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

2025 Annual Report

Published April 30, 2026

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: Arthur Tsao
Title: Chief Executive Officer
E-mail: [email protected]
Phone: (02) 2709-2323

Deputy Spokesperson

Name: Lynn Lee
Title: Chief Financial Officer
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 ... 6
2.1 Information Regarding Directors, Supervisors, General Managers, Deputy General Managers, Assistant Managers, All Departments and Divisions ... 6
2.2 Remuneration Paid to the Directors, Supervisors, General Manager and Deputy General Managers ... 17
2.3 Implementation of Corporate Governance ... 21
2.4 Information Regarding Audit Fee ... 99
2.5 Information About Replacement of CPA ... 99
2.6 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 ... 99
2.7 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 ... 99
2.8 Information About the Relationship Among the Company's 10 Largest Shareholders ... 100
2.9 Shareholding Status of the Same Reinvestment Business by the Company, Directors, Supervisors, and Companies Directly or Indirectly Controlled by the Company ... 104

Chapter 3. Fund Raising Status ... 106
3.1 Capital and Shares ... 106
3.2 Corporate Bonds ... 110
3.3 Preferred Shares ... 110
3.4 Issuance of Global Depository Receipts ... 110
3.5 Employee Stock Options ... 110
3.6 Employee Restricted Stock ... 110
3.7 Mergers and Acquisitions, or as Assignee of New Shares Issued by Another Company ... 111
3.8 Implementation of Capital Allocation Plans ... 111

Chapter 4. Operational Highlights ... 112
4.1 Business Activities ... 112
4.2 Overview of Marketing and Production & Sales ... 117
4.3 Information of employees in the Past 2 Years and up to the Report Printing Date ... 127

4.4 Information on Environmental Protection Expenditure ... 127
4.5 Labor Relations ... 129
4.6 Cybersecurity management ... 135
4.7 Major Agreements ... 138

Chapter 5. Review and Analysis of the Company's Financial Position and Financial Performance, and Listing of Risks ... 139

5.1 Financial Position ... 139
5.2 Financial Performance ... 140
5.3 Cash Flows ... 141
5.4 Impact of Major Capital Expenditure on Financial Operation in the Most Recent Year ... 142
5.5 Reinvestment Policies, Main Reasons for Its Profits/Losses, Improvement Plans in the Most Recent Year and Investment Plan for the Following Year ... 143
5.6 Analysis and Evaluation of Risks in the Most Recent Year and Up to the Date of Publication of the Annual Report ... 144
5.7 Other Important Matters ... 149

Chapter 6. Special Disclosure ... 150

6.1 Information on Affiliates ... 150
6.2 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 ... 150
6.3 Other Necessary Supplements ... 150
6.4 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 ... 151

1. Letter to Shareholders

Dear Shareholders, Ladies and Gentlemen,

Looking back at 2025, the global food industry has moved forward steadily despite the challenges of a changing political and economic landscape, fluctuations in exchange rates and raw material prices, and the rapid transformation of the consumer market structure. In light of the challenging environment, Standard Foods Group has been reviewing its business performance with a “pragmatic and steady” approach and continues to optimize its operating structure and resource allocation for sustainable growth based on its long-term vision. Despite the impact of external factors on short-term revenue and profitability performance, we remain committed to our core value of “health and nutrition,” deepening product innovation and focusing on high value-added product categories and key channels. Simultaneously, we strengthen corporate health and improve profit quality through rigorous cost control, operational efficiency improvements, and capital allocation discipline.

Looking to the future, the Group will continue to refine its core competitiveness and actively expand into emerging markets to sustain its growth momentum. Faced with the challenges and opportunities brought about by increasing consumer health awareness and demographic changes, Standard Foods is accelerating its transformation from a traditional “food manufacturer” into a provider of holistic, all-age nutritional health solutions and a builder of health ecosystems, based on data insights and centered on health value. We believe that this strategic transformation will create more resilient and sustainable long-term value for shareholders, society and all stakeholders.

In the Taiwan market, as the population ages and health awareness grows, overall demand continues to increase for comprehensive food and beverages, special nutritional foods, and dietary nutritional supplements that offer convenience, nutrition, and health benefits. Standard Foods will focus on establishing itself as a “health and nutrition expert,” systematically building a product portfolio centered on “all-age nutrition” tailored to different age groups and lifestyles. The Company will continue to drive health upgrades across various product categories, as well as develop high value-added special functional diets and supplements. Moreover, Standard Foods will strengthen product and supply chain competitiveness through collaboration with top international raw material partners, and enhance consumer trust via scientific research and development and clinical validation, in order to consolidate its market leadership position in Taiwan.

In the China market, we have adopted a dual-track strategic layout. Facing the temporary challenges of rising edible crude oil costs, the Standard Foods China Oils Segment has actively balanced cost pressures through product structure optimization, process technology improvement, and channel expense control. Furthermore, the Segment continues to build trust with consumers by offering high-end and diversified oil varieties. In addition, we are actively exploring upstream value chain integration opportunities to ensure a stable raw material supply and have begun to build a “plant-oil circular economy” to establish differentiated technological barriers.

Under China’s “15-5” plan, “nutrition intervention” has been clearly identified as a core preventive health measure, creating strong policy support and market opportunities for specialized medical nutrition products amid rapid growth in ageing and chronic-disease management needs. In September 2025, the company obtained approval for China’s first special medical nutrition product for diabetes and in November issued the country’s first prescription for a diabetes-related special medical food, establishing a significant competitive moat in medical nutrition. By partnering with top-tier (Class III Grade A) hospitals to build a trusted clinical nutrition system, the company is developing full-scenario nutrition solutions that extend from hospitals to communities, deepening its professional positioning in disease management and medical nutrition.

In international markets, the health and wellness industry across Southeast Asia is entering a golden period of development, driven by the rapid expansion of the middle class, favorable demographic trends, and rising health awareness. Policies of many countries are shifting their focus from a

"treatment-oriented" models toward "prevention, nutrition, and health promotion," which aligns closely with Standard Foods' long-held core values. The Company has therefore focused on three key strategic pillars: establishing a trusted consumer ecosystem through strategic investments in international brands and professional research institutions; leveraging data-driven marketing to precisely target and acquire customers; and strengthening value chain integration to build competitive barriers, thereby laying a solid foundation for medium- to long-term growth in regional markets.

As we approach 2026, Standard Foods Group will celebrate its 40th anniversary. The Company continues to position itself as a "every family's nutrition and health partner" by integrating innovative research and development, brand management, and sustainable governance to steadily promote health and nutrition alongside corporate growth. The Group fully integrates environmental, social, and corporate governance factors into its operations and decision-making. By introducing international sustainability standards, we promote responsible sourcing, energy saving, carbon reduction, and friendly workplaces. Furthermore, we have strengthened supply chain resilience and risk management to become one of the benchmarks for sustainability in Taiwan's food industry. To further enhance brand value and consumer trust, the Group has established the "Health and Nutrition Research Center" to integrate cross-disciplinary expertise and link stakeholders from the industry, government, academia, medical research, and social sectors. Efforts are made to promote precision nutrition and build an Asian health ecosystem to deepen health and nutrition education and trust relationships for all-age groups. Amid a rapidly evolving market environment and the "silent consumption" trend arising from the K-shaped economy, Standard Foods will continue to stay attuned to consumer needs and deepen brand trust, creating sustainable value for both shareholders and society through prudent management, while moving together toward a more resilient and prosperous future.

I would like to express my sincere gratitude to all shareholders of Standard Foods Group for their long-term support.

We hereby outline 2025 consolidated operating results and 2026 business plan as follows:

2025 Consolidated Business Results

Consolidated Revenue and Profit
Unit: NT$1,000

Item	2025	%	2024	%	+/- %
Operating Revenue	27,872,203	100	28,973,692	100	-3.8
Operating Costs	21,012,996	75	21,815,207	75	-3.7
Gross Profit	6,859,207	25	7,158,485	25	-4.2
Operating Income	1,315,245	5	1,910,589	7	-31.2
Profit before Income Tax	1,592,348	5	2,291,608	8	-30.5
Net Profit	1,233,136	4	1,802,906	6	-31.6
Total Comprehensive Income	1,440,850	5	2,239,169	8	-35.7

In 2025, Standard Food Group reported consolidated revenue of NT$27.872 billion, marking a 3.8% decrease from the prior year—a decline of NT$1.101 billion. The standalone revenue came in at NT$12.188 billion, down 1.6% year-over-year, declining NT$196 million. Total comprehensive income came in at NT$1.44 billion, marking a 35.7% decrease from the prior year, —a decline of NT$798 million. Of this, comprehensive income attributable to the company's owners totaled NT$1.417 billion, representing a 34.6% decline and a decrease of NT$751 million compared to the prior year.

The profit decline this year was mainly attributable to a more conservative consumer environment in China and rising crude sunflower oil costs. The management team has initiated structural optimization measures to mitigate the impact on profits through product mix adjustments, improved process efficiency and stringent expense control. These efforts will also lay the foundation for profit recovery and long-term competitiveness in 2026.

Research and Development

“Protecting every family's nutrition and health” has always been at the core of product R&D of Standard Foods. The Standard Foods R&D team is built on the belief that “great nutrition is rooted in science and grows through innovation.” integrating cross-disciplinary professional teams and striving to provide families with nutritionally balanced, healthy, and convenient diverse options. In 2025, the Company invested NT$189 million in R&D expenditure to continue strengthening R&D capabilities, promoting product innovation, and optimizing the processes and formulations of existing products to solidify long-term competitiveness.

In terms of R&D achievements, we have continued to receive recognition from domestic and foreign authoritative institutions, accumulating 103+ patented technologies, 44 health food approval labels, and 47+ certifications for foods for special medical purposes, demonstrating the Company’s professional strength in the field of health nutrition and functional foods. We have led the industry in the development of elder-friendly and soft-textured care foods in response to the trend of an aging society, and have obtained 10 product certification labels, demonstrating our commitment to providing seniors with delicious, safe, and nutritious dietary choices. At the same time, the Company is systematically building a differentiated R&D approach centered on “starting with health needs – enhancing balanced nutrition – precise product matching,” to strengthen integration capabilities from market insights to product launch. By doing this, we ensure that the product strategy for each market precisely responds to the specific health needs of local consumer groups.

2026 Business Plan and Future Development Strategies

Business Directions

(1) At the same time, we are committed to enhancing corporate brand value and promoting sustainable operations by responding to the trends of declining birthrates and an aging society, while accurately understanding consumer nutritional needs. We will focus on developing diverse nutritional foods and health supplements with scientific validation through innovative technology, while enhancing brand value through product differentiation. In the face of raw material price fluctuations, changes in channel gross profit structure, and increasing market competition, we will adhere to the Group’s core operating principles – stable growth, profitability priority, and optimized structure. On the premise of ensuring financial stability and good corporate governance, we promote environmental friendliness alongside health and nutrition to enhance long-term competitiveness and corporate resilience, and create sustainable corporate value.

(2) We will strive to strengthen the resilience and transparency of value chain management, enhance overall risk adaptation capabilities, and solidify consumer trust through rigorous quality and cost control, as well as improved supply chain flexibility. Simultaneously, we will focus on high value-added products and key channels to optimize the profit structure, prudently promote capital investment and supply chain integration, and gradually expand into overseas markets and emerging businesses with growth potential. In doing so, we aim to elevate our overall operational resilience and long-term competitiveness.

(3) At Standard Foods Group, we systematically promote the talent development program, aligning it with corporate development needs. By leveraging cross-disciplinary training, digital technology applications, and cultural heritage, we will build diverse learning and development mechanisms to improve organizational agility and response capability. This will ensure stable operations in a changing environment, continuously strengthen innovation momentum, and collaboratively create a more competitive future.

Expected sales volume and important production and sales policies

The estimated consolidated sales volume in 2026 is projected at 400,896 metric tons. Based on this forecast, the company’s forthcoming production and sales policies will focus on the following strategic priorities:

(1) Production

A. In line with the Group’s development plan, we continue to promote R&D innovation, capital investment, production scheduling optimization, and process technology improvement to enhance manufacturing flexibility and operational efficiency. Simultaneously, we ensure consistent product quality and effectively respond to market and customer needs to support revenue growth and profit expansion. We strengthen value chain management by carefully selecting a diverse supplier base and deepening strategic collaboration with key suppliers and customers. This approach helps build a transparent and resilient supply system, mitigating the risks of raw material price volatility and supply disruptions, enhancing overall supply chain efficiency, and stabilizing gross margins and operating performance.

B. 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

A. 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.

B. Standard Foods China Oils Segment has continued to adapt to changes in channel structure, expand its sales outlets, and acquire new customers. By offering a diversified product portfolio of oil varieties, the segment provides comprehensive, healthy dietary solutions, optimizing its product structure to enhance overall profitability.

C. Through digital transformation and strategic partnerships, the company is gaining precise insights into market dynamics and consumer behavior. We integrate online-offline omnichannel marketing strategies, amplify brand synergy with major channel partners, increase product visibility, market penetration rate, and market share, drive revenue growth, and consolidate market leadership position.

D. Leverage the official website, Health GO sales platform, social media engagement, and diverse partnership channels to strengthen direct communication with consumers. Real-time product information and health solutions will be provided to create a convenient and personalized one-stop shopping and service experience, while continuing to accumulate data insights, enhancing brand influence and customer loyalty.

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

External competitive environment

The international supply chain is accelerating its restructuring due to geopolitical changes, trade policy adjustments, and the supply chain regionalization trend. Intensifying fluctuations in raw material prices and logistics costs, coupled with increasing market competition intensity, are catalyzing structural risks in the food industry. As international brands, emerging brands, and private label brands continue to enter the market, price competition is intensifying and the threshold for product differentiation is rising. In addition to continuing to implement high-standard production and strict quality control, Standard Foods has also proactively adjusted its product portfolio and increased the proportion of high value-added products sales to reduce the impact of simple price competition on the overall profit structure. The management team monitors core

indicators – gross profit margin, operating net profit margin, market share, and changes in the product portfolio – to dynamically assess the potential impact of competitive risks on medium-to-long-term profitability, ensuring stable and sustainable operating performance.

Regulatory environment

As regulatory requirements for food safety, product labeling, supply chain transparency, and environmental sustainability continue to rise, ESG has evolved from a compliance issue to a key factor influencing corporate cost of capital and market valuation. As a “every family's nutrition and health partner,” Standard Foods Group adheres to government food safety regulations and employs high-standard quality control to fully deliver on its commitment to consumer food safety. Climate- and sustainability-related risks are gradually being incorporated into operational decisions and investment evaluation processes. Energy saving and carbon reduction, eco-friendly packaging materials, and supply chain traceability management are continuously promoted to strengthen operational resilience and risk management capabilities. The relevant measures may increase some compliance and operating costs in the short term. However, in the mid- and long-term, they will help to reduce regulatory and operational disruption risks, enhance brand trust and pricing power, stabilize cash flow and profit structure, and ultimately have a positive impact on overall corporate value and long-term shareholder returns.

Overall business environment

The global economy is expected to maintain moderate growth in 2026. Nevertheless, geopolitical factors, trade policy adjustments, monetary policy directions, and climate change continue to create uncertainty, leading to divergent performance across regions and industries. Market sensitivity to prices, values, and brand trust remains high. In response to changes in the external operating environment, the Group adheres to the core philosophy of sustainable operations. While ensuring financial stability and corporate governance, we continue to strengthen cost and capital allocation discipline, promote product portfolio diversification, and actively expand international markets. At the same time, we enhance operational and value chain resilience through digital technology empowerment to reduce the impact of raw material price fluctuations and economic cycles on our operations. These approaches will ensure stable operations and create sustainable long-term returns for shareholders, while collaboratively building a healthier and more sustainable future.

Health and nutrition remain at the heart of Standard Foods as we continue to support everyone to be a Sustainability Creator.

“A Lifetime of Well-being!”

2. Corporate Governance Report

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

2.1.1 Directors Information

I. Directors Information
April 19, 2026

Title	Nationality	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	Notes
Shares	Holding ratio%	Shares	Holding ratio%	Shares	Holding ratio%	Shares	Holding ratio%	Shares	Holding ratio%	Title	Name	Nature of Relationships
Directors	R.O.C.	Mu Te Investment Co., Ltd. Representative: Ter-Fung Tsao	Male Over 71	2025.06.19	3	1986.06.06	22,650,057	2.48	22,650,057	2.48	40,848,203	4.46	0	0	22,688,211
Directors	R.O.C.	Mu Te Investment Co., Ltd. Representative: Jason Hsuan	Male Over 71	2025.06.19	3	2016.06.15	0	0	0	0	0	0	0	Ph.D. in Systems Engineering, College of Science and Engineering, 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, Symtex Technology International Corporation

Title	Nationality	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			Notes
							Shares	Holding ratio%	Shares	Holding ratio%	Shares	Holding ratio%	Shares	Holding ratio%	Shares	Holding ratio%			Title	Name	Nature of Relationships
Directors	R.O.C.	Mu Te Investment Co., Ltd. Representative Wendy Tsao	Female Over 71	2025.06.19	3	2016.06.15					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.	Senior	Ter-Fung Tsao	Sibling	None
Directors	R.O.C.	Chang Hui Ltd. Representative Arthur Tsao	Male 41-50	2025.06.19	3	2016.06.15	6,669,471	0.73	6,669,471	0.73	0	0	0	0	0	0	Master of Business Administration (MBA), Stanford University	Director, Standard Foods Corporation CEO, 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	Senior	Ter-Fung Tsao	Father	None
Independent Director	R.O.C.	Ben Chang	Male 71-80	2025.06.19	3	2016.06.15	0	0.00	0	0.00	0	0	0	0	0	0	Master of Science in Statistics, National Chengchi University	Independent Director, Standard Foods Corporation	Senior	None	None	None
Independent Director	R.O.C.	George Chou	Male 71-80	2025.06.19	3	2016.06.15	0	0.00	0	0.00	0	0	0	0	0	0	Master of Science in Mathematics, Colorado State University	Independent Director, Yulong Motor Co., Ltd. Independent Director, Yulong Finance Corporation Independent Director, G.M.I Technology Inc. Representative of the Corporate Director, Information Technology Total Services	Senior	None	None	None
Independent Director	R.O.C.	David Wang	Male 71-80	2025.06.19	3	2022.06.16	0	0.00	0	0.00	0	0	0	0	0	0	Master of Science in Computer Science, 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	Senior	None	None	None
Independent Director	R.O.C.	Susan Lin	Female 51-60	2025.06.19	3	2025.06.19	0	0.00	0	0.00	0	0	0	0	0	0	Master of Science in Electrical Engineering, Columbia University	Independent Director, Standard Foods Corporation Partner at EverYi Capital Independent Director, Alexander Marine Co., Ltd.	Senior	None	None	None

II. Major shareholders of institutional shareholders

April 19, 2026

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

III. Major Shareholders of Institutional Shareholders with Corporations as Their Major Shareholders:

April 19, 2026

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	1.93
	Nan Shan Life Insurance Company, Ltd.	1.90
	JPMorgan Chase Bank N.A., Taipei Branch in custody for Vanguard Emerging Markets Stock Index Fund, a Series of Vanguard International Equity Index Funds	0.74
	Charng Hui Ltd.	0.73
	Vanguard Total International Stock Index Fund, A Series of Vanguard Star Funds	0.51

IV. Disclosure of Professional Qualifications of Directors and Independence of Independent Directors

Qualification Name	Professional Qualifications and Work Experience	Independence Criteria	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 |

Name	Professional Qualifications and Work Experience	Independence Criteria	Number of Other Public Companies where the Individual Concurrently Serves as an Independent Director
Mu Te Investment Co., Ltd. Representative: Jason Hsuan	Professional Qualifications
Working experience in financial accounting, investment, asset management, industry knowledge and risk management.

Work Experience
Non-Executive Director, Nanjing Panda Electronics Co., Ltd.
Independent Director, Array Inc.
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
Director, Standard Foods 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 |

Name\Qualification	Professional Qualifications and Work Experience	Independence Criteria	Number of Other Public Companies where the Individual Concurrently Serves as an Independent Director
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 | 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 | 0 |

Name\Qualification	Professional Qualifications and Work Experience	Independence Criteria	Number of Other Public Companies where the Individual Concurrently Serves as an Independent Director
	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.	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.
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. Representative of the Corporate Director, Information Technology Total		1

Name\Qualification	Professional Qualifications and Work Experience	Independence Criteria	Number of Other Public Companies where the Individual Concurrently Serves as an Independent Director
	Services
Independent Director, Standard Foods Corporation
Remarks
Not under any of the categories stated in Article 30 of the Company Act.
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 |
| Susan Lin | Professional Qualifications
Working experience in financial accounting, investment, asset management, industry knowledge and risk management.

