TEAMGROUP Team

Stock Code: 4967

Team Group Inc.

2025 Annual Report

Date of publication: March 17, 2026

Annual report website: http://mops.twse.com.tw

Team Group Inc. website: https://www.teamgroupinc.com/tw/

(This English translation is provided for reference only and might not precisely reflect the original language's true meaning and full text.)

TEAMGROUP Team

I. The company's spokesperson and acting spokesperson:
Spokesperson: Hsia Shao-An
Title: Vice General Manager
Telephone number: (02)8226-5000
E-mail: [email protected]
Acting spokesperson: Chin Han-Ran
Title: Head of Business Planning and Management Department
Telephone number: (02)8226-5000
E-mail: [email protected]

II. Address and telephone number of the company's head office and plant:
Headquarters Address: 3F, No. 166, Jian 1st Rd., Zhonghe Dist., New Taipei City 23511, Taiwan (R.O.C.)
Factory Address: 15F, No. 16, Jian 8th Rd., Zhonghe Dist., New Taipei City 23511, Taiwan (R.O.C.)
Telephone number: (02)8226-5000

III. Stock transfer agency
Name of the agent: Department of Stock Agency, Capital Securities Corp.
Address: B2F, No. 97, Section 2, Dunhua South Road, Taipei City 106, Taiwan (R.O.C.)
Telephone number: (02)2702-3999
Website: https://www.capital.com.tw/

IV. CPA(s) certifying the financial reports of the most recent FY:
Accounting firm(s): PwC Taiwan
Names of the CPAs: Yeh Tsui-Miao, Yu, Chih-Fan
Address: 27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei 11012, Taiwan
Telephone number: (02)2729-6666
Website: https://www.pwc.tw/

V. Name(s) of the exchange(s) where the securities of the Company are traded offshore, and the method(s) by which the information of the offshore securities is accessed: N/A

VI. Company website: https://www.teamgroupinc.com/tw/

Letter to Shareholders 1
Corporate Governance 5

2.1. Directors, general manager, vice general managers, assistant managers, directors of various departments and branches unit 5
2.2. Remuneration for directors, general manager and vice general manager in the most recent year 10
2.3. Corporate governance 13
2.4. Professional Service Fees for Attesting CPAs 41
2.5. Information on Replacement of CPA 42
2.6. The company's chairman, general manager, or financial/accounting manager served in the CPAs' firm(s) or any affiliate during the most recent year 42
2.7. Change of shares transferred and pledged for directors, managers and any shareholder holding more than 10% of the company's shares during the most recent FY as of the date on which the annual report was printed --- 42
2.8. Information on the top-10 shareholders who are related parties to each other, in a spousal relationship or within the second degree of kinship 43
2.9. Shares held by the Company and the directors, managerial officers, and business that the Company directly or indirectly controls in the same invested business and their shareholding ratio 44

Financing 45

3.1. Capital and Shares 45
3.2. Status of corporate bonds 49
3.3. Status of preferred stock 50
3.4. Status of overseas depository receipts 50
3.5. Status of employee stock option certificates 50
3.6. Status of employee restricted stock 50
3.7. Status of new share issuance in connection with mergers or acquisitions or with acquisitions of shares of other companies 50
3.8. Implementation status of financing plans 50

Overview of business operation 51

4.1. Business Contents 51
4.2. Overview of market and production & sales 66
4.3. Number of employees, average years with our company, average age, and academic qualification ratio in the past two years and up to the date of report 72
4.4. Environmental Protection Expenditure 73
4.5. Labor-management relations 74
4.6. Information Disclosure of Cybersecurity Management 76
4.7. Important Contracts 78

Review and analysis of Company's financial Position and financial performance, and A Listing of Risks issues 79

5.1. Financial status 79
5.2. Financial performance 80
5.3. Cash flow 81
5.4. Impacts on financial operations from major capital expenditures in the most recent FY 81
5.5. The reinvestment policy of the past year, reasons for profits or losses, the improvement plan and investment plan for the coming year 81
5.6. Risk matters requiring analysis and evaluation 82
5.7. Other important issues 89

Special items 89

6.1. Information on affiliated companies 89
6.2. Private equity securities transactions during last year and this year to date 89
6.3. Other necessary additional statements 89

Matters that have a significant impact on shareholders' equity or the prices of securities as set forth in Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange Act during the most recent FY as of the date on which the annual report was printed 89

1. Letter to Shareholders

Dear Shareholders,

We extend our sincere gratitude for your long-standing support of and commitment to TeamGroup. In 2025, amid economic fluctuations and rapidly evolving industry dynamics, TeamGroup steadfastly advanced its operating plans by leveraging core competencies in innovative technological capabilities and agile response strategies. The Company achieved not only a record annual revenue exceeding NT$20 billion but also an all-time high net income for the full year. These accomplishments are the result of our entire team's collective efforts and are made possible by your continued backing. TeamGroup will continue to deepen its key capabilities to establish a solid foundation for future growth, including expanding its brand portfolio, developing innovative products, and enhancing customer service. Simultaneously, the Company will strengthen overseas channel operations and improve supply chain collaboration efficiency to generate substantial and stable returns for shareholders. Looking ahead, high-performance computing and AI applications in cloud data centers continue to demonstrate strong long-term demand momentum. We will focus on high-specification and large-capacity product lines as our development priorities, expand our global market presence, and deepen our penetration in the B2B and industrial control/embedded systems sectors to meet customers' differentiated needs and create sustained brand value growth.

2025 Operating Performance and R&D Achievements

I. Implementation of the business plan

(except for the after-tax earnings per share) Unit: NT$ thousands

Title	Actual amount in 2025	Actual amount in 2024	Percentage of Increase (Decrease) %
Operating revenue	20,428,449	19,938,459	2.46%
Operating income	1,410,027	537,489	162.34%
Pre-tax profit or loss	1,416,968	668,673	111.91%
Post-tax earnings per share	13.06	6.8	92.06%

II. Status of budget implementation on operating income and expenses

Operating revenue and expenses :

Unit: NT$ thousands

Title	2025
Operating revenue	20,428,449
Operating cost	17,514,031
Operating expenses	1,504,391
Net non-operating revenue and expenses	6,941
Net income before tax	1,416,968
Income tax	307,095
Net income after tax	1,109,873

The Company did not disclose the consolidated financial forecast for 2025; therefore the information regarding budget implementation is not available.

III. Analysis of revenues, expenditures and profitability

Title		2025	2024
Financial structure (%)	Debt-Asset Ratio (%)	67.70	59.99
	Ratio of Long-term Capital to Fixed Assets (%)	1,181.70	1,222.53
Solvency (%)	Current ratio (%)	143.02	162.53
	Quick ratio (%)	51.38	62.82
Profitability (%)	Asset return ratio (%)	9.18	5.65
	Return on Shareholders’ Equity (%)	25.08	16.97
	Net profitability (%)	5.43	2.64
	Basic Earnings Per Share (NT$)	13.06	6.80

IV. R&D Status

In 2025, TeamGroup dedicated itself to high-performance computing and artificial intelligence applications, actively investing in the development of critical technologies. Our R&D efforts have yielded remarkable achievements this year, with three flagship products receiving the 2025 Taiwan Excellence Award: the T-CREATE CinemaP P31 mobile solid-state drive (SSD) designed specifically for professional video content creation, the TEAMGROUP PD20M SSD featuring MagSafe magnetic attachment functionality, and the T-CREATE MASTER Ai DDR5 workstation memory optimized for AI computing. In terms of extreme performance, the T-FORCE gaming series has achieved a breakthrough overclocking frequency of 10,200MHz and is leading the adoption of next-generation CAMM2 modules and proprietary liquid cooling technology.

In the fields of industrial control and information security, the Company has demonstrated substantial R&D capabilities. The industrial-grade P250Q SSD, leveraging the Taiwan-patented invention (M662727) technology of "one-click hardware destruction," not only received the 2025 COMPUTEX Best Choice Award, but its outstanding security features have also laid a solid foundation for subsequent recognition and accolades. Furthermore, the Company's industrial design achievements this year have swept international design awards, including four German Red Dot Product Design Awards and the Japanese Good Design Award. The sustainable product T-FORCE DELTA RGB ECO DDR5 received the 2025 COMPUTEX BC Award for Technology Sustainability, demonstrating TeamGroup's commitment to driving market leadership through technological innovation and practicing ESG values.

Important production and sales policies

In 2025, the global economic environment was influenced by geopolitical tensions, tariffs, and monetary policy factors, resulting in increased market volatility. The memory industry experienced a structural shift in supply and demand dynamics in the latter half of the year, which led to price increases and supply tightness for certain products. With the widespread advancement of AI high-performance computing applications, demand for high-end memory and storage products increased. The Company responded to market changes by optimizing its product portfolio, increasing the proportion of high-end specification products, and maintaining stable shipments and operational resilience through flexible inventory management and risk mitigation.

In 2026, AI applications are expected to expand deployment in personal computing and edge computing scenarios. Product specifications are accelerating toward higher bandwidth, higher capacity, and higher performance. The Company will continue to focus on high-end DDR5 and PCIe 5.0 SSD products, deepen the application scope of industrial control and embedded products, and enhance product validation, delivery management, and technical service capabilities. Simultaneously, the Company will implement strict inventory management and inventory turnover discipline, maintain operational stability through prudent production and sales strategies, and strive to create long-term value for shareholders.

The Company's Future Development Strategy

IWith the rapid development of AI technology, the global demand for high-performance memory and storage products continues to rise. TeamGroup regards 2026 as a critical inflection point for the universal adoption of AIPC and smart computing. The Company has expanded its portfolio to address high-capacity, high-bandwidth, and low-latency products required for AI workloads, actively penetrating emerging application scenarios and key regional markets to capitalize on growth opportunities.

Looking ahead, TeamGroup will continue to enhance market penetration of DDR5 memory and PCIe Gen5 SSDs, and steadily expand its presence in high-end segments including gaming,

~2~

professional content creation, AI applications, and industrial control. In the industrial control market, TeamGroup maintains a stable supply strategy, continues to provide DDR4 solutions, strengthens product differentiation and supply stability, and enhances overall revenue performance, thereby establishing a more solid foundation for the Company's long-term growth.

In 2026, our development will continue to focus on four main directions:

1. Positioning for large volume and high-end market share to expand market share :

TeamGroup actively promotes the R&D and market expansion of premium DDR5 memory and PCIe Gen5 SSD, expands its global e-commerce and physical channel distribution network, and strengthens brand equity and market share performance. Synchronizing product design enhancements with improved after-sales service experience; closely monitoring market dynamics to accelerate product iteration and regional launch pace, which facilitates steady growth of premium products in the market.

2. Strengthening industrial control, AI, and OEM application segments:

TeamGroup continues to deepen collaboration with enterprise and OEM customers, investing R&D resources to deliver durable, reliable, and long-term supply solutions for memory and storage, thereby enhancing partnership stickiness between both parties. To address AI PC/NB demand, TeamGroup launches DDR5 and Gen5 SSD with faster speeds and larger capacities, and with low latency, large capacity, and high specifications as core features, enhances compatibility and stability through comprehensive testing and validation processes; meanwhile, in the industrial control market, TeamGroup maintains supply of its DDR4 product line.

3. Leading high-speed DDR5 memory and Gen 5 SSD Technology:

In response to AI and high-performance computing demand, TeamGroup, with forward-looking R&D as its core, has launched high-frequency, low-latency DDR5 products and large-capacity, high-bandwidth PCIe Gen5 SSDs, perfecting its application portfolio in the AI PC market and reinforcing its technology leadership position. Concurrently, the Company has reinforced supply chain relationships and power consumption and thermal management mechanisms to ensure stable performance under prolonged high-load operations, solidifying its technological leadership position.

4. Cultivating next-generation talents:

TeamGroup continues to uphold "talent as competitive advantage" as its core philosophy, deepening cultivation mechanisms for next-generation talent and advancing a comprehensive educational training framework to strengthen organizational resilience and generational continuity. For newly hired employees, the Company provides systematized competency development programs to facilitate rapid integration and potential realization; simultaneously, for middle and senior management, it continues to promote leadership evolution, strategic thinking, and cross-functional collaboration training to facilitate knowledge transfer and organizational upgrading.

Sales volume forecast

The Company has not compiled financial forecasts for 2026; as such, no details are provided for this item.

External Competition, Legal Environment and Overall Business Environment

Looking back at 2025, the external operating environment was influenced by regional geopolitical developments, the extension of technology and trade restrictions, and fluctuations in exchange rates and costs. However, the sustained momentum of AI cloud data center expansion resulted in an industrial landscape characterized by the coexistence of cyclical volatility and structural growth. Demand for products such as high-bandwidth memory (HBM), server-class DDR5, and high-specification PCIe 5.0 SSDs remained strong, while certain product categories experienced structural shortages and price increases due to upstream capacity adjustments. In this environment,

TeamGroup optimized its inventory structure and procurement strategy, collaborated closely with major suppliers, and expanded B2B customer project outcomes, achieving strong operational performance for the year.

Looking ahead to 2026, AI applications are expected to expand into mobile devices and automotive, industrial computing, and smart terminal sectors. Memory and storage products are evolving toward higher speeds and greater capacities, with supply and demand likely to experience periodic fluctuations in line with capacity adjustments. From a regulatory perspective, requirements for supply chain compliance, information security, and sustainability disclosures continue to intensify. Enterprises must strengthen their investments in quality management, traceability, and risk governance. Facing the industry upgrade opportunity brought by structural demand shifts, TeamGroup will focus on premium DDR5 and next-generation SSDs, expand its footprint in industrial control and embedded applications, enhance validation and delivery efficiency, and employ a strategy of balancing prudent management with rapid adjustments to capitalize on the next wave of growth opportunities.

Sincerely

Health and prosperity in all your affairs

Chairman Hsia, Dann-Ning

Corporate Governance
2.1. Directors, general manager, vice general managers, assistant managers, directors of various departments and branches unit
2.1.1. Directors
March 17, 2026

Title	Nationality or place of registration	Name	Gender Age	Date of Election	Term	Date of First Election	Shares held at time of election		Current shares held		Current shares held by spouse or minor children		Shares held in the name of others		Educational background and experience	Concurrent posts in the company or other companies	Other supervisors, directors or supervisors in a spousal relationship or within the second degree of kinship
							Shares	Shareholding ratio	Shares	Shareholding ratio	Shares	Shareholding ratio	Shares	Shareholding ratio			Title	Name	Relationship
Chairman	R.O.C.	Hsia, Dann-Ning	Male 71~80	2024.06.19	3-Year	2004.06.30	2,774,848	3.88%	1,418,848	1.67%	—	—	—	—	ROC Air Force Academy, Bachelor of Science
Retired Colonel of the ROC Air Force Command Headquarters Group Founder
Team Group Inc. General Manager	Team Group Inc. Chairman
DataCell Technology Limited Director	Director	Hsia, Shao-An	Father and son
Director	R.O.C.	Chi, Mei-Chuan	Female 51~60	2024.06.19	3-Year	2014.06.17	530,989	0.74%	280,989	0.33%	—	—	—	—	Tamkang University, Bachelor of Banking and Finance
Golden Free Industrial Co., Ltd, Sales Rep
Hsiang En Co., Ltd, Sales Manager	Team Group Inc. Vice President	—	—	—
Director	R.O.C.	Chen, Ching-Wen	Male 51~60	2024.06.19	3-Year	2021.08.19	1,052,779	1.47%	546,779	0.64%	—	—	—	—	National Taiwan University of Science and Technology, Bachelor of Information Management	Team Group Inc. General Manager
Team Japan Inc. President	—	—	—
Director	R.O.C.	Hsia, Shao-An	Male 41~50	2024.06.19	3-Year	2024.06.19	376,617	0.53%	1,791,617	2.11%	—	—	—	—	Bachelor's degree from the Department of Photonics, University of California, Davis
Quality Control Engineer at Intel Corporation (USA)	Team Group(SZ) Inc. Principal	Chireman	Hsia, Dann-Ning	Father and son
Independent Director	R.O.C.	Chiang, Fu	Male 71~80	2024.06.19	3-Year	2018.06.26	—	—	—	—	—	—	—	—	Partner of National Chung Hsing University, College of Law, Bachelor of Economics
Deputy chief operating officer, North Second District Operation Center, Mega International Commercial Bank Co., Ltd.	N/A	—	—	—
Independent Director	R.O.C.	Yang, Tuen-Ho	Male Over 81	2024.06.19	3-Year	2016.12.08	—	—	—	—	20,000	0.02%	—	—	National Chung Hsing University, College of Law, Master of Law.
University of California, Berkeley, Doctor of Juris Scientiae.
CTBC Financial Holding Co., ltd. Independent Director	Guo Ju Law Firm Senior Counsel
Taipei Fuhsing Private School Director
Independent Director	R.O.C.	Chang, Hai-Ching	Male 71~80	2024.06.19	3-Year	2020.12.17	—	—	—	—	—	—	—	—	The George Washington University, Doctor of Science Engineering Management.
Master's degree from the EMBA of NTU.
Air Asia Company Limited Chairman	Representatives of Director of UHT Unitech Company Ltd.
Director of Day Spring Biotech co.,Ltd.

March 17, 2026

Title	Nationality or place of registration	Name	Gender Age	Date of Election	Term	Date of First Election	Shares held at time of election		Current shares held		Current shares held by spouse or minor children		Shares held in the name of others		Educational background and experience	Concurrent posts in the company or other companies	Other supervisors, directors or supervisors in a spousal relationship or within the second degree of kinship
							Shares	Shareholding ratio	Shares	Shareholding ratio	Shares	Shareholding ratio	Shares	Shareholding ratio			Title	Name	Relationship
Independent Director	R.O.C.	Shieh, Sheau-Yuan	Male 61~70	2024.06.19	3-Year	2024.06.19	-	-	-	-	-	-	-	-	Master's degree of Defense Medical Center School Department of Physiology and Biophysics / Institute of Physiology. President of Rehabilitation department of HongEn Hospital, Hsinchu. Shieh's Rehabilitation Clinic President.	N/A
Independent Director	R.O.C.	Hwang, Yii-Fang	Male 51~60	2024.06.19	3-Year	2024.06.19	-	-	-	-	-	-	-	-	Bachelor's degree of Architecture, TamKang University Chireman of TURA.ORG the 2th Chireman of Chinese Friendly Environmental Action Alliance	Hwang Yii-Fang Architects President

2.1.2. Major shareholders of the corporate shareholders: NA.
2.1.3. Major shareholders of the juristic persons which are major shareholders of the corporate shareholders: NA.

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

| Qualifications
Title
Name | Professional qualifications and experience | Independence | Number of Other Taiwanese Public Companies
Concurrently Serving as an Independent director |
| --- | --- | --- | --- |
| Chireman Hsia, Dann-Ning | 1. Please refer to “2.1.1. Directors’ Information” in Pages 4 to 5 of the Annual Report for the professional qualifications and experience of directors.
2. The matters stipulated in all paragraphs of Article 30 of the Company Act do not describe the directors | Not Applicable | 0 |
| Director Chi, Mei-Chuan | | Not Applicable | 0 |
| Director Chen, Ching-Wen | | Not Applicable | 1 |
| Director Hsia, Shao-An | | Not Applicable | 0 |
| Independent Director Chiang, Fu | | 1. In accordance with the "Regulations Governing the Appointment and Compliance Matters of Independent Directors for Public Companies", there are no circumstances specified in Article 3, Paragraph 1 that apply during the two years prior to or the term of appointment.
2. Not a government agency, juristic person, or its representative set forth in Article 27 of the Company Act of the R.O.C | 0 |
| Independent Director Yang, Tuen-Ho | | | 0 |
| Independent Director Chang, Hai-Ching | | | 1 |
| Independent Director Shieh, Sheau-Yuan | | | 0 |
| Independent Director Hwang, Yii-Fang | | | 0 |

2.1.5. Diversity and Independence of the Board of Directors

The Company has stipulated in Article 20 of the Corporate Governance, each board member shall have the necessary knowledge, skill, and experience to perform his/her duties. To achieve an ideal level of corporate governance, the Board of Directors should be equipped with the following abilities:

(1) Ability to make operational judgments.
(2) Ability to perform accounting and financial analysis.
(3) Ability to manage a business.
(4) Ability to handle crisis management.
(5) Industry knowledge.
(6) An understanding of international markets
(7) Leadership ability.
(8) Decision-making ability.

Implementation of the diversity policy is as follows:

Core items for diversification Name of director	Basic qualifications												Industrial experience
	Title	Nationality	Gender	Serving as the Company's employee	Age distribution					Year(s) as independent director			Accounting and financial analysis	Business management	Industry knowledge	Leadership and decision-making skills
					41 to 50	51 to 60	61 to 70	71 to 80	Over 81	3 years or less	3 to 9 years	9 years or more
Hsia, Dann-Ning	Chairman	R.O.C.	Male					✓						✓	✓	✓
Chi, Mei-Chuan	Director	R.O.C.	Female	✓		✓								✓	✓	✓
Chen, Ching-Wen	Director	R.O.C.	Male	✓		✓								✓	✓	✓
Hsia, Shao-An	Director	R.O.C.	Male	✓	✓									✓	✓	✓
Chiang, Fu	Independent Director	R.O.C.	Male					✓			✓		✓	✓		✓
Yang, Tuen-Ho	Independent Director	R.O.C.	Male						✓	✓					✓	✓
Chang, Hai-Ching	Independent Director	R.O.C.	Male					✓		✓				✓		✓
Shieh, Sheau-Yuan	Independent Director	R.O.C.	Male				✓			✓				✓		✓
Hwang, Yii-Fang	Independent Director	R.O.C.	Male			✓				✓				✓		✓

The company's female directors do not comprise one-third of the Board. This is due to the prioritization of professional qualifications and experience during director selection. To enhance gender diversity, the Company will expand the candidate pool in future elections and actively seek qualified female candidates through the independent director talent database.

