843	1,191,168,430	119,116,843	1,191,168,430	Earnings were transferred to capital increase of NT$ 339,335,420 Employee bonus was transferred to capital increase of NT$ 3,494,440	None	December 4, 1995 (1995) T.C.Z.(I) Letter of No. 62578
March 1997	10	167,205,291	1,672,052,910	167,205,291	1,672,052,910	Earnings were transferred to capital increase of NT$ 476,467,380 Employee bonus was transferred to capital increase of NT$ 4,417,100	None	December 24, 1996 (1996) T.C.Z. (I) Letter of No. 74787
March 1998	10	330,000,000	3,300,000,000	209,470,236	2,094,702,360	Earnings were transferred to capital increase of NT$ 418,013,220 Employee bonus was transferred to capital increase of NT$ 4,636,230	None	December 16, 1997 (1997) T.C.Z.(I) Letter of No. 92147
February 1999	10	330,000,000	3,300,000,000	262,360,651	2,623,606,510	Earnings were transferred to capital increase of NT$ 523,675,590 Employee bonuses were transferred to capital increase of NT$ 5,228,560	None	December 28, 1998 (1998) T.C.Z. (I) Letter of No. 106085
February 2000	10	330,000,000	3,300,000,000	302,264,506	3,022,645,060	Earnings were transferred to capital increase of NT$ 393,540,980 Employee bonuses were transferred to capital increase of NT$ 5,497,570	None	December 24, 1999 (1999) T.C.Z. (I) Letter of No. 109947
February 2001	10	330,000,000	3,300,000,000	320,918,442	3,209,184,420	Earnings were transferred to capital increase of NT$ 181,358,710 Employee bonuses were transferred to capital increase of NT$ 5,180,650	None	January 2, 2001 (2001) T.C.Z. (I) Letter of No. 103971
August 2009	10	330,000,000	3,300,000,000	322,523,034	3,225,230,340	Earnings were transferred to capital increase of NT$ 16,045,920	None	July 3, 2009 J.G.Z.F.Z. Letter of No. 0980033057
August 2010	10	380,000,000	3,800,000,000	370,901,489	3,709,014,890	Earnings were transferred to capital increase of NT$ 483,784,550	None	July 5, 2010 J.G.Z.F.Z. Letter of No. 0990034588

Month / Year	Par Value	Authorized Capital		Paid-in Capital		Remarks
		Shares	Amount	Shares	Amount	Source of Capital	Capital Increase by Assets Other than Cash	Others
August 2011	10	480,000,000	4,800,000,000	463,626,861	4,636,268,610	Earnings were transferred to capital increase of NT$ 927,253,720	None	100.07.04 J.G.Z.F.Z. Letter of No. 1000030659
August 2012	10	580,000,000	5,800,000,000	574,897,307	5,748,973,070	Earnings were transferred to capital increase of NT$ 1,112,704,460	None	June 26, 2012 J.G.Z.F.Z. Letter of No. 1010027983
July 2013	10	680,000,000	6,800,000,000	661,131,903	6,611,319,030	Earnings were transferred to capital increase of NT$ 862,345,960	None	July 2, 2013 J.G.Z.F.Z. Letter of No. 1020025191
August 2014	10	740,000,000	7,400,000,000	720,633,774	7,206,337,740	Earnings were transferred to capital increase of NT$ 595,018,710	None	July 11, 2014 J.G.Z.F.Z. Letter of No. 1030026432
August 2015	10	800,000,000	8,000,000,000	792,697,151	7,926,971,510	Earnings were transferred to capital increase of NT$ 720,633,770	None	July 29, 2015 J.G.Z.F.Z. Letter of No. 1040028838
August 2016	10	880,000,000	8,800,000,000	879,893,837	8,798,938,370	Earnings were transferred to capital increase of NT$ 871,966,860	None	September 1, 2016 J.S.S.Z. Letter of No. 10501215010
September 2017	10	920,000,000	9,200,000,000	915,089,591	9,150,895,910	Earnings were transferred to capital increase of NT$ 351,957,540	None	September 4, 2017 J.S.S.Z. Letter of No. 10601126490

■ Share Type

Share Type	Authorized Capital			Remarks
	Issued Shares (Shares of listed companies)	Unissued Shares	Total
Registered Common Shares	915,089,591	4,910,409	920,000,000	None

Information for Declaration System: None.

April 21, 2025

(II) Major Shareholders

Name of Major Shareholder	Shares Number of Shares Held	Percentage of Ownership %
Mu Te Investment Co., Ltd. Trust Property Account	178,727,315	19.53
Chia Yun Investment Co., Ltd. Trust Property Account	147,677,489	16.14
Chia Chieh Investment Co., Ltd. Trust Property Account	117,539,583	12.84
Ter-Fung Tsao	40,848,203	4.46
Mu Te Investment Co., Ltd.	22,650,057	2.48
Lin Junyao	17,488,000	1.91
Nan Shan Life Insurance Company, Ltd.	17,385,000	1.90
Charng Hui Ltd.	6,669,471	0.73
Citibank Taiwan in custody for Norges Bank	6,260,799	0.68
Advanced Starlight Integrated International Stock Index under the custody of JPMorgan Chase Bank	6,160,849	0.67

(III) Dividends policy and Implementation Status

Policies of Dividends: As per the amendment to the Company Act in May 2015, the distribution of dividends and bonuses is limited to shareholders and does not cover employees. The Company has passed the amendments to the earnings allocation policy in the shareholders' meeting on June 15, 2016. Under the amendments of the dividend policy as set forth in the Articles of Incorporation, where the Company made profits in a fiscal year, the profit shall be appropriated, less any paying taxes and deficit, 10% thereof as legal reserve, special reserve provided or reversed in accordance with the regulations, and 30% to 100% of the sum of the remainder and prior years' unappropriated earnings as dividends. The Company's Articles of Incorporation also prescribe that 30% to 100% of dividends shall be paid in cash; however, if the Company has major investment plans for which external funds are not available, the percentage may be lowered to 5% to 20%. The distribution plan shall be proposed by the Company's board of directors and resolved in the shareholders' meeting for distribution of dividends and bonuses to shareholders.
Allocation status of dividends proposed at the shareholders' meeting: Through the resolution of the board of directors of this Company on March 11, 2025, the dividend allocation is NT$ 1.40 per share of cash dividend, and it would be proposed for discussion at the general shareholders' meeting on June 19, 2025.

(IV) Effect on the Operating Performance and Earnings per Share of Distribution of Stock Dividends Proposed in the Most Recent Shareholders' Meeting: None.

(V) Compensation of Employees, Directors, and Supervisors

The percentages or ranges with respect to the remuneration of the employee, director, and supervisor, as set forth in the Company's Articles of Incorporation: The Company shall appropriate no less than 0.5% of current year profit as employee compensation by cash or shares upon approval of the Board of Directors if it has pretax profits deducted from the remuneration distribution of employee and Director. Employee compensation may be issued to employees in affiliate companies that meet certain criteria. The Company may appropriate no more than 0.75% of the above profit as Directors' compensation upon approval of the Board of Directors if it has pretax profits deducted from the remuneration distribution of employee and Director. The proposal of distributing employees' and Directors' remuneration shall be reported to the shareholders' meeting. However, when the Company still

has accumulated losses, it shall reserve the compensation amount in advance and then allocate the remuneration of employees and directors according to the proportion mentioned above.

Estimated basis of the remuneration amount of the employee, director and supervisor, calculation basis of the number of shares of employee remuneration divided in shares and accounting treatments when differences occur between the estimated and actual distributed amount of employee, director, and supervisor compensation.

The estimated amount of employee remuneration in 2024 was NT$ 28,146,457, and the estimated amount of directors was NT$ 11,552,650. The employee remuneration is calculated at 1.34% of pre-tax profits before deducting the distributed employee and director remuneration in 2024; the director remuneration is calculated at 0.55% of pre-tax profits before deducting the distributed employee and director remuneration in 2024.

If there is still any change in the amount after the issuance date of the annual fiscal report, the differences shall be treated as a change in accounting estimates and be recorded and adjusted in the following year.

If the Board of Directors resolves that remuneration to employees is to be distributed in stock and the number of shares is determined by dividing the resolution amount by the closing price of the shares on the day preceding the Board of Directors' meeting.

Information on any approval by the Board of Directors of distribution of compensation:

(1) Remuneration amount of employee and director in cash or stocks distribution:

1.1 Employee Cash Remuneration NT$ 28,146,457.
1.2 Employee Stock Remuneration NT$ 0.
1.3 Director Remuneration NT$ 11,552,650.

No discrepancies are found between the amount distributed as relevant compensations for employees and Directors as approved by the Board of Directors and the amount recognized in the 2024 annual fiscal report.

(2) The amount of any employee remuneration 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 remuneration: N/A

Actual allocation status of employee, director and supervisor remunerations for the previous fiscal year:

The distribution of cash remunerations to employees in 2023 was NT$ 19,472,227 and remunerations to directors were NT$ 8,113,428. It had no difference with the employee and director remunerations in the 2023 annual fiscal report.

(VI) Buyback of Treasury Stock: None.

II. Corporate Bonds: None.

III. Preferred Shares: None.

IV. Issuance of Global Depository Receipts (GDRs): None.

V. Employee Stock Options: None.

VI. Employee Restricted Stock: None.

VII. Mergers and Acquisitions, or as Assignee of New Shares Issued by Another Company: None.

VIII. Implementation of Capital Allocation Plans

(I) Contents of Plans

For the period as of the quarter preceding the date of publication of the Annual Report, with respect to each uncompleted public issue or private placement of securities, and to

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such issues and placements that were completed in the most recent 3 years but have not yet fully yielded the planned benefits: Not applicable.

(II) Implementation Situation

In terms of the implementation situation of previous financial plans: Not applicable.

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Chapter 4. Operational Highlights

I. Business Activities

(I) Business Scope:

Mainly engaged in manufacturing and sales of nutritious foods, edible oil, dairy products and beverages.
Main products and business percentage

Product Category	2024
Nutritious Foods	Percentage
36%
Cooking products Food	54%
Others	10%
Total	100%

(II) Industry Overview:

Current State and Development of the Industry

According to the data from the Directorate-General of Budget, Accounting and Statistics, the economic growth rate in 2024 was 4.59%, a new high in the past three years. The annual CPI growth rate reached 2.18%, exceeding the inflation warning line for three consecutive years, signifying that price pressures have not yet been mitigated. Although the food industry has benefited from the expansion of market demand and innovative trading patterns, its production value has been growing steadily. However, inflationary pressure and market size in Taiwan are limited, leading to a competitive situation that tends to be zero sum. In the short term, the industry will seek a balance between slow growth and cost challenges. The competitive environment will remain unchanged.

As the food is a daily necessity, the demand in the food industry is relatively stable. The demand for healthy foods and special nutritional supplement products has been growing due to the growth of the suboptimal health status population, elderly population and the fitness and sports trend, under the rising awareness toward healthcare after the pandemic. Consumers' requirement for the quality, effectiveness and convenience of products keeps increasing and thereby intensifies the competition in the market. Meanwhile, the consumption models at the age of low birth rate and for the Z generation reshape the market. Instant, small-package, and high-convenience products are emerging. Enterprises tend to accelerate the adjustment of strategies to create new business models to seize the growth opportunities brought by the emerging needs.

For the time being, the global situation is still in turmoil, and the geopolitical risks and inflation still survive. Taiwan's National Development Council expects that Taiwan will enter a super-aged society in the coming year, and the demographic dividend will gradually disappear, thus imposing a deep impact on the domestic market's growth momentum. The overall industry is facing high competition and cost pressure. In addition to paying attention to the trend of inflation, strengthening the resilience of the supply chain and adjusting the business strategy on a rolling basis, the future development needs to focus on innovation and differentiation, strengthen the R&D of the diversified health products with characteristics including function and convenience, and verify and flexibly respond to the changeable needs of various consumer groups. Through innovative research and development, and a combination of digital marketing and brand, the Company builds a solid competitive advantage and becomes the leader in the market changes.