Work Experience
Oversaw AEA’s private equity investment fund operations in Asia
CEO, Morgan Stanley Taiwan
Managing Director, Goldman Sachs (Asia)
Partner at EverYi Capital | | 1 |

Name\Qualification	Professional Qualifications and Work Experience	Independence Criteria	Number of Other Public Companies where the Individual Concurrently Serves as an Independent Director
	Independent Director, Alexander Marine Co., Ltd.
Independent Director, Standard Foods Corporation

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

V. Board Diversity and Independence

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:

(1) Basic requirements and values: gender, age, nationality, and culture.
(2) 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 are two female directors among eight directors, representing 25% of the total number of 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 :

(1) In 2025, the Company added one female director to the Board.
(2) The Company will continue to actively seek and cultivate female candidates with professional qualifications and diverse backgrounds to serve on the Board.

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 page 9 of this Annual Report.

For information on each director's education, gender, and work experience, please refer to page 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:

(1) Including but not limited to whether they, their spouses, second-degree relatives serve as a director, supervisor or employer in the Company or affiliates.
(2) The proportion of shares held by the independent director himself/herself, their spouses or second-degree relatives (or in the name of others).
(3) 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).
(4) 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.

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

April 19, 2026

Title	Nationality	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			Remarks
					Shares	%	Shares	%	Shares	%			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	Note 1
General Manager				2020.04.01 2025.07.21
General Manager	R.O.C.	Anson Chiu	Male	2025.07.21	-	-	-	-	-	-	Ph.D. in Agricultural Chemistry, National Taiwan University MBA, Binghamton University, State University of New York President, Eurofins Taiwan General Manager, Taiwan Food Division, Wei Chuan Foods Corporation CEO, HAOSHI Foundation and Fullfoods Foundation	None	None	None	None	Note 1
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

Note 1: On July 21, 2025, Anson Chiu was appointed as General Manager.

2.1.3 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 more than half of the directors do not concurrently serve as employees or managerial officers.

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

2.2.1 Remuneration of general directors and independent directors

Unit: NT$1,000

Title	Name	Remuneration Paid to Directors	Ratio of total amount of A, B, C and D to after-tax net income (%) (Note 1)	Relevant Remuneration Received by Directors who Are Also Employees	Ratio of total amount of A, B, C, D, E, F and G to after-tax net income (%) (Note 1)	Remuneration received from investee enterprises other than subsidiaries or from the parent company
Remuneration (A)	Severance Pay and Pension(B)	Remuneration of directors(C)	Business Execution Expenses (D)	Salary, bonus and special expenses etc.(E)	Severance Pay and Pension(F)	Compensation of employees(G)
Amount	All Companies in Consolidated Financial Statements	Amount	All Companies in Consolidated Financial Statements	Amount	All Companies in Consolidated Financial Statements	Amount
Cash	Stock	Cash	Stock
Chairman	Representative of Mu Te Investment Co., Ltd.: Ter-FungTsao (Note3)	-	-	-	-	-
Directors	Representative of Mu Te Investment Co., Ltd.: Jason Hsuan	-	-	-	1,338	1,338
Directors	Representative of Mu Te Investment Co., Ltd.: Wendy Tsao	-	-	-	1,338	1,338
Directors	Representative of Charg Hui Ltd. Arthur Tsao (Note3)	-	-	-	-	-
Independent Director	Ben Chang	-	-	-	1,338	1,338
Independent Director	George Chou	-	-	-	1,338	1,338
Independent Director	Daniel Chiang (Note2)	-	-	-	616	616
Independent Director	David Wang	-	-	-	1,338	1,338
Independent Director	Susan Lin (Note2)	-	-	-	725	725

Note 1: Refers to the after-tax net income in 2025 individual financial statement.
Note 2: On June 19, 2025, Daniel Chiang resigned as director, and Susan Lin was appointed as director.
Note 3: The Chairman of Ter-Fung Tsao and the Director of Arthur Tsao voluntarily waived their entitlement to the 2025 director compensation, with no consideration or conditions attached.

2.2.2 Remuneration of the General Manager and Deputy General Manager

Dec. 31, 2025; 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	4,929	6,212	156	156	547	547	0	0	0	0	5,632 0.47	6,915 0.57	None
General Manager	Anson Chiu (Note 3)

Note 1: Refers to the after-tax net income in 2025 individual financial statement.
Note 2: Refers to the provision particularly made for pension fund paid to the appointed manager.
Note 3: On July 21, 2025, Anson Chiu was appointed as General Manager.

The general manager and vice president's compensation brackets table

Range of Compensation	Name of General Manager and Vice Presidents
	The Company	All consolidated entities
Under NT$1,000,000
NT$1,000,000 ~ NT$2,000,000	Anson Chiu	Anson Chiu
NT$2,000,000 ~ NT$3,500,000
NT$3,500,000 ~ NT$5,000,000	Arthur Tsao
NT$5,000,000 ~ NT$10,000,000		Arthur Tsao
NT$10,000,000 ~ NT$15,000,000
NT$15,000,000 ~ NT$30,000,000
NT$30,000,000 ~ NT$50,000,000
NT$50,000,000 ~ NT$100,000,000
Over NT$100,000,000
Total	2	2

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

Dec. 31, 2025; 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%
General Manager	Anson Chiu (Note 2)
Financial Officer	Lynn Lee
Accounting Manager	Thomas Huang

Note 1: Refers to the after-tax net income in 2025 individual financial statement.
Note 2: On July 21, 2025, Anson Chiu was appointed as General Manager.

I. 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.

2.2.4 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:

I. Analysis of the remunerations paid within the most recent two years
Unit: NT$1,000

Title	2024				2025
	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	12,033	12,033	0.69	0.69	8,516	8,516	0.70	0.70
CEO & General Manager	5,811	5,811	0.34	0.34	5,632	6,915	0.47	0.57
Total	17,844	17,844	1.03	1.03	14,148	15,431	1.17	1.28

(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 ratio of the total remuneration paid in 2025 to the Company's Directors, Supervisors, and General Manager by the Company and all entities

included in the consolidated financial statements to the net income after tax increased compared with 2024, primarily due to the appointment of a new General Manager, Anson, on July 21, 2025.

(2) Please refer to Item 3.1.5 on page 98 of this Annual Report for the payment policy of remunerations to employees and directors.

II. 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.

2.3 Implementation of Corporate Governance

2.3.1 Information on operations of the Board of Directors

In 2025 and up to the publication date of the annual report, 7 Board meetings were held. (A) The attendance of directors is as follows:

Title	Name	Attendance in person (B)	Attendance by Proxy	Attendance rate in person (%) (B/A)	Remarks
Chairman	Mu Te Investment Co., Ltd. Representative: Ter-Fung Tsao	7	-	100%
Directors	Mu Te Investment Co., Ltd. Representative: Jason Hsuan	7	-	100%
Directors	Mu Te Investment Co., Ltd. Representative: Wendy Tsao	6	1	86%
Directors	Charng Hui Ltd. Representative: Arthur Tsao	7	-	100%
Independent Director	Ben Chang	6	1	86%
Independent Director	George Chou	7	-	100%
Independent Director	Daniel Chiang	0	2	0%	Note 1
Independent Director	David Wang	7	-	100%
Independent Director	Susan Lin	5	-	100%	Note 1

Note 1: On June 19, 2025, following the Board of Directors election, Daniel Chiang resigned as a director, and Susan Lin was appointed as a director.

Other matters:

I. 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: The Company has established an Audit Committee; therefore, Article 14-3 of the Securities and Exchange Act does not apply under Article 14-5 thereof.
Other issues opposed by independent directors or about which said directors have reservations should be recorded in writing in the meeting minutes of the Board: None.

II. Regarding 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 followed the Company's Rules of Procedure for Board of Directors Meeting.

III. The exchange-listed and OTC-listed companies should disclose 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, 2025 - December 31, 2025
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. 12, 2026, 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 4.88 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	4.92
Internal relationship and communication	3	4.88
Director's professionalism and continuing knowledge development	3	5.00
Internal controls	3	5.00
Total	23	4.97

(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 4.73 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	4.85
Enhancement of the quality of the board’s decision- making	12	4.97
Makeup and structure of the board	7	4.73
Election of board members and continuing knowledge development	7	5.00
Internal controls	7	4.96
Total	45	4.90

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

A. "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

B. "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

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

The indicators for the evaluation of the Nomination 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 Nomination Committee is excellent.

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

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

The indicators for the evaluation of the Sustainability Committee include four major aspects, totaling 17 indicators. The average score for each aspect was 5.00 (out of 5), showing that the operations of the Sustainability Committee is excellent.

Evaluation Aspects	Question	AVG
Involvement in the Company’s operations	4	5.00
Awareness of Sustainability Committee duties	3	5.00
Enhancement of the quality of the Sustainability Committee’s decision-making	7	5.00
Composition and Member Selection of the Sustainability Committee	3	5.00
Total	17	5.00

IV. 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:

In order to strengthen corporate governance and enhance the functions of the Board of Directors, the Company has established various functional committees and discloses their composition and operations.

(1) Audit Committee (Please refer to page 25 of the Annual Report, “2.3.2 Operations of the Audit Committee.”)
(2) Remuneration Committee (Please refer to page 45 of the Annual Report, “I. Composition, Duties, and Operations of the Remuneration Committee”)
(3) Nomination Committee (Please refer to page 47 of the Annual Report, “II. Composition, Duties, and Operations of the Nomination Committee”)
(4) Sustainability Committee (Please refer to page 49 of the Annual Report, “III. Composition, Duties, and Operations of the Sustainability Development Committee”)

The Company arranges continuing education programs for directors on a regular basis each year to assist them in keeping abreast of the latest professional knowledge and regulatory developments. For details of directors' continuing education in 2025, please refer to "Note 3: Summary of Directors' Continuing Education in 2025" on page 43 of the Annual Report.
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.

2.3.2 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.

I. The matters reviewed mainly include:

Adoption or amendment of an internal control system pursuant to Article 14-1.
Assessment of the effectiveness of the internal control system.
Adoption or amendment, pursuant to Article 36-1, of handling procedures for financial or operational actions of material significance, such as acquisition or disposal of assets, derivatives trading, extension of monetary loans to others, or endorsements or guarantees for others.
A matter bearing on the personal interest of a director.
A material asset or derivatives transaction.
A material monetary loan, endorsement, or provision of guarantee.
The offering, issuance, or private placement of any equity-type securities.
The hiring or dismissal of an attesting CPA, or the compensation given thereto.
The appointment or discharge of a financial, accounting, or internal auditing officer.
Annual financial reports and second quarter financial reports that must be audited and attested by a CPA, which are signed or sealed by the chairperson, managerial officer, and accounting officer.
Reviewing various risk management policies.
Reviewing the adequacy of the risk management framework.
Review the early warning and response measures for major risk management issues and supervise improvement mechanisms.

Regularly report to the board on the status of risk management implementation.
Any other material matter so required by the company or the Competent Authority.

II. In 2025 and up to the publication date of the annual report, 9 Audit Committee meetings were held (A), the attendance of independent directors is summarized as follows:

Title	Name	Attendance in Person (B)	Attendance by Proxy	Attendance rate in Person (%) (B/A)	Remarks
Independent Director	Ben Chang	8	1	89%
Independent Director	George Chou	9	-	100%
Independent Director	Daniel Chiang	0	2	0%	Note 1
Independent Director	David Wang	9	-	100%
Independent Director	Susan Lin	7	-	100%	Note 1

Note 1: On June 19, 2025, following the Board of Directors election, Daniel Chiang resigned as a director, and Susan Lin was appointed as a director.

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 2025 and up to the publication date of the Annual Report, the resolutions are set out in the following table. The Audit Committee passed the matters listed in Article 14-5 of the Securities and Exchange rate.

Meeting Date	Discussed topic	Resolutions & Company Responses to the Audit Committee
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.	Approved by all attending Committee members and approved by the Board of Directors.
May. 13, 2025
the 15th meeting of the	(1) Approved the motion for the consolidated financial statements for Q1 2025.
(2) Approved the reinvestment through the Company’s	Approved by all attending Committee members and approved

Meeting Date	Discussed topic	Resolutions & Company Responses to the Audit Committee
3rd Audit Committee	Singapore subsidiary, Newtrin Holding PTE. LTD, to establish a subsidiary in Thailand.
(3) Approved the capital increase of the Company’s Singapore subsidiary, Newtrin Holding PTE. LTD.
(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.	by the Board of Directors.
Jun. 19, 2025 the Nomination Meeting of the 4th Audit Committee	Proposal for the Election of the Convener and Chairperson of the 4th Audit Committee.	With the unanimous approval of all attending members, Committee Ben Chang was elected as the Convener and Chairperson of the 4th Audit Committee.
Jun. 19, 2025 the 1st Meeting of the 4th Audit Committee	Approved the motion to lend funds to subsidiary Dermalab S.A.	Approved by all attending Committee members and approved by the Board of Directors.
Aug. 07, 2025 the 2nd Meeting of the 4th Audit Committee	(1) Approved the motion for the consolidated financial statements for Q2 2025.
(2) Approval of the Land Acquisition for the Construction Project of the Dayuan Plant No. 2
(3) Approval of the Appointment of Chief Internal Auditor.
(4) Approved the renewal of credit facilities and derivatives limits with financial institutions.	Approved by all attending Committee members and approved by the Board of Directors.
Sep. 24, 2025 the 3rd Meeting of the 4th Audit Committee	(1) Approved the strategic investment proposal by the Singapore subsidiary, SF NUTRA PTE. LTD. (SFN), in Hello Health Group, the largest health content and data platform in Southeast Asia.
(2) Approved the capital injection into the Singapore subsidiary, SF NUTRA PTE. LTD. (SFN).	Approved by all attending Committee members and approved by the Board of Directors.
Nov. 12, 2025 the 4th Meeting of the 4th Audit Committee	(1) Approved the motion for the consolidated financial statements for Q3 2025.
(2) Approved the motion of the remuneration of the Company’s CPAs for 2025.
(3) Approved the motion for the Company’s 2026 audit plan.
(4) Approved the amendments to the provisions related to the “Accounting Professional Judgment Procedures, Changes in Accounting Policies and Estimates” under the Company’s internal control system items.
(5) Approved the amendments to the provisions related to the “Payroll Process” under the Company’s internal control system items.
(6) Approved the land sale proposal of Shanghai Standard Foods Co., Ltd.’s Inner Mongolia Branch.
(7) Approved the capital injection into the subsidiary Newtrin Holding PTE. LTD.	Approved by all attending Committee members and approved by the Board of Directors.

Meeting Date	Discussed topic	Resolutions & Company Responses to the Audit Committee
	(8) Approved the loan to the subsidiary Dermalab S.A.
(9) Approved the loan to the subsidiary Charng Hui Company Limited.
Jan. 15, 2026
the 5th meeting of the 4th Audit Committee	(1) Approved the capital injection into the subsidiary Newtrin Holding PTE. LTD.
(2) Approved the capital injection by the Singapore subsidiary Newtrin Holding PTE. LTD. into the Vietnam subsidiary Newtrin Healthcare Foods Vietnam Co., Ltd.
(3) Approved the Phase I civil engineering planning and budget for the land development plan of the new plant area of the Company’s Dayuan Plant (Adjacent Farmland Development Project).	Approved by all attending Committee members and approved by the Board of Directors.
Mar. 12, 2026
the 6th meeting of the 4th Audit Committee	(1) Approved the motion for the 2025 financial report and consolidated financial report.
(2) Approved the motion for the 2025 earnings distribution.
(3) Approved the Company’s 2025 Business Report.
(4) Approved the motion for the 2026 business plan and budget.
(5) Approved the motion for the 2025 statement of internal control.
(6) Approved the evaluation of the independence and suitability of the external auditors with reference to the AQI.
(7) Approved the application for new and renewed credit facilities with financial institutions.	Approved by all attending Committee members and approved by the Board of Directors.

(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

A. 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.

B. Communication status: The Company’s independent directors maintain good communication over the auditing operations.

C. Main communication matters in 2025:

Date	Communication matter	Communication result
Dec. 16, 2025
Meeting for annual business implementation report for internal audit	• Implementation report for internal audit for November to December 2025
• Audit Operations report of 2025
• Description of 2026 audit plan	No objection

(2) Communication between the independent director and the CPA

A. Communication principle: The CPA convenes an independent meeting with independent directors at least twice 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.

B. Communication status: The Company's independent directors maintain sound communication with CPAs.

C. Main communication matters in 2025:

Date	Communication matter	Communication result
Mar. 11, 2025 Meeting for annual audit results	• Summary of Audit Results and Conclusions for the Consolidated and Individual Financial Statements for the 2024 • Key Audit Matters	No objection
Dec. 16, 2025 Meeting for annual audit plan	• Scope and methodology of audit for the Consolidated and Individual Financial Statements for the 2025 • Significant risks and key audit matters • Internal control findings identified during the audit: None. • Regulations on International Code of Ethics for Professional Accountants • Audit Quality Indicators (AQI) Report • IFRS Sustainability Disclosure Standards (S1/S2) • Introduction to Forthcoming Applicable Standards and Regulations	No objection

(3) Supervisors' Participation in Board Meetings

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

2.3.3 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
1. Does the company establish an internal operating procedure to deal with shareholders' suggestions, doubts, disputes and litigations, and implement based on the procedure?	V		1. The Company has formulated internal working procedures in accordance with "Corporate Governance Best Practice Principles"; has established relevant departments (e.g. Spokesperson, Deputy Spokesperson, Stock Affairs Department and Legal Department) to handle shareholders' suggestions or disputes.5
2. Does the company possess the list of its major shareholders as well as the ultimate owners of those shares?	V		2. 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 of 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.	None
3. Does the company establish and execute the risk management and firewall system within its conglomerate structure?	V		3. 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 "Procedures for Liability of Funds to Other Parties".

Evaluation item	Implementation status
	Yes	No	Description
4. Does the company establish internal rules against insiders trading with undisclosed information?	V		and Guarantees”, “Rules Governing Financial and Business Matters Between this Corporation and its Affiliated Enterprises”and other related measures have been established in accordance with regulations, to implement risk control mechanism and firewall management for affiliates.
4. The company has adopted "Management Regulations for Prevention of Insider Trading" against insiders trading with undisclosed information.
III. Composition and responsibilities of the Board of Directors
1. Has the board of directors formulated a diversity policy, specific management objectives and are they implemented?	V		1. 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	None

Evaluation item	Implementation status
	Yes	No	Description
			below:
A. Capability to make sound business judgments
B. Accounting and financial analysis capabilities
C. Business management ability.
D. Crisis management capability
E. Industrial Knowledge
F. Global market viewpoint
G. Leadership skills
H. Capability to make decisions
(3) Implementation of the diversity of the Board members
A. 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 are two female directors among eight directors, representing 25% of the total number of directors.
B. 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 page 6 of this Annual Report for details of professional background.

Evaluation item	Implementation status			Deviations from the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies" and reasons thereof
	Yes	No	Description
2. Does the company voluntarily establish other functional committees in addition to the Remuneration Committee and the Audit Committee?

Does the company establish a standard to measure the performance of the Board, and implement it annually? | V | V | ● The overall professional background and capabilities of the Board members are detailed in 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.

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, consisting of three members, including one director. On June 19, 2025, the Board of Directors resolved to establish a Nomination Committee, composed of three independent directors.
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 2025 have been reported to the Board of Directors on March 12, 2026. Please refer to page 22 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. | |

Evaluation item	Implementation status	Deviations from the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies" and reasons thereof
Yes	No	Description
4. Does the company regularly evaluate the independence of CPAs?	V
4.	The Company regularly evaluates the independence of the certified public accountants. Deloitte Taiwan issued the Audit Quality Indicators (AQIs) report as a reference for the Company to evaluate the independence and appropriateness of the hired CPAs. After assessment, both Han-Ni Fang and Zhao-Yu Chen, CPAs of Deloitte Taiwan, met the Company's independence evaluation standards (see the table below) and they are both qualified to act as the Company's certified public accountants. The CPA firm has also issued a letter of declaration certifying no violation of independence. The evaluation results have been submitted to the Audit Committee and the Board of Directors for review and approval on March 11, 2025. Evaluation standards for the independence of CPAs:
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

Evaluation item	Implementation status
	Yes	No	Description
			with the company or its directors?
			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
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 corporate governance practices (including but not limited to providing	V		1. 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.			None

Evaluation item	Implementation status
	Yes	No	Description
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)?			(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.