The specific management goals and achievement status of the Board of Directors' members diversity policy are as follows:

Management goals	Achievement status
There shall be at least three independent director seats on the Board	Attained
The Directors who concurrently serve as managerial personnel of Team Group Inc. shall not exceed one-third of the total number of seats on the Board	Attained
No more than two Directors may have a spousal relationship or a close family relationship within the second degree of kinship	Attained

Independence of the Board of Directors:

The Company has a total of five independent directors, accounting for $55.55\%$ of the Board. There shall be no spousal relationship or close family relationship within the second degree of kinship among the independent directors or between the independent directors and other directors. There is also no spousal relationship among the Directors, and there are no circumstances as defined in Paragraphs 3 and 4 of Article 26-3 of the Securities Exchange Act. Therefore, the Board of Directors of the Company is independent.

March 17, 2026

2.1.6. General Manager, Vice General Managers, Assistant Managers, Directors of various departments and branches unit

Title	Nationality	Name	Gender	Start date of office	Shares held		Shares held by spouse or minor children		Shares held in the name of others		Educational background and experience	Concurrent posts in other companies	Managerial officers in a spousal relationship or within the second degree of kinship
					Shares	Shareholding ratio	Shares	Shareholding ratio	Shares	Shareholding ratio			Title	Name	Relation
General Manager	R.O.C.	Chen, Ching-Wen	Male	2016.10.13	546,779	0.64%	—	—	—	—	National Taiwan University of Science and Technology, Bachelor of Information Management Team Japan Inc. President	Team Japan Inc. President	—	—	—
Vice Chairwoman	R.O.C.	Chi, Mei-Chuan	Female	2017.12.15	280,989	0.33%	—	—	—	—	Bachelor's degree from the Department of Banking and Finance, Tamkang University Business operations in Jinzih Industrial Co., Ltd. Business operations in Shyang En Co., Ltd.	N/A	—	—	—
Vice General Manager	R.O.C.	Cho, Chien-Nan	Male	2017.12.15	18,587	0.02%	—	—	—	—	Bachelor's degree from the Department of English Language and Literature, Chinese Culture University Sales Manager, Jingcuei Co., Ltd.	Team DataSolution USA Inc. President	—	—	—
Vice General Manager	R.O.C.	Hsia, Shao-An	Male	2017.12.15	1,791,617	2.11%	—	—	—	—	Bachelor's degree from the Department of Photonics, University of California, Davis Quality Control Engineer at Intel Corporation (USA)	Team Group(SZ) Inc.Principal	Chairman	Hsia, Dann-Ning	Father and son
Vice General Manager	R.O.C	Jong Ho-Jen	Male	2026.02.25	—	—	—	—	—	—	Department of Electronic Engineering, Kun Shan University. Vice President of Manufacturing Department, Team Group Inc.	N/A	—	—	—
Corporate governance officer	R.O.C.	Chin, Han-Ran	Female	2024.08.02	2,000	0.002%	—	—	—	—	Bachelor of Accounting and Statistics, Lan Yang University of Technology Head of the Business Planning and Management Department,	N/A
Financial officer Accounting officer	R.O.C	Chen, Chien-Hua	Female	2024.08.02	—	—	—	—	—	—	Bachelor of Business Administration, Department of Business Administration, Derlin Hongguo University of Science and Technology Head of Director, Finance and Accounting Department, Team Group Inc.	N/A	—	—	—

2.2. Remuneration for directors, general manager and vice general manager in the most recent year

Remuneration for general directors and independent directors

December 31, 2025; Unit: NT$ thousands; %

Title	Name	Remuneration	The total amount of A, B, C and D, and the percentage in net income after tax	Remuneration for part-time employees	The total amount of A, B, C, D, E, F and G, and the percentage in net income after tax	Remuneration n from reinvestment businesses other than subsidiaries
Remuneration (A)	Retirement pension (B)	Director remuneration (C)	Business execution fee (D)	Salary, bonus and special allowance (E)	Retirement Pension (F) (Note 1)	Employee remuneration (G)
The Company	All companies in financial report	The Company	All companies in financial report	The Company	All companies in financial report	All companies in financial report
Chairman	Hsia,Dann-Ning	16,149	16,149	0	0	1,178
Director	Chi, Mei-Chuan	0	0	0	0	1,178
Chen, Ching-Wen	0	0	0	0	1,178	1,178
Hsia, Shao-An	0	0	0	0	1,178	1,178
Independent director	Chiang, Fu	0	0	0	0	549
Yang, Tuen-Ho	0	0	0	0	549	549
Chang, Hai-Ching	0	0	0	0	612	612
Shieh, Sheau-Yuan	0	0	0	0	869	869
Hwang, Yii-Fang	0	0	0	0	612	612
Total	16,149	16,149	0	0	7,903	7,903

Independent Directors' Remuneration Policy:
The Company's independent directors receive remuneration comprising service fees, transportation allowances, and directors' remuneration in accordance with the Articles of Incorporation. A fixed amount may be paid in consideration of their duties, risks, and time commitment, with reference to industry standards, regardless of whether the Company reports a profit or loss. Where the Company generates profits, additional directors' remuneration shall be distributed pursuant to the Articles of Incorporation.
Other Remuneration:
No remuneration was received by directors for providing other services (e.g., as consultants) during the most recent fiscal year.

Note 1: The accrual for the 2025 Retirement Payment expenses was NTD324,000 and the actual Retirement Payment made was NTD0.

Compensation to supervisors

As the Audit Committee replaced the supervisor system in the Company in 2018, this disclosure is not applicable.

3. Remuneration for General Manager and Vice General Manager

December 31, 2025 Unit: NT$ thousands;%

Title	Name	Salary (A)		Retirement pension (B) (Note 1)		Bonus and special allowance (C)		Employee remuneration (D)				The total amount of A, B, C and D, and the percentage in net income after tax
		The Company	All companies in financial report	The Company	All companies in financial report	The Company	All companies in financial report	The Company		All companies in financial report		The Company	All companies in financial report
								Cash amount	Share amount	Cash amount	Share amount
General Manager	Chen, Ching-Wen	3,140	3,831	108	108	2,530	2,530	11,232	0	11,232	0	17,010
1.53%	17,701
1.59%	0
Vice Chairwoman	Chi, Mei-Chuan	1,800	1,800	108	108	300	300	6,662	0	6,662	0	8,870
0.80%	8,870
0.80%	0
Vice General Manager	Hsia, Shao-An	2,670	2,670	108	108	2,473	2,473	9,493	0	9,493	0	14,743
1.33%	14,743
1.33%	0
Vice General Manager	Cho, Chien-Nan	2,256	2,256	108	108	380	380	9,129	0	9,129	0	11,873
1.07%	11,873
1.07%	0

Note1: The accrual for the 2025 Retirement Payment expenses was NTD432,000 and the actual Retirement Payment made was NTD0.

4. Names of the managers distributing employee remunerations and the distributing status

December 31, 2025; Unit: NT$ thousands

Title	Name	Share amount	Cash amount	Total	The total amount in net income after tax (%)
General Manager	Chen, Ching-Wen	0	39,517	39,517	3.56%
Vice Chairwoman	Chi, Mei-Chuan
Vice General Manager	Hsia, Shao-An
Vice General Manager	Cho, Chien-Nan
Corporate governance officer	Chin, Han-Ran
Accounting officer	Lee, Chia-I
Financial officer	Chen, Chien-Hua

Note1: Lee, Chia-I has resigned from the position on Feb 25,2026

2.2.1. Analysis of the proportion of the total remuneration paid by the Company and all the companies in the consolidated report to the directors, general managers and vice general managers of the Company in the most recent two years to the after-tax profit of individual or parent company only financial reports, and the policies, standards and portfolio of payment of remuneration, and the formulation of remuneration procedures, its relationship with business performance and future risks.

Unit: NT$ thousands; %

| Item
Title | The Company | | | | All companies in financial report | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 2024 | | 2025 | | 2024 | | 2025 | |
| | Total | Proportion to Net Profit after Tax | Total | Proportion to Net Profit after Tax | Total | Proportion to Net Profit after Tax | Total | Proportion to Net Profit after Tax |
| Director | 45,572 | 8.64% | 64,906 | 5.58% | 46,260 | 8.77% | 65,597 | 5.91% |
| General Manager and Vice General Manager | 38,294 | 7.26% | 52,496 | 4.73% | 38,982 | 7.39% | 53,187 | 4.79% |
| Income after Tax | 527,356 | | 1,109,873 | | 527,356 | | 1,109,873 | |

The policies, standards and portfolio of remuneration for directors and managers, and the procedures for determining remuneration

In accordance with Article 16 and Paragraph 1 of Article 20 of the Company's Articles of Incorporation, the calculation of remuneration of all directors is authorized to the board of directors according to the degree of engagement and contribution of each and all of the directors to the Company's operations, and by taking reference to domestic and foreign standards among the industry. The Company's directors may also be entitled to receive the traveling expenses according to the standards among industries. After offsetting accumulated losses with annual pre-tax net profit, no more than 1% of the balance of the profit shall be used as directors' remuneration for the current year, and the distribution method shall be submitted by the Remuneration Committee to the board of directors for resolution.

The Company's wage structure is composed of basic salary, allowances, job perks and bonuses. By taking into account the differences in operating performance, the structure is based on the Company's "Staffing Salary Operation Standards" and "Salary Grading Standards for Each Position", as well as taking reference to professional abilities, industrial experience and education of each director and manager, and the salary range of relevant positions among the industry, the supply and demand of human resources, the stability of talents, future development potential and contribution to the Company and other key factors to determine the remuneration of directors and managers. In addition, Paragraph 1 of Article 20 of the Company's Articles of Incorporation stipulates that to motivate employees and the management teams, the Company shall, after making up for the accumulated losses with annual net profit before tax, provide an amount not less than 0.5% of the balance as employees' remuneration for the current year, and shall allocate not less than 30% to be distributed to grassroots employees. The method of distribution of such remuneration shall be submitted to the Board of Directors by the Remuneration Committee for resolution.

Correlation between the remuneration of directors, general manager and vice general managers, and business performance and future risks

(1) The remuneration of directors, general managers, and managers is determined by fully evaluating their professional abilities, status of continuing education, and other special contributions, considering the Company's operating performance and financial status, as well as taking into account their individual performance, which are serving as the calculation benchmark for remuneration.

(2) The Company timely reviews future operation management risks, corporate social responsibilities and environmental protection, and reviews the remuneration system based on actual operating conditions and relevant laws and regulations to ensure the balance between the Company's sustainable operation and risk control.

2.3. Corporate governance

2.3.1. Operation status of the Board of Directors

The Board of Directors held 5 meetings ${\mathbf{A}}$ in 2025. The presence and attendance of the directors are described below:

Title	Name	Actual number of persons present (attended)【B】	Number of meetings attended by prox	Actual attendance rate (%)【B/A】
Chairman	Hsia, Dann-Ning	5	0	100%
Director	Chi, Mei-Chuan	4	1	80%
Director	Chen, Ching-Wen	5	0	100%
Director	Hsia, Shao-An	4	1	80%
Independent Director	Chiang, Fu	5	0	100%
Independent Director	Yang, Tuen-Ho	5	0	100%
Independent Director	Chang,Hai-Ching	5	0	100%
Independent Director	Shieh, Sheau-Yuan	5	0	100%
Independent Director	Hwang, Yii-Fang	5	0	100%

Other matters to be specified:

Where any of the following circumstances occurs to any meeting of the Board of Directors, the date, term and proposal of the meeting as well as the opinions of all the independent directors and actions taken by the Company on the opinions shall be specified:

(1) The matters referred to in Article 14-3 of the Securities and Exchange Act: are not applicable since the Company has established the Audit Committee. Please refer to "2.3.2 Operation status of the Audit Committee"
(2) In addition to the matters mentioned above, any resolution of the Board of Directors for which dissent or reservation expressed by any independent director, and such dissent or reservation is recorded in the minutes or a written statement: N/A.

Where the implementation status of recusal bearing on the interest of a director is involved, the name of the director, proposal, reasons for the recusal, and participation in the voting shall be described:

Date	Director	Proposal	Reason of Recusal	Participation in Voting
February 27, 2025	Hsia, Dann-Ning Chi, Mei-Chuan Chen, Ching-Wen Hsia, Shao-An	Proposal of remuneration of the Company's Directors	Conflict of interests	Did not vote
November 13, 2025	Hsia, Dann-Ning Chi, Mei-Chuan Chen, Ching-Wen Hsia, Shao-An	Proposal of remuneration of the Company's chairman and managers of 2026.	Conflict of interests	Did not vote

TWSE/TPEx listed companies shall disclose the cycle and period, scope, method, and content of self evaluations of the board of directors:

Interval of evaluation	Period of evaluation	Scope of evaluation	Method of evaluation	Items of evaluation
Annual	2025/1/1~2025/12/31	Evaluation of the performance of the Board of Directors, evaluation of the performance of directors, and evaluation of the performance of Audit committees and Remuneration committees.	Selfevaluation of the Board of Directors, directors, Audit committees and Remuneration committees.	Evaluation indicator 1: Compliance with relevant laws and regulations. Evaluation indicator 2: The degree of engagement in the Company's operation.

Evaluation of the Goals and Implementation Status Regarding the Enhancement of the Board of Directors' Functions in the Current and Previous Year:

I. To implement sound corporate governance and enhance the functions of the Company's Board of Directors., the Company has formulated the "Guidelines for Remuneration System and Performance Evaluation for Directors and Functional Committee Members", and conducts performance evaluation of the board of directors and functional committees on an annual basis. The 2025 evaluations were completed through self-assessments conducted by each member.
II.Directors' liability insurance: To mitigate the risks borne by directors and managers in the course of performing their duties, the Company purchases directors' and officers' liability insurance annually. The insurance coverage and compensation limits are reviewed on a regular basis to ensure alignment with the Company's needs. These matters are also reported to the Board of Directors periodically.
III. The Audit Committee and the Remuneration Committee of the Company consist of all independent directors to assist the board of directors in fulfilling the supervisory duties. The chairperson of each committee shall report the operation status to the board of directors on a regular basis.
IV. Continuing training and education for directors: We encourage directors to continue their training and regularly recommend courses to them for continuously enriching new knowledge. In 2025, the total training hours completed by all directors amounted to 60 hours.

(1) Strengthening the functions of the board of directors

The Company's board of directors has formulated the "Rules of Procedure for Board of Directors Meetings" to effectively establish a board of Directors governance system and improve supervision functions, and strengthen the management mechanism.
The Company has established an Audit Committee instead of the supervisors. The Audit Committee meets at least once per quarter to review and implement the items listed in Article 14 of the Securities and Exchange Act.
To enhance the involvement of independent directors in board operations and deepen their understanding of Company affairs, at least one independent director is required to attend each board meeting in person. If a director is unable to attend in person, another independent director will attend as their proxy. Details of attendance are as follows:

The Board of Directors	Independent Director
	Chiang, Fu	Yang, Tuen-Ho	Chang, Hai-Ching	Shieh, Sheau-Yuan	Hwang, Yii-Fang
1st	V	V	V	V	V
2nd	V	V	V	V	V
3rd	V	V	V	V	V
4th	V	V	V	V	V
5th	V	V	V	V	V

(2) Improvement of information transparency

The Company's financial statements are audited and verified by PwC Taiwan. All information disclosure required by laws and regulations can be completed correctly and in a timely manner, and dedicated personnel is designated to be responsible for major corporate information and various laws and regulations related to public announcements to improve our information transparency.

2.3.2. Operation status of the Audit Committee

Professional qualifications and experience of independent directors:

Please refer to Section "2.1.4. Disclosure of directors' professional qualifications and independence of the independent directors "in the Company's annual report.

The annual working focus of the Audit Committee:

(1) Adoption or amendment of the internal control system pursuant to Article 14-1 of the Securities and Exchange Act.
(2) Evaluation of the effectiveness of the internal control system.
(3) Adoption or amendment, pursuant to Article 36-1 of the Securities and Exchange Act, of procedures for handling material financial and business activities, including acquisition or disposal of assets, derivatives trading, provision of loans to others, and endorsements or guarantees.
(4) Matters involving conflicts of interest of any director.
(5) Material asset transactions or derivatives trading.
(6) Provision of material loans, endorsements, or guarantees.
(7) Public offering, issuance, or private placement of equity-type securities.
(8) Appointment, dismissal, or remuneration of certified public accountants.
(9) Appointment or dismissal of financial, accounting, or internal audit officers.
(10) Annual financial reports signed or sealed by the Chairman, managerial officer, and the accounting officer, and the Q2 financial statement attested and audited by the CPAs
(11) Other significant matters as required by the Company or the competent authorities.

Throughout 2025 and up to the date this Annual Report was printed, the Audit Committee met Five times [A]; Attendance of Independent directors is as follows:

Title	Name	The actual frequency of attendance in the meetings【B】	The actual ratio of being seated in the meetings【B/A】
Independent Director	Chiang, Fu	5	100%
Independent Director	Yang, Tuen-Ho	5	100%
Independent Director	Chang, Hai-Ching	5	100%
Independent Director	Shieh, Sheau-Yuan	5	100%
Independent Director	Hwang, Yii-Fang	5	100%

Other details to be documented:

I. If there any of the following during the operation of the Audit Committee, the date of meeting, term, proposal description, objection, qualified opinions, or key recommendation of any independent director, resolution adopted by the Audit Committee and the Company's response to the opinions shall be stated :

(1) Matters specified in Paragraph 5, Article 14, Securities and Exchange Act:

Date of Meetings of Audit Committee	Proposal	Resolution	Company's response to the Audit Committee
February 27, 2025	1. Approved the Company's 2024 annual business report and financial statements.
2. Approved the Company's proposal of distribution of cash from additional paid-in capital.
3. Approved the Company's 2024 surplus distribution proposal.
4. Approved the proposal for the change of the company's CPA.
5. Approved the proposal of the Company's appointment of CPAs for 2025 and assessment of independence and eligibility of CPAs
6. Approved the revision of the company's 'Articles of Incorporation'
7. Approved the capital increase proposal for the subsidiary "Team Group (SZ) Inc."
8. Approved the effectiveness appraisal of the Company's 2024 internal control system and issuance of the "Statement of Internal Control System".	Approved as proposed	To be submitted to the Board of Directors
May 7, 2025	1. Approved the Company's consolidated financial statements for the first quarter of 2025.
2. Proposed amendment of the Company's "Internal Control System - Payroll Cycle"	Approved as proposed	To be submitted to the Board of Directors
August 7, 2025	1. Approved the Company's consolidated financial statements for the second quarter of 2025.
2. Approved the proposal of the Company's loan to subsidiaries.
3. Proposed amendment of the Company's "Regulations Governing the Acquisition and Disposal of Assets"
4. Proposed amendment of the Company's "Internal Control System - Investment Cycle"
5. Approved the personnel changes of the company.	Approved as proposed	To be submitted to the Board of Directors
November 13, 2025	1. Approved the personnel changes of the company.
2. Approved the Company's consolidated financial statements for the third quarter of 2025.
2. Approved the proposal of the Company's "2026 Operation Plan and Annual Budget".
3. Approved the proposal of the formulation of "2026 Audit Plan".
5. Approved the Endorsement and guarantee limit case for the company's subsidiary.
6. Approved the amendment of "Internal Control System".	Approved as proposed	To be submitted to the Board of Directors
November 27, 2025	1. Approved the proposal of the Company's 4th domestic secured convertible bond.	Approved as proposed	To be submitted to the Board of Directors

(2) Other than the aforesaid matters, any resolution adopted via two third or more of all directors' approve but not approved by the Audit Committee: None.

II. For the enforcement of recusal upon conflicts of interest of independent directors, the name of the independent director, content of the proposal, reason for the recusal, and participation in the voting process: None.

III. Communications between independent directors and internal audit supervisors and CPAs (including major events, methods and results of communication on the Company's financial and business conditions):

Our auditing unit regularly provides independent directors with audit reports on the internal audit of the Company, and reports the latest audit status through the board of directors. Independent directors may also check the

Company's financial and business implementation status from time to time. For any doubts about the Company's related operations, one may immediately communicate with the supervisor of the relevant unit and conduct review and improvement. In addition, in terms of communication with CPAs, the board of directors of the Company has invited CPAs to attend the meetings. If independent directors have any doubts about the Company's financial and business conditions, they may communicate with the Company's CPAs from time to time and instruct relevant units of the Company to review and improve the works.

(1) Communications with the chief internal auditor:

Date of Meetings of Audit Committee	Communications with the chief internal auditor	Results
February 27, 2025	Review of the internal audit report.	Acknowledged with no suggestions.
	Review of the 2024 internal Control System Declaration.	Submitted to the Board of Directors with no suggestions.
May 7,2025	Review of the internal audit report.	Acknowledged with no suggestions.
August 7, 2025	Review of the internal audit report.	Acknowledged with no suggestions.
November 13, 2025	Review of the internal audit report.	Acknowledged with no suggestions.
	Approved the proposal of the formulation of "2026 Audit Plan".	Submitted to the Board of Directors with no suggestions.

(2) Communications with the CPAs:

Date of Meetings of Audit Committee	Communications with the CPAs	Results
February 27, 2025	Communication regarding the audit scope of the financial statements for 2024.	Acknowledged with no suggestions.