With respect to the ESG issues, the food industry is particularly concerned about the sustainability of raw materials and packaging materials used in production. It is therefore necessary to plan ahead and follow the domestic sustainable development policy and roadmap to gradually achieve green manufacturing, plastic reduction, and carbon management goals, thereby reducing the risks and improving the adaptability to extreme weather and laying the foundation for the sustainable development of the industry.

Correlation with up-, mid-, and downstream sections of the industry

(1) Upstream: agriculture, animal husbandry, food packaging materials industry, biotechnology raw materials, etc.

(2) Midstream: R&D, food manufacturing, drink manufacturing, inspection, Processing, etc.

(3) Downstream: transportation, storage, sales channels, platforms, etc.

Trends in the development of various products

(1) After the pandemic, Taiwanese people have naturally placed great emphasis on health and prevention. As Taiwan enters a super-aged society, coupled with the rise in the elderly population, the emergence of a suboptimal health status population, and the growing trend of fitness and sports, the demand for dietary supplements is increasing, thereby promoting the growth momentum of healthy and nutritious products. In terms of product development, the Company focuses on innovative R&D and diversity and incorporates the functional components to improve the product performance to meet the diversified market demand.

(2) Given the limited domestic market, the competition among channels is fierce; large-scale and small-scale e-commerce platforms and social media are developing rapidly, and new business models continue emerging. Enterprises successfully introduce branded products via digital technology and innovative marketing approaches to attract more consumers, so as to benefit the development of new growth fields and expand younger consumer groups. In the future, enterprises shall strengthen cooperation with distributors and create more growth and development opportunities through strategic alliances and brand cooperation to better serve consumers.

(3) Driven by the global net-zero goals, enterprises incorporate sustainable development into their core strategies. In consideration of the increasingly rigid laws and regulations, domestic enterprises follow the sustainable development roadmap promoted by the competent authority and also commit to the practice and improvement of environmental, social and corporate governance aspects. They improve the development of green products, focus on the procurement of raw materials from green sources and process management, deploy sustainable strategies in advance to mitigate risks, enhance brand credibility and create greater value.

Competitive situation

(1) Driven by the rising awareness toward preventive healthcare and healthy life trends, the market for nutritious and healthy foods continues to expand and attract the proactive participation of the Company and other companies from different fields; therefore, the competition is intensifying. In the face of the market in which the options for brands and products are becoming increasingly diversified, enterprises must constantly introduce innovative R&D technologies, keep launching new products, and optimize product upgrades, in order to improve brand adhesion and market segment and precisely meet the needs of different consumer groups. Therefore, the Company may maintain a competitive advantage and seize growth opportunities in a limited market.

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(2) In the face of rapid changes in business models and consumer habits, the digital environment has become a key battlefield for brand competition. Enterprises can build a strong relationship with consumers through digital marketing and creative contents, and enhance brand communication. Meanwhile, technological development promotes continuous innovation in marketing strategies. Only an enterprise that is willing to invest resources in optimizing the digital environment, use smart technology to precisely focus on target groups, and flexibly adjust its production and sales models will be more competitive in the market.

(3) In recent years, the combination of e-commerce platforms, KOL marketing and social media with digital technology has become the main battlefield for brand competition. A lot of companies tend to increase the investment of resources to improve their market visibility. Notwithstanding, the physical retail sale is still a critical distribution channel which cannot be ignored. It primarily satisfies the demand for immediate purchase. As the retail channels are merged, competition is intensifying, and the price war continues to pose some impact on the market. In the face of this situation, enterprises should get rid of the predicament resulting from the price competition, focus on the improvement of the brand value, deepen the innovative research and development, and strengthen cross-channel cooperation to establish long-term competitiveness and gain market leadership.

(4) Given the multiple challenges, such as the tense geopolitics and intensification of trade protectionism in the USA, the growth momentum remains weak. The uncertainties in the supply of international raw materials and cost fluctuations increase the variables on the market. Although the inflation in Taiwan was eased compared to the previous year, the upward pressure produced by the commodity price still remains, and the supply chain is still facing multiple challenges. Given this, enterprises must strengthen the resilience of their supply chain, flexibly respond to market changes, optimize cost management, deploy diversified procurement strategies, and improve risk management and control capabilities to mitigate the impact and ensure stable management.

(III) Technology and R&D Overview

R&D expenses incurred in the previous year and as of the date of publication of the annual report:

Unit: NT$ 1,000

	2024	As of April 30, 2025
Amount	193,516	59,324

Technologies and products that have been successfully developed with R&D expenses incurred in the most recent year and as of the date of publication of the annual report:

(1) Launch of new products

a Grain Drink, Energy Drink

Quaker launches the brand new two flavors of your first bottle of light energy drink, and also successively launches the energy drink and co-branded sparkling drink, in order to satisfy the consumers' needs for different flavors.

b FreshDelight Milk Drink Series, Fermented Milk

FreshDelight continues to design daily nutritious beverage products that balance nutrition, taste, and health, while also launching the comprehensive Vita Milk and a new flavor of super protein milk. Meanwhile, the Company is launching a new flavor of the fermented milk series that offers a sense of satiety and a chewy texture. FreshDelight also launches the new products, such as the brand new premium sliced cheese and premium cheese cubes. The full series

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are imported from Japan, which are free from fragrance or preservatives, but pure and less burden. It uses raw cheese to allow consumers to experience the mellow milky aroma.

c Quaker Milk Powder Series, Children's Nutritional Supplement Series
The all-new ProNutro “Royal Grow Up Formula” milk powder series promote healthy growth in children and inspire their learning potential with an innovative scientific formula.

d Ready-to-eat food Series
The Company has successively launched the broth porridge, delicious soup and instant private home cuisine, in order to satisfy the consumers’ needs for different flavors.

e Quaker Baby Solid Food Series
The new baby porridge product, made from high-quality nutritious ingredients such as sea bass and avocado, provides parents with more diverse and delicious options.

f Functional Snack Series
The Company also provides nutritious, delicious and convenient breakfast cereals and snacks.

g Cereal Series
The Company has launched new flavors of cereal drinks, including Cereal Drink with Berry and Chia Seed, Quaker Chef Oatmeal – Red Bean and Purple Rice Flavor, Milkshake with Berries, and Oatmeal High Protein Double Fiber High Calcium Oat Milk. These drinks are more nutritious and can be served hot or cold.

h Edible Cooking Oil Series
The “Great Day” avocado oil and selection of unsaturated blended oils have hit the market to provide consumers with a quality edible cooking oil product that balances taste and health.

i Health Supplement Series
Quaker Essence of Chicken, made using exclusive compound extract technology, is launched to help consumers improve their health and vitality. The fish oil capsules and probiotics for allergy relief launched under the brand “Quaker tablets and capsule” are high-quality products with an efficient formula that can improve circulatory health and physical fitness.

j Complete Nutrition Food Series
The exclusive EAA protected under the Japanese patent is included to help maintain the balance of metabolism in the human body and improve overall health. The Company has launched a high EPA formula for cancer patients to help improve their appetite and strengthen nutritional intake, thereby aiding in the maintenance of physiological function and improving the quality of life. The Company has launched high-protein, nutritious supplements to provide high-quality protein, improve muscle quality, enhance nutritional status, and support physical functions effectively.

(2) Upgrading of products
a Grain Drink, Energy Drink
The Oat Ya has been upgraded and re-entered the market, positioning itself as a high-fiber and sugar-free product.

b FreshDelight Milk Drink Series, Fermented Milk
The oatmeal yogurt with chia seeds and upgraded Q fruit yogurt has hit the market, providing an enhanced sense of chewing and satiety.

c Quaker Milk Powder Series
Quaker Milk Powder for Family has been upgraded. The content of free small

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molecule lutein is increased by 33%, which, in combination with high-quality DHA, may help protect eyesight, enable children to learn effectively, and assist adults in maintaining clear thinking.

d Ready-to-eat food Series

The Company has upgraded the formula for the entire series. The “Great Day” “Di” cuisine launched by the Company not only retains the original three additives-free ingredients but also adds the rich amino acids and high-quality protein from Black-feathered Native Chicken, making the cuisine healthy, delicious, and nutritious.

e Functional Snack Series

The So Right breakfast cereal formula has been upgraded by increasing the proportion of oatmeal to more than 50% and adding freeze-dried yogurt cubes, which are nutritious and delicious.

f Edible Cooking Oil Series

The upgraded “Great Day” National Golden Blended Oil formula is prepared based on exclusive professional proportions, containing rich vitamin E and suitable for frying, boiling, stir-frying and deep-frying cuisine, making it a high-class edible oil that offers good value for money.

g Health Supplement Series

The upgraded Concentrated Glucosamine Drink improves the key to comfort. After the lutein capsules are upgraded, the lutein content is maximized. Meanwhile, the sense of brightness is enhanced comprehensively through small molecule hyaluronic acid and patented black soybean anthocyanins.

h Complete Nutrition Food Series

The upgraded formula for proactive management of diabetes is sugar free and low in GI, which may also increase the amount of chromium, help diabetes patients control their blood sugar more effectively and maintain normal metabolic function.

(3) Process improvement

a Grain Drink, Energy Drink

The optimization of the production process of grain drinks helps improve product quality and safety.

b FreshDelight Milk Drink Series, Fermented Milk

The new packaging procedures have been added to the production process of new cheese product types to provide diversified specifications.

c Functional Snack Series

The Company optimizes the bonding and baking process of breakfast cereal, and uses the same process to produce multi-grain pellets in bulk and loose form to save energy and save labor.

d Complete Nutrition Food Series

The Company expands the production capacity of certain product lines, improves production efficiency, optimizes the production schedule and resource allocation, and further improves overall production efficiency and competitiveness.

e Ready-to-eat food Series

The vacuum massage parameters of meat pre-treatment and curing treatment are optimized to significantly improve production efficiency and yield, and the taste of meat is optimized at the same time.

(4) Quality improvement

a FreshDelight Milk Drink Series, Fermented Milk

FreshDelight Whole Milk, FreshDelight Shelf-Life Milk, FreshDelight Whole Shelf-Life Milk, FreshDelight Premium Fresh Milk Yogurt, FreshDelight

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Premium Greek Yogurt sugar free, etc., have received the Eatender certification.

b Ready-to-eat food Series

The Company upgrades its formula, adjusts its production parameters, and introduces new equipment for meat maturing to improve the moisture retention rate of meat while generating a natural meat scent. Then, it may enhance the taste, texture and overall flavor of meat products. The delicious soup and instant private home cuisine products have won the ITi superior taste award.

c Quaker Baby Solid Food Series

The Company optimizes the micro-processing of fishes and uses the micro-processing coupled with multiple screening mechanisms to ensure 100% food safety of the fish products. The baby porridge product and baby risotto series have received the Clean Label certifications.

d Functional Snack Series

The granola cereal series won the ITi superior taste award. The So Right series won the Mondo Selection Gold Quality Award.

e Cereal Series

Quaker Super Energy Cereal Drink – Black Sesame 5 Grains (No Added Sugar) and Original Almond 5 Grains (No Added Sugar) received the A.A. Clean Label No-Additive One-Star certification. Quaker No-Soak 7+ Fiber Vegetable Grain Rice received the A.A. CLEAN LABEL 100% No-Additive certification. Quaker Super Energy Cereal Drink – Sunshine 5 Beans x 5 Grains (No Added Sugar), Quaker Nutrition Whole Grain Milk Good Sleep High Calcium, Quaker Nutrition Whole Grain Milk Smooth High Fiber and Quaker Original Almond Oatmeal Milk (No Added Sugar) received the Eatender certification.

f Health Supplement Series

"Quaker tablets and capsule" Calcium Chewable Tablets (with the tropical fruit flavor) received the ITi superior taste award.

g Complete Nutrition Food Series

The Company has also received 5 national certifications for specific disease formula food.

Our Hsinchu Plant has received the ISO 50001 Energy Management System (EnMS) standard certification, which may help improve energy efficiency, reduce energy consumption and carbon emissions, reduce operating costs and meet the environmental protection laws and regulations, thereby demonstrating Standard Foods Group's commitment to sustainable development and ESG.