Business execution in 2025 is as follows:
(1) Assisting in handling the procedures of Board and shareholders' meetings and ensuring compliance of resolutions with applicable laws and regulations.
(2) Assist Independent Directors and general Directors in performing their duties by providing the necessary information.
(3) Assisting in arranging training programs for directors.
(4) Assist in initiating the sustainable corporate development objectives.
(5) Preparing Board meeting agendas and notices, convening meetings and providing meeting materials; giving advance reminders when agenda items require recusal, and completing the Board meeting minutes within twenty days after the 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.
Training of the Corporate Governance Officer: The Corporate Governance Officer completed the statutory training hours required for 2025. Please refer to Note 2: Summary of the 2025 Training of the Corporate Governance Officer. | |

Evaluation item	Implementation status			Deviations from the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies" and reasons thereof
	Yes	No	Description
			Corporate Governance Officer.
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 appropriately by the company?	V		1. The Company has established a spokesperson system and makes proper use of the Market Observation Post System to ensure that shareholders and stakeholders have adequate access to information regarding the Company’s financial and business status, as well as its corporate governance practices.
2. 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
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
1. Does the company establish a website to disclose information on financial operations and corporate governance?
2. 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)?	V		1. The Company establishes a website (https://www.sfworldwide.com/directors) and discloses relevant financial business and corporate governance information on “Investors.”
2. The Company also establishes an
(1) English website (https://www.sfworldwide.com/en )
(2) A designated person is responsible for collecting and disclosing the Company’s information to ensure that the information is accurate and timely.
(3) Spokesperson and deputy spokesperson
(4) Information regarding the road show has been disclosed on a “Investors.”	None

Evaluation item	Implementation status
	Yes	No	Description
3. 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		3. The financial statements for the fiscal year 2025 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.
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 directors and supervisors)?	V		1. 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.
(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 occupational safety and health and has established a comprehensive suggestion system within its facilities to encourage employees to provide ideas for continuous	None

Evaluation item	Implementation status
	Yes	No	Description
			improvement and innovation. Moreover, the corporate culture emphasizes the steady and practical team spirit and encourages the employees to face challenges with mutual respect and support.
2. 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, The Company has also established a spokesperson system, investor contact channels, and shareholder services contact information to maintain a favorable and harmonious relationship between enterprise and shareholder.
3. Supplier relations: To ensure the Company’s sustainable development and long-term success, we firmly believe that a sound and stable supply chain system is critical. We regard our suppliers as important strategic partners and continue to uphold the principle of integrity in all our dealings with them, maintaining open and effective communication channels.
(1) The Company has adopted the “Supplier Management Policies.” We systematically collect suppliers’ sustainability practices across all areas and proactively invite suppliers to join us to continuously improve and adhere to the principles of sustainable procurement.
(2) Meanwhile, we have also completed the signing of the Supplier Code of Conduct, ensuring that suppliers adhere to our norms and expectations regarding business integrity and anti-corruption, labor practices, occupational health and safety, and environmental management.
(3) In terms of the supplier management mechanism, the procurement unit and the quality management unit have

Evaluation item	Implementation status
	Yes	No	Description
			continuously implemented the supplier annual evaluation system to select excellent suppliers as long-term partners. To ensure effective management, the Quality Assurance Division and the Procurement Division conduct supplier audits and provide guidance every year in accordance with the established plan. They actively encourage and assist suppliers in obtaining relevant food safety and quality management system certifications to ensure that their system operations and product supply capabilities meet the Company’s requirements.
4. Stakeholders’ rights: A special area for stakeholders is established on the Company’s website, so as to maintain a favorable two-way communication and 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.
5. Training of Directors and Audit Committee Members: All directors and Audit Committee members completed the statutory training hours required for 2025. Please refer to Note 3: Summary on the continuing education of directors in 2025.
6. 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 page 144 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

Evaluation item	Implementation status
	Yes	No	Description
			improve the risk management mechanism.
7. 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.
8. 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 conducts regular corporate governance evaluations in accordance with the requirements of the competent authority and continuously enhances its governance practices. In the 2025 Corporate Governance Evaluation, the Company was ranked within the 6%–20% tier. 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 : The overall professional background and competencies of the Company’s Board members

| Core items for diversity
Name | Basic composition | | | | | | | | | Industry experience | | | Professional competence | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Nationality | 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 |
| Ter-Fung Tsao | R.O.C. | Male | V | 41-50 | 61-70 | >71 | <3 | 3-9 | >9 | | | | | | |
| Jason Hsuan | R.O.C. | Male | | | | 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 | V |
| David Wang | R.O.C. | Male | | | | V | | V | | V | V | V | V | V | V |
| Susan Lin | R.O.C. | Female | | | V | | V | | | V | V | V | V | V | V |

Note 2: Summary on the continuing education of the corporate governance officer in 2025

Continuing education date	Organizer	Course title	Training Hours
Oct. 03, 2025	Securities and Futures Institute	2025 Insider Trading Prevention Awareness Session	3
Oct. 31, 2025	Securities and Futures Institute	2025 Insider Shareholding and Short-Swing Trading Compliance Training Session	3

Note 3 : Summary on the continuing education of directors in 2025

Title	Name	Continuing education date	Organizer	Course title	Training Hours
Director	Ter-Fung Tsao	Sep. 17, 2025	Greater China Financial and Economic Development Association	Trends and Common Issues in the Restructuring of Taiwanese Business Supply Chains in Mainland China	3
		Oct. 22, 2025		Industrial Development and Future Opportunities of Generative AI	3
Director	Jason Hsuan	Feb. 24, 2025	Greater China Financial and Economic Development Association	Trump's New Tariff Policy and Global Economic Changes	3
		Oct. 22, 2025		Industrial Development and Future Opportunities of Generative AI	3
Director	Wendy Tsao	Jun. 23, 2025	Greater China Financial and Economic Development Association	The AI Era: Strategic Opportunities and Challenges in Corporate Intelligent Transformation	3
		Aug. 21, 2025		The Impact of Carbon Pricing on Business Operations	3

Title	Name	Continuing education date	Organizer	Course title	Training Hours
Director	Arthur Tsao	Aug. 18, 2025	Taipei Foundation of Finance	Corporate and Director Responsibilities and Obligations Under Securities Laws	3
		Nov. 21, 2025		Legal Insights into Corporate Governance: Critical Risks and Duties for Board Directors and Supervisors	3
Independent Director	Ben Chang	Sep. 17, 2025	Greater China Financial and Economic Development Association	Trends and Common Issues in the Restructuring of Taiwanese Business Supply Chains in Mainland China	3
		Oct. 28, 2025		Carbon Pricing and Green Economy Transition	3
Independent Director	George Chou	Nov. 17, 2025	Greater China Financial and Economic Development Association	Digital Transformation and AI Applications	3
		Nov. 18, 2025	Taiwan Institute of Directors	Data-Driven and Digital Intelligence Transformation	3
Independent Director	David Wang	Jul. 17, 2025	Greater China Financial and Economic Development Association	Financial Decision-Making for Directors and Supervisors	3
		Sep. 11, 2025		New Industrial ESG Challenges - Towards a Net Zero Carbon World	3
Independent Director	Susan Lin	Aug. 13, 2025	Greater China Financial and Economic Development Association	Key Challenges in Overseas Investment Strategy for Taiwanese Businesses (ASEAN, India)	3
		Oct. 22, 2025		Industrial Development and Future Opportunities of Generative AI	3
Independent Director	Yue Lin	Oct. 22, 2025	Greater China Financial and Economic Development Association	Financial Decision-Making for Directors and Supervisors	3
		Nov. 21, 2025		New Industrial ESG Challenges - Towards a Net Zero Carbon World	3

2.3.4 Operation of Functional Committees

I. Composition, Duties, and Operations of the Remuneration Committee

To implement a rational compensation system and safeguard shareholders' interests, in accordance with the Securities and Exchange Act, the Board of Directors of the Company resolved on December 16, 2011 to establish the Remuneration Committee. The members of the Committee are appointed by resolution of the Board of Directors and shall consist of three members, with a majority of them being independent directors. The Company's Remuneration Committee is composed of three independent directors and convenes at least twice a year.

The members of the Committee shall, with the care of a prudent manager, faithfully perform the following duties, be accountable to the Board of Directors, and submit their recommendations to the Board for discussion:

(1) Periodically review these Rules and propose amendments as necessary.
(2) Establish and periodically review the performance evaluation standards, annual and long-term performance goals, and the policies, systems, criteria, and structure of compensation for directors and managerial officers, and disclose the performance evaluation standards in the annual report.
(3) Periodically assess the achievement of performance goals by directors and managerial officers and determine the content and amount of their individual compensation based on the results of the performance evaluations. The annual report shall disclose the individual performance evaluation results of directors and managerial officers, as well as the content and amount of their individual compensation, and the correlation and reasonableness between such compensation and the performance evaluation results.

1. Information of the Members of the Remuneration Committee

Position	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)	George Chou	The members are independent directors of the Company. Their professional qualifications and experience are disclosed in “IV. Disclosure of Professional Qualifications of Directors and Independence of Independent Directors.” on page 9 of the annual report.	0
Independent Director	Ben Chang			0
Independent Director	Daniel Chiang			0

2. Operational Status of the Remuneration Committee:

(1) The Remuneration Committee of the Company is composed of three members.
(2) The term of office of the 5th Committee: from June 16, 2022 to June 15, 2025; the term of office of the 6th Committee: from June 19, 2025 to June 18, 2028.
(3) In 2025 and up to the date of publication of the annual report, the Remuneration Committee convened 3 meetings (A). The qualifications and attendance of the Committee members are as follows:

Term	Title	Name	Attendance in Person (B)	Attendance by Proxy	Attendance rate in Person (%) (B/A)	Remarks
5th Term	Convener	Ben Chang	1	-	100%	None
	Member	George Chou	1	-	100%
	Member	David Wang	1	-	100%
6th Term	Convener	George Chou	2	-	100%	None
	Member	Ben Chang	2	-	100%
	Member	David Wang	2	-	100%

3. Other matters:

(1) Discussions and resolutions of the Remuneration Committee

Date of Meeting (Period)	Proposals	Resolutions & Company Responses to the Remuneration Committee
Mar. 11, 2025
the 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.	Approved by all attending Committee members and approved by the Board of Directors.
Nov. 12, 2025
The Nomination Meeting of the 6th Remuneration Committee	Proposal for the Election of the Convener and Chairperson of the 6th Remuneration Committee.	With the unanimous approval of all attending members, Committee George Chou was elected as the Convener and Chairperson of the 1st Remuneration Committee.

Date of Meeting (Period)	Proposals	Resolutions & Company Responses to the Remuneration Committee
Nov. 12, 2025
the 1st Meeting of the
6th Remuneration
Committee	(1) Approval of the Supplementary Explanation Regarding the Scope of the Company’s Rank-and-File Employees.
(2) Approved the allocation ratio of employee compensation and director remuneration for 2025.	Approved by all attending Committee members and approved by the Board of Directors.
Mar. 12, 2026
the 2nd Meeting of the
6th Remuneration
Committee	(1) Approved the performance evaluation of the directors and managers of the Company for 2025.
(2) Approval of the Allocation of Compensation for Employees (Including Rank-and-File Employees) and Directors for 2025.
(3) Approved the motion for the payment of director’s remuneration for 2025.	Approved by all attending Committee members and approved by the Board of Directors.

(2) 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.

(3) 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.

II. Composition, Duties, and Operations of the Nomination Committee

To enhance the functions of the Board of Directors and strengthen the management mechanisms, the Board resolved on June 19, 2025, to establish the Nomination Committee. The committee shall be composed of at least three directors appointed by the Board, with a majority of the members being independent directors. The Company’s Nomination Committee is composed of three independent directors and convenes at least twice a year.

The Committee, under the authorization of the Board, shall exercise the care of a prudent person and faithfully perform the following functions. The recommendations proposed by the Committee shall be submitted to the Board for consideration:

(1) Establish the criteria for the professional knowledge, skills, experience, gender diversity, and independence required of members of the Board, independent directors, and senior executives, and, based on such criteria, identify, review, and nominate candidates for directors, independent directors, and senior executives.

(2) Develop and enhance the organizational structure of the Board of Directors and each committee; conduct performance evaluations of the Board, its committees, individual directors, and senior executives; and assess the independence of independent directors.

(3) Establish and periodically review the director training program as well as the succession plans for directors and senior executives.

(4) Establish the Company’s Corporate Governance Best Practice Principles.

1. Professional Qualifications, Experience, and Operational Status of the Nomination Committee Members

(1) The Nomination Committee of the Company is composed of three members.

(2) The term of office of the 1st Committee: from June 19, 2025 to June 18, 2028.

(3) In 2025 and up to the date of publication of the annual report, the Nomination Committee convened 3 meetings (A). The qualifications and attendance of the Committee members are as follows:

Title	Name	Professional Qualifications and Work Experience	Attendance in Person (B)	Attendance rate in Person (%) (B/A)
Convener	Ben Chang	The members are independent directors of the Company. Their professional qualifications and experience are disclosed in “IV. Disclosure of Professional Qualifications of Directors and Independence of Independent Directors.” on page 9 of the annual report.	3	100%
Member	George Chou		3	100%
Member	Daniel Chiang		3	100%

2. Other matters:

(1) Discussions and resolutions of the Nomination Committee

Date of Meeting (Period)	Proposals	Resolutions & Company Responses to the Nomination Committee
Jun. 19, 2025
The Nomination Meeting of the 1st Nomination Committee	Proposal for the Election of the Convener and Chairperson of the 1st Nomination Committee.	With the unanimous approval of all attending members, Committee Ben Chang was elected as the Convener and Chairperson of the 1st Nomination Committee.
Jun. 19, 2025
the 1st Meeting of the 1st Nomination Committee	Approve the Company’s annual training program for directors.	Approved by all attending Committee members and approved by the Board of Directors.
Aug. 07, 2025
the 2nd Meeting of the 1st Nomination Committee	Approve the nomination of the Company’s General Manager for Taiwan.	Approved by all attending Committee members and approved by the Board of Directors.
Mar. 12, 2026
the 3rd Meeting of the 1st Nomination Committee	Approved the internal performance self-evaluation of the Board members, the Board, and the functional committees of the Company for 2025.	Approved by all attending Committee members and approved by the Board of Directors.

III. Composition, Duties, and Operations of the Sustainability Development Committee

To promote and implement corporate governance, develop a sustainable environment, safeguard social welfare, and enhance the disclosure of corporate sustainability information with the aim of achieving sustainable operations, the Board of Directors resolved on May 11, 2023, to establish the “Sustainable Development Committee.” The Committee consists of three members, including one board member.

Under the Committee’s functional responsibilities, six working groups have been established: "Environmental Sustainability Team," "Employee Care Team," "Social Care Team," "Corporate Governance Team," "Food Safety Team," and "Supplier Management Team." The head of each team is led by a senior executive from the respective department.

Each team actively promotes and implements various initiatives, holds regular annual meetings to jointly review implementation effectiveness, and strengthens communication with stakeholders. Relevant plans and targets are adjusted in a timely manner with the aim of creating win-win outcomes for stakeholders and achieving the Company’s sustainability objectives.

The main responsibilities of the Committee are as follows:

(1) Formulating the Company’s sustainability development policies.
(2) Establishing goals, policies, and implementation plans in accordance with the responsibilities of the six functional teams.
(3) Supervising the operation of each functional team, ensuring the promotion and execution of sustainability initiatives, as well as reviewing performance and tracking improvements.
(4) Monitoring issues of concern to various stakeholders—including shareholders, customers, suppliers, consumers, employees, government agencies, non-profit organizations, communities, and the media—and overseeing related communication plans.
(5) Reviewing the sustainability report.
(6) Reporting to the Board of Directors on a regular basis.
(7) Making decisions on other matters related to sustainability development.

Information on the Members of the Sustainability Development Committee

Title	Position	Name	Expertise
Convener	Director
Chief Executive Officer	Arthur Tsao	Professional skills in business management, sustainable development, industry knowledge, risk management, and decision-making and judgment
Possesses practical experience in implementing corporate sustainability initiatives and contributes to the company’s achievement of sustainable development goals
Participation in ESG training
Member	Director of Sustainability Department	Angela Chen	Professional skills in sustainable development, industry knowledge, and risk management
Possesses practical experience in implementing corporate sustainability initiatives

Title	Position	Name	Expertise
			and contributes to the company’s achievement of sustainable development goals
■ Participation in ESG training
Member	Chief Financial Officer	Lynn Lee	■ Professional skills in sustainable development, industry knowledge, and risk management
■ Possesses professional expertise in accounting and financial analysis, and understands the importance of corporate sustainable development
■ Participation in ESG training

2. Information on the Operation of the Sustainability Development Committee

(1) The Sustainability Development Committee of the Company is composed of three members.
(2) The term of office of the 2nd Committee: from June 19, 2025 to June 18, 2028.
(3) In 2025, four meetings were convened, and the discussion topics were as follows:

Date	Discussion Topics
Feb. 06, 2025	■ Preliminary identification of material topics and proposed chapter structure for the 2024 Sustainability Report
■ Materiality Ranking of Sustainable Procurement Topics
■ Progress Updates from Each Team
Apr. 25, 2025	■ Review of Chapter Management Objectives – 2024 Sustainability Report
■ Review by each group of the content of the six sustainability strategies
■ Progress Updates from Each Team
Jul. 18, 2025	■ Report on the Progress and Assurance Results of the 2024 Sustainability Report
■ Progress Updates from Each Team
Oct. 28, 2025	■ Approval of the Material Topics for the 2025 Sustainability Report
■ 2025 Sustainability Highlights and Affairs Report
■ 2026 Budget Planning

Other matters:
Matters recently reported to the Board of Directors are as follows:

Date of the Board Meeting	Reporting matters	Directors’ feedback and opinions
Mar. 11, 2025	In accordance with the GRI Standards for sustainability reporting, material topics identified and prioritized through the materiality assessment process are submitted to the Board of Directors for prioritized disclosure in the 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 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.
Aug. 07, 2025	■ Description of the Company’s 2024 Sustainability Report.
■ Status of Communication with Stakeholders.
Nov. 12, 2025	■ Report on the Implementation and Achievements of Sustainable Development.
■ Determination of Material Topics in the Company’s 2025 Sustainability Report

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

Item	Implementation status
	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 2025, the Company’s Sustainability Development Committee held a total of four meetings. The meeting agendas covered topics such as the annual work plan for the Sustainability Report, identification of 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

Item	Implementation status
	Yes	No	Summary description
II. Does the company follow the principle of materiality, conduct risk assessments on environmental, social and corporate governance issues related to company operations, and formulate relevant risk management policies or strategies?	V		1. Organizational boundaries of Standard Foods are set with its operating activities as the boundary for risk assessment, covering Taipei, Dayuan, Zhongli and Hsinchu Plants.
2. In 2025, 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.	None
III. Environmental issues
1. Has the company established a suitable environmental management system based on its industrial characteristics?	V		1. 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.
2. 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.
3. 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	None

Item	Implementation status
	Yes	No	Summary description
			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 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.
4. 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.)
In 2024, the scope of inventory was expanded to include subsidiaries in China. The SGS and Productivity Center verifications were obtained in 2022 and 2023, respectively. In 2024, assurance was provided by Deloitte Taiwan, and an assurance statement was issued.
5. In 2026, the Company continued to conduct the GHG inventory of the entire field in Taiwan and its subsidiaries in China for 2025 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 by June 2026 to obtain the GHG assurance statement.
6. The greenhouse gas emissions of the parent company and its operating sites in Taiwan in 2025 were as follows: 12,591 metric tons for Scope 1, 14,779 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
			for Scope 2, and 548,522 metric tons for Scope 3, totaling 575,893 metric tons. There is no significant difference between the emission intensity under Scope 1 and Scope 2 in 2025 from 2024. However, for Scope 3, emissions intensity increased due to increased downstream transportation and distribution of goods. The Group will continue to conduct comprehensive identification of emission sources to develop and implement emission reduction strategies.
2. 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		1. 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 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. 2. To continuously promote energy conservation, carbon reduction, and environmental protection policies, the Zhongli Plant (since 2016), Hukou Plant (since 2017), and Dayuan Plant (since 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. 3. A total of NT$55,730.64 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 2025 for the six factories of Standard Foods.	None