2.3.3. Corporate governance implementation status and deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons

Assessed areas	Operational status			Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
	Yes	No	Summary
I. Does the company establish and disclose its corporate governance best practice principles in accordance with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies?	☑		The Company formulated a Corporate Governance Best Practice Principles on March 17, 2015, which is disclosed on the official site of the Company at (https://www.teamgroupinc.com/tw/investors/corporate/important-regulations-and-measures/)Based on the Principles, the board of directors instructs the Company's business strategies and supervises the operating results, implements corporate governance, and reviews and amends the Principles' suitability from time to time. As of recently, the control function remains robust.	N/A
II. Shareholding structure and shareholders' rights
(1) Does the company establish internal operating procedures for handling shareholder suggestions, questions, disputes or litigation and handle related matters accordingly?	☑		(1) In order to ensure the rights and interests of shareholders, the Company has established a spokesperson system, which is announced outside the Company's official site and also has an investor section having dedicated personnel handle suggestions, doubts or disputes of shareholders. As of recently, the relationship between the Company and shareholders remains harmonious, and disputes have not yet occurred.
(2) The Company and the stock affairs agency regularly hold a list of the Company's major shareholders and their controllers and maintain a good relationship with investors.
(3) The Company has formulated the "Guidelines for Handling Transactions of Group Enterprises, Specific Companies and Related Parties" and "Rules Governing Financial and Business Matters Between this Corporation and its Related Parties" with dedicated personnel in charge of related matters, and an internal control system and related management measures have been established in accordance with laws and regulations, and implemented accordingly.
(4) The Company has formulated and disclosed on its official site the "Guidelines for Preventing Insider Trading" and "Code and Procedures for Integrity and Behaviors" to prohibit insiders and employees from using non-public information, company property, or abusing their positions to allow themselves or any third parties to obtain personal benefits.	N/A
(2) Does the company have a list of major shareholders that have actual control over the Company and a list of ultimate owners of those major shareholdings?
(3) Has the company established and implemented risk management and firewall systems within its affiliated enterprises?
(4) Has the company established internal rules against insiders trading with undisclosed information?	☑		(3) The Company has formulated the "Guidelines for Handling Transactions of Group Enterprises, Specific Companies and Related Parties" and "Rules Governing Financial and Business Matters Between this Corporation and its Related Parties" with dedicated personnel in charge of related matters, and an internal control system and related management measures have been established in accordance with laws and regulations, and implemented accordingly.
(4) The Company has formulated and disclosed on its official site the "Guidelines for Preventing Insider Trading" and "Code and Procedures for Integrity and Behaviors" to prohibit insiders and employees from using non-public information, company property, or abusing their positions to allow themselves or any third parties to obtain personal benefits.	N/A
III. Composition and Responsibilities of the Board of Directors
(1) Has the Board established a diversification policy, concretely managed the objectives, and actually implemented?	☑		(1) The Company's board of directors currently has Nine directors (including one female directors), all of which are professionals with rich industrial or academic experience. Please refer to "2.1.5. Diversity and Independence of Board Members" for the details of the implementation of the diversity policy of directors.	N/A

Assessed areas	Operational status			Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
	Yes	No	Summary
(2) Does the Company voluntarily establish other functional committees in addition to the Compensation Committee and the Audit Committee that are established as required by laws?		☑	(2) The Company has established an audit committee and a remuneration committee; The establishment of other functional committees will be evaluated and implemented based on the actual needs of the company.	The establishment of other functional committees will be assessed based on actual needs.
(3) Has the Company established the evaluation guidelines and methods for the Board of Directors' performance, for the regular annual performance evaluation; as well as presents the outcome of such evaluations to be applied to the remuneration to each director and their re-election nominations?	☑		(3) In order to implement corporate governance, enhance the functions of the Board of Directors, establish performance objectives and enhance the operational efficiency of the Board of Directors, the Company's Board of Directors passed the "Guidelines for Remuneration System and Performance Assessment for Directors and Functional Committee Members" on May 9, 2018. According to the provisions of the Guidelines, the performance assessment of the board of directors and functional committees shall be carried out once a year. The assessment period is from January 1 to December 31 of the current year, and the report shall be completed before the end of the first quarter of the next year to serve as the basis for reference when selecting or nominating directors.
The 2025 performance assessment of the Company’s board of directors, Audit Committee and Remuneration Committee were reported to the board of directors on February 25, 2026.	N/A
(4) Does the Company regularly evaluate the independence of CPAs?	☑		(4) The Audit Committee of the Company evaluates the independence and suitability of CPAs annually. In addition to requiring the CPAs to submit "Detached Independent Statement" and "Audit Quality Indicators (AQIs)", it also follows the standards in Note 1. It has been confirmed that the CPAs have no other financial interests or business relationship with the Company except for the fees of verification and financial and tax auditing, and the family members of the CPAs do not violate the independence requirements. Moreover, by taking reference to the AQI indicators, it is confirmed that the CPAs and firms they affiliate to have the verification experience and number of training hours better than the average among the industries. After the evaluation results of the latest year were discussed and approved by the Audit Committee on February 25, 2026, it was submitted to the board of directors on February 25, 2026, for approval of the independence and suitability assessment of CPAs.	N/A
IV. Has the Company had an adequate number of corporate governance personnel with appropriate qualifications, as well as assigned the head of corporate governance, to take charge of corporate governance-related affairs (including without limitation providing information required for directors and supervisors to carry out their tasks,	☑		On August 1, 2024, the Board of Directors resolved to appoint Ms. Chin, Han-Ran as the Director of the Business Planning and Management Department, concurrently serving as the Corporate Governance Officer Ms. Chin previously served as the head of the Company’s auditing unit for over three years, and meets the qualifications required for the position of Corporate Governance Officer.
Business implementation focus for 2025:	N/A

Assessed areas	Operational status			Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
	Yes	No	Summary
organizing matters relating the Board of Directors’ and shareholders’ meetings, taking care of registration and alteration registration of the company, producing minutes of the Board of Directors’ and shareholders’ meetings)?			1. Carry out matters related to the meetings of the Board of Directors and Shareholder meetings according to law.
2. Prepare the minutes of the Board of Directors and Shareholder meetings.
3. Provide board members with relevant laws and regulations on corporate governance, and update them regularly.
4. Arrange training courses for board members.
5. Provide the information required by the directors to execute their works.
6. Assist directors to comply with laws and regulations.
7. Evaluate and purchase group directors' liability insurance.
8. Arrange communication meetings between independent directors and CPAs or internal audit supervisors.
V. Does the company establish a communication channel and set up a designated section on its website for stakeholders (including without limitation shareholders, employees, customers, and suppliers, etc.), and properly respond to corporate social responsibility issues that stakeholders are concerned about?	☑		The Company has established a dedicated stakeholder section on its website, designated spokesperson and deputy spokesperson as communication channels for the Company, and regularly discloses financial reports and significant information regarding the Company's operations, enabling stakeholders to promptly understand the Company's operating status. The Company's communication with stakeholders in 2025 was reported to the Board of Directors on November 13, 2025.	N/A
VI. Does the company designate a professional shareholder service agency to deal with affairs related to shareholders’ meetings?	☑		The Company appoints department of Stock Agency Capital Securities Corporation a professional stock affairs agency to handle the affairs of Shareholder meetings.	N/A
VII. Disclosure of Information
(1) Has the company established a corporate website to disclose information regarding the company's financial, business and corporate governance status?
(2) Does the company have other information disclosure channels (e.g., maintaining an English website, appointing responsible people to handle information collection and disclosure, enforcing a spokesperson system, webcasting investor conference on company website)?
(3) Does the Company publish and report its annual financial report within two months after the end of a fiscal year, and publish and report its financial reports for the first, second and third quarters as well as its operating status for each month before the specified deadline?	☑	☑	(1) The Company discloses various financial and business information on its official website and, in accordance with legal requirements, reports such information on the MOPS for reference by shareholders and the public.
(2) The Company's official website is available in both Chinese and English for investors' reference, and dedicated personnel has been designated to be responsible for disclosing relevant information at MOPS. The Company also provides the contact information of the spokesperson and acting spokesperson to fully implement the spokesperson system. Information of investor conferences are also published on the company website.
(3) The Company announces and submits the Q1, Q2, Q3 financial reports, as well as monthly operating performance, within the required deadline. The annual financial report is completed and announced within three months following the end of the fiscal year, as stipulated by law.	N/A
N/A
N/A

Assessed areas	Operational status
	Yes	No	Summary
VIII. Is there any other important information available 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, rights of stakeholders, continuing education of directors and supervisors, the implementation of risk management policies and risk evaluation standards, the implementation of customer relations policies, and purchasing insurance for directors and supervisors)?	☑		(1) Employees’ rights and interests, and employee care: We establish Employee Welfare Committee, implement a pension system, plan employee group insurance, attach importance to labor relations, and provide equal employment opportunities.
(2) Investor relations: We appoint dedicated personnel to accept and handle shareholders’ suggestions.
(3) Supplier relations: The Company’s suppliers have smooth communication and management, and the relationship is in good health.
(4) Rights of interested parties: Interested parties may communicate and make suggestions with the Company to ensure their legitimate rights and interests.
(5) Status of directors’ training and education: For the directors’ training and education in 2025, please refer to Note 2.
(6) Risk Management Policy and Implementation: The Company has established a Risk Management Team, with the General Manager serving as the chief coordinator. Each responsible unit under the General Manager is tasked with promoting risk management and conducting assessments of various risk control activities, the implementation status of risk management for 2025 was reported to the Board of Directors on November 13, 2025.
(7) Implementation of customer policies: The Company specializes in fulfilling diverse, small-volume orders across a wide range of product types, catering to customers around the globe. We conduct regular annual customer satisfaction surveys and have established a dedicated Customer Service Department committed to delivering the most professional and efficient support to our clients.
(8) Situation of the Company purchasing liability insurance for directors: The Company has purchased liability insurance for directors and managers, which has been reported to the board of directors on May 07, 2025, and announced on MOPS.	N/A
IX. Please explain improvements and introduce priorities to be improved and measures taken for those pending improvements according to the corporate governance evaluation results released by the Corporate Governance Center of Taiwan Stock Exchange Corporation for the most recent year: The strengthened initiatives in 2025 are as follows:
1. To ensure the Company’s sustainable development, the Company has enacted risk management regulations and procedures, and the execution of risk management in 2025 was reported to the Board of Directors.
2. Continuous enhancement of corporate governance by formulating comprehensive regulations related to corporate governance.

~21~

Note 1: CPA Independence Evaluation Criteria

Assessment Items	Assessment Result	Compliance with Independence or Not
1. Whether the CPA has a direct or significant indirect financial interest in the audited company	No	Yes
2. Whether the CPA has engaged in financing or guarantee activities with the company or its directors	No	Yes
3. Whether the CPA has close business relationships or runs into potential employment negotiations with the audited company	No	Yes
4. Whether the CPA or member(s) of his/her audit team have held positions as directors, supervisors or had been employed in a position to exert significant influence on audit work in the company within the past two years	No	Yes
5. Whether the CPA has provided non-audit services to the audited company that could directly impact the audit work	No	Yes
6. Whether the CPA has acted as an intermediary for the company's issuance of stocks or other securities	No	Yes
7. Whether the CPA has acted as a defense for the company or represented the company in coordinating conflicts with third parties	No	Yes
8. Whether the CPA has a familial relationship with directors, supervisors, or individuals with significant influence on the audit engagement in the company	No	Yes

~22~

Note 2: Status of Continuing Education for the directors in 2025

Title Name	Date	Organizer	Course Title	Hours
Chairman
Hsia, Dann-Ning	July 9, 2025	Taiwan Stock Exchange	2025 Cathay Sustainable Finance and Climate Change Summit	3 hours
Director
Chi, Mei-Chuan	June 10, 2025	Taiwan Stock Exchange	CDP Awards 2025	3 hours
	July 9, 2025	Taiwan Stock Exchange	2025 Cathay Sustainable Finance and Climate Change Summit	6 hours
Director
Chen, Ching-Wen	July 25, 2025	Taiwan Stock Exchange	2025 Promotion of Prevention of Insider Trading	3 hours
	October 16, 2025	Chinese National Association of Industry and Commerce	2025 Taishin Net-Zero Summit - A Comprehensive Guide to Corporate Practice in the New Era of Sustainable Finance	3 hours
Director
Hsia, Shao-An	July 9, 2025	Taiwan Stock Exchange	2025 Cathay Sustainable Finance and Climate Change Summit	6 hours
Independent Director
Chiang, Fu	July 16, 2025	Taiwan Corporate Governance Association	Sustainable Development Awareness Session	3 hours
	October 16, 2025	Taiwan Stock Exchange	The 15^{th} Taipei Corporate Governance Forum	6 hours
Independent Director
Yang, Tuen-Ho	July 25, 2025	Taiwan Stock Exchange	2025 Promotion of Prevention of Insider Trading	3 hours
	November 28, 2025	Securities & Futures Institute	Analyzing Global Net Zero Sustainability Trends and Taiwan's Carbon Reduction Pathways	3 hours
Independent Director
Chang, Hai-Ching	May 8, 2025	Chinese National Association of Industry and Commerce	Brand Media Management and Crisis Public Relations Handling	3 hours
	August 8, 2025	Taiwan Stock Exchange	2025 Promotion of Prevention of Insider Trading	3 hours
Independent Director
Shieh, Sheau-Yuan	August 8, 2025	Taiwan Stock Exchange	2025 Promotion of Prevention of Insider Trading	3 hours
	November 15, 2025	The Allied Association For Science Park Industries	Legal issues that directors and supervisors of TWSE/TPEx-listed, emerging stock, and publicly issued companies should pay attention to	3 hours
Independent Director
Hwang, Yii-Fang	August 11, 2025	Taiwan Stock Exchange	CDP Corresponding IFRS S2 Topic Analysis Promotion Course	6 hours

2.3.4. The Composition, Responsibilities and Operation of the Company's Remuneration Committee

In order to improve corporate governance and strengthen the remuneration management function, the Company has set up a Remuneration Committee in accordance with the "Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is listed on the Taiwan Stock Exchange or the Taipei Exchange". The Company's Remuneration Committee is composed of three members appointed by the resolution of the board of directors, and three external experts who meet the required professional qualifications and independence. The Company's Remuneration Committee holds meetings at least twice a year to review the performance evaluation standards of directors and managers, the achievement of performance objectives, and the policies, systems, standards and structures of wages. For the content of the performance evaluation standards for directors and managers, please refer to "2.2.1. Analysis of the proportion of the total remuneration paid by the Company and all the companies in the consolidated report to the directors, general managers and vice general managers of the Company in the most recent two years to the after-tax profit of individual or parent company only financial reports, and the policies, standards and portfolio of payment of remuneration, and the formulation of remuneration procedures, its relationship with business performance and future risks" of this annual report.

Information of the Remuneration Committee Members

| Status | Qualifications
Name | Professional qualification and experience | Independence status | Number of other public offering companies with part-time membership of their Compensation Committee |
| --- | --- | --- | --- | --- |
| Independent directors (Convener) | Chiang, Fu | Please refer to "2.1.4. Information Disclosure of directors' professional qualifications and independence of the independent directors" in the Company's annual report | Please refer to "2.1.4. Information Disclosure of directors' professional qualifications and independence of the independent directors" in the Company's annual report | 0 |
| Independent directors | Shieh, Sheau-Yuan | | | 0 |
| Independent directors | Hwang, Yii-Fang | | | 0 |

State of operations of the Remuneration Committee

(1) The Company's Compensation Committee has 3 members in total.
(2) Tenure of current members: From June 19, 2024 to June 18, 2027. The Compensation Committee meet two times (A) in total throughout 2025 and up to the date this Annual Report was printed. Qualification and attendance of the members are as follows:

Title	Name	The actual frequency of attendance in the meetings (B)	Frequency of attendance through proxy	The actual ratio of being seated in the meetings (%)(B/A)
Convener	Chiang, Fu	2	0	100%
Member	Shieh, Sheau-Yuan	2	0	100%
Member	Hwang, Yii-Fang	2	0	100%
Other details to be documented: I. If the Board of Directors does not accept or modifies suggestions provided by the Compensation Committee, the date of the Board of Directors meeting, the session number, contents of the proposal, decisions made by the Board of Directors, and management of opinions from the Compensation Committee by the Company should be stated (If the compensation and rewards approved by the Board of Directors are superior to those advised by the Compensation Committee, there should be descriptions of the differences and reasons considered): None. II. For decisions made by the Compensation Committee, as long as there are members objecting or having their reservations that are recorded or stated in writing, the date of the Compensation Committee meeting, the session number, contents of the proposal, and how opinions from all members and from opposing members are handled should be described: None.

(3) The proposals discussed and resolutions by the Remuneration Committee in the mosr recent year are as follows:

Date	Proposal	Resolution	Company's handling of the Remuneration Committee's Opinions
February 27, 2025	1. Proposal of distribution of employee remuneration and directors' remuneration for 2024. 2. Proposal of distribution of the directors' remuneration.	Approved as proposed	To be submitted to the Board of Directors
November 13, 2025	1. Proposal of the estimated ratio for the directors and employee remuneration for the year 2026. 2. Proposal of the remuneration for the Chairman and executives for the year 2026.	Approved as proposed	To be submitted to the Board of Directors

2.3.5. Promotion of Sustainable Development Implementation Status and Deviations from “the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies”

Items Promoted	Implementation			Deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
	Yes	No	Summary
I. Did the company have established the governance framework for promoting sustainable development a designated unit in charge of promoting sustainable development, and the senior management is authorized by the board of directors for handling, as well as the status of board of directors’ oversight?	☑		In the second half of 2024, the Company established a Sustainability Development Center, with the General Manager serving as the highest-level advisor. The Center is functionally divided into four working groups: Corporate Governance, Environmental Sustainability, Social Inclusion, and Product Safety. Regular meetings are held to promote sustainability-related initiatives. A progress report on the Center’s activities was submitted to the Board of Directors in August 2025.	N/A
II. Does the Company follow materiality principle to conduct risk assessment for environmental, social and corporate governance topics related to company operation, and establish risk management related policy or strategy?	☑		To ensure stable operations and mitigate business risks, the Company has designated responsible units to manage issues related to environmental, social, and corporate governance (ESG). The "Risk Management Methods and Procedures," approved and implemented by the Board of Directors, serve as the foundation for the Company's overall risk management. In addition, members of the Sustainability Development Center engage in discussions on the risks, opportunities, and financial impacts arising from climate change.	N/A
III. Environmental Issues
(1) Has the Company developed an appropriate environmental management system, given its distinctive industrial characteristics?	☑		(1) As a publicly listed company in Taiwan’s semiconductor industry, TEAMGROUP fully recognizes that sustainable development within the global industrial supply chain can only be achieved through energy conservation, carbon reduction, and resource recycling, thereby fostering a resilient, low-carbon enterprise. In alignment with government policies and ESG-related requirements, the Company actively fulfills its corporate social responsibility. In 2024, TEAMGROUP engaged a professional consulting firm to assist with the implementation of an ISO 14064-1 greenhouse gas (GHG) inventory project. Employees from relevant internal departments participated in training programs and helped implement GHG inventory system software, demonstrating concrete actions in support of environmental protection and carbon reduction. The Company aims to obtain annual third-party verification approved by the Ministry of Environment. In addition, TEAMGROUP has obtained ISO 14001 environmental management system certification. The latest certificate issued by an external verifier is valid from September 9, 2023, to September 9, 2026. Adhering to the values of energy conservation, carbon reduction, and environmental sustainability, the Company continues to implement green policies, educate employees to adopt eco-friendly habits, and integrate environmental awareness into everyday life, thereby fulfilling its responsibility as a green corporate citizen.	N/A
(2) Has the Company endeavored to improve the utilization efficiency of energies and used recycled materials which have a low impact on the environment?	☑		(2) The Company operates in two main directions:
1. New Product Development: Certain product lines have adopted sustainable design and prioritized the use of renewable materials, specifically post-consumer recycled (PCR) materials and recycled aluminum, to reduce demand for natural resources and minimize the environmental impact of material selection.	N/A

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Items Promoted	Implementation
	Yes	No	Summary
(3) Has the Company evaluated the potential risks and opportunities from the climate changes to the current and future Company, and take countermeasures?	☑		2. Waste Recycling: In addition to improving the utilization efficiency of various resources and achieving the goal of reducing waste, the Company classifies resources and materials for recycling and reusing, and entrusts other professional companies to scrap and recycle; and the office fully adopts energy-saving lighting equipment, etc.
3. Energy Conservation Policy Promotion: The Company has implemented comprehensive energy-saving lighting equipment in all offices; future procurement of air conditioning equipment will be limited to products with an energy efficiency within Level 2; home appliances will primarily be products with energy-saving labels; signage has been placed in pantries, restrooms, and meeting rooms to remind employees to turn off lights when not in use, enhancing the management of lighting equipment and reducing unnecessary electricity consumption; the factory is gradually replacing high-energy-consuming older equipment, such as dryers and hot air furnaces; constant temperature and humidity Chamber equipments are set with usage time limits and are turned off immediately after use to minimize energy consumption.

(3) In response to extreme weather caused by global warming and the increasing importance of energy and climate change issues, the Company has adopted the Task Force on Climate-related Financial Disclosures (TCFD) framework. This framework includes governance, strategy, risk management, metrics, and targets. Senior management evaluates the impact and frequency of risks and opportunities, assesses the financial impact of climate change-related risks and opportunities (including transition risks and physical risks), and promotes climate change mitigation and adaptation measures to continuously reduce risks, enhance resilience, and create sustainable development opportunities.