R&D plans in the most recent year:

The professional R&D team implements individual projects among various R&D plans, of which, the main contents are as follows:

(1) Research and development of functional products.
(2) Study of flavor enhancement and flavor extension and development.
(3) Research and development of new types of packaging.
(4) Upgrading of nutrition of existing products.
(5) Discussion and research of innovative technology.
(6) Establishment and application of analysis method.
(7) Impacts posed by various manufacturing processes, scale, and conditions to the quality.
(8) Research and application of eco-friendly packing materials.
(9) Upgrading and replacement of machinery and equipment.
(10) Upgrading and application of digital technology.

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

Long-term Business Development Plans
(1) Deepen brand building, raise brand value, and impact and implement the concept of “Everyone has the right to nutritious and healthy product.”
(2) Pursue corporate sustainable development, align with the trend of sustainability, and improve environment, society, and corporate governance.
(3) Integrate corporate cultures and development, cultivate a diverse pool of long-term and stable talents, create agile teams, and improve the overall productivity and competitiveness.
(4) Expand into overseas markets, embrace globalization, and become a trusted “every family's nutrition and health partner” in more households.
Short-term Business Development Plans
(1) Emphasize food safety, continue new product development and existing product upgrade to meet various demands.
(2) Leveraging the advantages of a diverse product portfolio to strengthen brand synergies.
(3) Continue digital transformation, improve organizational resilience and competitiveness.
(4) Initiate diverse sales channels and innovate marketing through strategic partnership to boost operating result.
(5) Strengthen resilience management of value chain to reduce impact arising from risk.

II. Overview of Marketing and Production & Sales

(I) Market Analysis

Sales areas of major commodities: mainly in China and Taiwan.
Market condition of major products:
Funtionality Food
Healthcare product
(1) Market share
As a leading brand in the health drinks market, ranked number one in market share, we are offering a comprehensive range of products that cater to the varied requirements of different demographics and families. Our range includes Ginseng, Glucosamine, Ganoderma Drink, Bird’s Nest, Four-Agents Decoction, Pure Essence of Chicken and Essence of Chicken drinks. These products have become the preferred choices among numerous consumers. At the same time, we continue to launch a variety of innovative products to drive future growth.
(2) Future market demand & supply status and growth
In 2025, the society is becoming an aging society. Our mission is to focus on the health body to be owned by the senior citizens to create the ability to seek quality life. Generation Z (13–27 years old) grew up during the post-pandemic era. Besides this, the campus will teach more in-depth correct knowledge about nutrition and health, and therefore, students are generally more health conscious. Meanwhile, the Company also places great emphasis on the long-term brand value. In the future, the Company will continue to explore consumers’ needs, expand its diversified functions, launch advanced health products that are suitable for different generations and cross-generationally, and continue to meet consumers’ needs internally and externally based on fine quality, ability of innovation, and social responsibility.

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(3) Favorable factors and unfavorable factors of competitive niches and development prospects as well as countermeasures

At Standard Foods, we are dedicated to providing consumers with higher quality, professional, innovative and effective products. We have launched a diverse range of health supplements and beverages that cater to the needs of the whole family. By carefully selecting precious and efficient ingredients from both Eastern and Western traditions, and after years of development, the Company has launched a variety of health products that meet the needs of modern people. The Company has secured the 1st place for the market share of many health products, such as Ginseng, Ganoderma Lucidum, Glucosamine and Four Agents. The main product, Quaker Ginseng Drink, has been the champion of the Ginseng Drinks for 19 consecutive years. The Company keeps researching the extraction technology of ginsenosides, extracting and testing a variety of polysaponin molecules to ensure the quality and effectiveness of the products. In recent years, we have developed the TDHB Concentrated Lutein Drink, NurturEssence EXX Collagen Drink, and Concentrated Glucosamine Drink, which are lightweight and convenient personalized products designed to meet various scenarios and better satisfy individual health needs.

Driven by the pandemic and given the expansion of the suboptimal health status group and mature age group, consumers' health awareness is rising and thereby promotes consumers' demand for high-efficacy and convenient health foods. The Company will continue to cultivate the health care market and provide different dosage forms as options for consumers. In December 2023, the Company launched a new brand—“Quaker tablets and capsule”. In addition to the “Standard Foods International Health Science R&D Center,” which has 40 years’ experience in nutrition and health science, the Company also receives the support and recommendation from multiple medical personnel.

The Company launched two health care products for mobility in November 2023. After that, the Company proactively expanded its multi-functional product line and launched the new product, “Probiotics” in November 2024, which adopts six major international patented probiotics and is added with the patented “colostrum immunoglobulin” to help regulate the allergy-prone constitution and improve the protection. It received positive feedback from consumers based on its perceptible effect immediately after the launch. In December of the same year, the Company launched the “Fish Oil,” which is made of the pure natural ores caught from the Alaska Coast that are cold pressed and extracted within 2 hours after being caught and receives the MSC marine sustainability certification. The new product contains the best formula proven by science, making it the best choice for new buyers who value cardiovascular care immediately after its launch.

Adult milk powder

(1) Market share

Quaker continues to maintain its leading position in the adult low-fat milk powder market with functional products. Through the continuous research and development of products that can meet the daily nutritional and health needs of our citizens, we provide a wide range of products such as Dual-Certified, Glucosamine, Brightening and Sleep-aid, and Digestion Aid products. Quaker will accelerate the expansion of the whole milk powder market with

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Concentrated Whole Milk Powder and Milk Powder for Family and continue to increase the market share of milk powder.

(2) Future market demand & supply status and growth

With people’s busy lifestyles nowadays, milk powder is a convenient nutritional supplement that is easy to keep, delicious yet nutritious. In response to the increase in older people, demand for functional nutritional products will continue to grow. To provide functional products with higher value, manufacturers are taking a proactive approach to meet diverse consumer needs and launch new products in terms of dairy powder raw materials, nutritional composition, and flavor. Premium functional milk powders have become a key driver of market growth.

(3) Favorable factors and unfavorable factors of competitive niches and development prospect as well as countermeasure

Currently the three major series of milk powder have different best-selling products. There is the first Quaker high calcium skimmed milk powder in Taiwan with dual national health food certification for people over 50 years old. In terms of mobility, there is also the Quaker Glucosamine Milk Powder to meet the market demand. In response to the needs of women, Brightening and Sleep-aid, which will be launched in 2023, has also won the support of most consumers and has achieved rapid sales growth. A product for families, Concentrated Whole Milk Powder, will be upgraded and launched in 2023, and continues to attract small families with children, to meet the whole family’s needs for calcium and nutrition. At the same time, many of the products have obtained the international ITi Excellent Flavor Award certification in 2023, showing that they are both nutritious and delicious. In the future, Quaker will continue to adhere to the belief of pursuing good nutrition and continue to provide a variety of delicious and nutritious milk powder products based on professional nutrition design principles to meet the daily needs of all consumers.

Special nutritious product

(1) Market share

The Quaker Complete Enhanced Nutrition series approved by the Ministry of Health and Welfare. Our diabetic formula products have always been recommended by physicians and diabetics, and they are ranked number one in market share. The sales of the other products of the Company are also leading in the market. In 2024, the Company launched the EAA Premium Protein Series among the balanced series in 2024. The patented Amino L40, an exclusive patented ingredient, is adopted in order to provide consumers with better quality products.

(2) Future market demand & supply status and growth

According to the National Development Council, Taiwan will enter a “super-aged society” by 2025, where 20% of people in Taiwan will be over the age of 65. The demand for senior nutrition products continues to grow steadily.

Not only do senior citizens have requirements for chronic and special diseases, but due to the deterioration of their teeth and physiological functions, they are increasingly seeking innovative and professional formulas to support their health, with the aim of efficiently replenishing physical strength and muscle mass.

In addition, as our balanced series provide physical and muscle strength supplement for young adults, the expansion of the nutritional health care market is anticipated.

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(3) Favorable factors and unfavorable factors of competitive niches and development prospect as well as countermeasure

We offer a wide range of our Complete Enhanced Nutrition series, including balanced, diabetic, renal, oncological and tubular irrigation products. Each bite of nutrition has been carefully calculated for different consumer groups, enabling them to enjoy balanced nutrition more efficiently while also maintaining great taste. The Company’s R&D team is focusing on the development of more advanced formulas, such as the Triple Premium Protein Formula for new products launched on the market in 2024, which is made of three different types of protein and is combined with patented Japanese amino acid, so that the protein can be absorbed and used at the early, middle and late stages, and consumers can maintain the efficiency of growth and exercise. The new series of ultra-low-carbon hydrationated products for diabetes were developed to allow the diabetic patients to purchase more suitable products based on their health control. Meanwhile, the upgraded fish oil 1.1g has been launched to supplement the nutrition needed by patients, in order to help the patients restore the quality of life.

Baby Food

(1) Market share

Based on the nutritional needs of consumers in Taiwan from the pregnancy until preschool for the baby, the Company continues to provide a variety of nutritional supplements and foods needed at all stages of growth through the professional knowledge of dietitians and in response to valuable nutrients. We continue to maintain our leading position in infant and young children’s non-staple food and also maintain the important role of infant and young children’s milk powder. Meanwhile, we are proactively growing in the category of total-effect nutrition products and winning the trust and support of many parents.

(2) Future market demand & supply status and growth

Despite the birthrate declining year by year, the precious babies make new parents more willing to invest in professional and nutritional products to lay the foundation for their babies’ learning and growth and also to increase the childcare efficiency to improve the quality of gathering with the babies. Therefore, the demand for tasty, diversified and convenient products with professional nutrition and high-end formulas will continue to increase, driving the market demand for the diversified nutritious products for babies from 0 to 6 years old.

(3) Favorable factors and unfavorable factors of competitive niches and development prospect as well as countermeasure

In the face of the decrease in birthrates, Quaker Mother & Baby still places great emphasis on the nutrition of mothers and babies from 0 to 6 years old at all stages. With the guidance of professional nutritionists and the cooperation of pediatricians, the Company has developed various products. In 2024, the Company launched the total-effect nutrition supplement for children’s growth, High Grow, which has been well recognized by consumers. Meanwhile, inspired by breast milk, the Company has comprehensively upgraded “ProNutro” series in 2024 to provide the young children’s milk powder with key concentrations of HMO and multiple key nutrients, as a better choice for parents. Also, in response to the change in the use of non-staple food, in addition to the polished wheat and rice ranking first place and baby porridge ranking second place in terms of the market share. We aim to help babies grow and develop at every stage of their development so that parents can raise

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children more efficiently. By upholding the concept of professional nutrition, strict quality control, diversity, and tasty flavor, we continue to provide a variety of nutritional products to babies to support the growth of parents and babies. Quaker can take care of every bite of food for babies. The Company is also proactively planning and expanding diversified nutritious baby food.

Commodity Food
Grains
Market share
The Company’s oat products include instant oats, 3-in-1 oats, bagged and canned oat powder, breakfast cereal, and oat beverages. The Company adheres to high-standard and high-quality production processes and has won many health food certifications. Good flavor, nutrition, and health are our top priorities, and we have long held the top market share. As the leading brand in Taiwan’s grain market, we are deeply loved and trusted by consumers.
Future market demand & supply status and growth
Taiwan’s oat market has been steadily developing. With the changes in lifestyle and the focus on health and food safety, consumers’ demand for cereals that are convenient, fast, natural, nutritious, and delicious increases. Particularly, nationals of Taiwan generally do not consume enough dietary fiber. Therefore, the whole grain dietary still has huge growth potential and room for promotion. The Company will continue to develop products and techniques to meet the market and consumer needs.
Favorable factors and unfavorable factors of competitive niches and development prospect as well as countermeasure
In view of the trends in health while expanding the popularity among the young generation, grain products launched by the Company are both delicious and nutritious. New flavors are available in the tasty oat, 3-in-1 oats, and breakfast cereal series. The exclusive cold preparation expands the timing and context of use. Meanwhile, more ready-to-drink oat drinks are also available to meet the young lifestyle, family-specific needs, expecting to satisfy the needs of consumers of all age groups and family types and help consumers improve their health.
The Company has become the first food manufacturer in Taiwan which passed the “Whole Grain Certification” at the end of 2023. Meanwhile, Quaker Instant Oat, Quaker Organic Oat, and Quaker Instant Whole Oat rank in the top three in the Whole Grain 100 Certification Numbers. Based on the nationals’ focus on health and nutrition, the Company will also proactively promote whole grain foods.
Standard Foods strives to improve itself, has obtained numerous Clean Label, AA Clean Label certifications and iTQi Superior Taste Award, hence it is highly recognized and trusted. In 2024, the Company also launched the oat bar products to get rid of the original brewing products, expand the timing of use and meet the modern people’s demand for convenience.
In the future, we will continue to cultivate our oat categories and develop oat products with better quality and creativity, meeting the health requirements of different groups.