Implementation status									Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description
		Plant	Project Name	Improvement content	Electricity Savings (thousand kWh)	Water Savings (tons)	Carbon Reduction (tons/year)	Reference Year	Project Cost (NTD thousand)
		Dayuan Plant	30HP well water pump variable frequency control.	Control operation has been switched from soft starter control to frequency conversion control.	42.83	-	20.3	2024	1,608
		Zhongli Plant	Replacement of the 700HP liquid ammonia machine.	700HP liquid ammonia compressor has been replaced with a 450HP liquid ammonia compressor.	1,095	-	540.00	2024	14,015
			Installed facilities to increase the recycling of condensed water and rainwater for the cooling tower.	Added facilities to increase the recycling of condensed water and rainwater for the cooling tower.	-	1,773	875.86	2024	223.64

Implementation status									Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description
			The first stage of the overall improvement of the wastewater treatment plant.	A 60HP Turkish blower has been replaced with a 35HP air flotation blower.	137.88	-	65.36	power calculation	1,954
		Hukou Plant	A 300 RT chiller and cooling tower have been replaced and energy-saving controls have been added.	The chiller and cooling tower, as well as auxiliary water pumps and motors have been replaced, and a variable frequency energy-saving system added.	889.5	-	421.62	2024	14,850
			Four refrigeration and freezing units and their ancillary equipment have been replaced, and energy-saving control systems have been installed.	A freezer and cooling tower, as well as auxiliary water pumps and motors with IE4-rated models have been replaced, and a variable frequency	560	-	265.44	2024	23,080

Item	Implementation status									Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
				energy-saving system added.
			Total:		2,725.21	1,773.00	2,188.58	-	55,730.64
			4. The implementation of the above improvements in 2025 resulted in the following savings: (1) Save 2,725 thousand kWh. (2) Conserve 1,773 metric tons of water. (3) Reduce 2,189 metric tons of carbon emissions.
3. 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 content 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. These include rainfall pattern changes and extreme climate conditions (e.g. rising average temperatures), which have led to increases in raw material costs; stricter or changing regulatory standards for existing products and services; R&D costs for low-carbon and plastic-reduction technologies; and recycling and reuse initiatives to improve resource efficiency. The evaluation results and relevant countermeasures adopted are disclosed in the Sustainability Report.							None
4. Does the company count greenhouse gas emissions, water consumption and the volume of total waste in the past two years, and formulate policies	V		■ Greenhouse gas emissions For detailed information on greenhouse gas emissions and related management policies, please refer to page 76 of this annual report, “Climate-related information of TWSE and TPEx Listed Companies.” The 2025 greenhouse gas assurance report is expected to be obtained in June 2026, and the complete assurance report will be disclosed on the Company’s website under the “Investors” section.							None

Item	Implementation status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
Yes	No	Summary description
for greenhouse gas reduction, water management or other waste management?
Item	2025 2024
Water consumption	639,860 647,200
Water intensity (metric tons/NTD 1 million of revenue)	39.605 40.07182
Water resource management or reduction targets 2025 1. The groundwater utilization rate of three plants of Standard Foods Group in Tai was 43%, and a reasonable margin was reserved. In the event of droughts or w shortages, the three plants are capable of mutual water dispatch and support. E plant has established water use management measures and comprehensive w quality monitoring standards to monitor the quality and quantity of water resou thoroughly. 2. During 2025, the Zhongli plant installed facilities to increase the recycling condensed water and rainwater for the cooling tower, saving water consumption 1,773 metric tons/year. 2024 1. The groundwater utilization rate of three plants of Standard Foods Group in Tai was 50%, and a reasonable margin was reserved. In the event of droughts or w shortages, the three plants are capable of mutual water dispatch and support. E plant has established water use management measures and comprehensive w quality monitoring standards to monitor the quality and quantity of water resou thoroughly. 2. During 2024, the implementation of the manufacturing process equipment at Hukou plant, recycling and reuse of homogeneous machine lubricant (HOMO4), water heat reduction frequency and hot water washing machine cleaning and o optimization solutions at the Yilan Plant helped save water consumption by 7, metric tons/year. The production line of refinery oils and fats of Dayuan P

Implementation status
Yes	No	Summary description
		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.
		Note 1: The scope of the Company's inventory data for 2025 and 2024 covers the Dayuan and Zhongli Plants of Standard Foods Corporation, and the Hukou Plant of Standard Dairy Products Taiwan Ltd. Waste management Unit: metric tons
		Item	2025 2024
		Hazardous waste	4.01 4.77
		Non-hazardous waste	5,418.34 6,006.33
		Total weight (hazardous + non-hazardous)	5,422.35 6,011.1
		Waste intensity (metric tons/NTD 1 million of revenue)	0.336 0.3722
		Waste management policy or reduction targets 2025 Waste management is carried out in accordance with the ISO14001 environme management system, waste classification is strictly implemented, and the recycling is maintained at 90% in 2025. 2024 Waste management is carried out in accordance with the ISO14001 environme management system, waste classification is strictly implemented, and the recycling is maintained at 94% in 2024.
		Note 1: The scope of the Company's inventory data for 2025 and 2024 covers the Dayuan and Zhongli Plants of Standard Foods Corporation, and the Hukou Plant of Standard Dairy Products Taiwan Ltd.

Item	Implementation status
	Yes	No	Summary description
			Note 2 : Certification institution: SGS, Certification standard: ISO 14001.
Refer to the Company’s 2025 Sustainability Report for the greenhouse gas reduction, water use reduction, or other waste management policies.
IV. Social issues
1. Has the company developed the relevant management policies and procedures in accordance with relevant regulations and international human rights conventions?	V		1. 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.”
2. 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
2. Has the company formulated and implemented reasonable employee welfare measures	V		1. 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			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	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.

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. | |

Item	Implementation status
	Yes	No	Summary description
			(6) Organization of festive activities.
3. 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 31.68% of the workforce, and women held 43.17% of managerial positions at the assistant manager level and above.
3. 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		1. 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:
(1) 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.
(2) 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.
(3) 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 musculoskeletal aches are included in the health tracking, and the employees	None

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

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 every effort to achieve the goal of safety first and zero disasters: | |

Item	Implementation status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
			Regulatory compliance, consultation and communication, risk control, pollution prevention and continuous improvement.

(1) 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.

(2) 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.

(3) Quantitative indicator:
The total working hours at three factories of the Standard Foods Group in Taiwan in 2025 were 2.01 million hours, with 8 annual recordable occupational injury records. In 2025, the number of serious occupational injuries was 0, and the number of fatal accidents due to occupational injuries was also 0.

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 2025, hazard assessments will continue to be implemented, | |

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

Year	Worker type	Number of working days lost due to disabling injury
2023	Employees	87
Non-employees	61	3.97
2024	Employees	77.69
Non-employees	22	5.34
2025	Employees	110
Non-employees	2	2.22
4. There was no fire incident in 2025, 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.”
4. Does the company establish an effective	V

Item	Implementation status
	Yes	No	Summary description
career development training program for employees?			1. 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.

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.
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. | |
| 5. In terms of issues such as customer health and safety, customer privacy, marketing and labeling of products and services, does the company comply with relevant regulations and international standards, and does it formulate relevant | V | | 1. 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,” 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 | None |

Item	Implementation status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
consumer or customer protection policies and appeal procedures?			Division also reviews advertising copywriting related to marketing communications to ensure that consumers have a correct understanding of the product. Regular internal education and training sessions are conducted, 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.
2. 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.
3. 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.
6. Has the company formulated supplier management policies, where suppliers are required to follow relevant regulations on	V		1. To ensure supply chain sustainability and implement corporate social responsibility, the Company has established a comprehensive “Supplier Management Policy” requiring all suppliers to comply with relevant laws and regulations regarding environmental protection, occupational safety and health, and labor rights. Regular management and evaluation mechanisms are used to ensure supplier performance continues to meet the Company’s requirements.	None

Item	Implementation status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
issues such as environmental protection, occupational safety and health or labor and their implementation?			2. To become a raw material supply partner of the Company, suppliers are required to demonstrate a commitment to continuous improvement. The Company also actively encourages and requires suppliers to obtain relevant domestic and international certifications in quality management and food safety systems, such as ISO 22000, SQF (Safe Quality Food), BRC (British Retail Consortium), FSSC 22000 and IFS. Through a systematic and ongoing evaluation process, the Company is able to select suppliers with ethical business practices and superior quality, ensuring the stability and reliability of raw material quality and enabling the production of products that consumers can confidently purchase and safely consume. 3. With regard to supplier audits, the Company has established dedicated audit and advisory teams to track identified deficiencies and oversee corrective actions. These efforts aim to assist suppliers in enhancing quality and technical capabilities, while also strengthening their performance in environmental protection, occupational safety, and health management, thereby promoting continuous improvement across the entire supply chain. 4. In 2025, the Company’s supply chain structure and its cooperative relationships with suppliers remained stable, with no significant changes.
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	V		1. The structure of the 2025 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	None

Item	Implementation status
	Yes	No	Summary description
non-financial information? Did the preliminary report obtain the confidence or assurance opinion of the third-party verification unit?			Companies” promulgated by the Taiwan Stock Exchange to explain the sustainability disclosure 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 4-1.2. The 2025 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:1. Public Welfare ProjectAs 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 ChildrenStandard 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 upgraded its program based on its core business competency—“Comprehensive Nutrition Care.” By integrating the wide range of products of the Standard Foods Group and engaging various stakeholders, the Company called on the public

Item	Implementation status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
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 education program. Starting from 2024, the program was further expanded. For the first time, a “Nutrition Education Camp” and a “Lesson Plan Competition” were organized for economically disadvantaged children in rural areas. The former incorporated the integration of moral, intellectual, physical, social, and aesthetic education (Five Educations), while the latter focused on elementary school students developing learning-appropriate content on nutrition and health communication. A total of 40 lesson plans were submitted. At the same time, the “Nutrition Education Box,” designed to provide nutritional support for students, continued to be implemented. In fiscal year 2025, a total of 4,406 boxes were donated to rural primary schools, the Boyo Social Welfare Foundation, and the Mustard Seed Mission as nutritional support for disadvantaged children. In terms of promoting nutrition education, the “Nutrition Knowledge Panel” and “Nutrition Education Manual” were prepared, and a total of 9,480 copies were provided to primary schools in rural areas, social welfare groups, the Nutrition Education Camp, and the Lesson Plan Competition for use as nutritional teaching tools. This effort has comprehensively enhanced schoolchildren’s nutrition and health literacy. Tutoring teachers are the most important companions for children in rural areas. In 2025, we continued to partner with Boyo Social Welfare Foundation to organize “tutoring teacher workshop” at 17 local centers and outreach centers, and also provided material support through “Nutrition Education Box.” It is estimated that the Boyo tutoring system has been able to provide nutrition education for 2,000 children each year, helping economically disadvantaged children with their nutrition and health after-school care. (2) Nutrition Project for the Elderly Standard Foods Group has long been concerned about elderly nutrition issues and continued to promote “senior nutrition education” as a sustainable initiative in 2025. The Group has collaborated with community nutrition promotion centers of local government health bureaus, experts from TMU, Tzu Chi, and Chang Gung, as well as organizations including the Alliance of Taiwan Foodbanks, Hondao Senior Citizen’s Welfare Foundation, Old Five Old Foundation, and Mennonite Social Welfare Foundation. Through nutrition education, community cooperation, and cross-border resource integration, Standard Foods Group has assisted the elderly in maintaining a healthy lifestyle and social participation, building a “Well-Being” senior-friendly Taiwan. The Company has been promoting nutrition education for older adults through three major sustainable action strategies. First, community education was strengthened through “nutrition training programs.” In fiscal year 2025, 87 courses were conducted, and 20,000 copies of “nutrition education boards” were distributed. The course content covered topics such as balanced diets, muscle health and nutrition, and

Item	Implementation status					Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
marathon and sports nutrition. The programs were delivered by professional nutritionists and chefs, and included physical assessments, enabling older adults to acquire nutrition knowledge through hands-on practice and interaction, and apply it in their daily lives. At the same time, the Company responded to the needs of middle-aged and older populations by participating in the “World Masters Games 2025 Taipei & New Taipei City” to promote sports nutrition concepts and further expand the impact of health education. The second initiative is to upgrade the “Standard Foods Nutritious and Delicious Rotating Menu.” We collaborated with nutritionists and chefs to develop a 35-day senior nutrition meal plan comprising 105 meals, and have continued to optimize the recipes by incorporating nutritional recommendations for daily cooking as well as pre- and post-exercise nutrition. Currently, this rotating menu has been implemented at over 900 community meal sites across Taiwan, and a corresponding online version of healthy recipes was simultaneously released. This allows families and caregivers to prepare nutritionally balanced meals at home for seniors. To date, the recipes have received over 35,000 views. The third initiative involved collaboration with the Hondao Senior Citizen’s Welfare Foundation to launch a limited-time “Bright Future Set Meal” at its “Bulao Eatery” restaurant. The menu features oatmeal, oils, grain rice, ginseng chicken essence, and Greek yogurt to create senior-friendly cuisine that is both nutritious and delicious. This aims to encourage the elderly to maintain their physical and mental health through diet and social activities. In addition, Standard Foods has continued the “Nutrition Supply Box” initiative, donating 7,521 boxes of nutritional supplies to more than 2,500 households across over 15 counties and cities. The initiative has also been opened to consumers for co-purchase and donation, enabling nutritional support to be integrated into the daily lives of disadvantaged older adults.

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 2025, the Company made major donations/sponsorships to a total of 58 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	Indonesia Care Association
2	The Mustard Seed Association	22	The First Socail Welfare Foundation	42	Taiwan New Immigrant Family Development Association

Item	Implementation status						Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
		Yes	No	Summary description
3	Boyo Social Welfare Foundation			23	Yu-Cheng Social Welfare Foundation	43	Kaohsiung Social Welfare Association
4	New Hope Socail Welfare Foundation Taichung			24	Syin-Lu Social Welfare Foundation	44	Taitung County Indigenous Ebenezer Holistic Care and
5	Humanlove			25	Chensenmei Social Welfare Foundation	45	Kaohsiung Legal Services Association for New Immigrants and Migrant Workers
6	Taiwan His Hands Christian Home			26	Chinese Hydro Light Association	46	Tzih Huai Social Welfare Foundation
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	Shing Yi Charity Foundation	50	Wise Love
11	Mennonite Socail Welfare Foundation			31	Taoyuan City Cixin Charity and Care Association	51	Ci-Sheng Foundation, Changhua County Private Ci-Sheng Ren-Ai Institution
12	Old Five Old Foundation			32	Kindgarden Love Home	52	Bethany Children & Family Foundation
13	Elder Welfare Concerned Association			33	Dann Center for Individuals with Developmental Disabilities	53	The Garden of Hope Foundation
14	Chinese Health Promotion and Care			34	Pingtung Christian Victory Home	54	Taichung Prison Fellowship Christian

Item	Implementation status						Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
		Yes	No	Summary description
	Association						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 International Workers Association	56	Changhua Veterans Home
17	Catholic Marian Long-Term Care Center			37	Alliance of Taiwan Foodbanks	57	New Taipei City Love Home Promotion Association
18	Bor-ay Home			38	Chinese Christian Relief Association-1919 Food Bank	58	Waker Volunteer Association
19	Father Du Hua Social Welfare Foundation, Hsinchu City			39	United Way of Taiwan
20	Hualien County Association for the Elderly and Family Care			40	Pearl S. Buck Foundation
3. 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

Item	Implementation status					Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
(2) Energy-saving investment
Year	Electricity Saved (kWh)		Water Saved (tons)	Carbon Emission Reduction (tons/year)	Comparison Year	Project Cost (NT$1,000)
2025	2,725		1,773	2,189	2024	55,730.64
Note: For detailed information, please refer to page 56 of this Annual Report.

Climate-related information of TWSE and TPEx Listed Companies:

I. 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 regularly convenes relevant departments 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.

Item	Implementation Status
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	Management goals
	Company	The severity and frequency of typhoons and flooding events have increased.	• Typhoon caused disruptions or interruptions to domestic and international transportation, plant/warehousing equipment damage or water/energy stoppages.	• The transportation cost of raw materials and finished products increased and so did the operating costs. • Water / power outage caused damage to the plant equipment and assets, which increased the maintenance cost, or production interruption, resulting in revenue loss.	• Within 3 days prior to a typhoon or heavy rainfall warning, prepare a supply chain adaptation plan. • Initiate a power system inventory to assess equipment age and performance. • Establish a diversified supplier system to reduce the risk of supply chain disruptions; when necessary, coordinated the deferral of channel promotions or communicated alternative product options.	• Adjust the supply chain plan within one week prior to the typhoon or heavy rainfall warning. • Regularly complete a four-phase electricity system inventory every year to improve electricity efficiency and availability. • Strengthen secondary suppliers and alternative sourcing channels to enhance supply chain resilience and stability. • Review the Company's accident insurance policies annually to

Item	Implementation Status
						reduce the losses posed by financial impacts.
	Long-term	Changes in rainfall patterns and extreme climate conditions, including rising average temperatures, have led to increased raw material costs.	• Droughts and prolonged rainfall affect the growth cycles of plant and animal raw materials – including oats, olive oil, milk sources, and sugar – directly impacting raw material prices and yields. • Fluctuations in raw material prices have led to supply chain instability and increased difficulties in raw material procurement. The Company continues to identify and test alternative materials to reduce reliance on high-cost materials.	• The decrease in output of raw materials caused a rise in price and operating costs; R&D of alternative materials to increase the adaptive cost. • In order to search for 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.	• Increase the inventory of bulk raw materials and activate the raw materials substitution project. • Look for alternative raw materials with similar properties and lower cost, such as replacing animal-based ingredients with plant-based materials. • Conduct the supplier assessment to select partners with stable supply capabilities.	• Control the number of days and quality of the bulk material inventory. • Control the price and supply stability of the key raw materials or alternative raw materials. • Complete the development of alternative formulations or a second supplier for key raw materials.

Implementation Status
Transition Risks
Types	Climate-related risks	Affected period	Potential impact on the Group	Potential financial impact	Response strategy	Management goals
Policies, laws and regulations	Renewable energy laws and regulations-Increase in GHG emission cost	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.·To reduce carbon emissions, carbon inventory and replacement of high energy-consumption equipment shall be included.	·The installation of low-carbon renewable energy will increase capital expenditure and the operating cost of subsequent maintenance.·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.	·The new plant plans to implement the green building project to meet the requirements under laws and regulations.·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 proportion of renewable energy in new construction planning shall reach 10%-20%.·The Scope 3 inventory will be completed in phases.·The Company shall complete all the projects and meet the acceptance criteria as scheduled.
Policies, laws and	Requirements and supervision standards for	Mid-term	·To meet the sustainable management goals of the	·To meet the carbon reduction goals. If the carbon reduction goal is not met, then it is	·Implement energy-saving and carbon reduction	·Continue to implement the ISO 50001 Energy

Item	Implementation Status
		existing products and services are improved/changed.		environment, energy management in the GHG Scope 1 to Scope 2 needs to be more efficient. • Raw materials and products must comply with more stringent regulations or standards, increasing the need for inspection, testing, or recertification.	necessary to purchase green electricity, thereby resulting in an increase in operating costs. • Increased costs for raw material and product testing, verification, and certification raise operating expenses.	projects to improve energy efficiency. Practice the TPM and implement the ISO 50001 energy management system. • Assess the impact of regulatory changes on products and supply chains, and identify alternative supply sources with relevant certifications.	Management System and enhance energy efficiency through systematic identification and analysis of energy consumption sources. • Develop or guide compliant supply sources to reduce supply disruption risk caused by regulatory changes.
	Technology	Research and development costs for low-carbon and plastic reduction technologies	Mid-term	• Develop low-carbon products and production technologies in response to the market consumption trend. • Plastic reduction and light-	• 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 invest R&D resources in developing low-carbon products and process technology. • Continue to optimize the	• Continue to promote sustainability-related training and activities to establish and strengthen employees'
			use of new technologies to improve the efficiency of the product.	product development and product development. • Develop new technologies to improve the efficiency of the product.	product development and product development. • Develop new technologies to improve the efficiency of the product.	product development and product development. • Develop new technologies to improve the efficiency of the product.	product development and product development.
1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1	1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1	1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1	1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1	1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1	1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1	1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1
							2.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1

Implementation Status
			weighting projects for product packaging may impact transportation and require adjustments to existing production equipment and processes.		weight and volume reduction of packaging materials to minimize unnecessary packaging and reduce material procurement and waste disposal costs.	sustainability awareness and drive innovation in low-carbon product development. •Continuously develop and implement product packaging lightweighting projects on an annual basis.
▼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	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	•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. •Reuse pallets from imported containers for the distribution	•Increase the proportion of recyclable or circular materials used in procurement items. •Establish an annual plan and complete monthly implementation status tracking.