(4) The Company collects statistics on greenhouse gas emissions and total waste and recycling annually, and draws up a factory energy-saving management plan including:
1. Greenhouse gas emission management measures:
Our greenhouse gas emissions are divided into Scope 1 “direct emissions”, Scope 2 “indirect emissions” and Scope 3”other indirect emissions”. Scope 1 emissions refer to GHG emissions from sources owned or controlled by the Company. Scope 2 emissions refer to GHG emissions resulting from the generation of purchased electricity, heat or steam consumed by the Company. Scope 3 emissions include other indirect emissions that occur in the value chain of the Company, including both upstream and downstream activies. The Company completed the inventory of Scope 1, Scope 2, and Scope 3 greenhouse gas emissions in 2025 and plans to conduct external verification in the third quarter of 2026. | N/A |
| (4) Has the Company had statistics of the greenhouse gas emission, water usage and the total weight of wastes in the past two years, as well as established the policies for greenhouse gas reduction, water reduction and other waste management? | ☑ | | | N/A |

Items Promoted	Implementation				Deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
	Yes	No	Summary
			2. The Company’s greenhouse gas statistics for the past two years are as follows:
Unit: metric tons CO_{2}e
			Item	2024	2025
			Scope 1: Direct emissions	78.1642	64.6276
			Scope 2: Indirect emissions	938.1942	1,106.6907
			Scope 3: Other indirect emissions	599.6059	853.5426
			Total emissions	1615.9643	2,024.8609
			Note1:According to the data released by the Energy Bureau, Ministry of Economic Affairs, the electricity carbon emission coefficient for 2024 was 0.474 kgCO2e, and for 2025, it was 0.424 kgCO2e.
Note2:Data is based on the National Greenhouse Gas Registry Platform's Greenhouse Gas Emission Coefficient Management Table version 6.0.4.
Note3:GWP values are based on the IPCC AR6 (2021) assessment report.
Note4: The Company's 2024 greenhouse gas inventory data represents verified results conducted by a third party in accordance with ISO 14064-1. External verification for the Company's 2025 greenhouse gas inventory is scheduled to be conducted in the third quarter of 2026. (The company has obtained the ARES International Certification 2024 ISO14064-1 greenhouse gas inventory verification statement.
Note5:The inventory scope covers: TEAMGROUP parent company
Note6:Subsidiaries will complete their inventory according to the schedule required by the competent authority.
Note7:Greenhouse gas reduction target: 1% reduction in greenhouse gas emission intensity annually.
Note 8: In 2025, due to increased production capacity and additional overtime hours worked by employees, the company's revenue increased, leading to a rise in greenhouse gas emissions.

Waste management measures:
The Company’s waste is mainly generated from production process operations and operating activities. All waste is stored, cleared, and transported in accordance with the "Waste Disposal Act" and relevant regulations, in which we classify resources and materials to facilitate recycling and reuse and entrust professional and qualified companies to clear, transport, recycle and process the waste according to laws, and record them by weighing, and report the data to the Environmental Protection Agency after monthly statistics. The relevant data is available at the official site. | | |

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Items Promoted	Implementation	Deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
Yes	No	Summary

Item	2024	2025
Weight of hazardous waste(business)	1.182	1.9337
Weight of non-hazardous waste (business)	14.841	14.9218
Weight of General waste (non-hazardous domestic waste)	141.738	145.082
Note: Team Group is located in a commercial office building where general waste (non-hazardous domestic waste) is centrally managed and collected by the building management committee. As the actual waste weight data is unavailable, the Company estimates the amount of general waste generated by using the average per capita daily waste generation rate published by the Ministry of Environment, multiplied by the number of employees at the end of each month and the number of working days in that month.
4. Water Consumption:
Unit: Million Liters (ML)
Item	2024	2025
Total water withdrawal	31.4369	31.0814
Total water discharge	31.4369	31.0814
Water consumption	0	0
Note: Team Group is located in a commercial office building where water charges are allocated by the building management committee based on the proportion of each company's floor area, and are included in the monthly management fees. As such, actual water usage readings are not directly available. The water consumption figures presented above are estimated using the average per capita daily water usage published by the government environmental authority, multiplied by the number of employees at the end of each month and the number of working days in that month.

Items Promoted	Implementation
	Yes	No	Summary
IV. Social issues
(1) Has the Company developed related management policies and procedures in accordance with applicable laws and regulations and the International Bill of Human Rights?
(2) Has the Company appropriately reflected the corporate business performance or achievements in the employee remuneration policy, to ensure the recruitment, retention, and motivation of human resources and achieve the objective of sustainable operations?
(3) Does the Company provide employees with a safe and healthy work environment as well as periodic safety and health education?	☑		(1) The Company complies with relevant labor laws and regulations, and the appointment and dismissal of relevant employees and their remuneration are based on the Company’s internal control system management methods to protect the basic rights and interests of employees.
(2) The Company provides employee benefits in accordance with the Labor Standards Act and offers additional welfare measures that exceed statutory requirements, including childbirth support and related incentives. Furthermore, employee compensation is appropriately aligned with business performance.
(3)
1. Employee Health Management:
The Company has entered into a contract with Far Eastern Memorial Hospital in Banqiao for on-site physician services. A company nurse schedules monthly employee health consultations, each lasting at least three hours. Consultation recipients are determined by the company nurse based on health examination reports or through employee self-registration. After consultations, the company nurse continues to track special cases.
2. Regular Health Examinations:
The Company schedules employee health examinations once every three years.
3. Environmental Safety / Disaster Prevention and Management:
The Company has established an Occupational Safety and Health Committee in accordance with applicable regulations and engages qualified testing companies to conduct environmental assessments of work areas on a semi-annual basis to ensure environmental safety. The Company conducts fire safety equipment inspections and filings annually in accordance with applicable regulations and executes fire drill exercises on a semi-annual basis. As of 2025, the Company has not experienced any occupational injuries, illnesses, or workplace safety incidents.
4. Occupational Safety and Health Education and Training:
The Company arranges occupational safety and health personnel to conduct a 3-hour occupational safety and health education and training program for each new employee. Through continuous education, training, and promotion, the Company fosters employees’ emergency response capabilities and safety awareness, enhances employee understanding, and reduces workplace accidents caused by unsafe behaviors.
5. Self-Initiated Installation of First Aid Equipment:
During 2025, the Company self-initiated the installation of three Automated External Defibrillators (AEDs) and arranged for more than 70% of the Company’s employees,	N/A

Items Promoted	Implementation			Deviations from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
	Yes	No	Summary
(4) Has the Company implemented an effective training program that helps employees develop skills over the course of their career?	☑		totaling 312 participants, to attend AED first aid training courses. The Company plans to incorporate AED first aid training into its regular training schedule, with a frequency of one training session per year, to promote and popularize basic first aid concepts and safeguard the personal safety of employees, customers, and neighboring businesses, thereby fulfilling the Company's corporate social responsibility.
6. The Company lawfully employs occupational safety and health personnel and occupational health nurses, and continuously arranges reserve personnel to participate in relevant training courses and obtain professional certifications, with the goal of safeguarding the safety and health of all employees and ensuring sustainable operations.
(4) Based on the Company’s business development needs, we formulate the "annual education and training plan" for internal and external education and training programs to assist employees to obtain the job functions needed to perform their current or future duties, and establish effective professional training courses to strengthen their career development capabilities.
(5) The company’s marketing and labeling of products and services follow relevant laws and international standards, and we attach great importance to after-sales service for customers. We have a comprehensive sop for customer complaint handling standards and smooth customer complaint channels and maintenance services.
(6) The quality assurance, procurement, and production management units randomly check and audit suppliers on a semi-annual basis to assess their impact on the environment and society. Since 2024, the Company required suppliers to sign the "Supplier Sustainability Audit Checklist", which mandates supplier compliance with relevant regulations on environmental protection, occupational safety and health, and labor human rights. By the end of 2025, 105 forms had been issued, with 105 returned, representing a return rate of 100%. The Company will continue to promote and require supplier cooperation in 2026.	N/A
(5) Has the Company followed relevant laws, regulations and international guidelines for the customers’ health and safety, privacy, marketing or labeling their products and services and established the relevant police to protect consumers’ interest and the complaint procedure?	☑			N/A
(6) Has the Company established the supplier management policies, to require the suppliers to comply with related regulations of the environment, occupational health and safety and labor’s rights and what is the status of the implementation?	☑			N/A
V. Does the Company prepare the reports disclosing the Company’s non-financial information, such as sustainability reports, by referring the internationally recognized reporting standards or guidelines? Are the aforementioned reports assured or attested to by any third-party certifier?	☑		The Company completed the preparation of its first sustainability report in 2025 with guidance from a third-party consulting firm. The report was prepared in accordance with GRI International Standards and with reference to SASB industry indicators and TCFD climate-related disclosures. The Company anticipates completing the 2025 sustainability report by August 2026. Each sustainable team will follow their required duties, to fulfill corporate social responsibility, in compliance with relevant government regulations.	N/A
VI. If the Company has its own Sustainable Development Best Practice Principles established according to the “Sustainable Development Best Practice Principles for TWSE/GTSM Listed Companies,” please describe the differences between its implementation and the principles: There are no major differences from the Sustainable Development Best Practice Principles for TWSE/GTSM Listed Companies.

Items Promoted	Implementation
	Yes	No	Summary
VII. Other Important Information to Help Understand Utilization of Corporate Social Responsibilities:
1. Environmental protection: The Company attaches great importance to environmental protection, and no air, water and noise pollution is caused during the manufacturing process, which complies with the laws and regulations; the wastes produced such as tin slag, PCBs and cleaning chemicals are entrusted to qualified waste disposal companies who are responsible for their cleaning, transportation and recycling, and we also report the status of waste disposal to the Environmental Protection Bureau of the New Taipei City Government through the Internet on a monthly basis.
2. Consumer rights: The Company has a dedicated customer service center to handle customer complaints and provide consumer product return and exchange services.
3. Employee rights and interests: Please refer to 4.5.1. Implementation of various employee welfare measures, continued education, training, pension system and labor-management agreements in this annual report.
4. Products: In terms of quality management, the Company has obtained ISO 9001 quality management system certification, and has been awarded the Taiwan Excellence Award for many years by virtue of its excellent product design and R&D capabilities, which all establish a high-quality brand image.
5. Specific promotion plans and implementation results of corporate social responsibility:
The Company has obtained ISO 14001 Environmental Management System certification and annually undergoes third-party verification of greenhouse gas inventory in accordance with ISO 14064-1 by verifiers accredited by the Ministry of Environment, thereby implementing ESG sustainable carbon reduction initiatives. The Company completed the planning of its ESG sustainability report in 2025, aligning with the requirements of GRI, TCFD, and SASB. The Company will continue to prepare its ESG sustainability report in 2026, with completion and public disclosure expected in August 2026.
Also, The Company upholds the mind of fulfilling more corporate responsibilities for the country and society, and has long been committed to participating in various public welfare activities by sparing no effort. The following is a selection of our major participation during the current year:
(1) In order to revitalize the development of local agriculture and help local farmers to make a living, the Company selected an orange orchard in Baoshan, Hsinchu for contract farming where the Company’s top management level and colleagues utilize their spare time to implement traditional methods such as manual weeding in an organic manner and the colleagues breed, take care of, pick and pack the fruits to produce good-quality, delicious and juicy tankans. After harvesting, the products were distributed to colleagues throughout the Company or given to others as gifts of traditional festivals, so as to promote local agricultural products.
(2) Since 2022, due to the stable harvest of Tongkan oranges, in addition to gifting them to employees and customers, the Company has also donated them annually to disadvantaged groups, including Yi Kuang Orphanage, Haoran Senior Citizens Home, and Yucheng Social Welfare Foundation (Nangang and Tamsui campuses), etc.
(3) Since 2023, the Company has continued to donate to various public welfare activities. The Company supports the Tzulin Ecological Restoration and Culture Association, which promotes tree planting and forest protection, to convey the importance of ecological restoration and reforestation.
(4) Responding to the "Taiwan Catholic Mission Foundation," the foundation supports the association's efforts to assist children in remote areas, vulnerable groups, and new immigrants. By focusing on education, it reaches the grassroots level of society, establishing over 50 educational care stations for children in rural areas. With joy and love, they accompany lonely children in every corner, helping them grow and thrive, seeing hope, and supporting green energy public welfare through practical actions and compassion.

2.3.6. Climate-Related Information Disclosure of TWSE/TPEx Listed Companies

Status of implementation of climate-related information

Item	Status of implementation
1. Describe the board's and management's oversight of climate-related risks and opportunities.	TEAMGROUP has established a Sustainability Development Center, under the leadership of the General Manager, which convenes regular meetings to drive the Company's sustainability agenda, including climate-related issues. The center is responsible for developing and reviewing key sustainability policies, monitoring implementation progress and effectiveness, and providing regular updates to the Board of Directors.
2. Describe how the identified climate-related risks and opportunities have impacted the company's business, strategy, and financials (short, medium, and long term)	In response to extreme weather caused by global warming and the increasing importance of energy and climate change issues, the Company has adopted the Task Force on Climate-related Financial Disclosures (TCFD) framework. This framework includes governance, strategy, risk management, metrics, and targets. Senior management evaluates the impact and frequency of transition risks (policy and legal, technological, market, reputational), physical risks (acute, chronic), and opportunities (resource efficiency, energy sources, products/services, markets, resilience) to develop and implement climate change mitigation and adaptation measures to continuously reduce risks, enhance resilience, and create sustainable development opportunities. The Company's assessment of climate change risks and opportunities in 2024 covers short-term (1-3 years), medium-term (3-5 years), and long-term (6-10 years) horizons. For detailed information, please refer to the 2024 ESG Sustainability Report.
3. Describe the financial impact of extreme weather events and transition actions.	The Company has identified two key transition risks: 1. Increased raw material costs, the operational and financial impact of which is a decline in gross profit margins: If the Company is unable to pass on increased costs to consumers, it may face pressure on profitability and increased investment costs for research and development to explore alternative materials or enhance production efficiency. 2. Increased greenhouse gas emission pricing: The tightening of greenhouse gas emission reduction regulations may result in carbon fees or taxes, or the need to purchase renewable energy, leading to higher operating costs. However, as the Company is not a high-emission industry (annual emissions exceeding 25,000 metric tons), the financial impact of carbon fees is expected to be minimal. Based on 2024 greenhouse gas emissions, estimated carbon fee expenses would be approximately NT$520,000. For 2025, the estimated expense is approximately NT$260,000.
4. Describe how the processes for identifying, assessing, and managing climate-related risks are integrated into the company's overall risk management system.	◆The TEAMGROUP Board of Directors serves as the highest governing body for the Company's risk management. The Board of Directors established the Risk Management Methods and Procedures in 2024, which are implemented by the Risk Management Team based on the operational scope of each department to conduct risk management and control activities assessments. The implementation progress is reported to the Board of Directors at least once a year. ◆Members of the Sustainability Development Center engage in discussions regarding the risks, opportunities, and financial impacts associated with climate change. The risk management process encompasses the following stages: Risk Identification → Risk Assessment → Risk Response → Risk Monitoring → Risk Reporting In 2024, the climate-related risk and opportunity identification, based on the TCFD questionnaire risk assessment results, identified four significant themes: increased raw material costs, the use of more efficient production and distribution processes,

Item	Status of implementation
	increased low-carbon products and services, and increased greenhouse gas emission pricing. In 2025, the impact of climate-related risks and opportunities on TeamGroup is still considered mild, so the identification of future climate risks and opportunities will be reviewed every two years.
5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors, and major financial impacts should be described.	TEAMGROUP references the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report AR6's Shared Socioeconomic Pathways SSP1-2.6 and SSP5-8.5 as the baseline data for climate issue analysis. Using the 1850-1900 baseline, the global temperature increase over the next 200 years is simulated to analyze future climate change impacts. This analysis is used as a reference for operational strategy adjustments, in conjunction with the Science Based Targets initiative (SBTi) and future carbon reduction projections. The Company also utilizes the tools provided by the Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP) as a reference for assessing physical climate risk scenarios. By simulating the physical risks faced by TEAMGROUP under ideal (SSP1-2.6) and worst-case (SSP5-8.5) scenarios, the Company can determine potential operational impacts and financial implications, and develop corresponding management measures, such as increased electricity consumption and related costs due to rising temperatures.
6. If a transition plan is in place to manage climate-related risks, the plan's content, and the indicators and targets used to identify and manage physical and transition risks should be described.	Two key transition risks have been identified: increased raw material costs and increased greenhouse gas emission pricing. For plan details, please refer to the 2024 ESG Sustainability Report. The related indicators and targets are as follows: ◆The Company uses 2023 as the baseline year for greenhouse gas inventory, and disclosure of progress began in 2023. ◆Increase disclosure of greenhouse gas Scope 1-3 inventory results on the official website, ESG digital platform, and MOPS. ◆Greenhouse gas reduction target: 1% reduction in greenhouse gas emission intensity annually.
7. If internal carbon pricing is used as a planning tool, the basis for price setting should be described.	The Company has not yet implemented an internal carbon pricing policy.
8. If climate-related targets are set, the activities covered, greenhouse gas emission scopes, planning timeline, and annual progress should be described. If carbon offsets or renewable energy certificates (RECs) are used to achieve related targets, the sources and quantities of carbon offsets or RECs should be described.	Climate change risk and opportunity response measures and established indicator items are reviewed quarterly through Sustainability Development Center meetings to evaluate the effectiveness of implementation strategies and targets. The feasibility of using carbon offsets or renewable energy certificates (RECs) to achieve related targets will be evaluated in the future.
9. Greenhouse gas inventory and assurance, reduction targets, strategies, and specific action plans (to be filled in 1-1 and 1-2).	See the table below for details.

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1-1 Greenhouse gas inventory and assurance for the past two years

1-1-1 Greenhouse Gas Inventory Information

Describe the company's greenhouse gas emissions (metric tons of CO₂e), intensity (metric tons of CO₂e/million NT$), and data coverage for the past two years.
Category	2024	2025
Scope 1 (metric tons of CO₂e)	78.1642	64.6276
Scope 2 (metric tons of CO₂e)	938.1942	1,106.6907
Scope 3 (metric tons of CO₂e)	599.6059	853.5426
Total Emissions (metric tons of CO₂e)	1615.9643	2,024.8609
Revenue (million NT$)	19,938	20,428
Intensity (metric tons of CO₂e/million NT$)	0.0810	0.0991
Note 1: The inventory scope covers: TEAMGROUP parent company.
Note 2: Subsidiaries will complete their inventory according to the schedule required by the competent authority.

1-1-2 Greenhouse Gas Assurance Information

Describe the company's assurance information for the past two years as of the date of the annual report publication, including assurance scope, assurance body, assurance criteria, and assurance opinion.
◆2024 ISO 14064-1:2018 Greenhouse Gas Inventory Verification Statement, obtained on November 11, 2025, verified by ARES International Certification.
◆2025 ISO 14064-1:2018 Greenhouse Gas Inventory Verification, scheduled for 2025Q3

1-2 Greenhouse Gas Reduction Targets, Strategies, and Action Plans

| Describe the company's greenhouse gas reduction baseline year and its data, reduction targets, strategies, specific action plans, and progress toward achieving the reduction targets. |
| --- |
| ◆ The Company uses 2023 as the baseline year, and disclosure of progress began in 2023.
◆ The 2023 greenhouse gas inventory has been completed with third-party verification, and the company plans to continue performing inventory and verification operations annually.
◆ Increase disclosure of greenhouse gas Scope 1-3 inventory results on the official website, ESG digital platform, and MOPS.
◆ Greenhouse gas reduction target: 1% reduction in greenhouse gas emission intensity annually. |

2.3.7. Deviation between Implementing Ethical Management and Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and Reasons:

Assessed areas	Operational status
	Yes	No	Summary
I. Establishment of ethical corporate management policy and proposal
(1) Has the Company established its ethical corporate management policies and procedures passed by the Board of Directors, as well as the commitment of its Board of Directors and executives to implementing the management policies in its rules and external documents?
(2) Has the Company established a risk assessment mechanism against unethical conduct, analyze and assess on a regular basis business activities within their business scope which are at a higher risk of being involved in unethical conduct, and establish prevention programs accordingly and review their adequacy and effectiveness on a regular basis, at least covering the preventive measures to the behaviors specified in Paragraph 2, Article 7 of the “Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies”?
(3) Has the Company established the operational procedures, guidelines of conduct, punishment for violation, rules of complaint in the program preventing unethical conduct, implemented precisely and reviewed and/or amended the aforementioned program?	☑		(1) The Company has formulated regulations such as the "Ethical Corporate Management Best Practice Principles" and "Guidelines for Codes of Ethical Conduct", and requires directors and all employees to uphold the concepts of "integrity, innovation, professionalism, efficiency, discipline, and simplicity" and comply with relevant laws and regulations and other business practices.
(2) The Company has formulated regulations such as the "Ethical Corporate Management Best Practice Principles" and "Guidelines for Codes of Ethical Conduct", which have covered the business activities with higher risks of dishonesty within the scope specified in Paragraph 2 of Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies" or other business activities.
Ethical management and professional ethics are the core guidelines of the Company. According to various operating activities, internal control systems for various operation cycles have been established, and an annual audit plan has been formulated. The audit unit carries out audit works accordingly, and in the event of any extraordinary circumstances, we will separately arrange special inspections to ensure the robust operation of the Company.
(3) The Company has formulated regulations such as the "Ethical Corporate Management Best Practice Principles" and "Guidelines for Codes of Ethical Conduct", and we also stipulate in the work rules that employees are not allowed to use the name of the Company to conduct behaviors that affect the Company's rights and interests or reputation, and are prohibited from directly or indirectly taking advantage of their job positions to receive gifts or hospitalities from others, or collect improper benefits. Further, we strengthen promotion through employee education and training and clear reward and punishment measures and require all employees and directors to comply with such regulations.	N/A
II. Consolidation of Ethical Corporate Management
(1) Has the Company evaluated the ethical records of			(1) Before interacting with suppliers, the Company will evaluate and review all