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Edible oils

(1) Market share

Edible oils and fats are one of the main sources of daily dietary intake for Taiwanese people and are an extremely important element in daily diet. The “Great Day” edible oil series adheres to the research and development concept of high quality and low burden, and it is committed to providing Taiwanese families with healthy food. The series of products, such as sunflower oil, olive oil, canola oil and blended oil, has been favored and supported by consumers for their healthy and high-quality images for years. Recently, we have also developed emerging oils such as rice bran oil and avocado oil, providing higher added value to Taiwanese families as the first-choice leading brand, and it ranked first in terms of market share.

(2) Future market demand & supply status and growth

With the increasing willingness to cook at home, coupled with the emphasis on quality, safety and health awareness, consumers now not only pay attention to healthy and pure quality, their awareness on diversified oil use has also increased. Based on this concept, people are now more inclined to get balanced nutrition through different types of oils, cooking methods, and fatty acids.

Notwithstanding, as consumers’ knowledge about nutrition becomes more and more prevailing, and the demand for health maintenance increases, the overall market will be oriented toward more refined oil in the future. High-quality and high value-added products are more likely to be favored by consumers.

(3) Favorable factors and unfavorable factors of competitive niches and development prospect as well as countermeasure

Standard Foods understood consumer's need for healthy, safe, and nutritious edible oil. “Great Day” product series are high-quality, pure and less burden and many products passed the certification of “SQF Food Safety and Quality Standard” and Monde Selection, which represented our commitment and guarantee for safety, health, and quality to consumers.

In the face of rising international raw material prices, we will continue to insist on quality first and product upgrades as well as striving for innovation and constant research and expanding into different consumer groups, such as young families. By doing this, we are able to offer Taiwanese families better and more diverse choices in edible oils.

Refrigerated Food (FreshDelight)

(1) Market share

With FreshDelight’s deep cultivation in the market for many years, it has reached nearly 6 million households in Taiwan. Dairy products of Fresh Delight are quality and diverse, meeting the nutritional needs of the whole family. Among all of the products, functional milk from Fresh Delight has been the leader in the market for a long time, and yogurt from Fresh Delight has been ranked first in the market for two consecutive years.

(2) Future market demand & supply status and growth

In the post-pandemic era, refrigerated dairy products, as an essential daily nutritional supplement, are still a strong category with high penetration rate in the market. However, due to the increasing popularity of nutrition knowledge and the increasing demand for health maintenance among Taiwanese consumers, the overall price of refrigerated dairy products tends to increase, and the product premium comes from two different drivers: (1) Enhanced functions (2) Natural without additives. The ability to grasp consumer demand trends, launch correspondingly high-priced new products, and strengthen

brand communication will help increase brand preference, expand brand coverage, and increase brand profitability.

In addition, three product categories require special attention in future: (1) Fresh milk: Enhancing the competitiveness of domestic fresh milk and increasing consumer recognition of local brands. (2) Functional milk: The high-protein, high-vitamin functional fortified milk can effectively recruit young users. (3) The growth momentum of yogurt is strong, and the category penetration rate, purchase frequency and purchase unit price continue to rise.

(3) Favorable factors and unfavorable factors of competitive niches and development prospect as well as countermeasure

We take the health of our consumers very seriously. Through the most modern food technology, we are able to preserve the most nutritious ingredients for products including FreshDelight fresh milk, functional milk, flavored milk drinks, yogurt drinks and yogurt.

FreshDelight milk sources are strictly managed to ensure that there are no quality and safety concerns in each process. FreshDelight Whole Milk is the only brand with its entire series of products (including fresh milk and ESL milk) in Taiwan to have received the ITQI Superior Taste Award for both quality and flavor.

We continue to enhance the quality of milk from Fresh Delight and increasing consumer preference for local fresh milk. Functional milk: We explore the functional needs of young people, improve the layout of functional milk product line, provide refrigerated and shelf-life milk products, and at the same time penetrate the household market and supermarket channels. Fermented dairy products: We amplify our advantage as the top yogurt brand, consolidate the sales of basic products, and promote the growth of high-price products.

Cheese: Introduce cheese products to satisfy the needs of multiple young families, create differentiated products and boost the brand value.

Agent product(Candies)

(1) Market share

The overall candy market continues to develop steadily. The market share of the Company's agent brands continued to grow, ranking first in the market share of imported candy.

(2) Future market demand & supply status and growth

There are many brands in the candy market and the competition is fierce. The overall market still relies on the continuous introduction of new products to stimulate sales. In recent years, consumers have preferred gummies and toy-type candies, and they are still highly interested in cross-category collaborations. Delicious and interesting products are highly flavored, and it is likely that their price will increase. In addition, functional and healthy candy is on the rise, as consumers are inclined to achieve health goals through a lower threshold.

(3) Favorable factors and unfavorable factors of competitive niches and development prospect as well as countermeasure

To be able to continue to introduce new products and quick marketing plans have become relatively essential in terms of sales of confectionary products. By acting as the agent for international brands and introducing the concept of cross-category operations by integrating candy with leisure drinks, not only we bring the trends from all over the world into Taiwan, but also achieves greater market extension with the agent brand.

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In addition to establishing existing consumer groups, we will strive for the introduction of new products and engaging activities to correspond with seasons and festivals. As well as this, we will also work together with online and offline channels to initiate activities in a thematic approach to expand customer groups and generate sales

EMS service (subsidiary-Domex Corp.):

(1) Market share

With electronics manufacturing services continuing to thrive, professional manufacturing is an obvious trend. At present, many major manufacturers are expanding their production capacity around the world by setting up factories or M&As, resulting in fierce competition for orders between peers. Currently, Domex Company accounts for less than $1\%$ of the total EMS market share.

(2) Future market supply & demand status and growth

The EMS industry has been developing rapidly in recent years, becoming one of the fastest growing industries in the world. Due to this, some emerging trends will further drive the development of the market while also changing the past operations of electronic manufacturing companies and the industry as a whole. For example, the growth of the EMS market is bound to have certain growth under the trend of professional manufacturing including energy efficiency and industrial robotic applications.

(3) Favorable factors and unfavorable factors of competitive niches and development prospects as well as countermeasures

The important factors for the current competition of the development of Domex Company is to be able to provide flexible and fast processes as well as product line changes in order to better meet the diverse needs of customers. By adopting the strategy of small quantity and a variety of products, Domex Company is able to avoid direct competition with large foundries, while providing one-stop electronic manufacturing services to customers, from electronic design and electronic assembly to PCB manufacturing and testing, shipping and after-sales services. This allows customers to focus on their core business.

(II) Usage and Manufacturing Processes for Main Products

Usage of main products

Major products	Product usage
Nutritious Foods	Provide high-fiber cereal and functional products to satisfy the health need.
Cooking products Food	Provide for cooking.
Other foods	Leisure foods.
EMS service (Subsidiary-Domex Corp.)	Most existing products are communication and medical products.

Production process of main products

Oatmeal reduction process: Raw material $\rightarrow$ slicing $\rightarrow$ rolling $\rightarrow$ cooling $\rightarrow$ screening $\rightarrow$ packaging

Oat powder production process: Raw material $\rightarrow$ soaking $\rightarrow$ pasting $\rightarrow$ drying $\rightarrow$ grinding $\rightarrow$ sieving $\rightarrow$ packaging

Healthcare drinks production process: Raw material $\rightarrow$ extracting $\rightarrow$ filtering $\rightarrow$ blending $\rightarrow$ filling $\rightarrow$ packaging

Dairy product production process: Raw material $\rightarrow$ homogenizing $\rightarrow$ high-temperature sterilization $\rightarrow$ cold storage $\rightarrow$ filling $\rightarrow$ packaging

Refined oil production process: Raw oil $\rightarrow$ degumming, deacidification $\rightarrow$ decoloration $\rightarrow$ deodorization $\rightarrow$ winterization $\rightarrow$ packaging

Three-treasure oat production process: Raw material $\rightarrow$ extrusion forming $\rightarrow$ drying $\rightarrow$ cooling $\rightarrow$ packaging

Cooked rice production Process: Raw material $\rightarrow$ mixing $\rightarrow$ blending $\rightarrow$ filling $\rightarrow$ packaging

EMS service production process (subsidiary-Domex Corp.): Component $\rightarrow$ SMT $\rightarrow$ DIP $\rightarrow$ assembly $\rightarrow$ test $\rightarrow$ packaging

(III) Supply situation for the major raw materials

Major Raw Materials	Supply Situation
Oat	Imported from Australia
Raw oil of sunflower oil Raw oil of canola oil and other edible oils	Imported from Europe, Australia and Japan
Flour	Supplied by domestic suppliers
Cane sugar	Supplied by Taiwanese suppliers
Raw milk	Supplied by Taiwanese suppliers
Milk powder	Imported from New Zealand, Australia and Europe and supplied by domestic suppliers
Electronic components (subsidiary-Domex Corp.)	Supplied by domestic agents of international manufacturers and domestic suppliers

(IV) Information of main customers in the past two years

Information of main customers in the past two years
Unit: NT$1,000

	2023				2024				As of March 31, 2025 (Note 2)
Item	Name	Amount	Percent in annual net sales (%)	Relationship with the Issuer	Name	Amount	Percent in annual net sales (%)	Relationship with the Issuer	Name	Amount	Percent in net sales up to the previous quarter (%)	Relationship with the Issuer
1	Company A (Note 1)	4,186,149	15.1		Company A (Note 1)	4,239,437	14.6		Company A (Note 1)	1,051,823	15.3
2	Others	23,617,969	84.9		Others	24,734,255	85.4		Others	5,828,488	84.7
	Net sales	27,804,118	100.0		Net sales	28,973,692	100.0		Net sales	6,880,311	100.0

Note 1: Name of the customer with more than 10% of the total sales amount in the last two years and the amount and proportion of the sales. Due to the contractual agreement, the name of the sales or the object of the transaction may not be disclosed, and individuals and non-related parties may be disclosed in code names.
Note 2: For a public company whose stocks are listed on a stock exchange (a "listed" company) or by an OTC company, if, before the date of publication of the annual report, there is any financial data for the most recent period audited and attested or reviewed by a CPA, it shall also be disclosed therewith.

Information of main customers in the past two years
Unit: NT$1,000

	2023				2024				As of March 31, 2025 (Note 2)
Item	Name	Amount	Percent in annual net sales (%)	Relationship with the Issuer	Name	Amount	Percent in annual net sales (%)	Relationship with the Issuer	Name	Amount	Percent in net sales up to the previous quarter (%)	Relationship with the Issuer
1									Company B (Note 1)	603,756	15.4
2	Others	19,507,115	100.0		Others	19,260,780	100.0		Others	3,305,881	84.6
	Net purchase	19,507,115	100.0		Net purchase	19,260,780	100.0		Net purchase	3,909,637	100.0

Note 1: 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. Where the Company is prohibited by contract from revealing the name of a client, or where a trading counterpart is a person who is not a related party, it may use a code in place of the actual name:
Note 2: For a public company whose stocks are listed on a stock exchange (a "listed" company) or by an OTC company, if, before the date of publication of the annual report, there is any financial data for the most recent period audited and attested or reviewed by a CPA, it shall also be disclosed therewith.

III. Information of employees in the Past 2 Years and up to the Report Printing Date
April 30, 2025

Year		2023	2024	As of April 30, 2025
Number of Employees	Employees	1,855	1,967	1,995
	Employees	935	943	935
	Total	2,790	2,910	2,930
Average Age		39.39	39.56	39.48
Average Service Year		8.27	8.29	8.26
Academic distribution ratio	PhD	0.29%	0.34%	0.34%
	Master	9.35%	9.00%	9.25%
	Bachelor	55.38%	57.90%	58.46%
	High school	26.49%	24.44%	23.96%
	Below high school	8.49%	8.32%	7.99%

Note: Including foreign workers

IV. Information on Environmental Protection Expenditure

The Company cooperates with the government in practicing environmental protection policies and spares no efforts to protect the environment. In addition to the implementation of environmental management inspection and the introduction of a comprehensive TPM system in the plant, the responsible units are guided to engage in comprehensive independent maintenance, operation monitoring and continuous improvement plans of various pollution prevention and control equipment, so as to maximize the comprehensive efficiency of the equipment.