Item	Implementation Status
				and thereby improve the efficiency of resource utilization.		of raw materials and finished goods to external warehouses or subcontracted manufacturers.
	Energy source	Low-carbon energy application: Adopt incentive-based policies to promote the use of higher-efficiency production equipment.	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 the internal carbon pricing.	• 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.
3. Describe the financial impacts of extreme climate events and transitional	Please refer to the description of item (2) for details.

Item	Implementation Status
actions.
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”). Under the target of reducing GHG emissions by 50% from the business-as-usual (BAU) scenario by 2030, Taiwan’s renewable energy share is planned to increase from 5.6% in 2019 to 40% by 2030, as outlined in the national energy policy.The Ministry of Economic Affairs held the “Electricity Charge Review Committee” meeting for 1H of 2025 on March 22, 2025. Considering changes in international tariffs and geopolitical risks, which raised concerns about potential fluctuations in the international economy and prices, the members of the Electricity Tariff Review Committee carefully considered the impact of electricity prices on inflation and resolved not to adjust them. In the second half of 2025, the Review Committee determined that electricity prices still did not reflect costs and that

Item

Implementation Status

Taipower Company was experiencing a substantial deficit, so electricity prices needed to be adjusted appropriately. Since the industrial electricity price adequately reflects the cost, but the residential electricity price has long been lower than the power supply cost, the Review Committee resolved to maintain the existing industry support measures without adjusting the industrial electricity price. The residential electricity price was adjusted slightly tier by tier, using the unit price for each tier, to make it more reasonable, resulting in an average electricity charge adjustment of 0.71%. Standard Foods Group is classified as a livelihood-related facility and calculated on an aggregated basis; the total amount of purchased electricity in 2025 was 650.1519 kWh, resulting in the increase in the electricity bill by NT$650,152 from 2024. Based on the analysis of this xscenario, in the long run, Taiwan's electricity charges will continue to rise based on such range. 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.

Item	Implementation Status
7. If internal carbon pricing is used as a planning tool, the basis for setting the price shall be stated.	In response to climate change and carbon pricing trends, the Company not only referenced the stipulations of the Climate Change Response Act and anticipated the impact of the carbon fee system on operating costs but also incorporated the external costs of carbon emissions on third parties. The Environmental Sustainability Team and the financial unit collaborated to evaluate and reasonably quantify external risks – such as fines, air pollution cleanup, and health costs – and further internalized these costs into the cost-benefit analysis of carbon reduction projects to improve the accuracy of decision-making and sustainable governance.
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 used to achieve the goals, the source and quantity of offset carbon reduction credits or quantity of RECs must be explained.	Please refer to 1-1 and 1-2 for the scope and planning period of greenhouse gas emission, and annual progress.
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

GHG Inventory Boundary	2023	2024	2025
		Parent company and operating sites in Taiwan	Parent company and operating sites in Taiwan	Parent company and operating sites in Taiwan	Subsidiaries (domestic and overseas)	Total
Scope 1	Diesel, natural gas, gasoline, LPG, etc.	12,435.2359	12,397.7508	12,591.4695	4,044.2966	16,635.7661
Scope 2	Purchased electricity, purchased steam, etc.	15,588.6567	15,228.0121	14,779.8073	8,796.5122	23,576.3195
Scope 3	Emissions from upstream transport and distribution of goods	68.7402	-	333,767.0757	609.6105	549,131.7304
	Emissions from downstream transport and distribution of goods	-	13,172.7086	12,887.7062
	Employee commuting	461.4315	528.7452	515.1592
	Emissions from purchased goods	94,660.8557	178,240.8464	200,869.0855
	Emissions from disposal of solid and liquid waste	332.4097	384.8654	483.0933
Total GHG Emissions (metric tons)		123,547.3297	219,952.9285	575,893.3970	13,450.4193	589,343.8160
Note 1: From 2025, the GHG inventory expanded to include the following subsidiaries: the China region, Domex Technology Corporation (Taiwan), and Dermalab S.A. (Switzerland). The latter two had not yet undergone third-party GHG assurance.
Note 2: The conversion factor is based on the Environmental Protection Administration (EPA) GHG emission factor management table, version 6.0.4.
Note 3: The method for aggregating GHG emissions is the operational control approach.
Note 4: The global warming potential (GWP) of various GHGs is based on the values selected in the IPCC Sixth Assessment Report.
Note 5: The Energy Administration, Ministry of Economic Affairs (MOEA), published an electricity emission factor of 0.474 kgCO2e per kWh for 2024 calculations.
Note 6: Formula for carbon emission intensity: total GHG emissions (tCO2e) / turnover (unit: NTD millions).
Note 7: The GHG emission base year is 2023. This year was selected as six offices in Taiwan were added to the inventory scope in 2023. According to the inventory procedure guidelines, this is the first year GHG inventory verification was passed following changes to the inventory scope.

Note 8: Group revenue is revenue before eliminations.

Note 9: Waste generated during operations, including emissions from the disposal of solid and liquid waste.

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. In 2026, the Company will continue to perform an inventory of GHG emissions for the entire field in Taiwan and its subsidiaries in China for 2025. The Company also plans to complete the assurance audit by Deloitte Taiwan and conduct GHG emission assurance for Scope 1, Scope 2, and Scope 3 emissions. Verification is expected to be completed in June 2026, with a GHG assurance statement obtained.

The Company’s GHG emissions in 2025 are described as follows: 16,635.7661 metric tons for Scope 1; 23,576.3195 metric tons for Scope 2; and 549,131.7304 metric tons for Scope 3, totaling 589,343.8160 metric tons. Compared to 2024, Scope 1 and Scope 2 emissions increased in 2025, primarily due to the inclusion of domestic and international subsidiaries in the scope of inventory. However, emission intensity remained consistent when comparing the parent company and Taiwan operational sites. Scope 3 emissions increased compared to the previous year, primarily due to added upstream transportation and distribution of goods, as well as the more comprehensive inclusion of emission sources related to purchased goods. This demonstrates Standard Foods Group’s continued commitment to GHG management through a more comprehensive inventory of various emission sources, providing a foundation for developing reduction strategies and implementing improvement measures.

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

(1) Short-term plan:

In 2025, Standard Foods Group completed the greenhouse gas emissions inventory and assurance for its four major sites in Taiwan, six business locations across Taiwan, and its 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: Scope of inventory data coverage in 2025: The Standard Foods Group in Taiwan, including its four major sites and six business offices, as well as its subsidiaries in China, Domex Technology Corporation (Taiwan), and Dermalab S.A. (Switzerland).

Scope of inventory data coverage in 2024: The Standard Foods Group in Taiwan, including its four major sites and six business offices.

Note 2: For more climate-related information, please refer to the Company’s 2025 Sustainability Report.

2.3.6 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
1. 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?
2. 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”?
3. Does the company specify the operating procedures, behavior guidelines, disciplinary penalties, and grievance system in the plan to prevent dishonesty, and implement it, and	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	None

Evaluation Item	Implementation Status
	Yes	No	Description
regularly review and revise the pre-disclosure plan?			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.”
II. Fulfillment of ethical corporate management
1. Does the Company evaluate business partners’ ethical records and include ethics-related clauses in the business contracts signed with the counterparties?
2. 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?
3. Has the Company established policies to prevent conflicts of interest, provide appropriate communication channels, and implement them accordingly?
4. 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	V
V
V
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	None

Evaluation Item	Implementation Status
	Yes	No	Description
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?
5. Does the company regularly hold internal and external educational pieces of trainings on operational integrity?	V		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.
III. Operation of the whistle-blowing system
1. 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?
2. Has the company established standard operating procedures for accepting complaints, follow-up measures to be taken after the investigation is completed, and	V	V	1. 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 channels are as follows:
(1) Whistleblowing hotline 02-27092323 ext.10701
(2) Whistleblowing mailbox
[email protected]
[email protected]
2. 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	None

Evaluation Item	Implementation Status
	Yes	No	Description
relevant confidentiality mechanisms?			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 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.
3. Does the company provide proper whistleblower protection?	V		3. 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.

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
			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 2025, 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
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)
1. 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.
2. 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

Evaluation Item	Implementation Status
	Yes	No	Description
or vote nor vote on behalf of another Director in this regard.
3. 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.

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

I. The Company's website: http://www.sfworldwide.com Disclose and update information regularly.

II. 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.

2.3.8 Implementation of Internal Control System

I. 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)

II. 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

2.3.9 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:

I. Major Resolutions of 2025 Shareholders' General Meeting and Implementation Status:

2025 and up to the publication date of the annual report, the Company has convened one shareholder's general meeting. The Company’s 2025 shareholders’ general meeting was held on Jun. 19, 2025.

The summary of matters approved via resolution is as follows:

Matters Approved	Implementation Status
Approval of 2024 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.
Approval of the Distribution of Earnings for 2024	Upon the approval in shareholders’ general meeting of the proposal via a resolution, the cash dividends of NT$1.4 share, totally NT$1,281,125,427 were distributed, with the ex-dividend base date of Jul. 23, 2025. The dividends were granted on Aug. 15, 2025.
Approval of the Amendment to the "Articles of Incorporation."	Effective after resolution by the annual general meeting of shareholders and the change was registered within 15 days in accordance with the law.
Election of the 15th batch of board of directors (including independent directors)	Effective after resolution by the annual general meeting of shareholders and the change was registered within 15 days in accordance with the law.
Adoption of the Proposal for Releasing Directors from Non-competition	Effective after resolution by the annual general meeting of shareholders

II. 2025 and up to the publication date of the annual report, the important board resolutions and their implementation are as follows:

Date	Major resolution matters	Resolutions
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.
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.	■ Items 4,5 and 6 were approved by resolution of the Remuneration Committee.
■ Items 1,2,3,7,8,9,16 and 17 were approved by resolution of the Audit Committee.
■ All of the above proposals were approved as proposed, with no objections from the directors

Date	Major resolution matters	Resolutions
	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.	present, upon inquiry by the Chairperson.
May. 13, 2025
the 19th meeting
of the 14th Board	1. Approved the motion for the consolidated financial statements for Q1 2025.
2. Approved the reinvestment through the Company’s Singapore subsidiary, Newtrin Holding PTE. LTD., to establish a subsidiary in Thailand.
3. Approved the capital increase of the Company’s Singapore subsidiary, Newtrin Holding PTE. LTD.
4. Approval of the Amendment to the Company’s Nomination Committee Charter.
5. Approval of the Amendment to the " Articles of Incorporation."
6. Approved the motion to lend funds to subsidiary Charng Hui Company Limited.
7. Approved the motion for providing an endorsement guarantee for the subsidiary Charng Hui Company Limited to extend credit lines from financial institutions.	■ Items 1,2,3,6 and 7 were approved by resolution of the Audit Committee.
■ All of the above proposals were approved as proposed, with no objections from the directors present, upon inquiry by the Chairperson.
Jun. 19, 2025
the 1st Meeting of
the 15th Board	Approval of the election of the Chairperson of the 15th Board of Directors of the Company.	With the unanimous consent of all directors present, Director Ter-Fung Tsao was elected as the Chairperson of the Company’s 15th Board of Directors.

Date	Major resolution matters	Resolutions
Jun. 19, 2025 the 2nd Meeting of the 15th Board	1. Approved the motion regarding the ex-dividend record date as resolved by the Board of directors.2. Approval of the Appointment of Members of the 6th Remuneration Committee.3. Approval of the Appointment of Members of the 2nd Sustainable Development Committee.4. Approval of the Establishment of the Company's Nomination Committee.5. Approval of the Appointment of Members of the 1st Nomination Committee.6. Approved the motion to lend funds to subsidiary Dermalab S.A.	■ Item 6 was approved by resolution of the Audit Committee.■ All of the above proposals were approved as proposed, with no objections from the directors present, upon inquiry by the Chairperson.
Aug. 07, 2025 the 3rd Meeting of the 15th Board	1. Approved the motion for the consolidated financial statements for Q2 2025.2. Approved the 2024 sustainability report.3. Approval of the appointment of the Company's Taiwan General Manager.4. Approval of the changes to the Company's Spokesperson and Deputy Spokesperson.5. Approval of the change to the Company's Corporate Governance Officer.6. Approval of the Appointment of Chief Internal Auditor.7. Approval of the Land Acquisition for the Construction Project of the Dayuan Plant No. 28. Approval of the Company's 2025 Director Training Program Plan.9. Approved the renewal of credit facilities and derivatives limits with financial institutions.	■ Items 3 was approved by resolution of the Nomination Committee.■ Items 1,6,7 and 9 were approved by resolution of the Audit Committee.■ All of the above proposals were approved as proposed, with no objections from the directors present, upon inquiry by the Chairperson.
Sep. 24, 2025 the 4th Meeting of the 15th Board	1. Approved the strategic investment proposal by the Singapore subsidiary, SF NUTRA PTE. LTD. (SFN), in Hello Health Group, the largest health content and data platform in Southeast Asia.2. Approved the capital injection into the Singapore subsidiary, SF NUTRA PTE. LTD. (SFN).	■ All of the above proposals were approved by resolution of the Audit Committee.■ All of the above proposals were approved as proposed, with no objections from the directors present, upon inquiry by the Chairperson.
Nov. 12, 2025 the 5th Meeting of the 15th Board	1. Approved the motion for the consolidated financial statements for Q3 2025.2. Approved the allocation ratio of employee compensation and director remuneration for 2025.3. Approval of the Supplementary Explanation Regarding the Scope of the Company's Rank-and-File Employees.4. Approval of the Determination of Material Topics for the Company's 2025 Sustainability Report.5. Approved the motion of the remuneration of the Company's CPAs for 2025.6. Approved the motion for the Company's 2026 audit plan.	■ Items 2 and 3 were approved by resolution of the Remuneration Committee.■ Items 1,5,6,7,8,9,10,11 and 12 were approved by resolution of the Audit Committee.■ All of the above proposals were approved as proposed,
	with the 2025 budget of the 2nd International Development Committee.	with the 2025 budget of the 2nd International Development Committee.
Dec. 18, 2025 the 6th Meeting of the 15th Board	1. Approved the motion for the consolidated financial statements for Q4 2025.2. Approved the allocation ratio of employee compensation and director remuneration for 2025.3. Approval of the Supplementary Explanation Regarding the Scope of the Company's 2025 Research Plan.4. Approval of the Determination of Material Topics for the Company's 2025 Sustainability Report.5. Approved the motion of the remuneration of the Company's CPAs for 2025.6. Approved the motion for the Company's 2026 audit plan.	■ Items 1,5,6,7,8,9,10,11 and 12 were approved by resolution of the Audit Committee.■ All of the above proposals were approved as proposed, with no objections from the directors present, upon inquiry by the Chairperson.

Date	Major resolution matters	Resolutions
	7. Approved the amendments to the provisions related to the “Accounting Professional Judgment Procedures, Changes in Accounting Policies and Estimates” under the Company’s internal control system items.
8. Approved the amendments to the provisions related to the “Payroll Process” under the Company’s internal control system items.
9. Approved the land sale proposal of Shanghai Standard Foods Co., Ltd.’s Inner Mongolia Branch.
10. Approved the capital injection into the subsidiary Newtrin Holding PTE. LTD.
11. Approved the loan to the subsidiary Dermalab S.A.
12. Approved the loan to the subsidiary Charng Hui Company Limited.	with no objections from the directors present, upon inquiry by the Chairperson.
Jan. 15, 2026
the 6th Meeting
of the 15th Board	1. Approved the capital injection into the subsidiary Newtrin Holding PTE. LTD.
2. Approved the capital injection by the Singapore subsidiary Newtrin Holding PTE. LTD. into the Vietnam subsidiary Newtrin Healthcare Foods Vietnam Co., Ltd.
3. Approved the Phase I civil engineering planning and budget for the land development plan of the new plant area of the Company’s Dayuan Plant (Adjacent Farmland Development Project).	■ All of the above proposals were approved by resolution of the Audit Committee.
■ All of the above proposals were approved as proposed, with no objections from the directors present, upon inquiry by the Chairperson.
Mar. 12, 2026
the 7th Meeting
of the 15th Board	1. Approved the motion for the 2025 financial report and consolidated financial report.
2. Approved the motion for the 2025 earnings distribution.
3. Approved the Company’s 2025 Business Report.
4. Approved the motion for the 2026 business plan and budget.
5. Approved the performance evaluation of the directors and managers of the Company for 2025.
6. Approval of the Allocation of Compensation for Employees (Including Rank-and-File Employees) and Directors for 2025.
7. Approved the motion for the payment of director’s remuneration for 2025.
8. Approved the motion for the 2025 statement of internal control.
9. Approved the evaluation of the independence and suitability of the external auditors with reference to the AQI.
10. Approved the motion for the amendment to the “Articles of Incorporation.”
11. Approved the motion for the date for the 2026 annual general meeting of shareholders and agenda as well as related matters.
12. Approved the application for new and renewed credit facilities with financial institutions.	■ Items 5,6 and 7 were approved by resolution of the Remuneration Committee.
■ Items 1,2,3,4,8,9 and 12 were approved by resolution of the Audit Committee.
■ All of the above proposals were approved as proposed, with no objections from the directors present, upon inquiry by the Chairperson.

2.3.10 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.

2.4 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
Deloitte & Touche	Han-Ni Fang
Zhao-Yu Chen	2025.01 - 2025.12	6,755	2,498	9,253	Non-audit fees are as follows:
1. Greenhouse gas inventory consulting services fees: 975.
2. Transfer pricing report fee: 913.
3. Sustainability report assurance fee: 430.
4. Online shopping packaging reduction achievement verification fees: 130.
5. Investment Commission filing service fee: 50.

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.

2.5 Information About Replacement of CPA: None.

2.6 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.

2.7 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.

2.8 Information About the Relationship Among the Company's 10 Largest Shareholders

April 19, 2026 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 %
Mu Te Investment Co., Ltd. Trust Property Account	178,727,315	19.53	0	0	0
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
Chang Hui Ltd.	The chairman of Mu Te Company is the chairman of Chang Hui Company
Representative: Ter-Fung Tsao	40,848,203	4.46	0	0	22,688,211
Chia Chieh Investment Co., Ltd. Trust Property Account	Director, Chia Chieh Company
Mu Te Investment Co., Ltd.	Chairman, Mu Te Company
Chang Hui Ltd.	Chairman, Chang Hui Company
Chia Yun Investment Co., Ltd. Trust Property Account	147,677,489	16.14	0	0	0
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
Chang Hui Ltd.	The chairman of Chia Yun Company is the chairman of Chang Hui 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)
	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, Mu Te Company
							Chia Chieh Investment Co., Ltd. Trust Property Account	Director, Chia Chieh Company
							Mu Te Investment Co., Ltd.	Chairman, Mu Te Company
							Charng Hui Ltd.	Chairman, Charng Hui Company
Chia Chieh Investment Co., Ltd. Trust Property Account	117,539,583	12.84	0	0	0	0	Ter-Fung Tsao	Director, 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
							Charng Hui Ltd.	The director of Chia Chieh Company is the chairman of Charng Hui Company
	5,871	0.00	0	0	0	0	Mu Te Investment Co., Ltd. Trust Property Account	Director, Mu Te Company
							Chia Yun Investment Co., Ltd. Trust Property Account	Director, Chia Yun Company
Mu Te Investment Co., Ltd.							Director, Mu Te Company
Ter-Fung Tsao	40,848,203	4.46	0	0	22,688,211	2.48	Mu Te Investment Co., Ltd. Trust Property Account	Chairman, Mu Te Company
							Chia Yun Investment Co., Ltd. Trust Property Account	Chairman, Chia Yun Company
							Chia Chieh Investment Co., Ltd. Trust Property Account	Director, Chia Chieh Company
							Mu Te Investment Co., Ltd.	Chairman, Mu Te Company
							Charng Hui Ltd.	Chairman, Charng Hui 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)
	Shares	Share-Holding Ratio% (Note 2)	Shares	Share-Holding Ratio %	Shares	Share-Holding Ratio %	Item	Nature of Relationships
Mu Te Investment Co., Ltd.	22,650,057	2.48	0	0	0	0	Ter-Fung Tsao	Chairman, Mu Te Company
							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.
	40,848,203	4.46	0	0	22,688,211	2.48	Mu Te Investment Co., Ltd. Trust Property Account	Chairman, Mu Te Company
							Chia Yun Investment Co., Ltd. Trust Property Account	Chairman, Chia Yun Company
							Chia Chieh Investment Co., Ltd. Trust Property Account	Director, Chia Chieh Company
Charng Hui Ltd.							Chairman, Charng Hui Company
Lin Junyao	17,640,000	1.93	0	0	0	0	-	-
Nan Shan Life Insurance Company, Ltd. Representative: Yin,Chong-Yao	17,353,000	1.90	0	0	0	0	-	-
	0	0	0	0	0	0	-	-
JPMorgan Chase Bank N.A., Taipei Branch in custody for Vanguard Emerging Markets Stock Index Fund, a Series of Vanguard International Equity Index Funds	6,731,603	0.74	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)
	Shares	Share-Holding Ratio% (Note 2)	Shares	Share-Holding Ratio %	Shares	Share-Holding Ratio %	Item	Nature of Relationships
Charng Hui Ltd.	6,669,471	0.73	0	0	0	0	Ter-Fung Tsao	Chairman, Charng Hui Company
							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.
	40,848,203	4.46	0	0	22,688,211	2.48	Mu Te Investment Co., Ltd. Trust Property Account	Chairman, Mu Te Company
							Chia Yun Investment Co., Ltd. Trust Property Account	Chairman, Chia Yun Company
Chia Chieh Investment Co., Ltd. Trust Property Account							Director, Chia Chieh Company
Mu Te Investment Co., Ltd							Chairman, Mu Te Company
Vanguard Total International Stock Index Fund, A Series of Vanguard Star Funds	4,691,849	0.51	0	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 underage 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.