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Assessed areas	Operational status			Departure from Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and Reasons
	Yes	No	Summary
parties it does business with and stipulated ethical conduct clauses in business contracts?	☑		aspects of suppliers, and before interacting with customers, it will conduct credit checking and evaluate customers' financial and credit status in accordance with its corporate policies. If the counterparty of the transaction involves dishonest behavior, the relevant contracts may be terminated or rescinded at any time.	N/A
(2) Has the Company established a dedicated unit that is under the board of directors, report the ethical corporate management policies, prevention proposals for unethical behaviors, and their supervision to the implementation to the board of directors on a regular basis (at least once a year)?	☑		(2) The Management Department of our company serves as the unit responsible for promoting the integrity operation of the enterprise. It is tasked with coordinating relevant units to fulfill their duties and scopes in conducting business with integrity. Additionally, it reports on the implementation status to the Board of Directors at least once a year. The execution status for 2025 was reported at the Board meeting on February 25, 2026.	N/A
(3) Has the Company established policies to prevent conflict of interests, provided appropriate channels for filing related complaints and implemented the policies accordingly?	☑		(3) The company's "Code of Ethical Conduct", "Rules of Procedure for Board of Directors Meetings" and "Audit Committee Charter" all stipulate clear regulations stating that in the event of any conflict of interests that requires needs recusal, the parties concerned shall recuse. The Company also provides channels for making representation and statements. Any of the directors, managers or employees being confirmed to have violated the Code of Ethical Conduct will be handled in accordance with the punishment measures stipulated in the Code of Ethical Conduct.	N/A
(4) Has the Company established effective accounting systems and internal control systems and the internal audit unit, based on the results of assessment of the risk of involvement in unethical conduct, devise relevant audit plans to examine accordingly the compliance with the prevention programs or engage a certified public accountant to carry out the audit?	☑		(4) The Company prepares financial reports in accordance with International Financial Reporting Standards, International Accounting Standards, and Interpretations and Interpretation Announcements. For the annual consolidated financial report, the Company entrusts an accounting firm to issue unqualified opinions.
The Company has formulated an "internal control system" for each operating activity. The internal audit unit regularly checks the status of the audit period according to its audit plan, and reports to the Audit Committee and the board of directors.	N/A
(5) Does the Company hold internal and external educational trainings on operational integrity regularly?	☑		(5) In order to establish a corporate culture of honest management and sound development, and to formulate a framework for good business operations, the Company has hereby formulated the "Ethical Corporate Management Best Practice Principles " and implemented them during daily operations, and conducted relevant courses during the education and training of new employees	N/A

Assessed areas	Operational status			Departure from Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and Reasons
	Yes	No	Summary
III. Reporting System of the Company
(1) Has the Company created substantial reporting and incentive systems and convenient reporting channels and assigned suitable dedicated personnel to investigate parties being reported?
(2) Has the Company established any standard operating procedures or related confidentiality mechanisms for handling reported matters?
(3) Does the Company adopt measures to protect reporters from being treated inappropriately because of their reports?	☑		(1) The Company includes integrity management in employee performance appraisal and human resource policies, and clearly formulates effective reward, punishment and appeal systems. The Company will dismiss or terminate the employment contracts of those who severely violate the integrity of behaviors in accordance with the relevant laws and regulations or the Company’s HR regulations.
(2) According to the Company's internal operating procedures, the responsible unit is in charge of inspection and verification through independent channels, and the investigation process and related documents are kept confidential throughout the process.
(3) The company takes protective measures for the whistleblower to prevent the whistleblowers from being mistreated.	N/A
IV. Reinforced Information Disclosure
(1) Has the Company disclosed information regarding its ethical corporate management principles and implementation status on its website and the MOPS?	☑		(1) The Company’s official site has a page for "investor section" to disclose information related to ethical corporate management which is also announced at MOPS for reference and compliance of interested parties.	N/A
V. If the Company has its own Ethical Corporate Management Rules established according to the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, please describe the differences between its implementation and the principles: There are no major differences from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies.
VI. Other important information to help understand ethical corporate management and operation:
1. The Company regularly reviews the update of the "Ethical Corporate Management Best Practice Principles", and reviews the current situation and evaluates amendments in a timely manner.
2. The Company clearly prohibits dishonest behaviors, prevents conflicts of interest, and avoids the seeking of personal gains in the "Ethical Corporate Management Best Practice Principles" and "work rules".
3. In order to implement the promotion of ethical corporate management, the Company arranges relevant content during the education and training of new employees, so that new employees may understand the Company's policies, directions and principles of ethical corporate management.

2.3.8. Other Important Information to Enhance Understanding of Corporate Governance Practices:

Market Observation Post System: https://mops.twse.com.tw
The Company's official website>About Us>Investor Relations>Corporate Governance (https://www.teamgroupinc.com/tw/investors/corporate/basic-information/)

~39~

2.3.9. Implementation of the Internal Control System:

Internal Control System Statement

Team Group Inc.

Internal Control Statement

Date: February 25, 2026

Based on the results of self-evaluation, the internal control system of the Company of 2025 is hereby declared as follows:

The Company is clearly aware that it is the responsibility of the board of directors and managers of the Company to formulate, implement and maintain an internal control system, and the Company has already formulated such a system with the purpose to achieve the goals of operational effectiveness and efficiency (including profit, performance, and maintenance of asset security, etc.), report reliable, timely, transparent, and law-abiding achievement of relevant regulations and compliance with relevant laws and regulations, so as to provide reasonable assurance.
The internal control system is inherently of limitations. No matter how perfect the design is, an effective internal control system can only provide reasonable assurance for the achievement of the above three objectives; moreover, due to changes in the environment and circumstances, the effectiveness of the internal control system is subject to change from time to time. However, the Company's internal control system has a self-monitoring mechanism. Once a defect is identified, the Company will take corrective measures.
The Company determines whether the design and implementation of the internal control system are effective based on the items for determination of the effectiveness of the internal control system stipulated in the "Regulations Governing Establishment of Internal Control Systems by Public Companies" (hereinafter referred to as the "Regulations"). The items for determination of the internal control system adopted in the "Regulations" are based on the process of management control, and the internal control system is divided into five components respectively known as 1. Control environment, 2. Risk assessment, 3. Control operations, 4. Information and communication, and 5. Supervise operations. Each component in turn includes several sub-items. For the aforementioned items, please refer to the provisions of the "Regulations".
The Company has adopted the above-mentioned internal control system to determine and evaluate the effectiveness of the design and implementation of the internal control system.
Based on the evaluation results in the preceding paragraph, the Company believes that its internal control system (including the supervision and management of subsidiaries) as of December 31, 2025, including the understanding of the effectiveness of operations and the degree of achievement of efficiency, the report of reliable, timely, transparent and law-abiding achievement of relevant regulations and compliance with relevant laws and regulations, and the design and implementation of relevant internal control systems are all effective, which can reasonably ensure the achievement of the above objectives.
This statement will become one of the major components of the Company's annual report and prospectus, and will be made public. If there are false contents, concealment, or other illegal matters in the above-mentioned disclosed content, the legal liabilities under Articles 20, 32, 171, and 174 of the Securities and Exchange Act would be applicable.
This statement has been approved by the Company's Board of Directors on February 25, 2026. Among the 7 directors present, 0 of them had an objection, and all of them agreed with the content herein.

TEAM GROUP INC.

Chairman: Hsia, Dann-Ning

General Manager: Chen, Ching-Wen

When a CPA is authorized to review the internal control system, the Review Report prepared by the CPA shall be disclosed: not applicable.

2.3.10. Important resolutions of the Shareholders' Meeting and BoD meetings during the most recent FY as of the date on which the annual report was printed:

Important resolutions of the Shareholders' Meeting

Date of meeting	Meeting resolutions	Status of implementation
May 29, 2025
Shareholders' Meeting	(1) Recognized the 2024 business report and financial statements.	Approved as proposal.
	(2) Recognized the proposal of the Company's 2024 Earnings Distribution.	Approved as proposal.
	(3) Amendments to the Company's Articles of Incorporation.	Approved as proposal.

Important resolutions of the Board of Directors

Date	Major Resolutions
February 27,2025	1. Approved the proposal of distribution of the Company's 2024 employees' remuneration and directors' remuneration.
2. Approved the Company's 2024 annual business report and financial statements.
3. Approved the proposal for the Company's surplus distribution.
4. Approved the proposal of the Company's 2024 Earnings Distribution.
5. Approved the proposal for the change of the company's CPA.
6. Approved the Company's 2025 CPA appointment proposal and assessment of independence and suitability assessment.
7. Approved the revision of the company's 'Articles of Incorporation'
8. Approved the definition of the scope of the company's lower-level employees.
9. Approved the capital increase proposal for the subsidiary "Team Group (SZ) Inc."
10. Approved the matters related to the convening of the Company's 2025 shareholders' meeting.
11. Approved the matters related to accepting proposals from shareholders holding at least 1% of the Company's shares for the shareholders' meeting of 2025.
12. Approved the effectiveness appraisal of the Company's 2024 internal control system and issuance of the "Statement of Internal Control System".
13. Approved the matters related to the distribution of remuneration to the directors of the Company.
May 7,2025	1. Approved the Company's consolidated financial statements for the first quarter of 2025.
2. Proposed amendment of the Company's "Internal Control System - Payroll Cycle".
August 7,2025	1. Approved the Company's consolidated financial statements for the second quarter of 2025.
2. Approved the proposal of the Company's loan to subsidiaries.
3. Proposed amendment of the Company's "Regulations Governing the Acquisition and Disposal of Assets"
4. Proposed amendment of the Company's "Internal Control System - Investment Cycle"
5. Approved the Company's sustainability Report of 2024.
6. Approved the personnel changes of the company.
November 13,2025	1. Approved the personnel changes of the company.
2. Approved the Company's consolidated financial statements for the third quarter of 2025.
3. Approved the proposal of the Company's "2026 Operation Plan and Annual Budget".
4. Approved the proposal of the formulation of "2026 Audit Plan".
5. Approved the amendment of "Internal Control System
6. Approved the application for financing line of credit from banks in 2026.
7. Proposal of the estimated ratio for the directors and employee remuneration for the year 2026.
8. Proposal of the remuneration for the Chairman and executives for the year 2026. »

Date	Major Resolutions
November 27, 2025	1. Approved the proposal of the Company's 4th domestic secured convertible bond. 2. Approved the proposal to apply to Taichung Commercial Bank for the 4th domestic secured corporate bond guarantee quota.
February 27,2025 Board Meeting	1. Approved the proposal of distribution of the Company's 2025 employees' remuneration and directors' remuneration. 2. Approved the Company's 2025 annual business report and financial statements. 3. Approved the proposal for the Company's surplus distribution. 4. Approved the proposal of the Company's 2025 Earnings Distribution. 5. Approved the Company's 2026 CPA appointment proposal and assessment of independence and suitability assessment. 6. Approved the revision of the company's 'Articles of Incorporation' 7. Approved the definition of the scope of the company's lower-level employees. 8. Approved the matters related to the convening of the Company's 2026 shareholders' meeting. 11. Approved the matters related to accepting proposals from shareholders holding at least 1% of the Company's shares for the shareholders' meeting of 2026. 12. Approved the effectiveness appraisal of the Company's 2025 internal control system and issuance of the "Statement of Internal Control System". 13. Approval for those who exceed the normal credit/transaction period by more than three months and are significant in sales amount, to assess whether it should be reclassified as a loaning case. 14. Approved the personnel changes of the company. 15. Approved the matters related to the distribution of remuneration to the directors of the Company.

Date

Major Resolutions

November 27, 2025

1. Approved the proposal of the Company's 4th domestic secured convertible bond. 2. Approved the proposal to apply to Taichung Commercial Bank for the 4th domestic secured corporate bond guarantee quota.

February 27,2025 Board Meeting

1. Approved the proposal of distribution of the Company's 2025 employees' remuneration and directors' remuneration. 2. Approved the Company's 2025 annual business report and financial statements. 3. Approved the proposal for the Company's surplus distribution. 4. Approved the proposal of the Company's 2025 Earnings Distribution. 5. Approved the Company's 2026 CPA appointment proposal and assessment of independence and suitability assessment. 6. Approved the revision of the company's 'Articles of Incorporation' 7. Approved the definition of the scope of the company's lower-level employees. 8. Approved the matters related to the convening of the Company's 2026 shareholders' meeting. 11. Approved the matters related to accepting proposals from shareholders holding at least 1% of the Company's shares for the shareholders' meeting of 2026. 12. Approved the effectiveness appraisal of the Company's 2025 internal control system and issuance of the "Statement of Internal Control System". 13. Approval for those who exceed the normal credit/transaction period by more than three months and are significant in sales amount, to assess whether it should be reclassified as a loaning case. 14. Approved the personnel changes of the company. 15. Approved the matters related to the distribution of remuneration to the directors of the Company.

2.3.11. In the event that any director expressed a dissenting opinion regarding any of the important resolutions adopted by the BoD during the most recent FY as of the date on which the annual report was printed, and that the opinion was recorded or delivered in writing, please describe its main content: None.

2.4. Professional Service Fees for Attesting CPAs

Unit: NT$1,000

Name of accounting firm	Name of CPA	Accountant Audit Period	Audit public expenditure	Non-audit public expenditure	Total	Remark
PwC Taiwan	Yeh Tsui-Miao, Yu, Chih-Fan	FY2025	4,390	0	4,390
EnRich CPA & Co.	Lin Su-Jing	FY2025	0	130	130	Note 1
Total			4,390	130	4,520	-

Note 1: Transfer Pricing Reporting Service.

2.4.1. The accounting firm is changed and the audit public expenditure in the year of replacement is reduced compared to that in the preceding year: Not applicable.
2.4.2. When the audit fees paid for the current fiscal year are lower than those for the previous fiscal year by 10 percent or more, the reduction in the amount of audit fees, reduction percentage, and reason(s) therefor shall be disclosed: Not applicable.

2.5. Information on Replacement of CPA: In line with PwC Taiwan's internal rotation policy, starting from 2025, Huang Shih-Chun has been replaced by Yu Chih-Fan as the auditor of the Company's financial reports.
2.6. The company's chairman, general manager, or financial/accounting manager served in the CPAs' firm(s) or any affiliate during the most recent year: None.
2.7. Change of shares transferred and pledged for directors, managers and any shareholder holding more than 10% of the company's shares during the most recent FY as of the date on which the annual report was printed:
2.7.1. Change of shares for directors, managers and major shareholders
Unit: Share

Title	Name	2025		2026, as of March 17
		No. of increase (decrease) of shares held	No. of increase (decrease) of shares pledged	No. of increase (decrease) of shares held	No. of increase (decrease) of shares pledged
Chairman	Hsia, Dann-Ning	—	—	30,000	—
Director and concurrent vice Chairwoman	Chi,Mei-Chuan	—	—	—	—
Director and concurrent General Manager	Chen,Ching-Wen	11,000	—	—	—
Director	Hsia,Shao-An	1,582,000	—	20,000	—
Independent Director	Chiang, Fu	—	—	—	—
Independent Director	Yang, Tuen-Ho	—	—	—	—
Independent Director	Chang, Hai-Ching	—	—	—	—
Independent Director	Shieh, Sheau-Yuan	—	—	—	—
Independent Director	Hwang, Yii-Fang	—	—	—	—
Vice General Manager	Cho,Chien-Nan	—	—	—	—
Vice General Manager (Note 1)	Jong Ho-Jen	N/A	N/A	—	—
Corporate governance officer	Chin, Han-Ran	2,000	—	—	—
Accounting officer (Note 2)	Lee, Chia-I	—	—	—	—
Accounting · Financial officer(Note 2)	Chen, Chien-Hua	—	—	—	—

Note 1: On February 25, 2026, a Resolution by the Board of Directors decided that Jong Ho-Jen was appointed as the New Vice General Manager of Manufacturing.
Note 2: On February 25, 2026, a Resolution by the Board of Directors decided that the original Accounting Officer, Miss Lee, Chia-I, will be concurrently held by the Financial Officer, Miss Chen Chien-Hua.
2.7.2.Information on share transfer:None.
2.7.3. Information on share pledge: None.

2.8.Information on the top-10 shareholders who are related parties to each other, in a spousal relationship or within the second degree of kinship:

March 17, 2026; Unit: Share; %

Name	Oneself		Shares held by spouses and/or children of minor age		Shares held in the name of others		The title or name and relationship among shareholders in the Top 10 shareholding list who are related, spouse to each other or relatives within the second degree of kinship		Notes
	Shares	Ratio	Shareholding	Shares	Ratio	Shareholding	Shareholding	Ratio
SinoPac Securities Corporation, Acting as Custodian for the Investment Account of SinoPac Securities (Asia) Limited	3,071,000	3.62	-	-	-	-	-	-	-
PMK CAPITAL CO., LTD Hsia, Shao Hsiung	2,140,000	2.52	-	-	-	-	Hsia, Dann Ning	Father and son Brother	-
	-	-	-	-	-	-	Hsia, Shao An		-
Hsia, Shao An	1,791,617	2.11	-	-	-	-	Hsia, Dann Ning	Father and son Brother	-
							Hsia, Shao Hsiung
HSBC Bank (Taiwan) Limited, Acting as Custodian for the Investment Account of Morgan Stanley International Limited	1,464,858	1.72	-	-	-	-	-	-	-
HSBC Bank (Taiwan) Limited, Acting as Custodian for the Investment Account of Goldman Sachs International	1,425,621	1.68	-	-	-	-	-	-	-
Hsia, Dann Ning	1,418,848	1.67	-	-	-	-	Hsia, Shao An	Father and son	-
Hsu, Tien Shu	1,220,000	1.44	-	-	-	-	-	-	-
Lin, Ya Hsien	995,000	1.17	-	-	-	-	-	-	-
HSBC Bank (Taiwan) Limited, Acting as Custodian for the Investment Account of Coöperatieve Rabobank U.A. – Internal Trading Platform – Utrecht Branch	992,000	1.17	-	-	-	-	-	-	-
Standard Chartered Bank (Taiwan) Limited, Business Department, Acting as Custodian for the Investment Account of J.P. Morgan Securities plc	859,000	1.01	-	-	-	-	-	-	-

2.9. Shares held by the Company and the directors, managerial officers, and business that the Company directly or indirectly controls in the same invested business and their shareholding ratio:

December 31, 2025; Unit: Share; %

| Reinvested business
(Note 1) | Company | | Directors, supervisors, managers, and directly or indirectly controlled businesses | | Comprehensive investment | |
| --- | --- | --- | --- | --- | --- | --- |
| | Shares held | Shareholding ratio | Shares held | Shareholding ratio | Shares held | Shareholding ratio |
| DATACELL TECHNOLOGY LIMITED | 27,622,000 | 100% | - | - | 27,622,000 | 100% |
| Team Japan Inc. | 200 | 100% | - | - | 200 | 100% |
| Team Group(SZ) Inc. | (Note 2) | 100% | - | - | (Note 2) | 100% |
| TEAM DATASOLUTION USA INC. | 500 | 100% | - | - | 500 | 100% |

Note 1: Investments made by the Company applying the Equity Method.
Note 2: It is a limited company, so no shares are issued.