Standard Foods has passed ISO14001 environmental management system certification since 2014 and has passed ISO14001 audit certification every year since the revision certification in 2018. In terms of environmental protection, it has made continuous improvement through systematic management.

(I) In 2024 and up to the date of publication of the annual report, unusual environmental penalty cases of Standard Foods:

Dayuan Plant :
In 2024, all environmental protection regulations were complied with, and there were no violations or penalties.
Zhongli Plant :
(1) The Department of Environmental Protection conducted an on-site inspection of the factory on May 7, 2024. Violations of the Water Pollution Control Act are described as follows:
The sewage treatment fails to meet the water pollution prevention measures plan.
The wastewater was discharged into the storm drain adjacent to the parking lot, not collected separately from the rainwater.
The Company was fined NT$19,500 for violation of Article 18 of the Water Pollution Control Act and Article 4 and Article 7 of the Water Pollution Control Measures and Test Reporting Management Regulations.
This incident was caused by the change in the original water treatment equipment made not subject to the current status, not a substantive pollution incident.

(2) On August 14, 2024, the Department of Environmental Protection conducted an on-site inspection of the factory.

The sewage treatment fails to meet the water pollution prevention measures plan. The deficiencies identified by the Department of Environmental Protection on May 7 have been improved, but the change in the water pollution prevention measures plan has not yet been approved.
The Company was fined NT$34,500 for violation of Article 18 of the Water Pollution Control Act and Article 4 of the Water Pollution Control Measures and Test Reporting Management Regulations.
This incident was caused by the delay in the application for a change in the water pollution prevention measures plan, not a substantive pollution incident. It has been corrected and passed the recheck by the deadline.
Hsinchu Plant :

In 2024, all environmental protection regulations were complied with, and there were no violations or penalties.

(II) Environmental protection equipment expenditure

Dayuan Plant :

(1) The production line of refinery oils and fats implements the optimization of air pollution prevention and control equipment operating parameters and complies with environmental emission standards. Eventually, the water consumed for cleaning reduced from 3.7 metric tons per day to 2 metric tons per day, saved by 45.95% per day. In 2024, the actual water consumed was 442 metric tons.
(2) The optimized blowers/blowing PE covers/coverings equipment gas consumption and production conditions were used to reduce the power consumption of the air compressor system by 1,478,074 kWh in 2024.

Zhongli Plant :

The Company spent NT$2.35 million in improving the rainwater system in 2024, and the rainwater and sewage collection was improved.

Hsinchu Plant :

(1) In 2024, an air extraction system for reducing sludge odor was added to reduce the source of odor, and the cost was NT$230,000.
(2) In January 2024, the temporary storage tank for wastewater with a capacity of 100 metric tons*3 FRP repairs were completed, at the price of NT$940,000.
(3) The repair work for the 10 metric tons of raw water pool and 20 metric tons of storage pool in the wastewater treatment system was completed in July 2024 (replaced with stainless steel 316L instead), at the price of NT$1.77 million.
(4) The Company optimizes the compressed air consumption before inkjet printing on the packaging lines to reduce the air compressor consumption and save the air compressor system power consumption by 35.49 kWh/year, thereby helping the Company save on engineering expenses, NT$50,000.
(5) The cooling tower for the production process and the air conditioning pump (24-hour operation) are added with variable frequency control, thus saving 85.64 thousand kWh of power each year and the engineering expenses, NT$260,000.
(6) The optimization solutions include the recycling and reuse of homogenizer lubrication water from the process equipment, water sterilization, frequency reduction sterilization of oatmeal blanking tanks and filling barrels, and the recycling of washing water from the can washing machine, all of which help save water consumption by 7,200 metric tons/year.

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(III) Estimated environmental protection expenses in the next three years

For environmental protection requirements and increase in the cost of waste disposal, environmental protection budget increased, net profit was slightly affected, and competitiveness was not affected.

(1) Dayuan Plan
Unit: NT$1,000

Year	2025	2026	2027
Content of proposed procurement of pollution prevention equipment or expenditures	Environmental equipment operating expenses and garbage treatment expenses	Environmental equipment operating expenses and garbage treatment expenses	Environmental equipment operating expenses and garbage treatment expenses
Expected improvement	Maintain the normal operation of environmental equipment and garbage removal	Maintain the normal operation of environmental equipment and garbage removal	Maintain the normal operation of environmental equipment and garbage removal
Amount	NT$22,766	NT$22,780	NT$22,780

(2) Zhongli Plant
Unit: NT$1,000

Year	2025	2026	2027
Content of proposed procurement of pollution prevention equipment or expenditures.	Environmental equipment operating expenses and garbage treatment expenses	Environmental equipment operating expenses and garbage treatment expenses	Environmental equipment operating expenses and garbage treatment expenses
	The first stage of the overall improvement of the wastewater treatment plant
Expected improvement	Maintain the normal operation of environmental equipment and garbage removal	Maintain the normal operation of environmental equipment and garbage removal	Maintain the normal operation of environmental equipment and garbage removal
	Improve the oxygen solvency of the exposed air pool, save energy, and control odor
Amount	NT$17,877	NT$16,223	NT$16,223

Unit: NT$1,000

(3) Hsinchu plant

Year	2025	2026	2027
Content of proposed procurement of pollution prevention equipment or expenditures	Environmental equipment operating expenses and garbage treatment expenses
Increase the number of resource recovery and sorting personnel to sort garbage for recycling	Environmental equipment operating expenses and garbage treatment expenses	Environmental equipment operating expenses and garbage treatment expenses
	Replace the drum screen for wastewater
Replace traditional 60HP Turkish blowers
Expected improvement	Maintain the normal operation of environmental equipment and garbage removal, reduce odor sources	Maintain the normal operation of environmental equipment and garbage removal	Maintain the normal operation of environmental equipment and garbage removal
Amount	NT$16,481	NT$15,996	NT$15,996

(IV) Influence after improvement

Year	2025	2026	2027
Impact on net profit	Little	Little	Little
Impact on competitive position	None	None	None

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V. Labor Relations

(I) Existing Major Labor Relations and implementation

Employee Benefits.

The Company's benefit items are as follows:

(1) Handle labor and health insurance as stipulated. If employees pay for various insurances, notify them actively and help them apply for payment to protect their rights and interests.

(2) Buy collective insurances for all regular employees (including spouses and children), including life insurance, accident insurance, medical insurance and cancer insurance. The Company pays for these insurances in full amount.

(3) Annual bonus and annual bonus issued according to company's operation and performance.

(4) Regular physical examination for employees.

(5) Gifts distributed for Mid-Autumn Festival, Dragon Boat Festival, Spring Festival and Labor Day.

The Employee Welfare Committee mainly handles the following items:

(1) Cash gift distributed for Mid-Autumn Festival, Dragon Boat Festival and Spring Festival.

(2) Birthday gifts.

(3) Subsidies for marriage, childbirth, funeral, or permanent disability.

(4) Travel subsidies.

(5) Subsidies for club activities.

(6) Organization of festival activities.

The Company is equipped with the Employee Welfare Committee, which has been ratified and registered as per document FU-SHE-LAO-ZI 148470 of Taoyuan County Government and document BEI-SHI-LAO-SAN-ZI No. 12761 of the Labor Department of Taipei Municipal Government. The committee was selected and appointed by employees, welfare funds were appropriated monthly and employee benefit was handled.

Retirement system

We have a retirement plan in place for full-time employees.

For employees selected new retirement pension systems from July 1, 2005, the Company has allocated retirement pension to personal accounts of workers of the Bureau of Labor Insurance monthly; for employees who selected old retirement pension systems, the Company allocated retirement funds monthly according to "Labor Standards Act" and actuaries' results, which were managed by the Employee Retirement Reserve Supervision Committee, and deposited them in special accounts of Bank of Taiwan in their name; the Company withdrew welfare and liabilities for managerial officers according to actuaries' results.

Educational training

Educational training fees for 2024 were NT$18,631 thousand. Talent is an important asset of Standard Foods. We firmly believe that only with the growth of our employees can the Company continue to grow. Therefore, Standard Foods is committed to continuously improving the quality of talents and building an excellent team to gain a competitive advantage and achieve the goal of sustainable operation. We have designed different training blueprints and focuses based on the needs of each job role and passed on techniques and core knowledge through supervisor guidance and the mentorship system to meet the growth needs of the Company and employees, and to cultivate and internalize the professionalism of staff.

For the sales and marketing team, a series of skill training and a comprehensive collaborative

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visit process are used to develop the competency required by employees. The annual sales and marketing conference gives employees an in-depth understanding of the Company’s products and marketing strategies and keeps stimulating collaboration and creativity.

To improve the quality and efficiency of production, the supply chain center continues to promote TPM training and counseling and applies the learning results to work through annual theme, project implementation, and result announcements. At the same time, we are committed to helping new employees integrate into the company culture quickly. General training, orientation for new hires, factory tours and basic professional courses are provided to help them quickly get started and adapt to the new environment.

We expect our staff to grow together with the Company. Therefore, we discuss with our staff the skills and abilities required for their duties and inspire learning motivation. To create a diverse learning environment, we have introduced external online learning resources in addition to existing learning methods to address functional skill needs, so that the Company and staff can more flexibly organize the learning content. In the future, we will continue to use this method as the foundation to strive for creating a learning organization that is highly flexible and knowledgeable.

4. Protective measures for the work environment and employees' safety:

To improve the work environment and employee's safety, the factory introduces occupational safety and health management systems ISO-45001:2018 and CNS 45001:2018 and environmental protection system ISO-14001: 2015 to verify and standardize safety and health system plans developed as stipulated, in line with "planning (P)", "Do (D)", "Check (C)" and "Audit (A)", under environment integration, safety and health matters and holistic management system and through reference with the external situation and legal development in order to effectively implement an environmental safety management system and improve ESH performance. Each year, we pass the above two major system audits with high standards to ensure the systems are working well and requirements met.

To promote labor protections, our factories continue to refine the identification of working environment hazard sources and protection improvements. The identification, improvement and tracking for changes in the working environment, anomaly elimination operations, and operation SOPs are carried out.

For ESG (regarding sustainable environmental development), the Standard Foods Group introduced the ISO 14064-1 greenhouse gas inventory management system in 2023 and established a sustainability promotion team to plan the greenhouse gas emission inventory of the three factories of the Group and the four major venues of the headquarters. The Standard Foods Group completed the SGS audit and obtained the Group’s greenhouse gas verification statement for 2022. In 2024, we plan to inspect six new business offices in Taiwan and consolidate them into the headquarters. We will also set improvement targets based on the schedule and execute them according to the plan in order to continue fulfilling our corporate responsibility for environmental protection.

The top management shall demonstrate its leadership and commitment to the ESH Management System in the following ways:

(1) Prevent damage and insalubrity events; provide safe and healthy workplaces and carry out relevant activities to assume absolute responsibility for the effectiveness of ESH management systems.

(2) Ensure that the ESH policy and ESH objectives are established and are compatible with the organization's strategic direction and context.

(3) Ensure that the requirements of the ESH Management System are integrated into the organization's business processes.

(4) Ensure that the resources required for the ESH Management System are available.

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(5) Communicate the importance of effectively implementing environment, safety and health management and complying with ESH Management System requirements.
(6) Ensure that the ESH Management System can achieve its expected outcomes.
(7) Guide and support staff to contribute to the effectiveness of the ESH Management System.
(8) Ensure and promote continual improvement.
(9) Support other relevant management roles to show their leadership in own responsible areas.
(10) Develop, guide and promote an internal organizational culture that supports the expected outcomes of the OSH Management System.
(11) While reporting events, harms, risks and opportunities, protect workers from revenge.
(12) Ensure that the organization establishes and implements consultation and participation procedures for its workers.
(13) Support the establishment and operation of the Safety and Health Committee.