2.9 Shareholding Status of the Same Reinvestment Business by the Company, Directors, Supervisors, and Companies Directly or Indirectly Controlled by the Company:

April 30, 2026; Unit: Share

Reinvestment Businesses (Note 1)	Ownership by the Company		Direct or Indirect OwnershipBy Directors/ Supervisors/ Managers		Total Ownership
	Shares	Holding %	Shares	Holding %	Shares	Holding %
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)	1,309,095	100%	-	-	1,309,095	100%
Newtrin Holding PTE. LTD.	4,000,000	100%	-	-	4,000,000	100%
Newtrin Healthcare Foods Japan Co., Ltd.	-	-	10,000	100%	10,000	100%
Newtrin Healthcare Foods Vietnam Company Limited	-	-	N/A (Note 2)	100%	N/A (Note 2)	100%
Accession Ltd.	123,600,000	100%	-	-	123,600,000	100%
Dermalab S.A.	-	-	4,050	100%	4,050	100%
Labo AG	-	-	900	100%	900	100%
Swissderma SL	-	-	3,000	100%	3,000	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%
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%

104

Reinvestment Businesses (Note 1)	Ownership by the Company		Direct or Indirect OwnershipBy Directors/ Supervisors/ Managers		Total Ownership
	Shares	Holding %	Shares	Holding %	Shares	Holding %
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	-	-	20,699	100%	20,699	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.

3. Fund Raising Status

3.1 Capital and Shares

3.1.1 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

106

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.

109

3.1.2 Major Shareholders

April 19, 2026

| 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 | 17,640,000 | 1.93 |
| Nan Shan Life Insurance Company, Ltd. | 17,353,000 | 1.90 |
| JPMorgan Chase Bank N.A., Taipei Branch in custody for Vanguard Emerging Markets Stock Index Fund, a Series of Vanguard International Equity Index Funds | 6,731,603 | 0.74 |
| Charng Hui Ltd. | 6,669,471 | 0.73 |
| Vanguard Total International Stock Index Fund, A Series of Vanguard Star Funds | 4,691,849 | 0.51 |

3.1.3 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 12, 2026, the dividend allocation is NT$ 1.34 per share of cash dividend, and it would be proposed for discussion at the general shareholders' meeting on June 17, 2026.

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

3.1.5 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: In case that the Company has profit left over from deducting employees' compensation and directors' remuneration from pre-tax profit for a fiscal year, no less than 0.5% of this profit shall be allocated as employees' compensation. No less than 50% of the employee remuneration shall be distributed as the remuneration to rank-and-file employees. The payment of such compensation shall be made either by stock or in cash, which shall be decided by the Board of Directors. The recipients of the said profit include employees from subsidiary

companies who meet certain conditions. The Board of Directors may also decide to allocate no more than 0.75% of the said profit as directors’ compensation. The allocation of employees' and Directors' compensation shall be reported to the shareholders' meeting.

Nevertheless, in case that the Company has an accumulated deficit, a sum to make up the losses shall be reserved from the said profit before it is allocated to pay for the employees’ compensation and directors’ remuneration pro rata as described in the preceding paragraph.

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 2025 was NT$ 19,565,937, and the estimated amount of directors was NT$ 8,030,795. The employee remuneration is calculated at 1.34% of pre-tax profits before deducting the distributed employee and director remuneration in 2025; the director remuneration is calculated at 0.55% of pre-tax profits before deducting the distributed employee and director remuneration in 2025.

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$ 19,565,937.

1.2 Employee Stock Remuneration NT$ 0.

1.3 Director Remuneration NT$ 8,030,795.

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 2025 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 2024 was NT$ 28,146,457 and remunerations to directors were NT$ 11,552,650. It had no difference with the employee and director remunerations in the 2024 annual fiscal report.

3.1.6 Buyback of Treasury Stock: None.

3.2 Corporate Bonds: None.

3.3 Preferred Shares: None.

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

3.5 Employee Stock Options: None.

3.6 Employee Restricted Stock: None.

110

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

3.8 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 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.

111

112

4. Operational Highlights

4.1 Business Activities

4.1.1 Business Scope:

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

Product Category	Percentage
Nutritious Foods	37%
Cooking products Food	54%
Others	9%
Total	100%

4.1.2 Industry Overview:

Current State and Development of the Industry

In 2025, Taiwan’s domestic economy grew amidst a volatile international political and economic landscape, fluctuating exchange rates and raw material prices, and persistent inflation. Overall economic growth was supported by strong exports from the high-tech industry and the restructuring of the global supply chain. The Directorate General of Budget, Accounting, and Statistics estimated that the annual economic growth rate reached 8.63%, the highest in 15 years. However, growth momentum was primarily concentrated in the technology industry, while the consumer goods industry continued to face relatively strong pressure. Despite the stable long-term demand in the food industry, short-term caution is still needed to address economic conditions and cost fluctuations.

With increasing health awareness among Taiwanese people, the demand for healthy foods continues to grow. Consumers have shifted from a focus on “deliciousness” to high value-added products that are “nutritious, convenient, and functional,” including protein supplementation, muscle and joint health, intestinal and eye health functions, and functional beverages. Meanwhile, the aging trend has driven growth in demand for senior nutrition, specialized nutrition, and medical nutrition products, and nutrition for all ages and personalized nutrition have also gradually become key areas of industry development.

Overall, despite challenges including market structure transformation, rising costs, and intensifying competition, the industry benefited from growing demand for a healthy lifestyle and maintained stable growth momentum through product upgrading, diversified deployment, and business model innovation. However, geopolitical risks, trade policy changes, and raw material price fluctuations continued to affect the supply chain and costs, posing a challenge to the gross profit structure. In the future, companies must continue to promote the development of high value-added products, strengthen sustainability and supply chain resilience, and expand into diversified markets to enhance brand value and long-term competitive advantages.

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

A. Upstream: agriculture, animal husbandry, food packaging materials industry, biotechnology raw materials, etc.
B. Midstream: R&D, food manufacturing, drink manufacturing, inspection, Processing, etc.
C. Downstream: transportation, storage, sales channels, platforms, etc.

Trends in the development of various products

A. With increasing health awareness and demographic shifts, nutritional and healthy foods have been evolving toward greater diversification and a focus on functionality, and demand for all-age nutritional products continues to grow. Products that combine nutrition, function, and convenience, have gradually become mainstream to meet the diverse usage scenarios of modern consumers.

B. Taiwan has already entered a super-aged society, and the demand for senior nutrition has increased significantly, including protein supplementation, muscle strength maintenance, joint and gut health, and other related areas. Products that are professional, easy to consume, and functional can better address the aging population's needs for healthy aging and a LOHAS lifestyle.

C. Data analytics and AI technology application are becoming key drivers of product innovation and upgrades. Personalized and precision nutrition products are gradually becoming a market trend, offering high value-added functional products that meet the needs of different consumer groups through research and development in advanced food technology.

D. Sustainable development has become core to business operations. Driven by regulatory requirements and stakeholder interest, companies are continuously advancing ESG management, steering product development and supply chain management toward environmental sustainability through carbon reduction, plastic reduction, green packaging, and sustainable procurement. This also strengthens the brand image and consumer trust.

Competitive situation

A. The scale of the domestic nutritional health food market is relatively limited, and brand competition focuses on product differentiation, precision segmentation, and sustainable development. With the increasingly aging population, senior nutrition and high value-added products have become the focus of competition. Amidst increasing product homogeneity, businesses must create market segments through functional upgrades, quality improvement, and brand management to increase consumer stickiness.

B. AI and digital technology have become key to industry competition. Through data analytics and digital tools, companies can improve operational efficiency, optimize cost structure, and accelerate market response, while strengthening precision marketing and product differentiation capabilities – all of which have become an important foundation for establishing long-term competitive advantage.

C. As market demand grows, the number of competitors continues to increase. In addition to established players and cross-industry enterprises, international and emerging brands are actively entering the market. Diversified distribution channels – including retail, e-commerce, social media, and direct selling – are developing rapidly, leading to increasingly fierce competition. Companies are required to continue investing in product innovation, brand value, and channel integration to enhance market visibility and operational advantages.

D. The uncertainty of geopolitical and international trade policies continues to affect the global supply chain, and fluctuations in raw material prices, exchange rates, and operating costs have intensified. In the future, companies must strengthen supply chain resilience, optimize cost management and diversify markets in order to improve risk response capability and long-term competitiveness.

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114

4.1.3 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

	2025	As of April 30, 2026
Amount	189,431	61,442

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:

A. Launch of new products

a Grain Drink, Energy Drink

Quaker Functional Drink: Launched the “Quaker Oil-Cutting & Fiber-Rich White Pomelo Lemon Drink,” highlighting its low-calorie benefits for weight management.

Oat Drink Series: Added OatYa protein oat milk, extra-rich almond drink and black sesame grain drink to satisfy the demand for high protein and a rich flavor.

b Dairy Beverages and Fermented Milk

Fresh Delight UHT Milk: Launched region-specific milk with an “animal welfare certification mark” and eco-friendly paper straws.

Freshly Stirred Series: Launched in collaboration with ‘ITSO TEA’ and ‘Presotea,’ featuring Buckwheat Latte, Peach-Flavored Milk Tea, and England Milk Tea.

Super Protein Series: Expanded to include strawberry flavored milk, sugar-free yogurt, and functional jelly (white grape/lactic acid flavors) to provide athletes with a diverse range of supplements.

Yogurt and Fruit Smoothies: Launched a berry yogurt drink and a “yogurt smoothie” series (mango, blueberry, etc.), enhancing the fruit pulp texture and the refreshing experience.

c Milk Powder and Children's Nutritional Supplements

Adult Milk Powder: Launched four new milk powder products – Quaker Complete Care Milk Powder, Double Health Effects Probiotic Milk Powder, Triple Protein High Calcium Milk Powder, and Whey & Glucosamine Milk Powder – focusing on daily care for mobility, intestinal health, and immune support in middle-aged and elderly consumers. The four new products focus on “mobility, intestinal health, and immune support.”

ProNutro Series: Featuring Extreme Care Children’s Milk Powder and Growth Goat Milk Powder, scientifically formulated to support toddlers’ potential development.

d Room temperature ready-to-eat food

Great Day: Launched “Scallop Congee with Chicken Essence” and the Costco exclusive “Garlic Chicken Soup with Clam Essence,” both focusing on pure nourishment and suitable for daily consumption and post-operative care.

Premium Dessert: Taro Coconut Soup with Oats and Snow Fungus Almond Soup with Oats were launched onto the market. Natural ingredients are used, adhering to the “three additive-free” principle to retain the original flavor and the rich, chewy texture of the raw materials.

e Baby Solid Food

Baby Noodle Series: Two flavors, tomato pork and scallop mushroom, have been introduced specifically for Taiwanese babies. The formula contains many natural food ingredients such as milk fish essence, sphingomyelin, and micronized protein. It integrates development, learning, and nutritional power to create triple core nutrition. The specially selected curved noodles, which are easy for babies to grasp, are paired with a thick, non-splash sauce to facilitate finger grasping and help babies explore the world.

f Functional Snack Series

Newly launched are three Quaker Daily Satisfaction Protein Granola products (Mixed Fruit, Berry Party, Cocoa Strawberry) and a Blueberry Cocoa Protein Cereal Bar, offering protein-fortified cereal breakfasts and snacks that combine taste, nutrition, and convenience.

g Cereal Series

Introduced Quaker All Nature 5 Grains Functional Series (High-Protein Black Sesame Soy Milk and Sleep Support High-Calcium Black Sesame & Quinoa), including Oat Protein Formula – Premium Dual Action (Platinum), High Protein High Fiber Thick Oats, Dual-Effect Health Oatmeal – Nut Milk, and High Fiber Multi-Grain Drink with Flaxseed & Nuts. We have introduced Quaker Instant Oat Soup – Shirasu & Kombu Flavor to satisfy the needs of different consumer groups.

h Edible Cooking Oil Series

The top-grade canola oil, certified to the highest CNS standard, contains 60% monounsaturated fatty acid and vitamin E. It is heat-resistant and trans-fat free.

i Health Supplement Series

Care for the whole family: Quaker launched four new products focused on beauty, immune regulation, bone health, and revitalization; the brand “Quaker tablets and capsule” Series focuses on calmness and vitality with high-efficacy capsule products.

j Complete Nutrition Food Series

Launched new Quaker Complete Nutrition products: the ‘Comprehensive Health Support’ High Protein & Bright Eyes formula; the ‘Carbohydrate Metabolism’ Bright Eyes & 100 Chromium formula; and the Optimal Protein formula, which combines HMB and high-quality protein to promote balanced muscle growth and provide comprehensive support for muscle repair.

Launched a new elderly-friendly product designed specifically for individuals with chewing difficulties. This care soft meal conforms to low-sodium, low-sugar, and high-protein requirements and has received “easy to chew” and “tongue crush” senior-friendly food certification.

Two Side Dishes: Basil tomato pork and garlic pepper chicken, with their original textures preserved through refined techniques. The garlic pepper chicken dish also received the Nutrition Friendly Award.

Two Risotto Main Courses: taro-scented pork and sesame oil chicken – also won the Silver-Friendly Food Commercial Potential Award.

B. Upgrading of products

a Dairy Beverages and Fermented Milk

Super Protein Series: The four existing flavors (milk tea, cocoa, coffee, and hazelnut cocoa) have been enhanced with the addition of the patented Japanese amino acid Amino L40 to strengthen sports nutrition.

Fermented Oat Milk: Five flavors have been upgraded, including no added sugar, strawberry, and blueberry. The health benefits of probiotics and oats are further enhanced.

Q-Fruit Yogurt: 3 flavors – mango peach among them – have been enhanced with real fruit pieces and served with konjac jelly balls for a multi-layered chewy texture.

b Milk Powder and Children's Nutritional Supplements

High-Calcium Milk Powder for Smooth Digestion: Upgraded dual fiber formula with chicory fiber content increased by 4 times, simultaneously promoting bowel regularity and bone health.

Quaker High Grow Ready-to-Drink: The honey flavor has been upgraded to improve palatability, and algal oil DHA and CPP are added to optimize nutrient

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absorption and learning development.

c Baby Solid Food

Quaker ProNutro Minzhi / Miner Baby Cereal: Formulated with exclusive HA triple-effect hydrolysis technology to make the texture more digestible, easily absorbed, and non-irritating, addressing parents' concerns about sensitivity and absorption.

d Cereal Series

Upgraded Fruity Berry Cereal Shake: Selected acerola cherry, blackcurrant, and other berry ingredients are paired with milk and oatmeal to create a rich and thick smoothie texture that can be served cold, warm, or hot. This drink supplements vitamin C and dietary fiber.

e Health Supplement Series

TDHB Collagen Beauty Drink: Newly added patented glutathione to enhance antioxidant capacity and beauty protection.

"Quaker tablets and capsule" Key Triple-Effect Tablets: Building on a foundation of hyaluronic acid and calcium-regulating compounds, UC-II® is added to comprehensively upgrade care for key areas.

f Complete Nutrition Food Series

Upgraded Resveratrol Formula: It contains triple multi-protein and increased levels of magnesium and vitamins B1 and B6, helping support normal energy metabolism as well as heart and muscle function.

C. Process improvement

a Grain Drink, Energy Drink

OatYa Oat Drink has enhanced its sterilization value by adjusting the sterilization flow rate, effectively improving product microbiological safety while ensuring process stability and consistent product quality.

b Dairy Beverages and Fermented Milk

Extension and optimization of the shelf life of UHT milk.

c Room temperature ready-to-eat food

For raw materials with stable specific gravity, assess replacing weighed dispensing with fixed volume dispensing to greatly improve production efficiency and reduce labor burden.

D. Quality improvement

a Health Supplement Series

The Quaker Joint & Muscle Power-Up Jelly won the 2025 TIFST Innovative Product Evaluation and Award – Innovative Product Concept Award – Gold Medal.

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:

a Research and development of functional products.

b Study of flavor enhancement and flavor extension and development.

c Research and development of new types of packaging.

d Research on Nutritional and Formulation Upgrades of Existing Products.

e Discussion and research of innovative technology.

f Establishment and application of analysis method.

g ESG Packaging R&D : Research on Packaging Lightweighting, Plastic Reduction, and Material Simplification.

h Research and application of eco-friendly packing materials.

i Upgrading and replacement of machinery and equipment.

j Upgrading and application of digital technology.

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4.1.4 Long-term and Short-term Business Development Plans

Long-term Business Development Plans

A. Deepen brand-building and product value: centered around “nutrition for all ages,” in combination with scientific evidence and product innovation, developing high value-added functional and medical nutrition products, continuing to enhance brand influence and consumer trust, and practicing the concept that “Everyone has the right to nutritious and healthy product.”

B. Promote sustainable operations and value chain upgrading: Incorporating ESG into operational decision-making, strengthening food safety, responsible sourcing, energy saving and carbon reduction, and green packaging materials to build a resilient and transparent sustainable food value chain.

C. Strengthening organizational and talent competitiveness: Combining corporate culture and digital capabilities to promote cross-domain talent development and organizational upgrading, building an agile and innovative team to support long-term growth.

D. Deepen international expansion and growth momentum: Expand into overseas markets such as Southeast Asia, promote localization strategies and channel expansion, and combine brand, data, and supply chain advantages to gradually establish a regional health and nutrition ecosystem.

Short-term Business Development Plans

A. Focus on product upgrading and differentiation: Strengthening food safety and R&D innovation, promoting high-margin products and functional foods development, optimizing product portfolios, and improving profit quality.

B. Strengthen brand and channel efficiency: We leverage the advantages of our diversified product portfolio to promote cross-category integrated marketing, deepen strategic partnerships, implement an omnichannel strategy, and increase brand premium and market penetration.

C. Improve operational efficiency and digital capabilities: Continuing to promote digital transformation, strengthen data application and operational decision-making capabilities, and improve organizational efficiency and market response speed.

D. Optimize supply chain and risk management: Strengthening supply chain resilience and cost control capabilities, and improving production and logistics efficiency to respond to raw material fluctuations and external environmental uncertainties.

4.2 Overview of Marketing and Production & Sales

4.2.1 Market Analysis

Sales areas of major commodities: mainly in China and Taiwan.
Market condition of major products:
Funtionality Food
Healthcare product

In the overall healthcare market, drink sales have been relatively flat in recent years, while capsule and tablet dosage forms have continued to rise. Standard Foods focuses on the health and wellness Market and has expanded into capsules and tablets, which has not only driven sales growth but also facilitated expansion into online and professional channels. The Company led the market by launching an innovative health product format – Quaker Joint & Muscle Power-Up Jelly, which has received the Gold Medal for Innovative Product Concept from the Annual Meeting of Taiwan Association for Food Science and Technology. Recently, Quaker Dual-Action Ganoderma has received the 2026 Brain Health Innovation Product Award, recognizing its blend of innovation and efficacy and its alignment with consumer needs.

(1) Market share

As the leading health beverages brand in the market, the Company has consistently maintained the top market share and continues to launch products that meet evolving consumer needs across the general health, functional health, and beauty and wellness categories with its comprehensive product line. The Company has also driven industry innovation, fueling growth.