3.Financing
3.1.Capital and Shares
3.1.1.Source of capital share

Unit: 1,000 shares; NT$ thousand

Year/Month	Issuing price	Approved capital share		Paid-in capital share		Notes
		Shares held	Amount	Shares held	Amount	Source of capital share	Share value written off by assets other than cash	Approval date and document no.
1997/04	10	500	5,000	500	5,000	Cash	—	April 2, 1997
JIAN-YI-ZI-No.86279311
2000/10	10	2,800	28,000	2,800	28,000	Cash injection 23,000	—	October 18, 2000
BEI-SHI-JIAN-SHANG-ER-ZI-No.89338692
2002/08	10	5,000	50,000	5,000	50,000	Cash injection 27,800
Cash capital reduction 5,800	—	August 26, 2002
FU-JIAN-SHANG-ZI-No.091180615
2005/01	10	10,000	100,000	10,000	100,000	Cash injection 50,000	—	January 12, 2005
JING-SHOU-ZHONG-ZI-No.09431546930
2005/12	10	21,000	210,000	21,000	210,000	Cash injection 110,000	—	December 6, 2005
JING-SHOU-ZHONG-ZI-No.09433273110
2007/04	10	23,550	235,500	23,550	235,500	—	Mechanical Equipment 25,500	April 4, 2007
JING-SHOU-ZHONG-ZI-No.09631902560
2007/08	10	26,300	263,000	26,300	263,000	Earnings turned capital increase 27,500	—	August 1, 2007
JING-SHOU-ZHONG-ZI-No.09632525290
2007/12	10	33,332	333,320	33,332	333,320	Cash injection 70,320	—	December 6, 2007
JING-SHOU-ZHONG-ZI-No.09633188370
2009/04	10	60,000	600,000	42,932	429,320	Cash injection 96,000	—	April 13, 2009
JING-SHOU-ZHONG-ZI-No.09832070240
2010/06	10	60,000	600,000	44,079	440,790	Exercising employee stock warrant 11,470	—	June 3, 2010
BEI-FU-JING-DENG-ZI-No.0993090223
2010/07	10	100,000	1,000,000	48,372	483,722	Earnings turned capital increase 42,932	—	July 23, 2010
BEI-FU-JING-DENG-ZI-No.0993140831
2011/12	10	100,000	1,000,000	49,823	498,234	Earnings turned capital increase 14,512	—	December 8, 2011
BEI-FU-JING-DENG-ZI-No.1005077333
2012/10	10	100,000	1,000,000	50,571	505,707	Earnings turned capital increase 7,474	—	October 5, 2012
JING-SHOU-SHANG-ZI-No.10101206380
2015/01	10	100,000	1,000,000	50,598	505,977	Exercising employee stock warrant 270	—	January 15, 2015
JING-SHOU-SHANG-ZI-No.10401005660

~45~

Unit: 1,000 shares; NT$ thousand

Year/ Month	Issuing price	Approved capital share		Paid-in capital share		Notes
		Shares held	Amount	Shares held	Amount	Source of capital share	Share value written off by assets other than cash	Approval date and document no.
2018/08	10	100,000	1,000,000	55,657	556,575	Earnings turned capital increase 50,598	—	August 27, 2018 JING-SHOU-SHANG-ZI-No.10701105790
2018/09	26	100,000	1,000,000	60,157	601,575	Cash injection 45,000	—	September 3, 2018 JING-SHOU-SHANG-ZI-No.10701111500
2019/02	22	100,000	1,000,000	68,257	682,574	Cash injection 81,000	—	February 14, 2019 JING-SHOU-SHANG-ZI-No.10801016790
2020/09	10	150,000	1,500,000	69,573	695,731	Corporate Bond Conversion 13,156	—	September 9, 2020 JING-SHOU-SHANG-ZI-No.10901171170
2020/11	10	150,000	1,500,000	73,375	733,754	Corporate Bond Conversion 38,023	—	November 23, 2020 JING-SHOU-SHANG-ZI-No.10901222220
2021/04	10	150,000	1,500,000	74,487	744,865	Corporate Bond Conversion 11,111	—	April 30, 2021 JING-SHOU-SHANG-ZI-No.11001066670
2021/06	10	150,000	1,500,000	81,499	814,990	Corporate Bond Conversion 70,125	—	June 2, 2021 JING-SHOU-SHANG-ZI-No.11001087070
2021/08	10	150,000	1,500,000	91,370	913,697	Corporate Bond Conversion 98,707	—	August 18, 2021 JING-SHOU-SHANG-ZI-No.11001130370
2021/12	10	150,000	1,500,000	102,212	1,022,124	Corporate Bond Conversion 108,427	—	December 2, 2021 JING-SHOU-SHANG-ZI-No.11001219320
2022/08	10	150,000	1,500,000	71,549	715,487	Cash capital reduction 306,637	—	August 9, 2022 JING-SHOU-SHANG-ZI-No.11101152460
2024/09	10	150,000	1,500,000	81,135	811,350	Corporate Bond Conversion 95,863	—	September 3, 2024 JING-SHOU-SHANG-ZI-No.11330152870
2024/11	10	150,000	1,500,000	86,363	863,633	Corporate Bond Conversion 52,283	—	November 27, 2024 JING-SHOU-SHANG-ZI-No.11330204020
2024/12	10	150,000	1,500,000	84,963	849,633	Treasury stock reduction 14,000	—	December 20, 2024 JING-SHOU-SHANG-ZI-No.11330218940

March 17, 2026; Unit: Share

Type of shares	Approved capital share			Remark
	Circulating shares	Shares yet to be issued	Total
Common stock	84,963,288	65,036,712	150,000,000	Shares of listed companies

Information on general declaration systems: N/A.

3.1.2. List of major shareholders
March 17, 2026 (book closure date)

| Share
Name of major shareholder | Shares held | Shareholding ratio |
| --- | --- | --- |
| SinoPac Securities Corporation, Acting as Custodian for the Investment Account of SinoPac Securities (Asia) Limited | 3,071,000 | 3.62% |
| PMK CAPITAL CO., LTD | 2,140,000 | 2.52% |
| Hsia, Shao An | 1,791,617 | 2.11% |
| HSBC Bank (Taiwan) Limited, Acting as Custodian for the Investment Account of Morgan Stanley International Limited | 1,464,858 | 1.72% |
| HSBC Bank (Taiwan) Limited, Acting as Custodian for the Investment Account of Goldman Sachs International | 1,425,621 | 1.68% |
| Hsia, Dann Ning | 1,418,848 | 1.67% |
| Hsu, Tien Shu | 1,220,000 | 1.44% |
| Lin, Ya Hsien | 995,000 | 1.17% |
| HSBC Bank (Taiwan) Limited, Acting as Custodian for the Investment Account of Coöperatieve Rabobank U.A. – Internal Trading Platform – Utrecht Branch | 992,000 | 1.17% |
| Standard Chartered Bank (Taiwan) Limited, Business Department, Acting as Custodian for the Investment Account of J.P. Morgan Securities plc | 859,000 | 1.01% |

3.1.3. Dividends Policy and Implementation Status:

Dividends policy:

In the annual financial statements of the Company, if there are profits, they shall be distributed in the following order:

(1) Payment of taxes.
(2) Compensation for accumulated losses.
(3) Contributing 10% of the remaining net profits as a legal reserve. Where such legal reserve amounts to the total paid-in capital, this provision shall not apply.
(4) Allocation of the special surplus reserve as required by the law.
(5) The Company retains a portion of these profits at its discretion, without prejudice to its business condition or legal requirements, and following the Balanced Dividend Policy.
(6) The remainder of the surplus earnings distribution is determined by the Board of Directors and resolved by the Shareholders Meeting.

The surplus earnings distribution of the Company should not only consider the interests of shareholders and the capital adequacy ratio but also take into account the company's future development plans, prospects of the industry, funding needs, investment environment, domestic and international competition, and the interests of shareholders. Each year, the allocation for distributing shareholder dividends and bonuses should not be less than 20 percent of the distributable profits for that year. However, if the accumulated distributable profits are less than 10 percent of the paid-up capital, distribution may be withheld. Cash dividends or stock dividends shall be distributed under the aforementioned provisions, with the proportion of cash dividends not being lower than 5 percent of the total dividends.

Proposed allocation of dividends for the current Shareholders Meeting:

Unit: NT$

Dividend per share		Year
Cash dividend	Capital surplus	509,779,728 (distributed at 6 NTD per share)
	Earnings	339,853,152 (distributed at 4 NTD per share)
Total		849,632,880

Description of expected significant changes in dividend policy: None.

3.1.4. The influence of the Accumulated unpaid dividend proposed at the current shareholders meeting on the operation performance and EPS of the Company: None.

3.1.5. Remunerations for employees and directors

Percentage or scope of the remuneration for employees and directors according to the Articles of Incorporation:

To incentivize employees and the management team, the Company shall allocate a portion of the pre-tax profits for the year, after deducting employee compensation and director remuneration and compensating for deficits. If there is a remaining balance, it shall be allocated for employee compensation not less than 0.5 percent and director remuneration not exceeding 1 percent. Employee compensation can be in the form of stock or cash, while director remuneration is provided in cash.

The current estimation base of remuneration for employees and directors, calculation base for distribution of dividends, and methods for handling the difference between actually distributed and estimated amounts:

The employee compensation and director remuneration of the company are accrued expenses in the current year. If the actual distribution amounts differ from the estimated amounts, they will be recognized in the following year's income statement.

Approval of the distribution of employee compensation and director remuneration by the Board of Directors:

Unit: NT$

Information Disclosure	Amount
Employee Compensation - Cash	158,066,023
Director Remuneration	7,903,301

(1) The amount of employee compensation and director remuneration is distributed in cash or stock. If there are differences from the estimated amounts for the accrued expenses in the annual period, the differences, reasons, and handling should be disclosed:

For the fiscal year 2025, the proposal for the distribution of employee compensation and director remuneration was approved by the Board of Directors on February 25, 2026. Cash compensation of NTD158,066 thousand was allocated to employees, and director remuneration of NTD7,903 thousand was distributed. There were no differences from the estimated amounts for accrued expenses in the annual period.

(2) The proportion of employee compensation distributed in the form of stock to the total net income after tax and total employee compensation: None.

Status of stock buyback by the Company

(1). Status of stock buyback by the Company (completed): None.

(2). Status of stock buyback by the Company (unfinished): None.

3.2. Status of corporate bonds:

Corporate Bonds

Types of corporate bonds		Fourth issuance of secured convertible corporate bonds
Date of issuance (execution)		January 15, 2026
Face value		NT$100 thousand
Place of issuance and transaction		Domestic
Issue price		134.44% of face value
Total		NT$2 billion
Interest rate		Coupon rate 0%
Maturity		3 years maturity date: 2029/01/15
Guarantee institution		Taichung Commercial Bank Co., Ltd.
Trustee		CTBC Bank Co., Ltd. Trust Department
Underwriting institution		SinoPac Securities Corporation
Signing attorney		Not applicable
CPAs		Not applicable
Repayment method		Except for holders converting into Ordinary shares, early redemption according to Article 18 of these measures, or repurchase and cancel through securities dealers' places of business, The Company shall repay the bond in cash upon maturity according to the face value of the bond.
Unpaid principal		NT$2 billion
Redemption or early repayment terms		Please refer to Article 18 of the Issuance and Conversion of Corporate Bond Regulation of the Company bonds for details.
Restrictive		Not applicable
Name of credit rating agency, rating date, corporate bond rating result		Not applicable
Other rights attached	The amount of common stock, overseas depositary receipts, or other securities converted (exchanged or subscribed) as of the printing date of the Annual Report	None
	Issuance and conversion (exchange or subscription) procedures	Please refer to the Issuance and Conversion of Corporate Bond Regulation of the Company bonds for details
Methods of issuance, conversion, exchange, or subscription, issuance conditions regarding potential dilution of equity, and impact on existing shareholders' rights and interests		Refer to Page 90 of the Company's Public Offering Prospectus for Bonds
The name of the entrusted custody institution for the exchange subject		None

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~50~

Convertible Corporate Bonds

Types of corporate bonds		The fourth issuance of secured convertible corporate bonds
Year Item		The current year up to March 17, 2026
Market value of convertible corporate bonds	Highest	186
	Lowest	130
	Average	149.21
Conversion price		NT$147
Issue (transaction) date and conversion price at the time of issuance		Issuance date: January 15, 2026
Conversion price at issuance: NT$147
Methods of fulfilling conversion obligations		Issuance of new shares

3.3. Status of preferred stock: None.
3.4. Status of overseas depository receipts: None.
3.5. Status of employee stock option certificates: None.
3.6. Status of employee restricted stock: None.
3.7. Status of new share issuance in connection with mergers or acquisitions or with acquisitions of shares of other companies: None.
3.8. Implementation status of financing plans:

The domestic 4th convertible corporate bonds issued this time have received a total of NT$2,688,767 thousand on January 14, 2026, and plan to use NT$2,188,767 thousand to repay bank loans in the first quarter of 2026, and NT$500,000 thousand as operating capital injection in the first quarter of 2026.

As of the end of the first quarter of 2026, the Company's cumulative expected amount to be used is NT$2,688,767 thousand, and the actual amount used is NT$2,688,767 thousand, all of which have been fully executed according to the capital utilization plan.

Overview of business operation
4.1. Business Contents
4.1.1. Scope of Operations
Major business

Lines of business of the Company are as follows:
F401010 International Trade
CC01120 Data Storage Media Manufacturing and Duplicating
CC01110 Computers and Computing Peripheral Equipments Manufacturing
CC01080 Electronic Parts and Components Manufacturing
F119010 Wholesale of Electronic Materials
F219010 Retail Sale of Electronic Materials
CC01101 Restrained Telecom Radio Frequency Equipments and Materials Manufacturing
F401021 Restrained Telecom Radio Frequency Equipments and Materials Import
ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval

Revenue Composition in the Past Two Years

Unit: NT$ thousand

| Year
Product Classification | 2024 | | 2025 | |
| --- | --- | --- | --- | --- |
| | Amount | % | Amount | % |
| DRAM Module | 15,814,992 | 79.32% | 14,492,501 | 70.94% |
| NAND Flash | 3,546,727 | 17.79% | 5,509,655 | 26.97% |
| Other | 576,740 | 2.89% | 426,293 | 2.09% |
| Total | 19,938,459 | 100.00% | 20,428,449 | 100.00% |

● Current Main Product Categories

TeamGroup specializes in memory (DRAM) and storage products such as SSDs, USB flash drives, and memory cards, committed to delivering high-performance solutions. Its product portfolio spans a wide range of applications, from consumer markets to industrial-grade professional applications, demonstrating its technological prowess and innovative capabilities

> Main Product Development and Launch Overview:

In response to the emergence of the AI PC and high-performance computing era, the Company has launched multiple innovative products featuring key technologies based on three brand product lines, which have repeatedly received international awards and recognition, demonstrating outstanding research and development capabilities:

T-FORCE Gaming Series: Targeting extreme overclocking enthusiasts and high-load computing requirements, the Company has introduced the XTREEM ARGB CKD DDR5 and DELTA RGB CKD DDR5 dynamic random-access memory (DRAM) equipped with the latest Client Clock Driver (CKD) technology. This series supports Intel XMP 3.0 one-click overclocking with frequencies reaching up to 8,400 MHz. Through on-die ECC mechanism and enhanced thermal design, the series ensures stable high bandwidth performance for AI computing.

In terms of design and sustainability achievements, the T-FORCE XTREEM ARGB DDR5 was awarded the "2025 Red Dot Award," while the T-FORCE DELTA RGB ECO DDR5, made with recycled materials, won the "2025 COMPUTEX BC Award for Technology Sustainability." This successfully combines ultimate performance with ESG values.

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T-CREATE Creator Series: Focused on professional imaging and information security needs, this series swept multiple awards in Year 2025. The T-CREATE MASTER Ai DDR5 workstation DRAM developed for AI workstations and the T-CREATE CinemaPr P31 portable external SSD (designed for mobile photography) both won the "2025 Taiwan Excellence Award."

In terms of storage expansion, the EXPERT P32 external SSD, which received recognition from the "2025 Red Dot Award," was launched alongside the EXPERT P34F locatable external SSD, which supports Apple's Find My network. This product, integrating patented location technology, won the "2025 Japan Good Design Award."

In addition, the EXPERT P35S external SSD equipped with patented physical destruction technology was also announced, providing the highest level of information security protection.

TEAMGROUP Standard Product Series: In response to business and mobile office demands, the Company demonstrates a profound industrial design foundation. The TEAMGROUP PD20M magnetic external SSD, which supports the MagSafe magnetic function, garnered both the "2025 Red Dot Award" and the "2025 Taiwan Excellence Award" for its innovative mechanical design. The lightweight TEAMGROUP PD20 external SSD also received the "2025 Red Dot Award."

At the same time, we continue to strengthen our internal storage lineup by launching the NV10000 M.2 PCIe 5.0 SSD and the X1 MAX USB 3.2 Gen 2x1 portable external SSD, fully meeting the diverse needs from everyday storage to professional computing.

Future Research and Development Layout and Application of New Technologies:

The Company closely follows the trends of AI edge computing and industrial control automation. By integrating the Company's global patent portfolio and design experience from award-winning products, the Company is actively developing next-generation storage products with high added value:

Industrial control storage solutions for extreme environments: Leveraging approved Taiwan Invention Patent (I893377) and U.S. Invention Patent (US 12,283,335 B2) for "Storage Devices Applicable to High Temperature," the Company has developed industrial-grade SSDs and DRAMs that maintain high-efficiency and stable operation in high-temperature environments. The Company

targets the automotive electronics, smart factory, and outdoor edge computing server markets.

Advanced information security protection and physical destruction technology: For the defense, financial, and high-confidentiality business sectors, building on the successful experience of the EXPERT P35S, we have developed a new generation of protective SSDs utilizing Taiwan Utility Model Patents (M662727, M673688) and a Japanese Utility Model (3252646) for "storage devices with one-key destruction functionality." This technology enables direct physical destruction of Flash Memory chips through hardware circuitry, ensuring that sensitive data cannot be recovered in emergency situations.

AIoT Smart Internet of Things and Magnetic Attachment Applications: Building on positioning technology that won the Good Design Award, the Company integrates China Utility Model Patent (ZL 2024 2 2374200.5) for "Storage Devices with Positioning and Search Functions" and Japan Utility Model Patent (3250622) for "Magnetic Attraction Memory Devices." The Company continues to develop consumer external SSDs that support wireless ecosystems

(such as MagSafe) and Internet of Things positioning functions, enhancing product convenience and interactivity in AI mobile lifestyle applications.

> Technological Differentiation and Patent Moat:

In facing the highly competitive memory industry, The Company is not only pursuing improvements in specifications and performance, but also striving to establish a differentiated advantage through "smart technology" and "innovative design." The outstanding awards and patent strategy in FY2025 are sufficient to prove that the Company has successfully built a technological barrier:

Cross-platform compatibility and smart identification: Obtained Taiwan Invention Patent (I914103) "Memory Device with Support for Multi-Sequence Presence Detection Configuration," which empowers DRAM modules with dual-mode smart identification capabilities to automatically detect and optimize overclocking settings such as Intel XMP 3.0 and AMD EXPO. This significantly enhances user compatibility experience across different platforms and addresses market pain points ahead of competitors in the AI PC assembly sector.

Global Patent Deployment and International Design Certification: The Company actively deploys a patent network in the United States, China, Japan, and Taiwan, and transforms technology into market-competitive designs. For example, in the mobile storage sector, leveraging technological assets such as "Magnetic Attachment Storage Device" (U.S. Invention Patent US 12,373,375 B2) and "Solid State Drive Industrial Design" (Taiwan Design Patents D240530/D240531), the Company successfully developed the PD20M series products, which received dual recognition from the Red Dot Design Award and Taiwan Excellence Award, establishing design leadership in the magnetic attachment and external SSD market.

(12) United States Patent Chang et al.

(10) Patent No.: US 12,373,375 B2
(45) Date of Patent: Jul. 29, 2025

(54) MAGNETIC SUCTION STORAGE DEVICE

(71) Applicant: TEAM GROUP INC., New Taipei (TW)

(72) Inventors: Chin Feng Chang, New Taipei (TW); Huan Chia Ma, New Taipei (TW); Yu Che Chong, New Taipei (TW)

(73) Assignee: TEAM GROUP INC., New Taipei (TW)

(*) Notice: Subject to any disclaimer, the term of this patent is extended or adjusted under 35 U.S.C. 154(6) by 0 days.

(21) Appl. No.: 18/655,891

(22) Filed: May 6, 2024

(65) Prior Publication Date US 2023/0130968.A1 Apr. 24, 2025

Related U.S. Application Data

(60) Provisional application No. 63/545,217, filed on Oct. 23, 2023.

(51) Int. Cl. G04F 13/49 (2006.01)
G04F 1/26 (2006.01)

(52) U.S. Cl. CPC G04F 13/499 (2013.01); G04F 1/266 (2013.01)

(58) Field of Classification Search

CPC G04F 13/409; G04F 1/266

See application file for complete search history.

(56) References Cited

U.S. PATENT DOCUMENTS

2010/0220435 A1* 0/2010 Fuley G04F 1/1432

2015/0172431 A1* 0/2015 Huang G04B 1/1863

2018/0131146 A1* 5/2018 Lin G03B 1/882

2023/0371430 A1* 5/2023 Backus A05C 13/1865

cited by examiner

Primary Examiner - Farley Abad

(74) Assuree, Agent, or Firm - WPSZ, PC

(57) ABSTRACT

The present invention provides a magnetic suction storage device that is adsorbed on a mobile device. A first through hole and a second through hole are drilled through one side of a first housing of the magnetic storage device, and a first magnetic element is disposed on the inside of the first housing, a base plate of a storage module is disposed above one of the first magnetic components, and a storage element, a first control element and a second control element are disposed above the base plate. An outer edge of the substrate is provided with a first connection port and a second connection port, and an outer edge of a second shaft is connected to an outer edge of the first shaft, so that the second shaft and the first shaft The body covers the first magnetic component and the storage module.

9 Claims, 7 Drawing Sheets

CKD Technology Leading High-Performance Standards: With the introduction of Client Clock Driver (CKD) specifications under JEDEC standards, the Company was the first to mass-produce DDR5 memory modules equipped with CKD chips, effectively enhancing high-frequency signal integrity to meet the stringent requirements of generative AI for memory bandwidth and stability, ensuring leading market share in the premium gaming and creator segments.

CKD

4.1.2. Industry Overview

1.Current Situation and Development

According to the latest research by market research firm Omdia, the global PC market delivered a strong performance in 2025. Including desktops, laptops, and workstations, PC shipments in the fourth quarter of 2025 reached 75 million units, marking a $10.1\%$ year-over-year increase. The total shipments for the year amounted to 279.5 million units, reflecting a $9.2\%$ growth, indicating a clear market recovery.

In terms of product category, notebook computers (including mobile workstations) shipped 58.6 million units in the fourth quarter of 2025, with total shipments for the year reaching 220.4 million units, marking an $8\%$ year-over-year increase, serving as the main driver of shipments. Additionally, desktop computers (including desktop workstations) experienced a more significant rebound, with shipments of 16.2 million units in the fourth quarter and 59 million units for the entire year, marking a $14.4\%$ year-over-year increase.

Worldwide desktop and notebook shipments 2016 - 2025

Omdia

Omdia believes that the demand for equipment replacement in the enterprise and certain professional markets is an important factor driving desktop shipments.

(Source: Omdia)

According to the latest research from global market research institution TrendForce, AI innovation has brought structural changes to the market. The volume of data access continues to expand, requiring not only high-bandwidth, high-capacity, and low-latency DRAM configurations to support large-scale model parameter access, long-sequence inference, and multi-task parallel operations, but also NAND Flash as a critical foundational component for high-speed data flow. Consequently, memory has become an indispensable strategic resource in AI infrastructure and a critical battleground for CSP. Under limited production capacity, the need to fulfill greater allocation demands has driven continuous price increases, which in turn has propelled the overall memory industry's revenue to reach new heights year after year. Industry forecasts estimate the market will reach US$551.6 billion in 2026 and achieve another peak of US$842.7 billion in 2027, representing a year-over-year growth of 53%.