5. Employee Code of Practice

To specify rights and obligations of employee and employer, improve the operating management system and encourage employees to make concerted efforts, employee working rules are developed according to the Labor Standards Act and relevant decrees, which specify the code of practice as follows:

(1) Employees should be devoted to their duties, comply with company rules and follow supervisors' reasonable guidance and management and should not perform their duties in a perfunctory manner or shuffle and disobey. Supervisors should give guidance to employees kindly.
(2) Employees should work seriously and protect public properties inside the Company to reduce losses and improve quality and production and keep business or occupational secrets confidential outside the Company.
(3) The Company's employees shall report their duties and business to supervisors from the first level up and shall not bypass mid-level supervisors and directly report to higher-level supervisors unless it is an emergency or a special circumstance.
(4) Without permission, employees should not take relatives and friends to workplaces.
(5) Employees shall not use their power for their interests or others.
(6) Without the Company's written permission, employees should not engage in similar services outside the Company in order not to the affect performance of the labor contract.
(7) Employees shall not receive treats, gifts, rebates, or other illegal benefits in their duties or the violation of their duties.
(8) Employees should not carry ammunitions, weapons, dangerous goods (articles and other chemicals and inflammable products that are not needed for work and can cause personal damage or may cause a disaster easily), prohibited goods, articles unrelated to production and illegal articles to workplaces.
(9) Without permission, employees should not take public properties out of workplaces or lend them to other units or individuals.
(10) Employee and employer should negotiate about changes in labor contracts; if necessary, the employer should mobilize employees according to the following principles:

For the need of business management and without malignant motives. If the law or regulation has provided otherwise, the laws shall prevail.
Employee's salaries and other labor conditions are not changed in a malignant way.
Employees are eligible for work in physical condition and skill.
If the workplace is too far, the employer should provide necessary assistance.
Consider employee's and their family's life benefits.

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6. Labor contract

The Company selects an employee representative according to labor meeting implementation methods drafted by the labor committee and employer representative is recommended by the Company. The term of employee representative and employer representative is three years, the successively selected employee representative should be reappointed, the successively appointed employer representative should be reappointed, the labor meeting should be convened every three months with employee representative and employer representative participating to coordinate labor relations, promote labor cooperation and prevent labor disputes; employee and employer should discuss matters concerning laborer's welfare, labor safety and health, productivity improvement and annual plan and reach a consensus for both parties' benefits.

(II) To ensure that all the cooperating (lending) contractors comply with labor laws and regulations, and to protect the rights and interests of workers, the Company implements the following actions:

The Company will first verify the compliance with labor laws by dispatching service providers and labor service contractors as the basis for the assessment on the cooperation.
The dispatching service providers and labor service contractors (such as outsourced cleaning service contractors) will be required in the contract to provide the workers hired by them with the employment conditions in accordance with the related labor laws.
During the contract performance period, the Company reviews the labor contract and insurance records of the dispatching (permanent) employees to ensure that they comply with the labor laws and regulations.
In 2024, a total of six dispatching companies were inspected. No violation of labor laws and regulations was found.

(III) Loss Resulting from Labor-management Relations in the Most Recent Fiscal Year and the Current Fiscal Year up to the Date of Publication of the Annual Report:

The company was fined NT$100,000 on March 14, 2024, due to negligence in the performance evaluation of a labor union officer.
The company has re-evaluated the performance appraisal results, reviewed and optimized internal regulations and operational procedures, and strengthened management responsibilities to prevent future labor disputes.

VI. Cybersecurity management

(I) Cybersecurity Risk Management Framework, Cybersecurity Policy, Concrete Management Program, Resource Investment in Cybersecurity Management:

1. Cybersecurity Risk Management Framework

The Company will continue to improve the information security governance structure in 2024 and hold a quarterly information security governance meeting once per quarter. The chairman of the Information Security Committee is assumed by the CEO, and the executive secretary thereof is assumed by the Director of the Information Department. The Committee members consist of the heads of various departments, including HR, R&D, Quality Assurance, and Procurement. The Information Security Team is responsible for the overall planning, management, and supervision of the information security business, primarily covering the relevant information services provided by the information department and the relevant departments of the Company. Meanwhile, the implementation status of the information security will be reported to the Board of Directors on a regular basis.

Cybersecurity Organization Structure

2. Cybersecurity Policy

The Company complies with regulations governing information security incidents to institutionalize and systematize the reporting, categorization, classification, handling, statistics, and follow-ups of its information security incidents. When an information security incident occurs, it shall be reported and handled in a timely manner and recovered within the shortest period of time to ensure normal operations of all business activities. Along with the resources from external information security experts, the personnel of the Information Security Maintenance and Emergency Response Team manage to be alert to information security reports and incidents so as to strengthen and speed up the mechanism for detection and response.

The cybersecurity policy is based on the following four principles:

(1) Establish cybersecurity management regulations that meet the needs of the law and customers.
(2) Achieve the consensus of cybersecurity responsibility among all employees through all staff awareness.
(3) Protect the confidentiality, integrity and availability of the Company's and customers' information.
(4) Provide the safe production environment to ensure the sustainable operation of the Company's business.

The Company aims to establish a firewall, intrusion detection, anti-virus system and many internal control systems based on the three major cybersecurity protection objectives, namely anti-virus, anti-hacking, and anti-leak, in order to enhance the Company's ability to prevent external attacks and ensure the protection of internal confidential information. The Company has implemented and established a complete cybersecurity management system (ISMS) to mitigate the corporate cybersecurity threat from the system, technology and procedure aspects, establish the cybersecurity protection environment that meets customer needs, and continuously conduct the "Plan-Do-Check-Act" (PDCA) cycle for continuous improvement.

The "Plan" focuses on information security risk management. To strengthen cybersecurity, the Company has implemented the ISO 27001 cybersecurity management system certification to enable the information system to operate in accordance with the standard management guidelines, reduce safety vulnerabilities and production abnormalities caused by human error, and make continuous improvements through annual review.

The "Do" aims to construct a multi-level cybersecurity protection mechanism, continue to implement new cybersecurity risk control technology, improve the efficiency of the detection and response handling procedures for various cybersecurity incidents with intelligent/automated mechanisms, and strengthen cybersecurity and network security protection processes to protect the Company's important assets.

The "Check" aims to regularly monitor the effectiveness of cybersecurity management indicators, and conducts penetration tests, vulnerability surveys and third-party audits every year to ensure that the Company continues to improve its cybersecurity management and defense capabilities.

The "Act" aims at review and continuous improvement. When employees and contractors violate the cybersecurity-related regulations and procedures, ensure that employees and partners comply with cybersecurity policies through education and training and implementation of regulations, and continue to conduct cybersecurity education and training for all employees to enhance information security awareness.

3. Concrete Management Program

Amend and adopt documents in compliance with the ISO27001:2022 ISMS standard and conduct inventory and risk assessment on the operation of core information security system and personal information. Introduce privileged access management, remote backup and drills, social engineering attack drills, system and website vulnerability assessment, penetration test and vulnerability patching and strengthening to the application system and the infrastructure.

In order to achieve the cybersecurity policy and goals, the Company establishes a comprehensive cybersecurity protection and implements the management matters and specific management programs as follows:

Enhance the cybersecurity defense ability: Regularly conduct cybersecurity system weakness scanning and penetration testing and strengthen and repair them to mitigate the cybersecurity risks. Establish an Internet security incident response plan, conduct an assessment on impacts and losses based on the severity of the incident, and take corresponding notification and recovery actions.
Improve the cybersecurity management procedure: Continue to optimize the cybersecurity management process according to the ISO 27001 standards, including the management of privileged accounts (using the One Identity solution), remote backup and drill, social engineering attack simulation test, and the endpoint and APP security defense (such as Akamai CDN/APP & API Protector, and Forcepoint DLP).
Enhance network, terminal, and application security: Strengthen network firewalls and network control, implement multi-factor authentication (MFA) to protect important mainframe privileged accounts, and improve the ability to detect and defend against abnormalities in the terminal equipment.
Education and training: Each colleague must complete a 1-hour course per year and a social engineering phishing email test once a year to enhance cybersecurity awareness. The goal is to ensure the implementation of cybersecurity to every employee with the support of senior executives and various departments, so that information security can be implemented for every employee.

4. Resource Investment in Cybersecurity Management

The Company regularly reports the implementation status of information security to the

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Board of Directors and constructs the comprehensive infrastructure of information security step by step. It invests in technologies to establish a corresponding corporate information security protection network by leveraging emerging solutions.

The Company’s cybersecurity management and the resources allocated are as follows:

Dedicated personnel: The Information Security Team and the dedicated personnel of related departments are responsible for cybersecurity planning, technology implementation and related audit matters.
Technology and system: Advanced cybersecurity solutions such as One Identity, Forcepoint DLP, Cymetrics (assessed on a semi-annual basis), and Akamai Edge DNS Enterprise Threat Protector are implemented.
Certification and audit: The Company passed the ISO 27001 certification, and no major cybersecurity audit defects were found. The Company also appoints Deloitte Taiwan and TCIC to conduct independent audits every year.

(II) 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.

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VII. Major Agreements

April 30, 2025

Type of Contract	Party	Contract Duration	Contract Content	Restrictions
Technical cooperation	Quaker Oats Company	1994.07-2034.07.11 (Note 1)	Produce Quaker oatmeal and oat flour for babies with Quaker brand in Taiwan	(Note 2)
Supply and Sales Contract	Welfare Division of the Ministry of National Defense	2023.10.23-2024.10.22 (Note 3)	Provide welfare for officers and soldiers and their family dependents of the National Revolutionary Army	None

Note 1: Contracts should be renewed on a basis of five years and both parties should negotiate about renewal of contracts six months before expiration.
Note 2: Net sales of Quaker products decreased by above 18% for consecutive two quarters compared with the preceding year and the Company failed to explain the reason to Quaker Oats Company. If it was not because the Company did not perform the obligations hereunder, Quaker Oats Company shall terminate the contract by issuing a written notice to the Company six months in advance.
Note 3: Renewal of contract per year.

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Chapter 5. Review and Analysis of the Company's Financial Position and Financial Performance, and Listing of Risks

I. Financial Position

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

Date Item	December 31, 2023	December 31, 2024	Difference
			Amount	%
Current assets	17,191,949	19,414,090	2,222,141	12.93
Property, plant and equipment	4,135,856	4,096,900	(38,956)	-0.94
Intangible assets	170,847	151,369	(19,478)	-11.40
Other assets	4,226,959	3,767,292	(459,667)	-10.87
Total asset value	25,725,611	27,429,651	1,704,040	6.62
Current liabilities	7,629,311	8,277,273	647,962	8.49
Non-current liabilities	435,153	425,878	(9,275)	-2.13
Total liabilities	8,064,464	8,703,151	638,687	7.92
Equity attributable to owners of parent company	17,378,957	18,412,497	1,033,540	5.95
Share capital	9,150,897	9,150,897	0	-
Capital surplus	165,585	173,922	8,337	5.03
Retained earnings	8,476,280	9,106,578	630,298	7.44
Other equity	(392,623)	2,282	394,905	100.58
Treasury stock	(21,182)	(21,182)	0	-
Non-controlling Interests	282,190	314,003	31,813	11.27
Total equity	17,661,147	18,726,500	1,065,353	6.03
Description: (1) The increase in “Other equity” in 2024 was primarily a result of an increase in translation differences in the financial statements of foreign operating companies compared to the same period last year.

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II. Financial Performance

(I) Comparative Analysis of Operational Performance

Unit: NT$1,000

Item	2023	2024	Increase (decrease) in amounts	Increase (Decrease)
Operating revenue	27,804,118	28,973,692	1,169,574	4.21
Gross profit	6,289,700	7,158,485	868,785	13.81
Operating profit (loss)	1,360,401	1,910,589	550,188	40.44
Non-operating revenue and expenses	242,913	381,019	138,106	56.85
Profit before income tax	1,603,314	2,291,608	688,294	42.93
Income tax expenses	335,162	489,512	154,350	46.05
Net income from continuing operations	1,268,152	1,802,096	533,944	42.10
Loss from discontinued operations	-	-	-	-
Profit for the period	1,268,152	1,802,096	533,944	42.10
Other comprehensive income for the period (after tax)	(255,379)	437,073	692,452	271.15
Total comprehensive income for the period	1,012,773	2,239,169	1,226,396	121.09
Analysis of the proportion of increase and decrease:
(1) The increase in “Non-operating income and expense” for 2024 was due to the increase in net foreign exchange gain compared to the same period last year.
(2) The increase in “Other comprehensive income for the period” in 2024 was due to the increase in the translation differences in the financial statements of foreign operating companies compared to the same period last year.