(2) Future market demand & supply status and growth

Taiwan is moving toward a super-aged society. Our mission is to focus on promoting physical health among the active aging population, enabling a high quality of life, while aligning with the Health Promotion Administration (HPA)'s preventive healthcare policies and chronic disease management initiatives aimed at reducing unhealthy life expectancy. 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 continues to place great emphasis on 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.

(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 20 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 Quaker Joint & Muscle Formula, 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 capable of addressing varying levels of individual health needs, from daily wellness care to advanced health maintenance. In December 2023, the Company launched a new brand—“Quaker Tablets and Capsule”. The formulation was developed by the “Standard Foods International Health Science R&D Center,” which has over 40 years of local expertise in nutrition and health science, and has received professional recommendations from numerous healthcare professionals.

After launching two healthcare products for mobility in November 2023, Quaker tablets and capsule has continued to deepen its professional nutrition positioning and actively expand its diverse range of functional products. Quaker tablets and capsule has gradually built a comprehensive product layout encompassing mobility, gut regulation, immune protection, and cardiovascular care.

Launched in November 2024, "Sensitive Care Probiotics" features six internationally patented probiotics and patented colostrum immunoglobulin to provide comprehensive nutritional support for sensitive constitution adjustment and protection enhancement. Since its launch, the product has received high praise from

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consumers based on their practical experience, successfully expanding the brand's visibility in the functional probiotics market.

In December of the same year, the Company launched the “Premium Wild Fish Oil,” made from wild cod sourced from the pristine waters of Alaska. The oil is cold-pressed and extracted within two hours of harvest and is certified by the Marine Stewardship Council (MSC) for sustainable fisheries. Formulated with a scientifically validated optimal composition, the product supports cardiovascular health needs. Since its launch, it has effectively attracted new customers seeking high-quality nutritional supplements.

In 2025, Quaker tablets and capsule extended its existing mobile product line with the launch of the “Key 3-Effect Tablets” and “B Complex Ginseng Capsules.” The former addressed core mobility needs with a multi-functional integrated formula. The latter combined vitamin B complex and ginseng ingredients to meet the daily health needs of modern consumers for physical replenishment and mental regulation, further strengthening the brand's depth and breadth in the areas of mobility and vitality supplementation.

By continuously introducing key raw materials with scientific evidence and international patents, Quaker tablets and capsule has gradually established a product portfolio based on the core values of “professionalism, effectiveness, and reliability,” and has laid a solid foundation for future product line expansion and channel deepening.

Adult milk powder

(1) Market share

Standard Foods continues to lead the adult low-fat milk powder market with its functional products, offering a wide range of options including dual-action probiotic milk powder, glucosamine milk powder, collagen milk powder, products supporting sleep quality and skin radiance, and products supporting digestive regularity. Recently, in response to evolving consumer nutritional needs, the Company has developed whey & glucosamine milk powder, triple protein milk powder, and complete care milk powder, among other products. Products for the whole family, including rich full-cream milk powder and family milk powder, have accelerated the expansion of the full-cream milk powder market and continued to expand market share in the milk powder segment.

(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 and nutritional composition. 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

Standard Foods has best-selling products across its different milk powder product lines. There is the first Quaker Double Heath Effects Probiotic High-Calcium milk powder in Taiwan with dual national health food certification for people over 50 years old. In terms of mobility, in addition to Quaker Glucosamine Milk Powder, the Company has also launched Quaker Whey & Glucosamine Milk Powder and Triple Protein Milk Powder to meet the market demand. In response to the needs of women, the Quaker Collagen Milk Powder and Sleep-aid, which has received strong support from consumers. A product for families, Concentrated Whole Milk Powder

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meets the whole family’s needs for calcium and nutrition. 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 2025, within the diabetes product series, the Company launched a new diabetes stability formula featuring the lowest carbohydrate ratio on the market, providing a more suitable professional nutritional supplementation option for individuals with diabetes who require strict condition management.

(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.

(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. In addition to specialized adult nutritional products, Standard Foods’ R&D team responded to the needs of an aging society by developing a nutritional soft meal with a balanced ratio of macronutrients in 2025. They designed different textures – easy to chew and suitable for tongue crushing – to accommodate varying dentition. Recognizing the common chronic diseases and dietary restrictions among the elderly, the team carefully formulated a low-sodium soft nutritional meal with a phosphorus and potassium ratio tailored for their health needs. This allows elderly caregivers to prepare meals easily, and ensures seniors can enjoy healthy, convenient meals.

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

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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 continues to expand into categories that align with its brand extension strategy. In 2025, the Company launched its first goat milk-based formula designed to address allergy-related needs for infants and young children. Using milk sourced from New Zealand and formulated with key concentrations of HMO and multiple essential nutrients, the product offers parents an additional professional nutritional option.

In response to the change in the use of complementary foods, the Company upholds its brand commitment to additive-free and safe products. In addition to the polished wheat and rice cereals, which rank first in market share, and baby porridge, which rank second, the Company has launched nutritionally balanced baby noodles developed by professional nutritionists for infants aged 10 months and above. These products are designed to support the development of infants' grasping and swallowing abilities during key growth stages. This enables parents to care for their children more efficiently while providing a wider variety of nutritious products for infants. Every bite can be entrusted to Quaker with confidence.

Commodity Food

Grains

(1) Market share

The Company's cereal products include instant oatmeal, bagged and canned cereal, 3-in-1 Oatmeal, breakfast cereal, cereal rice, and oatmeal beverages. The Company adheres to high-standard and high-quality production processes, and has won many health food certifications. With a commitment to "delicious, nutritious, and healthy" products, the Company has long been the market leader in Taiwan's grain sector and remains a nationally trusted brand.

(2) Future market demand & supply status and growth

Taiwan's oat market has been steadily developing. With insufficient dietary fiber intake common among the population and growing health management awareness, whole grain and high-fiber cereal products have a solid foundation for long-term growth. Meanwhile, growing consumer focus on balanced carbohydrate and protein intake has driven demand for improved nutritional profiles. With a focus on whole grains, the Company has combined protein fortification and a diversified product portfolio strategy to expand usage occasions, solidify its market leadership position, and strengthen mid- and long-term growth momentum.

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

Domestic consumers' increasing emphasis on balanced diets and overall health management has driven rapid expansion in the high-protein food market, while also intensifying product homogenization and price competition risk. The Company capitalized on two major trends – “everyday nutrition upgrade” and “functional demand segmentation” – and in 2025, leveraging grain nutrition as its core technological foundation, built a product portfolio designed for diverse contexts and demographics.

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Amid the growing trend toward natural diets and functional food positioning, the Company launched new all-natural five-grains functional products, further strengthening market penetration and enhancing its product value proposition. To address the needs of sports nutrition and efficient protein supplementation, a new high-protein instant oat cereal powder combining oat protein with diverse plant proteins has successfully expanded consumption occasions and timing for protein intake. Meanwhile, in response to younger consumers' emphasis on convenience and taste experience, the "Daily Protein Cereal Crisp" was introduced to the ready-to-eat cereal market, optimizing the consumer age profile and broadening the target consumer base.

Through the above product strategies, we established a differentiated development model centered on "whole grain-based x diversified functional extension" applications, creating higher product technology barriers and a strong brand professional positioning. This continued to strengthen our brand image as "grain nutrition experts," and we maintained our market leadership position through a systematic product matrix and category upgrade strategy, expanding long-term growth momentum.

Edible oils

(1) Market share

Rooted in Taiwan, the "Great Day" brand has long been committed to promoting healthy eating for Taiwanese households. It consistently provides a full range of high-quality, nutritious edible oils for everyday cooking, including sunflower oil, olive oil, canola oil, and health-certified Five Treasures blended oil. In response to the diverse cooking needs of young families, the recently launched rice bran oil and avocado oil products have achieved rapid growth, further strengthening the leading position of the "Great Day" household edible oil brand, which continues to rank first in both penetration rate and market share.

(2) Future market demand & supply status and growth

Consumers are increasingly focused on healthy eating, driving a greater desire to cook at home and prioritize both the quality and health benefits of their meals. As Taiwanese families evolve, the nutritional health needs and cooking styles of their members have become more diverse, driving increased use of a variety of oils. This trend has led people to pair different oils with various cooking methods to achieve a balanced intake of fatty acid compositions. In the future, the overall market is expected to place greater emphasis on pure, high-quality products and the premiumization of edible oils. A diverse range of cooking oils that support healthy diets, together with trusted and reliable brands, will continue to be favored by consumers.

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

Standard Foods Group is committed to providing consumers with assurance in safety, hygiene, and quality. From raw materials to production, the "Great Day" brand oils implement strict quality control standards. Many of its products have obtained SQF Food Safety and Quality Standard certification, Clean Label certification, and Monde Selection awards, meeting consumer demand for high-quality, safe, and nutritious edible oils.

Faced with global fluctuations in raw material supply, demand, and pricing, we have continued to invest in innovative research and development and maintain our commitment to purity and high quality. We are focused on understanding evolving Taiwanese family lifestyles, expanding our reach to younger families, and meeting

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consumer needs for healthy cooking by offering a wider selection of higher-quality edible oils.

Refrigerated Food (FreshDelight)

(1) Market share

With years of market development, the FreshDelight brand has achieved a household penetration rate of nearly 70% in Taiwan, reaching close to 6 million households and generating 43 million consumer touchpoints. FreshDelight Dairy Products offers a diverse range of high-quality dairy options to meet the nutritional needs of the whole family with a focus on health and wellness. FreshDelight yogurt has achieved the No.1 market share in its category, and functional milk from FreshDelight has consistently held a leading position in the market.

(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 by leveraging the quality advantages of localized production and operations, thereby increasing consumers' recognition of local brands. (2) Functional milk: Continuously introducing functionally enhanced milk products tailored to the needs of different consumer segments, expanding channel penetration, and effectively attracting younger users. (3) Both purchase frequency and purchase unit price have continued to increase. Among flavored yogurt products, FreshDelight remains the market leader, and in the two major categories of Greek yogurt and fresh milk yogurt, FreshDelight also achieved strong results in 2025. FreshDelight's overall performance exceeded market averages, and the brand widened its market share gap with competitors.

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

FreshDelight fresh milk, functional milk, flavored milk drinks, yogurt drinks and yogurt products: Through the most advanced food technology, we preserve the richest nutritional value and carefully safeguard the health of the whole family.

Fresh milk: Milk sources are strictly managed to ensure that there are no quality and safety concerns in each process. Fresh Delight Fresh 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, with Fresh Delight Fresh Milk in particular earning the prestigious iTQi Three-Star Award for four consecutive years, demonstrating that its quality and flavor are widely recognized.

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.

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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, and actively deepen media communication effectiveness and enhances the value of the yogurt category.

Cheese: Leveraging the brand image of “Q Guozi,” the Company entered the frozen desserts category by introducing products featuring rich fruit flavors and textures. The products, based on yogurt and topped with a cheese foam layer, were launched through retail channels for home consumption and convenience stores to meet the needs of younger consumers, thereby creating product differentiation and enhancing brand value.

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 is transforming from traditional consumer electronics manufacturing into a key supplier of AI and high-performance computing infrastructure. The industry is characterized by increasing technological complexity, alongside a clear trend toward ODM business models. Several 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.

4.2.2 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 → slicing → rolling → cooling → screening → 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

4.2.3 Supply situation for the major raw materials

Major Raw Materials	Supply Situation
Oat	Imported from Australia
Sunflower oil, canola oil, and other edible crude 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

4.2.4 Name, and Purchase (Sales) Amount and Percentage of Customers with 10% or More of Total Purchases (Sales) in Any Given Year Within the Most Recent Two Years, and an explanation for any fluctuations. :

Information on major suppliers in the past two years
Unit: NT$1,000

	2024				2025				As of March 31, 2026 (Note 2)
Item	Name	Amount	Annual net purchase (%)	Relationship with the Issuer	Name	Amount	Annual net purchase (%)	Relationship with the Issuer	Name	Amount	Net purchases as of the previous quarter (%)	Relationship with the Issuer
1					Company B (Note 1)	2,237,894	12.0		Company B (Note 1)	587,141	14.1
2					Company C (Note 1)	2,029,126	10.9
3	Others	19,260,780	100.0		Others	14,399,242	77.1		Others	3,586,926	85.9
	Net purchase	19,260,780	100.0		Net purchase	18,666,262	100.0		Net purchase	4,174,067	100.0

Note 1: A list of 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.

Information on major customers in the past two years
Unit: NT$1,000

	2024				2025				As of March 31, 2026 (Note 2)
Item	Name	Amount	Annual net sales (%)	Relationship with the Issuer	Name	Amount	Annual net sales (%)	Relationship with the Issuer	Name	Amount	Net sales as of the previous quarter (%)	Relationship with the Issuer
1	Company A (Note 1)	4,239,437	14.6		Company A (Note 1)	4,347,346	15.6		Company A (Note 1)	1,182,627	15.2
2	Others	24,734,255	85.4		Others	23,524,857	84.4		Others	6,587,819	84.8
	Net sales	28,973,692	100.0		Net sales	27,872,203	100.0		Net sales	7,770,446	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.

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4.3 Information of employees in the Past 2 Years and up to the Report Printing Date

April 30, 2026

Year		2024	2025	As of April 30, 2026
Number of Employees	Employees	1,967	1,952	1,936
	Employees	943	933	928
	Total	2,910	2,885	2,864
Average Age		39.56	39.61	39.84
Average Service Year		8.29	8.58	8.72
Academic distribution ratio	PhD	0.34%	0.42%	0.38%
	Master	9.00%	9.53%	9.43%
	Bachelor	57.90%	58.61%	59.08%
	High school	24.44%	23.92%	23.74%
	Below high school	8.32%	7.52%	7.37%

Note: Including foreign workers

4.4 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 2025 and up to the date of publication of the annual report, unusual environmental penalty cases of Standard Foods:

Dayuan Plant: In 2025, all environmental protection regulations were complied with, and there were no violations or penalties.
Zhongli Plant: In 2025, all environmental protection regulations were complied with, and there were no violations or penalties.
Hukou Plant: In 2025, all environmental protection regulations were complied with, and there were no violations or penalties.

(II) Environmental protection equipment expenditure

Dayuan Plant:

(1) In 2025, the 30HP well water pumps at the water purification plant were upgraded from soft starters to variable frequency drives (VFDs), resulting in annual electricity savings of 42.83 MWh.
(2) Waste was sorted and recycled, reducing incineration by 5.5 tons in 2025.

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Zhongli Plant :

(1) In 2025, the wastewater treatment plant site was redesigned to increase partitions and optimize the sludge storage location, reducing the impact of external odors. There were no public complaints in 2025, and the engineering expenses amounted to NT$2.04 million.

(2) Replacing the fixed-speed air compressor reduced the specific power from 7.6 kW/m3min to 5.93 kW/m3min. The engineering expenses for the project were NT$3.36 million.

Hukou Plant :

(1) In August 2025, the blower was replaced with an air suspension motor to increase wastewater aeration volume, at a cost of NT$2.65 million.

(2) The replacement of the chiller, cooling tower, auxiliary water pumps and motors, freezing units, and ancillary equipment was completed in January 2026. An energy-saving system with variable frequency drives (VFDs) was also installed. Following the energy-saving performance guarantee measurements, annual electricity savings reached 1,099.4 MWh. The total project cost amounted to NT$35.6 million.

(3) In 2026, pyroligneous acid spraying equipment was installed to reduce odor generation, with a total cost of NT$11,000.

(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	2026	2027	2028
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$23,455	NT$23,455	NT$23,455

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

Year	2026	2027	2028
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$16,071	NT$16,100	NT$16,100

Unit: NT$1,000

(3) Hukou plant

Year	2026	2027	2028
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$16,481	NT$15,996	NT$15,996

4.5 Labor Relations

4.5.1 Existing Major Labor Relations and implementation

Employee Benefits.

The Company's benefit items are as follows:

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

(2) In addition to labor insurance and health insurance as required by laws and regulations, the Company also provides comprehensive group insurance coverage (including spouse and children). The Company pays for these insurances in full amount.

(3) Pension contribution

(4) Exclusive benefits: Company product gifts are provided for the Spring Festival, Labor Day, Dragon Boat Festival, and Mid-Autumn Festival; monthly employee discounts on company products; baby product gifts for new parents; an annual spring banquet; an employee canteen; free parking for factory employees; and priority parking spaces for pregnant employees.

(5) Welfare Committee: Congratulatory and condolence allowances for major life events, birthday and holiday gifts, employee trips, and employee club activities, etc.

(6) Flexible benefits: Headquarters has adopted a flexible working hours system.

(7) Standard Foods e-learning map (new hire program, professional development program, competency development program)

(8) Employee lectures on a variety of topics

(9) Regular employee health screenings

(10) On-site health consultations with medical personnel

(11) Employee health promotion activities

(12) Volunteer leave is provided for volunteer 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

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

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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.

3. Educational training

The Company continues to promote employee training and development, planning relevant courses based on different ranks and job requirements, and providing all employees with diverse learning opportunities to enhance their professional abilities and strengthen organizational competitiveness, ultimately building a learning organization. The Company's current employee education and training programs are as follows:

New hire training: Assist new hires in understanding the company profile, corporate culture, and rules and regulations to accelerate their integration into the organization.
Professional skills training: Courses are planned based on the needs of each department to develop job-specific skills and practical experience.
Management capability development: cultivating leadership and management skills among supervisors and enhancing organizational management effectiveness.
General education training: Cultivate employees' cross-disciplinary knowledge and broadly applicable workplace skills, including courses related to sustainable development, to enhance overall work performance.
Legal compliance training: Courses related to food safety, occupational safety, information security, and corporate governance are provided to strengthen employees' legal compliance and risk awareness.
Digital learning courses: Standard Foods Academy's online learning platform provides a variety of course resources to encourage employees to engage in self-directed learning and continuously improve their professional skills.

The implementation results of education and training for 2025 are as follows :

Year	Training Hours	Number of Participants	Total Training Expenses
2025	30,317.8	15,395	NT$15,247 thousand

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.

To continue promoting occupational safety and health, the factories regularly identify hazards in the working environment. They improve and refine measures for unacceptable risks or opportunities to enhance occupational safety and health performance and track the resulting improvements.

To assess the requirements and expectations of workers and other stakeholders related to factory operations, the Company regularly identifies internal and external issues and compliance obligations according to the "Risk and Opportunity Management Process,"

and takes effective risk control and internal and external communication measures accordingly.

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 and 2025, six additional business offices across Taiwan were added to the inventory scope. Beyond Scopes 1 and 2, Scope 3 inventory items continued to be refined. According to plan, the China Productivity Center and Deloitte Taiwan conducted inspections of the headquarters, six business offices, and three factories, and obtained GHG verification (assurance) statements for 2023 and 2024, respectively, as scheduled.

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.

(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.

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.

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(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.

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; the Company also regularly holds labor-management consultation meetings with its labor union; 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.

4.5.2 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 2025, a total of six dispatching companies were inspected. No violation of labor laws

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and regulations was found.

4.5.3 List any losses incurred by the Company in the latest year and up to the publication date of the annual report due to labor disputes (including any violations of the Labor Standards Act found in labor inspection), specifying the disposition dates, disposition reference numbers, violated legal provisions, details of the violation, details of the disposition, and disclose the estimate current and potential future financial impacts along with corresponding response measures. If the amounts cannot be reasonably estimated, the Company shall explain the facts and reasons why such estimates cannot be reasonably made.