To address the trends of edge computing applications and end-device transformation, TeamGroup will continue its market planning and brand strategy through targeted product development aligned with market demands. In response to the global wave of the massive AI revolution, TeamGroup has launched high-specification PC/laptop-compatible products with artificial intelligence assistance functionality and developed products that enable rapid market growth in Edge AI applications, demonstrating advanced research and development capabilities that keep pace with the times. The Company is developing high-specification memory products, high-performance thermal solutions, large-capacity storage devices, and industrial automation applications.

(1) To address market and application requirements, the Company continues to increase storage capacity.

DDR5 is the latest generation of DDR SDRAM standard. Compared to DDR4, it features higher bandwidth (with frequencies ranging from 4,800–6,400 Mbps and above), larger single-chip capacity (with 16Gb and 24Gb die already available), and improved energy efficiency. DDR5 has been introduced into servers and high-end PC platforms since 2020 and has gradually become more widespread after 2022. The server sector is one of the fastest-growing markets for DDR5 penetration: TrendForce statistics indicate that DDR5 accounted for about 40% of server DRAM bit shipments in 2024, and it is expected to increase to 60-65% in 2025. The full adoption of DDR5 implies that the average selling price and demand for DRAM will benefit from the transition of product generations in the coming years. Additionally, the industry has also begun developing the next-generation DDR6 standard, which is expected to double bandwidth

and capacity once again; however, DDR6 production will require several more years, with DDR5 remaining the primary offering in the near term. In addition to mainstream DDR, the emerging CXL memory technology (memory expansion via CXL bus) is also worth noting. It allows servers to expand the use of DDR or persistent memory as shared memory resources and is regarded as an innovative direction for future data center memory architecture.

2023-2027年DRAM與NAND Flash產值預估 (unit: Billion USD)
Source: TrendForce, Jan, 2026
TrendForce
(Source: TrendForce)

The SSD market's mainstream offerings are PCIe 4.0 and Gen5 NVMe M.2 specifications. Driven by surging AI demand and NAND production constraints, contract prices in the first quarter of 2026 are expected to increase substantially (SSD price increases exceeding 70%), with large-capacity drives (such as 4TB) becoming the mainstream demand. PCIe 4.0 remains the dominant standard; however, PCIe 5.0 SSDs with read speeds exceeding 10,000MB/s are beginning to gain adoption and incorporate advanced thermal management technologies. Simultaneously, to meet AI computing and gaming requirements, 1TB-2TB serves as the baseline, with high-performance applications trending toward 4TB capacity. However, due to AI servers consuming NAND Flash production capacity, supply is expected to tighten in early 2026, with consumer-grade SSD prices continuing to rise and unlikely to return to lower price levels. From a long-term perspective, industry consolidation is likely to accelerate, with competitors lacking sufficient competitiveness facing the risk of market exit. TeamGroup will focus on technological innovation and product differentiation to enhance competitive advantages, develop niche markets, and drive recovery. The Company will maintain sales levels primarily through PCIe 4.0 offerings, while PCIe 5.0 SSDs will further increase their market share as platform support expands.

(2) Content creation economy drives demand for high-speed and high-capacity cards and drives.

According to Goldman Sachs research, the global creator economy is projected to reach US$480 billion by 2027, while a Meta survey indicates that 53% of respondents are more inclined to purchase products recommended by creators, underscoring the significant influence creators exert on consumer purchasing decisions. To enable brands to collaborate with creators more efficiently and achieve mutual benefits, Meta is testing a new ad format called Creator Testimonials, which augments brands' existing advertising content with testimonials and endorsements shared by creators. This helps advertisers leverage creators' firsthand product experiences to optimize collaborative advertising performance.

As new-generation laptops increasingly support USB 4.0 while smartphones and gaming consoles progressively adopt USB Type-C, shipment volumes are expected to rise in tandem, further driving demand for high-speed storage products. We optimistically

project that USB 3.2 product penetration rates could exceed 80% in 2026. On the other hand, as environmental consciousness continues to rise, consumers are likely to pay greater attention to the production processes and materials used in portable storage devices. TeamGroup will continue to launch products made from renewable materials and reduce plastic usage. As the image quality of professional digital single-lens reflex cameras and video equipment has upgraded, coupled with the proliferation of surveillance systems, higher transmission performance has become necessary. Memory cards continue to advance read and write speeds to SD 8.0 specifications, with SD V30/V60/V90 high-speed transmission products gradually becoming the primary product line for module manufacturers. Additionally, through collaborations with globally renowned equipment brands such as Black Magice Design, and partnerships with B&H Photo, a leading North American professional photography retailer, the Company has further deepened QVL collaborations to enhance product competitiveness and expand vertical market sales channels.

(3) Diversification of industrial use will gradually drive future growth.

Smart Manufacturing Market Size: According to a report by Fortune Business Insights, the global smart manufacturing market was estimated at US$349.48 billion in 2024 and is projected to reach US$394.35 billion in 2025, with an anticipated market size of US$998.99 billion in 2032, representing a compound annual growth rate (CAGR) of 14.2%.

Factory Automation Market Size: According to a report by Research and Markets, the global industrial control and factory automation market was estimated at US$255.88 billion in 2024 and is projected to reach US$399.12 billion in 2025, with an anticipated market size of US$399.12 billion in 2029, representing a CAGR of 9.3%.

Smart Healthcare Market Size: According to a report by Precedence Research, the global smart healthcare market was projected to reach US$306.87 billion in 2025 and approximately US$360 billion in 2026, representing a CAGR of 17.18%.

Edge Computing Market Size: According to a report by Research Nester, the edge computing market reached approximately US$3.043 billion in 2025 and is projected to reach approximately US$3.96 billion in 2026, with an anticipated market size of approximately US$54.716 billion in 2035, representing a CAGR of 33.5%. Growth Drivers: The rapid deployment of 5G networks has enabled low latency and high bandwidth performance, which are critical for next-generation applications such as autonomous vehicles, augmented reality (AR), virtual reality (VR), and telemedicine.

The correlation between the upstream, midstream, and downstream sectors:

Our company operates in the midstream sector of the RAM industry as a memory module manufacturer. Our main operations involve the backend module processing of upstream memory chips, flash memory, printed circuit boards, connectors, passive components, and other electronic components. Our product lines include standard, gaming, industrial, and server-grade memory modules, flash memory products for commercial and industrial applications, as well as mobile peripherals. To establish a complete production and distribution system, our company collaborates with upstream IC suppliers, midstream processing and outsourcing manufacturers, as well as downstream customers and channels. The schematic diagram below illustrates the relationship between the upstream, midstream, and downstream sectors in the industry:

3. Development Trends and Competitive Landscape:

Given the substantial growth in AI server order volumes, the product mix of memory-related products has undergone significant changes. In 2025, demand for AI computing capacity is surging, and each cloud service provider (CSP) continues to invest in and expand the construction of related computing centers. This has also driven increased orders for HBM. Under capacity constraints, memory prices have risen sharply. In consumer product markets such as personal computers and mobile phones, memory prices have increased significantly and supply remains insufficient. It is anticipated that this will impact the sales market for consumer electronics products in 2026.

In 2026, under the premise of expanding AI market applications, control over capital and supply sources will directly impact operational performance. The Company has sound financial planning and, leveraging its long-standing cooperative relationships with upstream suppliers, continues to secure a certain level of supply. Given the current market shortage, the Company is expected to achieve breakthrough growth momentum in 2026, with revenues anticipated to reach new highs.

Competitive Landscape:

Our company's main domestic and international competitors include Kingston Technology and Corsair Memory from the United States; Tigo, GALAX, and COLORFUL from China; as well as ADATA Technology, Transcend Information, Apacer Technology, and G.SKILL from domestic manufacturers. Team Group Inc. has a comprehensive range of products and dedicated teams in the gaming, industrial control, and consumer markets. Over the past few years, our sales have shown consistent growth. We will continue to strengthen our business, products, marketing, research and development, technology, and after-sales services to enhance brand awareness and establish a solid competitive foundation.

4.1.3. Techniques and research development status

The R&D expenses in the recent years and as of the date on which the annual report is printed

Year	R&D expenditure	R&D outcomes
2025	83,270 thousand	1. TeamGroup introduces T-FORCE XTREEM ARGB CKD DDR5 and DELTA RGB CKD DDR5 DRAM, equipped with the latest CKD (Client Clock Driver) technology and On-die ECC mechanism. It supports Intel XMP 3.0 one-click overclocking up to 8400 MHz, providing an extremely stable data transfer solution for high-performance AI computing.
		2. TeamGroup launches the TEAMGROUP X2 MAX USB 3.2 Gen 2x1 portable external SSD, creating a high-speed mobile database; simultaneously announces the S5 USB 3.2 Gen 1 Flash Drive, designed to meet business and everyday storage needs with its lightweight and portable design.
		3. TeamGroup announces the T-CREATE EXPERT CKD DDR5 desktop DRAM, designed with high-bandwidth workstation specifications for creators; and launches the TEAMGROUP NV5000 M.2 PCIe 4.0 SSD, enhancing multitasking efficiency with exceptional read/write performance.
		4. TeamGroup innovatively introduces the T-CREATE EXPERT P34F locatable external SSD, integrating Apple's Find My network technology and utilizing the "storage device with location tracking function" patent. This endows the storage device with IoT intelligence, significantly enhancing data security.
		5. TeamGroup launches the T-FORCE Z54E and TEAMGROUP NV10000 M.2 PCIe 5.0 SSD, featuring next-generation Gen5 high-speed interfaces and advanced thermal solutions, which significantly reduce latency in AI big data computing and gaming load times.
		6. TeamGroup introduces the T-CREATE EXPERT P35S one-touch destruction external SSD, equipped with multiple patented technologies including "storage devices with one-touch destruction functionality" and "storage devices with self-destruct functionality," providing defense and financial-grade information security protection through physical destruction of flash memory chips.
		7. TeamGroup launches the TEAMGROUP PD40, a compact external SSD that redefines the portability standards of mobile storage by combining an ultra-slim form factor with high-speed transmission interfaces.
		8. TeamGroup's SSD and memory product lines have received a Republic of China invention patent for storage devices suitable for high temperature applications, Patent No. I893377.
		9. TeamGroup's SSD and memory product lines have received a U.S. invention patent for storage devices suitable for high temperature applications, Patent No. US 12,283,335 B2.
		10. TeamGroup's SSD produce line has been awarded a USA Utility Patent for a "Magnetic storage device", patent number: US 12,373,375 B2.
		11. TeamGroup's SSD produce line has been awarded a Japan Utility Model for a "Magnetic attraction memory device", patent number: 3250622.
		12. TeamGroup's SSD produce line has been awarded a China utility model patent for a storage device with a positioning and finding function, patent number: ZL 2024 2 2374200.5.
		13. TeamGroup's memory module produce line has been awarded a Republic of China invention patent - memory device with support for multi-sequence existence detection settings, patent number: I914103.
		14. TeamGroup's SSD produce line has been awarded a Republic of China utility model patent for a storage device with a self-destruct function (external one-touch destroy SSD), patent number: M673688.
		15. TeamGroup's SSD produce line has been awarded a Japan Utility Model for a "Storage device with a self-destruct function (external one-touch destroy SSD)," patent number: 3252646.
		16. TeamGroup's SSD produce line has been awarded a Republic of China design patent for a part of the SSD (E1.S), patent number: D240530.
		17. TeamGroup's SSD produce line has been awarded a Republic of China design patent for a part of the SSD (U2+E3 SSD), patent number: D240531.

Future annual research and development plan
Unit: NT$1,000

Product Line	Recent Annual Plan	Current Progress	Estimated R&D Expenditure to be Invested	Estimated Production Time
Gaming DRAM Series	• Development of Large-Capacity Overclocking Modules: In response to the needs of advanced gamers and AI computing, develop the DELTA / XTREEM / VULCAN DDR5 64GB series, supporting a single 64GB configuration to meet multitasking and heavy gaming loads.
• Marketing and Visual Enhancement: Launching the DELTA CarbonX and DARK RGB DDR5 series, combining carbon fiber elements with advanced optical sculpture patent technology.
Deepening CKD technology: Continually optimizing Client Clock Driver (CKD) technology to enhance signal integrity, challenging extreme frequencies above DDR5 8000MHz.	Under development	2,011	The product is expected to enter mass production starting from Q1 to Q2, 2026.	1. The maturity of CKD chip technology and signal stability.
2. Support for high-frequency memory on next-generation Intel/AMD platforms.
3. Market demand for high-capacity memory driven by the wave of AI PC replacements.
4. Applications Related to Lithography Patent Technology.
Creator & AI DRAM Series	• LPCAMM2 Next-Generation Module: Targeting the lightweight AI laptop market by developing the T-CREATE LPCAMM2 Memory Module (DRAM), which features lower power consumption and higher bandwidth, specially designed for mobile AI laptop workstations.
• Professional workstation specifications: Launched MASTER GRAPHENE R-DIMM, using patented graphene cooling technology.
Expansion of the CLASSIC Series: Develop CLASSIC DDR5 64GB SO-DIMM to meet the needs of large-capacity image processing.	Under development	2,011	The product is expected to complete development and proceed with sample demonstration starting from Q2 to Q3, 2026	1. The market adoption speed of the JEDEC CAMM2 standard.
2. The penetration rate of major laptop manufacturers adopting LPCAMM2 specifications.
3. Optimization of thermal conductivity efficiency of graphene patented cooling technology.
4. The stringent requirements of AI edge computing for low latency and high bandwidth
Gaming SSD Series	• Gen5 Extreme Performance: Developing flagship NV14000 Gen5 SSD and Momentum MA SSD (Gen5 11GB/s), utilizing the PCIe 5.0 interface to break through read and write speed limits.
• Cooling Technology Iteration: Introducing the Liquid Cooling SSD V2 (Second-Generation Water-Cooled SSD), optimizing the water-cooling structure and heat exchange efficiency to address the high heat issues of	Under development	3,105	The product is expected to enter mass production starting from Q3, 2026	1. Yield and supply of PCIe 5.0 controller chips and NAND Flash.
2. Miniaturization of water-cooling structures and breakthroughs in leak prevention technology.

Unit: NT$1,000

Product Line	Recent Annual Plan	Current Progress	Estimated R&D Expenditure to be Invested	Estimated Production Time
	Gen5.
Entry-level and mainstream upgrades: Launching the G50 EVO SSD, using a Gen4 interface paired with QLC chips.				3. Durability and write performance tuning of QLC chips.
4. The reliance of high-end gaming consoles on Gen5 storage speed.
Creator Storage & Peripheral Series	• AI Computing Dedicated SSD: Developing CLASSIC H514 / H510 Ai GEN5 SSDs, equipped with a multi-channel controller, specifically optimized for AI model inference to enhance IOPS performance.
• Professional Expansion Ecosystem: Introducing CinemaPr P36D Docking multifunctional expansion external SSD.
• CFexpress high-speed cards: Developing EXPERT CFexpress 4.0 Type A / Type B memory cards and R41 card reader.	Under development	3,112	The product is expected to complete development in phases starting from Q1 to Q4, 2026.	1. The optimization capability of AI algorithms for storage controller firmware.
2. Compatibility verification of high-speed transmission interfaces (USB4 / Thunderbolt).
3. Support for new standards by professional imaging equipment (camera/video recorder).
4. Power management and thermal design of composite expansion devices.
Consumer Series	• Gen5 High-Speed Popularization: Develop NV10000 GEN5 Solid State Drive (SSD), bringing PCIe 5.0 to the mainstream market.
• Mobile storage innovation: Launched PD100 P-SSD and S7 MAX Type-C USB Flash Drives.	Under development	2,762	The product is expected to complete development starting from Q2 to Q4, 2026.	1. Cross-platform (PC/Mobile) compatibility of mobile storage devices.

4.1.4. Long-term and short-term business development plans

Short-term business development plan

(1) Layout of cutting-edge artificial intelligence (AI) applications

Technological Diversification: Continuously monitor the evolution of technologies such as natural language processing (NLP), machine learning, and deep learning to strategically position for their potential applications in various vertical industries.
Key Areas of Focus: Concentrating on the enhancement of AI in medical diagnosis precision and patient management efficiency, while mastering the commercialization process of autonomous driving technology and robotaxis to precisely align with their growing demand for high-bandwidth, high-reliability memory.
Supply Chain Value Chain Integration: With the surge in AI computing demand driving the iteration of key components, The Company will optimize product specifications to seize business opportunities in the memory market under the new generation computing architecture.

(2) Deepen the penetration of the global esports market

Technology-Driven Experience: As image processing technology and network communication performance improve, esports products are becoming more refined and efficient. The Company will be dedicated to developing high-performance hardware to optimize the player experience.
Emerging Market Expansion: Breaking through the framework of developed countries, actively targeting emerging markets with strong growth momentum to capture their consumer potential in the context of globalization.
Industry Ecosystem Integration: Participate in the transformation of the esports industry from entertainment to professional competition and commercialization, aligning with mainstream social media like Twitch and YouTube Gaming, as well as government policies in various countries, to enhance brand popularity through industry support.
Long-term business development plan

(1) Brand Professionalization Management and Enhancement of Technological Value

A. Targeted Multi-brand Strategy

The Company has keenly observed the device transformations driven by esports, blockchain, 5G, electric vehicles, and Industry 4.0, and developed corresponding Product Lines, including standard (TEAMGROUP ELITE), gaming (T-FORCE), AI and creator applications (T-CREATE), and industrial sectors (TEAMGROUP INDUSTRIAL). The Company possesses globally leading capabilities in niche brand deployment, enabling it to provide specialized solutions for specific applications, thereby consolidating its market leadership.

B. Technology Integration and Digital Service Optimization

In response to the development of smart IoT (AIoT) and the wave of digital transformation within enterprises, The Company is committed not only to hardware R&D but also to simultaneously optimizing its after-sales service system. Through the establishment of global strategic collaborations and service networks, we provide customers with exceptional use value and promote industrial upgrades.

(2) Global Talent Capital and Operations Deployment

A. International Talent Training System

Actively recruiting diverse global talent for the rapidly changing esports and AI markets, and through systematic human resources training, we are building a management team with an international perspective and high professionalism, laying a solid foundation for global operations.

B. Competitive advantages of the core team

The Company possesses a management decision-making team with expertise in

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technical R&D, production and manufacturing, global marketing, and financial management, with strong synergy. This is the core competitive strength behind TeamGroup's rapid rise in a fiercely competitive environment. In the future, the governance level will be continuously optimized to strengthen the brand's competitive advantage.

C. Comprehensive After-Sales Service Chain Evolution

With the diversification of product lines, The Company not only builds a professional customer service team but also deeply collaborates with global premium service providers to establish a comprehensive around-the-clock technical support network. At the same time, by combining social media and diverse digital channels, we precisely address user needs and create brand premium value through an excellent service reputation

4.2. Overview of market and production & sales:
4.2.1. Market analysis
1. Sales region for major products

Unit: NT$ thousand

Year Region	2024		2025
		Sales amount	%	Sales amount	%
Domestic sales		427,091	2.14	1,739,723	8.52
International sales	Asia	4,143,246	20.78	3,186,615	15.60
	America	14,339,942	71.92	14,202,770	69.52
	Europe	748,389	3.75	947,558	4.64
	Other	279,791	1.41	351,783	1.72
Total		19,938,459	100.00	20,428,449	100.00

In recent years, as emerging technology applications such as artificial intelligence, 5G communications, the Internet of Things (IoT), autonomous driving, and AR/VR have gradually matured, the global demand for high-performance computing and data storage continues to increase. The demand for high-speed, low-latency, and highly stable memory products is increasing due to related applications, driving the robust market development of DDR5, GDDR6, and various types of non-volatile memory products.

In terms of applications, industries such as automotive electronics, medical equipment, cloud computing, and data centers continue to upgrade equipment and expand infrastructure, maintaining a consistent growth momentum for high-performance memory solutions. However, the memory industry still belongs to a highly cyclical industry, where market supply, demand, and prices are easily influenced by the macroeconomic environment, changes in end-user demand, and production capacity adjustments.

In terms of the industry supply chain, process technology continues to advance, and supply chain management and production efficiency are gradually improving, yet raw material supply and price fluctuations may still impact the industry. With the expanding market size and increasingly intense industry competition, businesses need to continuously invest in R&D and brand management to maintain market competitiveness.

In addition, in response to global trends in environmental protection and sustainable development, related regulations and customer demands for energy conservation, carbon reduction, and green supply chain management are gradually increasing. The industry needs to allocate corresponding resources to comply with these standards.

Considering the aforementioned factors, the development of the memory industry in 2026 will still be influenced by multiple factors, including the global economic situation, end-market demand, and industry supply-demand structure.

Market share

The Company plans product lines covering standard memory, gaming products, AI/creator series, and industrial control applications according to the demands of different application markets, and has established dedicated teams responsible for product development and market expansion.

According to TrendForce's historical public statistical data, The Company ranks among the top ten global memory module brands, and in the field of gaming memory products, it ranks among the top three globally. The above information is based on the statistical results of market research institutions, and the actual market conditions may still vary due to different statistical benchmarks and periods.

In the future, the Company will continue to strengthen its product technology capabilities, quality management, and global channel layout. It will carefully assess market changes to steadily enhance market competitiveness.