(II) Possible impact on the Company's future financial operations and significant changes: None.

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III. Cash Flows

(I) Analysis of cash flow changes in the previous year

Unit: NT$1,000

Cash balance at the beginning of the year (1)	Annual net cash flow from operating activities (2)	Other cash outflows throughout the year (3) (Note)	Amount of cash surplus (shortfall) (1)+(2)-(3)	Remedial measures for cash inadequacy
				Investment plan	Financial plan
2,938,886	3,941,133	3,753,295	3,126,724	N/A	N/A

(1) Operating Activities: The net cash inflow in the current period was NT$3,941,133 thousand, mainly due to operating profit.

(2) Investment Activities: The net cash outflow in the current period was NT$1,601,818 thousand, mainly due to an increase in financial assets measured at fair value through other comprehensive income and financial assets measured at amortized cost are assets.

(3) Financing Activities: The net cash outflow in the current period is NT$2,218,125 thousand, mainly due to the payment of cash dividends and decrease in short-term borrowings.

Note: Including the effect of exchange rate changes on cash and cash equivalents.

(II) Improvement Plan of Liquidity Shortage and Analysis of the Liquidity

Shortage of liquidity this year: None.
Liquidity analysis for the most recent two years:

Item\Year	FY 2023(2)	FY 2024(2)	Percentage of increase (decrease) (2)-(1)/(1)
Cash flow ratio	27.41	47.61	73.70%
Cash flow adequacy ratio (%)	108.17	109.85	1.55%
Cash reinvestment ratio (%)	4.03	11.82	193.30%
Analysis of the proportion of increase and decrease: (1) Cash flow ratio : The increase in cash flow ratio for 2024 was due to an increase in net cash inflow from operating activities. (2) Cash reinvestment ratio : The increase in cash reinvestment ratio in 2024 was due to an increase in net cash inflow from operating activities and a decrease in long-term investments.

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(III) Cash Liquidity Analysis for the Following Year

Unit: NT$1,000

Cash balance at the beginning of the year (1)	Annual net cash flow from operating activities (2)	Other cash outflows throughout the year (3)	Amount of cash surplus (shortfall) (1) +(2)-(3)	Remedial measures for cash inadequacy
				Investment plan	Financial plan
3,126,724	1,634,073	1,221,311	3,539,486	N/A	N/A

Cash Flow Analysis for the Following Year:
(1) Operating activities: Estimated net cash inflow is mainly due to expected operating profit.
(2) Investment activities: Mainly due to the allocation of funds to financial assets and the addition of property, plant and equipment.
(3) Financing activities: Mainly refers to the issuance of cash dividends.
Improvement plan for insufficient cash liquidity and liquidity analysis: N/A.

IV. Impact of Major Capital Expenditure on Financial Operation in the Most Recent Year

(I) Applications of Major Capital Expenditure and Source of Funds in the Most Recent Year

Unit: NT$1,000

Plan	Actual or expected source of funds	Actual or expected completion date	Total amount of capital needed	Actual or expected applications of the capital
				2024	2025	2026
Purchase of machinery, transportation and office equipment as well as computer software, renovation of houses and buildings, and land use rights (improvement)	Own funds	2025	723,370	148,036	490,727	84,607

(II) Expected possible benefits: Implement new production lines and optimization, renovate plant facilities and develop digital software systems; replace outdated equipment to enhance operational efficiency.

V. Reinvestment Policies, Main Reasons for Its Profits/Losses, Improvement Plans in the Most Recent Year and Investment Plan for the Following Year:
Unit: NT$1,000

Item	Amount of Profit (Loss) in 2024	Policy	Main reasons for profit or loss	Improvement plan	Investment plan for the following year
Shanghai Standard Foods Co., Ltd	96,488	It mainly operates the sales business of Standard Foods in China and the manufacturing base of edible oils.	The market demand has stabilized and the capacity utilization rate has gradually increased.	Cooperate with the development of the Group to carry out resource integration.	At present, there is no definite investment plan.
Standard Dairy Products Taiwan Ltd.	286,685	Mainly develop and sell related products in this industry to increase market share and create profits.	Performance grew steadily and capacity utilization increased.	Grasp the market pulsation and continue the development of new products to meet the needs of customers for innovation and change, and cooperate with cost and expense management to maintain profits.	At present, there is no definite investment plan.
Standard Investment (China) Ltd.	343,604	The main plan is Standard Foods Group's investment and sales center in China to expand domestic demand in mainland China and create profits.	Although the cost of rapeseed oil continues to rise, the income is effectively balanced through the diversification of oil types (such as corn and rapeseed).	The Company proactively deploys the upstream suppliers, in order to secure procurement sources and costs. In response to the changes in the market channels, the Company strengthens the construction of the channels, increases the deployment of network points, and continues to cultivate the sunken market.	At present, there is no definite investment plan.
Standard Foods (China) Ltd.	200,134	It is mainly planned to be a production base for edible oils and nutritional foods.	Market demand increased and the capacity utilization increased.	To expand product lines, and export sales of Class 1 oil to make full use of production capacity and reduce the allocation of capital cost.	The Company will invest capital in integration of the smart warehouse items in the Taicang Factory to improve operational efficiency.
Standard Foods (Xiamen) Co., Ltd.	279,628	It is mainly planned to be a production base for edible oils and nutritional foods.	Market demand has increased and the capacity utilization rate has gradually increased.	To expand product lines, and export sales of Class 1 oil to make full use of production capacity and reduce the allocation of capital cost.	At present, there is no definite investment plan.
Dermalab S.A.	(34,837)	With the change of market structure and consumption habits, it is planned to diversify and develop various products in the consumer goods field.	As the market responded gradually, we continued to strengthen our expansion efforts.	Actively expand the market and strengthen the internal management mechanism.	The plan to continue the development of beauty products.

VI. Analysis and Evaluation of Risks in the Most Recent Year and Up to the Date of Publication of the Annual Report

(I) Impact of Interest Rate and Exchange Rate Fluctuations, and Inflation on the Company's Profit and Loss, and Future Countermeasures:

(1) Interest rate

Looking back to 2024, in order to suppress the expected inflation caused by the increase in tariffs in April, the Central Bank adjusted the policy interest rate by 0.25% in March. After that, due to the slowdown of economic growth and the effectiveness of selective credit control measures for real estate, the Central Bank chose to maintain the interest rate unchanged, thereby resulting in a relatively stable interest rate level throughout the year. The Company's 2024 financial costs accounted for a small percentage of the operating revenue and net profit before tax. The impact posed by the interest rate changes on the Company is limited.

In 2024, the financial costs of our company as a proportion of revenue and pre-tax net profit were minimal, and the impact of interest rate changes on our company was limited.

Looking ahead to 2025, we will continue to monitor global economic trends and interest rate movements and adjust our asset and liability positions to mitigate interest rate risk.

(2) Exchange rate

Looking back at the domestic exchange market in 2024, despite the official interest rate cut by the Fed in September, U.S. inflation eased down slowly and, therefore, the Fed slowed down the interest rate cut. Accordingly, the USD remained strong against the other currencies, and the USD was relatively strong. Besides this, the global geopolitical conflicts broke out (Israel–Palestine conflict and the Red Sea crisis, etc.), and Trump won the U.S. presidential election. The financial market was uncertain, causing capital to flee to the USD and other hedging assets. This further led to the USD foreign exchange rate becoming stronger. Despite the fluctuations in the USD, the overall trend was upward. In such context, the NTD depreciated by 5.71% for the whole year, and the fluctuation ranged between 30.915 and 32.93.

Given that many of our raw materials are imported, exchange rate fluctuations have a significant impact on our profitability. Recognizing the numerous factors influencing foreign exchange markets, our company has established clear foreign exchange hedging strategies and stringent risk management processes. We continuously monitor exchange rate movements and international financial conditions, adjusting our foreign exchange strategies as needed to mitigate the risks associated with exchange rate volatility.

(3) Inflation

According to the statistics of the Directorate-General of Budget, Accounting and Statistics, Ministry of Economic Affairs, the CPI in 2024 rose by 2.18%, a decrease of 0.31% from 2023. However, the CPI exceeded the 2% warning level of the Central Bank for three consecutive years. The PPI in 2024 rose by 1.36%, a growth of 1.93% from 2023, reflecting the increase in the electricity bill and the decline in the commodity price. In response to the fluctuation in international raw material prices, the Company keeps track of the global market dynamics and product price trends in a timely manner, and strengthens the cooperation with suppliers, distributors and customers. Based on the flexible procurement and marketing strategies, the Company is able to optimize its cost control mechanism, promote innovation and product differentiation, increase the added value of its products, effectively enhance market responsiveness, reduce operational risks caused by inflation, and ensure its competitive advantage.

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(II) Policies of engaging in high-risk, high-leverage investments, giving loans to others, providing endorsements/guarantees and engaging in derivatives transactions, main reasons for the profits and losses as well as future countermeasures:

The company did not engage in high-risk, high-leverage investments or derivative transactions in 2024 up to the date of the annual report.

The company only provided loans to subsidiaries with over 50% ownership to support their working capital needs in 2024 up to the date of the annual report.

The company provided endorsements and guarantees solely for 100% owned subsidiaries to secure their financing in 2024 up to the date of the annual report.

(III) Future R&D Plans and Estimated R&D Expenses:

The estimated R&D expenditure in 2025 is NT$116 million. We will invest in the development of new products, product nutritional upgrades and increased product functionality, new packaging formats, and innovative technology development.

(IV) Impact of Changes in Major Domestic/Overseas Policies and Regulations on the Company's Finance and Business, and Countermeasures:

As the global food safety regulations are becoming increasingly stringent, governments of various countries continue to promote policy reforms to improve food safety management standards and ensure the rights and interests of consumers. The Company pays close attention to changes in domestic and foreign policies and regulations, and optimizes its internal management mechanism in a timely manner to ensure compliance and steady development of its operations.

The Company upholds the commitment of "quality and safety" and continues to strengthen the management of the supply chain and food safety control, and implements the international standards to ensure that products comply with food safety regulations. We also proactively invest in innovative R&D and process improvement to improve food quality and nutrition value and further enhance market competitiveness.

In the future, the Company will continue to deepen its risk management mechanism, improve its compliance capabilities, ensure that its operations comply with the latest regulatory requirements, and give priority to the health and well-being of consumers in order to fulfill its corporate social responsibility and build a reputable and high-quality food brand.

(V) Impact of Changes in Technology and Industry on Corporate Finance and Business, and Countermeasures:

The Company values the application of new technologies and continues to invest in them. This year, in addition to continuing to optimize the business APP tools, the Company also implemented an auxiliary system for annual forecasting and OEM raw material and supplies integration to assist in real-time trend analysis and response for the business and supply chain. This will improve work efficiency and realize digitization and digital optimization.

For the business APP optimization, the Company optimizes the single page layout of the questionnaire and the display of the customers' profile.

In terms of annual estimation and integration of OEM raw materials and supplies, the Company constructs the business annual estimation and assistance system. The OEM raw materials and supplies management to help the business and production management units improve their work efficiency and control various data and indicators for management.

Regarding information security management, it is advisable to strengthen and improve the weakness management records and configuration management of the ERP system, in order to better meet the management and governance requirements of ISO 27001:2002 standards.

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(VI) Impact of Changes in Corporate Image on Corporate Risk Management, and Countermeasures:

There were no significant adverse events that affected the corporate image in 2024. Standard Foods, as a leading brand in the food industry, builds corporate resilience with rigorous governance and operations. At Standard Foods, we value corporate integrity, while at the same time requiring our employees to have a sense of integrity. In addition to the usual supervision, the Company began to offer a “Corporate Integrity and Sustainability Course” starting in 2022 to help employees have the awareness of legal compliance, establish good corporate governance and risk management mechanism, prevent fraud, and avoid legal liabilities and damage to goodwill arising from unethical behaviors.