The Company was fined by the competent authority in the most recent year for labor law compliance matters. The total fine amounted to NT$410,000. The Company has since addressed the identified deficiencies and strengthened internal management, education, and training to mitigate the risk of recurrence.
In the most recent year and up to the annual report publication date, incidents occurred due to violations of the Labor Standards Act and occupational safety and health regulations – details of the incidents and the improvement measures taken are as follows:

Disposition Date	Disposition Reference No.	Violated Legal Provisions	Details of the Violation	Details of the Disposition
2025/01/09	Taipei City Labor Department Ref. No. 11361244511	Paragraph 1, Article 3 of the Occupational Safety and Health Management Regulations and Paragraph 1, Article 23 of the Occupational Safety and Health Act.	Pursuant to the Occupational Safety and Health Management Regulations, the Company’s business is classified as Category 1; however, the Company has not established the required number of occupational safety and health personnel.	Fine of NT$50,000
Response Measures
In April 2025, the Company hired one Class A occupational health and safety management specialist.
2025/02/03*	Labor Department Official Letter Ref. No. 1140250270	Paragraph 5, Article 58 of the Occupational Safety and Health Facility Regulations and Paragraph 1, Article 6 of the Occupational Safety and Health Act.	Equipment without a guard, enclosure, or interlocking safety door: hazardous parts of computer numerical control or other automated machinery	Fine of NT$60,000
Response Measures
• Safety improvements and the introduction of interlocking functions for non-compliant equipment were completed, and all similar equipment throughout the plant was inventoried simultaneously.
• Equipment risk assessment has been incorporated into the source management process prior to procurement and installation.
• Enhance education and training, improve on-site communication, and conduct regular audits to raise employee safety awareness.
• Continue to strengthen the occupational safety governance framework and regularly report implementation status to the Safety Committee and management.
2025/07/10*	Labor-Management Relations Official Letter Ref. No. 1143933962	Paragraph 2, Article 32 of the Labor Standards Act	Working hours exceeded the statutory limit	Fine of NT$50,000

Disposition Date	Disposition Reference No.	Violated Legal Provisions	Details of the Violation	Details of the Disposition
	(2025)
Response Measures
Continue to recruit production line personnel and expand outsourcing and subcontracting arrangements for back-end packaging operations to alleviate manpower pressure and avoid excessive overtime.
2025/07/21	Labor Inspection Official Letter Ref. No. 1140203336 (2025)	Paragraph 1, Article 24 of the Labor Standards Act	Overtime pay was not provided as required for extended working hours.	Fine of NT$50,000
Response Measures
In accordance with individual employment contracts, year-end and mid-year bonuses for eligible employees have been treated as wages and included in the basis for overtime calculation, ensuring compliance with relevant labor laws and regulations.
2025/07/21	Labor Inspection Official Letter Ref. No. 11402033361 (2025)	Paragraph 2, Article 32 of the Labor Standards Act	Working hours exceeded the statutory limit	Fine of NT$50,000
Response Measures
Continue to recruit production line personnel and expand outsourcing and subcontracting arrangements for back-end packaging operations to alleviate manpower pressure and avoid excessive overtime.
2025/08/18	Taipei City Labor Affairs Official Letter Ref. No. 11460130451	Paragraph 2, Article 32 of the Labor Standards Act	Working hours exceeded the statutory limit	Fine of NT$50,000
Response Measures
Continue to recruit production line personnel and expand outsourcing and subcontracting arrangements for back-end packaging operations to alleviate manpower pressure and avoid excessive overtime.
2026/03/04	Taoyuan City Government Labor Standards Official Letter Ref. No. 1150048284	Paragraph 2, Article 32 of the Labor Standards Act	Working hours exceeded the statutory limit	Fine of NT$100,000
Response Measures
Continue to recruit production line personnel and expand outsourcing and subcontracting arrangements for back-end packaging operations to alleviate manpower pressure and avoid excessive overtime.
2026/03/05	Taipei City Labor Affairs Official Letter Ref. No. 11560045491	Paragraph 2, Article 22 of the Labor Standards Act	Wages were not paid in full	Fine of NT$20,000
Response Measures
The shortfall was covered the month after new hires joined the Company.

Refers to the subsidiary, Standard Dairy Products Taiwan Limited.
With respect to the assessment of potential future losses, the Company will continue to enhance its labor-management communication mechanisms and regulatory compliance management, and does not expect any material labor disputes or significant resulting losses.

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4.6 Cybersecurity management

4.6.1 Cybersecurity Risk Management Framework, Cybersecurity Policy, Concrete Management Program, Resource Investment in Cybersecurity Management:

Cybersecurity Risk Management Framework

The Company continuously improves the information security governance structure and holds a quarterly information security governance meeting once per quarter. The chairman of the Information Security Team 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 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

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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 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 Privileged Access Management (One Identity), endpoint detection and response (crowdstrike), and Akamai Edge DNS Enterprise Threat Protector App & API Protector (AAP).
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.

4.6.2 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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4.7 Major Agreements

April 30, 2026

Type of Contract	Party	Contract Duration
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	2024.10.23-2025.10.22
(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.

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

5.1 Financial Position

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

Item\Date	December 31, 2024	December 31, 2025	Difference
			Amount	%
Current assets	19,414,090	17,127,067	(2,287,023)	-11.78
Property, plant and equipment	4,096,900	4,986,993	890,093	21.73
Intangible assets	151,369	181,348	29,979	19.81
Iassets	3,767,292	5,388,454	1,621,162	43.03
Total asset value	27,429,651	27,683,862	254,211	0.93
Current liabilities	8,277,273	8,399,246	121,973	1.47
Non-current liabilities	425,878	428,302	2,424	0.57
Total liabilities	8,703,151	8,827,548	124,397	1.43
Equity attributable to owners of parent company	18,412,497	18,558,047	145,550	0.79
Share capital	9,150,897	9,150,897	0	-
Capital surplus	173,922	183,259	9,337	5.37
Retained earnings	9,106,578	9,045,696	(60,882)	-0.67
Other equity	2,282	199,377	197,095	8636.94
Treasury stock	(21,182)	(21,182)	0	-
Non-controlling Interests	314,003	298,267	(15,736)	-5.01
Total equity	18,726,500	18,856,314	129,814	0.69
Description: (1) The increase in “Other equity” in 2025 was primarily a result of an increase in unrealized gains on financial assets measured at fair value through other comprehensive income compared to the same period last year.

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5.2 Financial Performance

5.2.1 Comparative Analysis of Operational Performance

Unit: NT$1,000

Item	2024	2025	Increase (decrease) in amounts	Increase (Decrease)
Operating revenue	28,973,692	27,872,203	(1,101,489)	-3.80
Gross profit	7,158,485	6,859,207	(299,278)	-4.18
Operating profit (loss)	1,910,589	1,315,245	(595,344)	-31.16
Non-operating revenue and expenses	381,019	277,103	(103,916)	-27.27
Profit before income tax	2,291,608	1,592,348	(699,260)	-30.51
Income tax expenses	489,512	359,212	(130,300)	-26.62
Net income from continuing operations	1,802,096	1,233,136	(568,960)	-31.57
Loss from discontinued operations	-	-	-	-
Profit for the period	1,802,096	1,233,136	(568,960)	-31.57
Other comprehensive income for the period (after tax)	437,073	207,714	(229,359)	-52.48
Total comprehensive income for the period	2,239,169	1,440,850	(798,319)	-35.65
Analysis of the proportion of increase and decrease:
(1) The decrease in “Non-operating income and expense” in 2025 was due to the increase in net foreign exchange loss compared to the same period last year.
(2) The decrease in “Other comprehensive income for the period” in 2025 was due to the decrease in exchange differences arising from the translation of financial statements of foreign operations compared to the same period last year.

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

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5.3 Cash Flows

5.3.1 Analysis of cash flow changes in the previous year

Unit: NT$1,000

Beginning Cash Balance (1)	Net Cash Flow from Operating Activities for the Year(2)	Other cash Outflows for the year (3) (Note)	Cash Surplus (Deficit) Amount (1)+(2)-(3)	Remedial Measures for Cash Shortage
				Investment plan	Financial plan
3,126,724	2,603,059	3,053,084	2,676,699	N/A	N/A

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

(1) Operating activities: Net cash inflow for the period amounted to NT$2,603,059 thousand, primarily due to operating profits.
(2) Investment activities: Net cash outflow for the period amounted to NT$1,902,431 thousand, primarily due to the acquisition of property, plant and equipment.
(3) Financing activities: Net cash outflow for the period amounted to NT$1,113,347 thousand, primarily due to the payment of cash dividends.

5.3.2 Improvement Plan of Liquidity Shortage and Analysis of the Liquidity

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

| Year
Item | 2024
(2) | 2025
(2) | Percentage of increase
(decrease)
(2)-(1)/(1) |
| --- | --- | --- | --- |
| Cash flow ratio | 47.61 | 30.99 | -34.91% |
| Cash flow adequacy ratio (%) | 109.85 | 125.80 | 14.52% |
| Cash reinvestment ratio (%) | 11.82 | 5.41 | -54.23% |
| Analysis of the proportion of increase and decrease:
(1) Cash flow ratio: The cash flow ratio decreased in 2025, primarily due to a decrease in net cash inflows from operating activities.
(2) Cash reinvestment ratio: The cash reinvestment ratio decreased in 2025, primarily due to a decrease in net cash inflows from operating activities. | | | |

5.3.3 Cash Liquidity Analysis for the Following Year

Unit: NT$1,000

Beginning Cash Balance (1)	Net Cash Flow from Operating Activities for the Year(2)	Other cash Outflows for the year (3) (Note)	Cash Surplus (Deficit) Amount (1)+(2)-(3)	Remedial Measures for Cash Shortage
				Investment plan	Financial plan
2,676,699	2,268,635	1,300,179	3,645,155	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.

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

5.4.1 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
				2025	2026	2027
Purchase of machinery, transportation and office equipment as well as computer software, renovation of houses and buildings, and land use rights	Own funds	2026	1,925,306	880,115	1,032,191	13,000

5.4.2 Expected benefits: The expansion and optimization of production lines, construction of plant facilities and automated warehousing systems, and replacement of outdated equipment are expected to drive revenue growth, improve operational efficiency, and strengthen long-term competitiveness.

5.5 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

Remark Item	Amount of Profit (Loss) in 2025	Policy	Main reasons for profit or loss	Improvement plan	Investment plan for the following year
Shanghai Standard Foods Co., Ltd	38,675	It mainly operates the sales business of Standard Foods in China and the manufacturing base of edible oils.	Intense market competition, a clear trend of consumer downtrading, and high edible oil costs have put pressure on profitability.	Continuously improve the capacity utilization rate of the Inner Mongolia plant.	The Inner Mongolia plant has added a strong-aroma product line to enhance the gross margin of its strong-aroma product series.
Standard Dairy Products Taiwan Ltd.	330,370	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.	50,083	The main plan is Standard Foods Group's investment and sales center in China to expand domestic demand in mainland China and create profits.	Intense market competition and rising costs of various oils, including sunflower oil, have exerted pressure on profitability.	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.	266,735	It is mainly planned to be a production base for edible oils and nutritional foods.	Profitability has been under pressure due to rising costs of various oils, including sunflower oil; however, efforts to upgrade	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.

Remark Item	Amount of Profit (Loss) in 2025	Policy	Main reasons for profit or loss	Improvement plan	Investment plan for the following year
			product categories and develop new types of oils have helped stabilize overall profitability.
Standard Foods (Xiamen) Co., Ltd.	135,252	It is mainly planned to be a production base for edible oils and nutritional foods.	Profitability has been under pressure due to rising costs of various oils, including sunflower oil.	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.	Rooftop photovoltaic projects to enhance environmental and energy-saving benefits.
Dermalab S.A.	(32,340)	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.

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

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

Interest rate

Looking back at 2025, the Central Bank maintained a hawkish stance at the beginning of the year to suppress the housing market boom, influenced by global disinflation and the Federal Reserve's path of interest rate cuts. As export recovery gained traction mid-year, the interest rate policy shifted to a neutral position. As economic growth remained robust and the domestic inflation rate stayed below 2%, the Central Bank chose to maintain the policy interest rate unchanged, resulting in a relatively stable interest rate throughout the year.

In 2025, the interest expenses of the Company as a proportion of revenue and pre-tax net profit were minimal, and the impact of interest rate changes on the Company was limited.

Looking ahead to 2026, we will continue to monitor global economic trends and interest rate movements and adjust our asset and liability positions to mitigate interest rate risk.

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Exchange rate

Looking back at the domestic exchange market in 2025. The NTD-to-USD foreign exchange rate exhibited a dramatic pattern of initial fluctuations followed by stabilization. In the first half of the year, the Central Bank adopted a wait-and-see approach in early May amid expectations of Taiwan-U.S. exchange rate negotiations and short-term foreign capital inflows. As a result, the New Taiwan dollar appreciated sharply by more than 0.9 NTD against the USD in a single trading day, shocking the market. In addition, the trade surplus driven by strong AI supply chain exports underscored the resilience of the NTD amid fluctuations in the global U.S. dollar. Following a mid-year policy shift, Taiwan and the US issued a joint statement on exchange rate policy, and the Central Bank committed to improving intervention transparency, aligning its market operations more closely with international practices. Despite ongoing geopolitical noise, the NTD closed slightly higher, supported by its fundamentals, at 31.438. The NTD appreciated 4.10% over the year, with a trading range of 28.792 to 33.274.

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.

Inflation

According to the statistics of the Directorate-General of Budget. In 2025, the CPI rose by 1.66%, a decrease of 0.52 percentage points from the 2.18% recorded in 2024; the PPI fell by 1.79% in 2025, down 3.16 percentage points from 2024. This reflects that, due to tariff policies and the global economic slowdown, along with the stabilization of oil prices, international raw material prices, and the base effect, the annual CPI increase rate in 2025 successfully fell back within the Central Bank's 2% alert line, marking an end to the high inflation of the past two years. 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.

5.6.2 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 2025 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 2025 up to the date of the annual report.

The company provided endorsements and guarantees solely for 100% owned subsidiaries to secure their financing in 2025 up to the date of the annual report.

5.6.3 Future R&D Plans and Estimated R&D Expenses:

The estimated R&D expenditure in 2026 is NT$100 million. We will invest in the development of new products, product nutritional upgrades and increased product functionality, new packaging formats, and innovative technology development.

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

As global food safety and quality management requirements continue to rise, competent authorities worldwide have strengthened regulations and management measures to meet market expectations and protect consumer rights. The Company continuously monitors domestic and foreign regulations and policy developments, and conducts a rolling review and adjustment of its internal management system based on risk assessments to ensure compliance with relevant regulations and maintain steady growth.

The Company has consistently prioritized product quality and food safety, and has deepened its supply chain management and quality monitoring mechanisms. The Company adheres to international standards and industry best practices to ensure that raw materials, processes, and finished products meet all relevant food safety requirements. Meanwhile, investment in research and development and manufacturing process optimization has allowed us to enhance product quality and nutritional performance, responding to the evolving needs of the market and consumers.

Looking ahead, the Company will continue to deepen its risk management mechanisms and regulatory compliance capabilities, constantly improve its self-management and internal control systems, and prioritize corporate social responsibility with consumers' health and trust at its core. We will steadily promote long-term brand value and sustainable operational goals.

5.6.5 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, weakness management records and the configuration management baseline for the ERP system have been deeply optimized to strengthen the information security governance framework and ensure compliance with the ISO/IEC 27001:2022 standards. At the same time, the Company plans to introduce the ISO/IEC 27701:2025 privacy information management system (PIMS) for core personal data processing procedures – such as e-commerce, membership, and marketing management – establishing comprehensive personal data protection and resilience.

5.6.6 Impact of Changes in Corporate Image on Corporate Risk Management, and Countermeasures:

The Company has long been committed to the health industry and considers "corporate reputation" to be a core intangible asset. In response to labor-management issues that drew public attention in 2025 due to differing legal interpretations regarding the basis for salary and bonus calculations, the Company's management, guided by the principles of integrity and transparency, proactively initiated a crisis management mechanism. The management team engaged in direct negotiations with union representatives, resulting in a consensus solution in August 2025 that was more favorable than the statutory requirements.

The Company views this incident as an opportunity to transform its governance system and

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improve communication. In response to the growing expectations of stakeholders regarding labor rights under the global ESG trend, the Company has implemented the following measures to transform potential image risks into brand governance resilience:

Implementing institutionalized communication: A labor-management dialogue platform was established. In 2025, several project-specific negotiation meetings were held to ensure employee concerns reached the management decision-making level, effectively reducing communication gaps.
Optimization of the remuneration management system: The upgrade of the HR attendance system and the remuneration structure adjustment have been completed, with related funds allocated. This expenditure has not had a significant impact on the Company's financial structure and operating performance.
Enhance governance transparency: Disclose labor-management co-prosperity achievements via sustainability reports and open platforms, and actively respond to institutional investors' high level of concern regarding "human rights due diligence."

As of the annual report publication date, the above disputes have been fully resolved. In the future, the Company will continue to deepen its "people-oriented" corporate culture and maintain its excellent image as a national health leading brand through a transparent risk prevention system.

5.6.7 Expected Benefits and Possible Risks Associated with M&A and Countermeasures: N/A.
5.6.8 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 to increase product diversification, increase capacity, and ensure quality assurance.

The new Dayuan plant site will be developed in three phases. Phase 1 is scheduled to commence the installation of industrial infrastructure in mid-2026, with building construction expected to be completed by the end of 2027. At the same time, production line planning and evaluation will be carried out. Phases 2 and 3 will be executed based on actual demand. This project is expected to meet production line requirements and enhance overall asset utilization efficiency.

The Zhongli plant reorganization project, one new building was completed as of December 2025, and a high-speed, sterile production line has been established and put into operation. The original UHT milk production line is being evaluated for modification and the installation of a new production line in the post-packaging area. The Hukou plant has a production site adjacent to it, which continues to be used for evaluating potential expansion.

Jiangsu Hua Sun Health Technology Co., Ltd., the subsidiary in Mainland China, plans to continue 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 be completed in October 2026.

5.6.9 Risks Resulting from Concentrated Purchasing or Sales Operations and Countermeasures:

The Company's major suppliers in 2025 were Company B and Company C, accounting for 12.0% and 10.9% of the total purchases, respectively. In addition, the main customer of sales was Company A, accounting for 15.6% 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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5.6.10 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.

5.6.11 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.

5.6.12 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.

5.6.13 Other Material Risks and Countermeasures:
1. 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.

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.

(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

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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.

5.7 Other Important Matters: None.

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6. Special Disclosure

6.1 Information on Affiliates

6.1.1 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)

6.1.2 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)

6.1.3 Affiliate Reports:

6.2 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.

6.3 Other Necessary Supplements:

6.3.1 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.

6.3.2 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.

6.3.3 Licenses Acquired by Personnel Related to Financial Information Transparency:

One Certified Public Accountant (CPA)

6.4 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.

Standard Foods Corporation

Chairman: Ter-Fung Tsao

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SFC — Annual Report 2025

51753_rns_2026-05-27_a94250be-2be7-405d-a0bc-07e391c9ad23.pdf

Standard Foods Corporation

2025 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 ... 139

Chapter 6. Special Disclosure ... 150

1. Letter to Shareholders

2025 Consolidated Business Results

2. Corporate Governance Report

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

2.1.1 Directors Information

II. Major shareholders of institutional shareholders

III. Major Shareholders of Institutional Shareholders with Corporations as Their Major Shareholders:

2.2.2 Remuneration of the General Manager and Deputy General Manager

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

2.3 Implementation of Corporate Governance

2.3.1 Information on operations of the Board of Directors

Other matters:

2.3.2 Operations of the Audit Committee

Other matters:

2.3.4 Operation of Functional Committees

I. Composition, Duties, and Operations of the Remuneration Committee

1. Information of the Members of the Remuneration Committee

2. Operational Status of the Remuneration Committee:

3. Other matters:

II. Composition, Duties, and Operations of the Nomination Committee

1. Professional Qualifications, Experience, and Operational Status of the Nomination Committee Members

2. Other matters:

III. Composition, Duties, and Operations of the Sustainability Development Committee

2. Information on the Operation of the Sustainability Development Committee

Climate-related information of TWSE and TPEx Listed Companies:

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

1-1-2 Greenhouse gas assurance information

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

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

2.3.8 Implementation of Internal Control System

2.3.9 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:

2.4 Information Regarding Audit Fee

2.5 Information About Replacement of CPA: None.

2.6 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.

2.7 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:

2.8 Information About the Relationship Among the Company's 10 Largest Shareholders

3. Fund Raising Status

3.1 Capital and Shares

3.1.1 Source of Capital

3.1.2 Major Shareholders

3.1.3 Dividends policy and Implementation Status

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

3.1.5 Compensation of Employees, Directors, and Supervisors

4. Operational Highlights

4.1 Business Activities

4.1.1 Business Scope:

4.1.2 Industry Overview:

4.1.3 Technology and R&D Overview

4.1.4 Long-term and Short-term Business Development Plans

4.2 Overview of Marketing and Production & Sales

4.2.1 Market Analysis

Adult milk powder

(1) Market share

(2) Future market demand & supply status and growth

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

Special nutritious product

(1) Market share

(2) Future market demand & supply status and growth

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

Baby Food

(1) Market share

(2) Future market demand & supply status and growth

Edible oils

Refrigerated Food (FreshDelight)

(1) Market share

(2) Future market demand & supply status and growth

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

SFC Annual Report 2025