(VII) Expected Benefits and Possible Risks Associated with M&A and Countermeasures: N/A.

(VIII) Expected Benefits and Possible Risks Associated with Expanding Factory Building and Countermeasures:

The Company continues to invest in new factories, equipment and in multiple production lines in Taiwan to increase product diversification, increase capacity, and ensure quality assurance.

The Department of Economic Development, Taoyuan, has approved legal land for industrial use for the new factory base of Dayuan Plant, in preparation for setting up an automated production base. The base industrialization infrastructure project is expected to be completed by the end of 2025. The base planning will be divided into phases I and II. Phase I is expected to complete the building and production line installations in 2028, and production will start in the same year. Phase II base will be planned and executed subject to actual needs.

For the Zhongli Plant reorganization project, it is expected to complete the construction of a new building in 2025, with a high-speed and sterile production line, which is scheduled to start operation within the same year.. In Hsinchu Plant, a production base has been obtained in preparation for plant expansion. Jiangsu Hua Sun Health Technology Co., Ltd., the subsidiary in Mainland China, plans to invest in product development, testing, trial production, and mass production of health foods and special nutritional foods in Taicang High Technology Development Zone based on medium- and long-term market and product development strategies. This involves production line modification, equipment procurement, product development, etc. Further, in order to integrate the logistics transportation, the subsidiary, Standard Foods (China) Ltd., plans to build an automated warehouse in the Taicang High Technology Development Zone, and the construction is expected to start in 2025.

(IX) Risks Resulting from Concentrated Purchasing or Sales Operations and Countermeasures:

The proportion of the Company's purchase from individual suppliers in 2024 did not exceed $10\%$ of the total purchase. In addition, the main customer of sales was Company A, accounting for $14.6\%$ of the net sales, while the remaining customers of sales did not exceed $10\%$ . Therefore, there was no significant concentration in either purchases or sales.

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(X) Impact and Risks Resulted from Major Transfer or Replacement of Equities of Directors, Supervisors or Shareholders with More than 10 Percent of the Company's Shares, and Countermeasures:
Directors or major shareholders holding more than 10% of the shares have not been transferred or replaced in large quantities, so there is no significant impact or risk to the Company.

(XI) Impact and Risks Resulted from Changes in Management Right on the Company, and Countermeasures:
There are no changes in the management rights of the Company.

(XII) The Company and its directors, supervisors, general managers, substantive controllers, major shareholders holding more than 10% of the shares, and subordinate companies have been involved in material litigation, non-litigation or administrative litigation that have been concluded with judgment or still in progress. The result may have a significant influence on shareholders' equity or securities prices: None.

(XIII) Other Material Risks and Countermeasures:
(I) Risk management policies:
The Company formulated the "Risk Management Policies and Procedures" in 2023, approved by the Audit Committee and the Board of Directors on August 2, 2023, as the highest guiding principle and management procedure for the Company's risk management, to clearly regulate the Company's risk management policy, purpose, scope, organizational structure, unit responsibility, risk management mechanism and implementation process.
The Company's risk management includes "strategy," "operation," "finance," "environment," and "legislation." Through a comprehensive risk management framework, we identify, evaluate, and manage various types of risks that may affect the achievement of corporate objectives, and integrate risk management into operating activities and daily management processes to achieve corporate objectives, improve management efficacy, and provide and effectively distribute resources. With the participation of the Board of Directors and senior management, we have supported and established a risk management unit to incorporate risk management awareness into daily decision-making and business activities, and to form a comprehensive corporate risk management culture.

(II) The organizational structure of risk management:
The Company's risk management organizational structure consists of a board of directors, an audit committee, a risk management promotion team, and various operating units, which are responsible for the effective implementation of risk management.

(1) Strategy and operational risk, food safety risk, market risk, climate change risk, regulatory risk, supply chain management risk, occupational safety risk: Each business unit is responsible for formulating various strategies and carrying out risk identification, assessment and management procedures based on the duty each is in charge of. At the same time, the Company analyzes and evaluates changes in laws, policies and markets, adopts various countermeasures, and controls and handles possible risks and crises that may occur.

(2) Financial risks such as interest rate, exchange rate, credit, and liquidity: The Finance Division formulates strategies and implements them and analyzes and evaluates these risks in accordance with laws and regulations and market changes in order to take effective countermeasures.

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(3) Information security risks: In order to strengthen information security risk management, the Company has established an information security risk management framework, and formulated information security policies and specific management plans, which are disclosed on the Company's official website. We have also set up an Information Security Promotion Committee with the CEO serving as the convener, and the Information Division is responsible for the implementation and provides regular reports to the Board of Directors on an annual basis.

(4) Risk management promotion team: Compile the risk information provided by each unit, issue risk management reports to the Audit Committee and the Board of Directors on a regular basis and establish a dynamic management and reporting mechanism to supervise the effective implementation of risk management.

VII. Other Important Matters: None.

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153

Chapter 6. Special Disclosure

I. Information on Affiliates

(I) The Consolidated Operating Report:

Please refer to the Market Observation Post System (MOPS) > Individual Company > Electronic File Download > Related Party Transactions Reports Section
(Link to MOPS: https://mopsov.twse.com.tw/mops/web/t57sb01_q10)

(II) Consolidated financial statements of affiliated enterprises:

Please refer to the Market Observation Post System (MOPS) > Individual Company > Electronic File Download > Related Party Transactions Reports Section
(Link to MOPS: https://mopsov.twse.com.tw/mops/web/t57sb01_q10)
Please refer to the Market Observation Post System (MOPS) > Individual Company > Electronic File Download > Financial Reports
(Link to MOPS: https://mops.twse.com.tw/mops/#/web/t57sb01_q1)

(III) Affiliate Reports:

II. Private Placement of Securities during the Most Recent Fiscal Year and the Current Fiscal Year up to the Date of Publication of the Annual Report:

None.

III. Other Necessary Supplements:

(I) Listing method of impairment of assets and liabilities

Allowance for bad debts of accounts receivable

Purpose: In order to assess the risk of collection of accounts and bills, the recovery rate of each age is obtained based on the customer's experience and the sample number, which is used to assess the impairment amount of assets in the current period.

The basis for listing:

(1) Listing of allowance for bad debts:

1.1. Accounts receivable are agreed to be collected within one year, so significant financial components are not included. IFRS 9 simplified method is adopted to recognize impairment based on lifetime expected credit losses.

1.2. The Company's customers are all companies in similar industries, and according to the historical experience of credit losses, there is no significant difference in the loss types of different customer groups. Therefore, the reservation matrix does not further distinguish the customer groups. When the accounts receivable is overdue for more than 180 days, the Company judges that the recovery cannot be reasonably expected (loss rate = 100%).

1.3. The accounting unit calculates the amount of asset impairment based on the above and adjusts the amount of the item "allowance for bad debts."

(2) Charging off allowance for bad debts:

2.1. Identification of bad debt:

A. Part or all of the claims cannot be recovered due to bankruptcy, escape, conciliation or declaration of bankruptcy, or other reasons.

B. Claims that are overdue for two years and principal or interest have not been received after collection.

2.2. Charge off:
A. In case of actual bad debt losses, legal evidence should be attached to strike a balance in accordance with Article 94 of the Code of Auditing Business Income Tax.
B. When charging off bad debts, the allowance for bad debts should be set off in the current year. If there is any shortage, it should be listed as the loss in the current year.

Allowance for reduction of inventory to market

Inventories include raw materials, packaging materials, work in process, finished products, and commodities. The value of inventory shall be determined based on the cost and Net Realizable Value (NRV), whichever is lower. With the exception of inventory of the same category, individual items shall be assessed when comparing the cost and NRV. The NRV is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. The cost of inventory is calculated using the weighted-average method.

(II) Key Performance Indicators of the Company:

Key Performance Indicators of Standard Foods are mainly divided into financial performance indicators and non-financial performance indicators. In addition to regularly examining the financial performance indicators of operating income, debt ratio, operating cycle, return on equity of shareholders and earnings per share, we also set non-financial performance indicators to control Standard Foods' competitive advantage and industry trends at any time.

(III) Licenses Acquired by Personnel Related to Financial Information Transparency:

One Certified Public Accountant (CPA)

IV. Matters that materially affect shareholders' equity or the price of the Company's securities as specified in Subparagraph 2, Paragraph 3, Article 36 of the Securities Exchange Act occurred in the most recent year and up to the date of publication of the annual report: None.

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SFC — Annual Report 2024

51753_rns_2025-07-02_cd2fe487-a0bd-4687-9cf0-1ac08817520b.pdf

Standard Foods Corporation

Annual Report

Standard Foods Corporation

Spokesperson:

Deputy Spokesperson:

Stock Transfer Agency:

Certifying CPA of Latest Financial Statement:

Table of Contents

Chapter 5. Review and Analysis of the Company's Financial Position and Financial Performance, and Listing of Risks... 143

Chapter 6. Special Disclosure... 153

Chapter 1. Letter to Shareholders

I. 2024 Consolidated Business Results

2. Regulatory environment

3. Overall business environment

Chapter 2. Corporate Governance Report

I. Information Regarding Directors, Supervisors, General Managers, Deputy General Managers, Assistant Managers, All Departments and Divisions

1. Directors and supervisors

II. Remuneration Paid to the Directors, Supervisors, General Manager and Deputy General Managers

2. Remuneration of the General Manager and Deputy General Manager

3. Name of manager in charge of distributing employee remuneration and the status of distribution

2. Operations of the Audit Committee

Other matters:

4. Composition, responsibilities, and operations of Remuneration Committee

Other matters:

Climate-related information of TWSE and TPEx Listed Companies:

IV. Information Regarding Audit Fee

V. Information About Replacement of CPA:

Chapter 3. Fund Raising Status

I. Capital and Shares

(II) Major Shareholders

(III) Dividends policy and Implementation Status

(IV) Effect on the Operating Performance and Earnings per Share of Distribution of Stock Dividends Proposed in the Most Recent Shareholders' Meeting: None.

(V) Compensation of Employees, Directors, and Supervisors

Chapter 4. Operational Highlights

I. Business Activities

(I) Business Scope:

(II) Industry Overview:

Adult milk powder

(1) Market share

Special nutritious product

Edible oils

Refrigerated Food (FreshDelight)

Agent product(Candies)

EMS service (subsidiary-Domex Corp.):

(1) Market share

(2) Future market supply & demand status and growth

(II) Usage and Manufacturing Processes for Main Products

4. Protective measures for the work environment and employees' safety:

5. Employee Code of Practice

6. Labor contract

(II) To ensure that all the cooperating (lending) contractors comply with labor laws and regulations, and to protect the rights and interests of workers, the Company implements the following actions:

(III) Loss Resulting from Labor-management Relations in the Most Recent Fiscal Year and the Current Fiscal Year up to the Date of Publication of the Annual Report:

VI. Cybersecurity management

(I) Cybersecurity Risk Management Framework, Cybersecurity Policy, Concrete Management Program, Resource Investment in Cybersecurity Management:

1. Cybersecurity Risk Management Framework

2. Cybersecurity Policy

3. Concrete Management Program

4. Resource Investment in Cybersecurity Management

Chapter 5. Review and Analysis of the Company's Financial Position and Financial Performance, and Listing of Risks

I. Financial Position

II. Financial Performance

(I) Comparative Analysis of Operational Performance

(II) Possible impact on the Company's future financial operations and significant changes: None.

III. Cash Flows

(I) Analysis of cash flow changes in the previous year

(II) Improvement Plan of Liquidity Shortage and Analysis of the Liquidity

(III) Cash Liquidity Analysis for the Following Year

IV. Impact of Major Capital Expenditure on Financial Operation in the Most Recent Year

Chapter 6. Special Disclosure

I. Information on Affiliates

(I) The Consolidated Operating Report:

(II) Consolidated financial statements of affiliated enterprises:

(III) Affiliate Reports:

II. Private Placement of Securities during the Most Recent Fiscal Year and the Current Fiscal Year up to the Date of Publication of the Annual Report:

III. Other Necessary Supplements:

(I) Listing method of impairment of assets and liabilities

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