Market supply and demand status and growth in the future

(1) Technology Development Trends: As computing demands increase, next-generation memory technology continues to be developed, including advanced technologies such as photonic memory and quantum memory. Future development will depend on the maturity of the technology and market acceptance.

(2) Edge Computing Applications: Increased demand for edge computing is driving application opportunities for high-speed and high-reliability memory products. However, the market scale and actual penetration rate will depend on the development of end-user devices.

(3) Automotive Electronics and Smart Transportation: With the development of smart transportation and autonomous driving technologies, the quality and reliability requirements for automotive memory products have increased, and the relevant market presents development potential. However, the market remains subject to the impact of automotive industry economic cycles and regulatory progress.

(4) Internet of Things Application Expansion: The proliferation of smart devices is driving increased demand for embedded and low-power memory products. However, the rate of growth remains dependent on the overall economic environment and end-market demand.

(5) Data Centers and Cloud Services: The scale of global data centers and cloud services continues to expand, providing certain support for the demand for high-performance memory products, though it may still be affected by adjustments in corporate capital expenditures.

(6) Environmental Protection and Sustainability Requirements: With the advancement of environmental regulations and customer demands for ESG, the industry needs to invest resources to improve processes and management mechanisms to comply with relevant standards.

Overall, the future development of the memory industry still has growth opportunities. However, it also faces uncertainties such as market competition, price fluctuations, and economic cycles. The Company will continue to pay close attention to industry trends and carefully plan its operational strategies.

Company's competition niche

(1) Comprehensive Product Portfolio: The Company has cultivated deep expertise in global markets over many years, establishing stable sales channels and partnership relationships. The product portfolio covers diverse application fields, which helps mitigate risks associated with single-market fluctuations.

(2) Professional Talent and R&D capabilities: The Company places great emphasis on talent development and technological research and development. Through internal and external training and education programs, the Company strengthens professional competencies to

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support product innovation and market expansion.

(3) Supply Chain and Inventory Management Mechanisms: The Company maintains long-term cooperative relationships with major component suppliers and has established inventory control and review procedures. The Company regularly monitors inventory levels and price changes to reduce the impact of raw material price volatility on operations..

Favorable and Adverse Factors and Response Strategies for Company Development's Prospect
Favorable Factors

(1) Possesses market adaptability, allowing timely adjustment of product portfolios according to industry changes.
(2) Continuously invest in R&D resources to strengthen product technological capabilities.
(3) Brand awareness is gradually increasing, which aids in expanding sales channels.

Adverse Factors and Coping Strategy

(1) Supply Chain Concentration Risk: The Company relies on certain suppliers for a portion of its raw materials. Any supply disruptions from these key suppliers could potentially impact production schedules.
(2) Intensified Competition: The memory industry is highly competitive, with frequent price fluctuations, which may affect gross margin performance.
(3) Market Demand Fluctuations: Market demand is influenced by global economic changes and end-use applications, which may cause revenue volatility.

Coping strategy:

Risk of Supply Chain Dependence

A. Continuously develop a diverse supply of sources.
B. Establish long-term cooperative relationships with major suppliers.
C. Establish a supply chain risk assessment and emergency response mechanism.

Intensified Competition

A. Enhancing product differentiation and quality management.
B. Deepen customer relations and after-sales service.
C. Continuously invest in R&D and brand management.

Market Demand Fluctuations

A. Enhance market information gathering and demand forecasting capabilities.
B. Establish a flexible production and inventory adjustment mechanism.
C. Expand and diversify products and application markets to mitigate risks

4.2.2. Important uses and production processes of our main products

Important uses of the main products

Main product	Main uses
Memory Modules	Applied to information products such as desktop computers, laptops, gaming computers, creator computers, servers, workstations, and office equipment, functioning as memory for temporary data storage
Flash Memory Application Products	Memory cards: Used in various mobile devices or digital consumer electronics products as storage media or for expanding capacity. USB flash drives: Expansion capacity and data exchange for desktop computers, laptops, and mobile devices. SSD: Storage devices for boot and data storage applications in gaming-specific computers, creator-specific computers, desktop computers, laptops, and servers
Industrial Control Memory Storage Products	Providing industrial and commercial-grade storage solutions for various application fields, including industrial personal computers (IPCs), thin clients, point-of-sale (POS) systems, telecommunications equipment, automation equipment, gaming equipment, medical devices, military applications, automotive electronics, aerospace industry, and other industrial application equipment.

2. Production process

Production control operation flow chart

4.2.3. Main raw material supply

Main raw materials

Purchasing strategy and market supply-demand situation

Dynamic Random-Access Memory -DRAM

The global DRAM market is experiencing steady growth, but also faces challenges in supply and demand equilibrium. Primarily driven by emerging technologies such as artificial intelligence (AI), 5G technology, the Internet of Things (IoT), and high-performance computing (HPC), the market is dominated by Samsung Electronics, SK Hynix, and Micron Technology. In response to AI application demand and momentum, the three major original equipment manufacturers are pursuing high margins offered by HBM, thereby converting existing production lines in large quantities to HBM; meanwhile, HBM consumes approximately three times the wafer volume of traditional DDR5. Given the constraint that total production capacity cannot be increased, this has displaced demand for traditional PC and mobile applications, and the supply-demand gap for standard-type DDR5 is expected to reach a 15-year high in 2026. In terms of technical specifications, DDR5 penetration rate is expected to exceed 90% in 2026, while DDR4 will accelerate towards obsolescence. The next-generation DDR6 specification is expected to be finalized in 2027, with initial samples scheduled to emerge in small volumes in 2028. In response to resource allocation and product differentiation, The Company will, in addition to the existing resources from the three major manufacturers, incorporate Winbond's supply in the fourth quarter of 2025. Through its own brands TEAMGROUP, T-FORCE, T-CREATE, and TEAMGROUP INDUSTRIAL, the Company expands into the consumer and industrial control markets, becoming a crucial partner to original manufacturers and bridging the gap with end-user applications. By collaborating with original manufacturers, the Company addresses the needs of various application markets, allowing resources to be widely deployed across different market segments.

Flash Memory -Nand Flash

In 2025, the NAND Flash market began to reverse starting in the third quarter, driven by robust demand from AI inference and data center applications, with original equipment manufacturers returning to profitability and continuing to focus on high-capacity and high-bandwidth products. AI and server demand have propelled enterprise-grade SSDs and QLC NAND to rapidly become mainstream, with Hyperscale customers accelerating their AI storage deployment, and Nearline SSDs progressively replacing HDDs. Original equipment manufacturers are actively adopting 3600MT/s high-speed interfaces and QLC 2Tb processes, and advancing high-bandwidth flash memory (HBF) to address AI storage bottlenecks, while focusing on high-margin products, resulting in tight supply of low-capacity TLC wafers and continued price increases. In 2025, the overall NAND Flash prices steadily increased, laying the groundwork for a more significant surge in 2026. In the face of volatile supply dynamics and price fluctuations, the Company leverages over two decades of procurement experience and market insight to flexibly adjust supply chain strategies, thereby ensuring stable supply of inventory. We continue to launch premium products aligned with market trends across diverse segments, including proprietary brands, gaming, content creators, and industrial control applications, while strengthening technological innovation and product differentiation to enhance overall competitiveness. Simultaneously, the Company deepens collaboration with mid-to-large-sized customers, providing comprehensive solutions spanning research and development, design, procurement, and after-sales service to help customers maintain

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Main raw materials	Purchasing strategy and market supply-demand situation
	competitive advantages in rapidly changing markets. Through sound brand management and strategic positioning, the Company is committed to creating a win-win situation for the Company, customers, and suppliers, and continues to consolidate its leading position in a market environment driven by artificial intelligence and enterprise storage demand.
Control Chip-Controller	With the advancement of NAND Flash manufacturing technology, continuously improving NAND speed and capacity specifications, controllers play a crucial role, directly affecting product performance, quality, durability, and compatibility. To provide the most suitable storage products for various sectors, the Company, in its multi-faceted product development, maintains long-term partnerships with industry-leading control chip partners. These collaborations encompass not only sales and technical research but also rapidly meeting customers' practical application needs in response to the Company's extensive product range, and effectively controlling product launch timelines. Consequently, we are frequently able to lead the industry in launching products with the latest technology, providing customers with high-efficiency and reliable storage solutions.
Printed Circuit Board -PCB	Given the Company's diversified product range and the increasing demands for speed and stability, the requirements for precision PCB manufacturing technology, product quality, and stable delivery schedules are also continuously rising. When selecting PCB manufacturers, the Company chooses well-known, high-quality PCB suppliers in the industry and allocates appropriate production items based on each manufacturer's professional capabilities. Furthermore, due to our long-term partnerships with manufacturers, we require more flexible cooperation to address this year's diverse market demands. In addition to strictly controlling inventory, the Company also deploys in advance to provide customers with the most stable supply.
Mechanical Components	The Company operates its own brands, with unique insights into various usage environments. To showcase the unique functions of our products, we impose rigorous quality requirements on our partners, requiring R&D design capabilities, precision manufacturing capabilities, and stable quality assurance to ensure products achieve optimal performance. The Company maintains long-term partnerships with its collaborators, adhering to a philosophy of mutual support and engaging in thorough communication to anticipate market changes. We aim to maintain stable supplies and provide high-quality, distinctive products amidst market fluctuations.

4.2.4. The name of the customer who has accounted for more than 10% of the total purchases (sales) in any one of the most recent two years, as well as the purchase (sales) amount and percentage

List of main suppliers

Unit: NT$ thousand

Item	2024				2025
	Title	Amount	Annual net procurement ratio (%)	Relationship with the issuer	Title	Amount	Annual net procurement ratio (%)	Relationship with the issuer
1	C	12,645,195	64.05	-	C	8,669,332	42.78	-
					T	2,519,028	12.43	-
	Others	7,097,645	35.95	-	Others	9,076,278	44.79	-
	Net procurement amount	19,742,840	100.00	-	Net procurement amount	20,264,638	100.00	-
Reason for Increase/Decrease: In response to the Company’s expanding sales footprint and increasingly diversified product and market presence, new suppliers have been added.

List of main customers

Unit: NT$ thousand

Item	2024				2025
	Title	Amount	Percentage of net sales (%)	Relationship with the issuer	Title	Amount	Percentage of net sales (%)	Relationship with the issuer
1	G	8,767,208	43.97	-	G	5,138,650	25.15	-
				-	E	3,148,056	15.41	-
	Others	11,171,251	56.03	-	Others	12,141,743	59.44	-
	Net sales	19,938,459	100.00	-	Net sales	20,428,449	100.00	-
Reason for Increase/Decrease: In response to the Company’s expanding sales footprint and increasingly diversified product and market presence, new customers have been added.

4.3. Number of employees, average years with our company, average age, and academic qualification ratio in the past two years and up to the date of report

Unit: people; age; year; ratio

Year		2024	2025	The current year up to March 17, 2026
Number of employees	Direct personnel	118	124	120
	Indirect personnel	314	329	332
	Total	432	453	452
Average age		37.53	39.0	38.24
Average years with our company		6.00	6.5	6.24
Academic Qualification (%)	Ph.D.	0%	0%	0%
	Masters	7.87%	7.73%	7.69%
	Bachelor’s Degree	65.51%	68.21%	67.47%
	Senior High School	23.84%	23.84%	22.64%
	Below Senior High	2.78%	1.99%	1.98%

4.4. Environmental Protection Expenditure

According to laws and regulations, if it is required to apply for a permit for installing anti-pollution facilities, or a permit for pollution drainage, or pay anti-pollution fees, or organize and set up an exclusively responsible unit/office for environmental issues, the description of the status of such applications, payment or establishment shall be made.

The Company actively complies with government policies and ESG-related requirements to fulfill its corporate social responsibility. Beginning in 2024, the Company engaged consulting firms to facilitate greenhouse gas inventory management planning. Through training participation by relevant departmental personnel and the implementation of greenhouse gas inventory management software systems, the Company has taken concrete action to promote environmental protection and carbon reduction initiatives. The Company undergoes annual verification by third-party entities recognized by the Ministry of Environment. In 2025, the Company incurred expenses of NT$260 thousand for greenhouse gas inventory management software and verification services. Furthermore, the Company is an excellent enterprise that has obtained ISO 14001 Environmental Management System certification. The selection of raw materials, supplies, and packaging in product design complies with international environmental protection regulations. The Company's manufacturing process comprises SMT, testing, laser marking, assembly, packaging, inspection, and subsequent sales to customers. The manufacturing process generates neither air emissions nor wastewater discharge, producing only general industrial waste (recyclable) and minimal waste liquid, which have no environmental impact. Accordingly, the Company is not required to apply for pollution facility installation permits or pollution discharge permits. The Company implements and submits industrial waste management plans in accordance with regulations issued by the environmental protection authorities. Business waste is collected and classified according to its nature. In accordance with government regulations, monthly declarations are made for temporary storage. Waste liquids and PCB waste boards, among other business waste, are transported and processed regularly by vendors approved and licensed by the Environmental Protection Agency (EPA). Three-part forms are issued and stored for inspection to ensure that waste liquids and PCB waste boards, along with other business waste, are properly handled. The company incurred two environmental testing expenses in 2025: NT$18,650 in the first half of the year and NT$20,700 in the second half, totaling NT$39,300. These actions are part of the company's gradual implementation of its environmental policy: "Eco-friendly Green Living, Beautifying the Mind."

Our product development and design planning have incorporated environmental protection and ESG considerations. In particular, certain product lines of memory modules and SSDs have adopted self-developed graphene heat sinks that have obtained U.S. and Taiwan patents, replacing anodized aluminum heat sinks to reduce environmental pollution. Concurrently, selected product models of USB flash drives and external hard drives have incorporated recycled plastic materials, while certain product lines of memory modules have incorporated recycled aluminum heat sinks in manufacturing, actively implementing recycled plastic and recycled aluminum reuse and environmental carbon reduction initiatives. Additionally, the Company will conduct periodic ISO 14064-1 greenhouse gas inventory verification on an annual basis going forward, exceeding government regulatory requirements, and demonstrating a proactive commitment and tangible actions in support of environmental sustainability. The Company has initiated the planning and development of its Sustainability Report in the second half of 2024, with guidance from a third-party consulting firm, and completed the report by August 2025. In 2026, the Company will also continue to complete the 2025 sustainability report, and consultancy fees for the year 2026 amounted to NT$100 thousand.

Investment in and purpose of the main equipment for preventing and controlling environmental pollution, as well as potential benefits: None.

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In the past two fiscal years and up to the date of printing of the public disclosure statement, provide an account of the company's efforts to improve environmental pollution and any incidents involving pollution disputes, along with an explanation of the resolution process: None.
In the past two fiscal years and up to the date of printing of the public disclosure statement, disclose the total amount of losses (including compensation) incurred by the company due to environmental pollution and reveal future coping strategies and potential expenditures: None.
Present pollution status and the impact of its improvement on the company's earnings, competitive position, and capital expenditures, as well as significant environmental capital expenditures expected in the next two fiscal years: None.

4.5. Labor-management relations:

4.5.1. Implementation status of various employee welfare measures, continuing education, training, retirement system, and agreements between labor and management.

Employee welfare measures and implementation status:

(1) Safe and healthy eating: The Company prioritizes employee dietary well-being, establishing strategic partnerships with rigorously vetted, high-quality vendors to provide employees with diverse and comprehensive meal options.

(2) Adopt-a-fruit-orchard: To help employees appreciate the hard challenges of crop cultivation, Team Group Inc. offers the opportunity for more people to experience the hardships of growing crops through the adoption of fruit orchards. By sharing the process of cultivation and adoption with friends, family, and loved ones, this initiative aims to foster a sense of unity and camaraderie.

(3) Childcare:

A. To support breastfeeding mothers, TeamGroup has created a warm and comfortable breastfeeding (breast milk pumping) area.

B. In addition to designated break times, the company provides an additional 60 minutes of breastfeeding (breast milk pumping) time for nursing mothers. This breastfeeding time is considered as working hours.

(4) Healthcare: To ensure the holistic health of our employees, the Company periodically arranges complimentary health examinations, monitors employees with identified health anomalies, and offers professional health consultation services.

(5) Sports at the workplace: To cultivate a habit of regular exercise among employees, TeamGroup encourages employees to organize and participate in activities that promote physical activity. These activities not only contribute to the employees' well-being but also foster a sense of camaraderie and emotional connection among colleagues.

(6) Leisure activities: To provide employees with more opportunities for stress relief, in addition to organizing travel activities by the welfare committee, Team Group holds annual year-end parties, festive banquets, and other events to help employees relax and rejuvenate both physically and mentally.

(7) Insurance managed care: To provide employees with comprehensive protection, in addition to legally required labor insurance and health insurance, TeamGroup also provides additional business travel insurance for employees who travel for work. This ensures that employees have added coverage and peace of mind during their business trips.

Employee continuing education and training measures and implementation status:

(1) Employee continuing education system: In addition to the company's planned training courses, TeamGroup provides a diverse learning management system that encourages employees to engage in self-directed learning and knowledge sharing. This includes the following initiatives:

A. Dedicated sections on the company's internal website serve as platforms for sharing articles, recommended books, and personal experiences.

B. The company promotes a reward system for other learning activities.

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C. A reading room is set up, offering a variety of books, newspapers, and magazines for employees to enhance their knowledge through reading and study.

(2) In FY2025, TeamGroup continued to organize in-service employee education and training courses, including labor safety education, gender-friendly care, and health counseling. In total, there were 1,429 participants, 113 sessions, and a total training duration of 1,812.5 hours.

Retirement system and implementation status:

In compliance with legal requirements, starting from the year 2005, TeamGroup has been contributing 6% of the monthly insurance salary to the Labor Pension Fund of new employees and existing employees who choose to be subject to the new retirement pension regulations. Simultaneously, for existing employees who continue to choose the old retirement pension system, Labor Retirement Reserve Fund, and still have seniority under the old system, the Company contributes an appropriate amount to the Retirement Reserve Fund per month, which is held in a special account with the Taiwan Bank. The Supervisory Committee is responsible for overseeing the management of the Retirement Reserve Fund. Under the Labor Standards Act and the approved regulations of the Ministry of Labor, the Company follows the following provisions for voluntary retirement:

(1) Voluntary retirement: A worker may apply for voluntary retirement under any of the following conditions:

A. Where the worker attains the age of fifty-five and has worked for fifteen years.
B. Where the worker has worked for more than twenty-five years.
C. Where the worker attains the age of sixty and has worked for ten years.

(2) Mandatory retirement: The Company shall not force an employee to retire unless one of the following conditions is met:

A. Where the worker attains the age of sixty-five.
B. Where the worker is unable to perform his/her duties due to disability.
C. Business entity may request the central competent authority to adjust the age prescribed in Paragraph 2, Article 54 of the Labor Standards Act if the specific job entails risk, requires substantial physical strength, or otherwise of a special nature; provided, however, that the age shall not be reduced below fifty-five.

(3) Criteria for payment of worker pensions:

For employees who are subject to the old retirement pension system under the Labor Standards Act or have chosen to be subject to the retirement pension regulations, their accrued seniority under the old system will be used to determine the retirement pension provided by the Company. The retirement pension will be paid according to the following standards:

A. For the accrued seniority under the old retirement pension system, two bases are given for each full year of service rendered. But for the rest of the years over 15 years, one base is given for each full year of service rendered. The total number of bases shall be no more than 45. The length of service is calculated as half year when it is less than six months and as one year when it is more than six months.
B. As outlined in Article 35, an additional 20% on top of the amount calculated as set forth in Article 55 of the Labor Standards Act shall be given to workers forced to retire due to mental impairment or physical disability incurred from the execution of their duties. The retirement pension base as specified in Subparagraph 1 of the preceding paragraph shall be one month's average wage of the worker at the time when his or her retirement is approved.
C. For employees covered by the retirement pension regulations under the Labor Pension Act (new retirement pension system), the company contributes 6% of their salary per month to their labor pension accounts.

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(4) Pension funds payment:

The Company is obligated to provide the retirement pension to employees under the old retirement pension system within 30 days from the date of their retirement. As for the retirement pension under the new retirement pension system, the employees are required to follow the regulations set by the Bureau of Labor Insurance to claim their pension benefits.

Other important agreements:

The Company consistently upholds the principle of harmonious labor-management relations, fostering mutual prosperity. Labor-management agreements are governed by the Labor Standards Act, and the Company adheres to the principle of good faith to maintain a positive and constructive labor-management relationship.

(1) Labor-Management Coordination Meetings: Through various meeting formats, the Company disseminates information regarding operational changes to its employees, facilitates two-way communication on company policies, and addresses employee concerns related to company directives, work environment, and occupational safety and health. This ensures the comprehensive protection of employee rights, strengthens mutual trust, and fosters consensus.

(2) Employee Welfare Committee Meetings: The Employee Welfare Committee is composed of employees who are elected through a fair and transparent election process. These committee members are passionate about public welfare and possess good communication skills. During the Employee Welfare Committee meetings, both labor and management representatives can contribute valuable insights and engage in meaningful discussions regarding various welfare measures implemented by the Company. This promotes effective communication and allows for a thorough exchange of ideas.

4.5.2. Losses incurred due to labor disputes and estimated amounts and measures for current and future contingencies:

In the recent fiscal year and up to the date of the annual report, has the Company incurred any loss due to labor disputes: On January 9, 2024, the New Taipei City government imposed a fine of NT$50,000 in accordance with Article 32, Paragraph 2 of the Labor Standards Act (exceeding the legally permitted overtime working hours). The Company has already paid the fine in accordance with the law and has also strengthened education and management in this regard.
Currently, there are no estimated amounts or measures for potential losses related to labor disputes: The Company does not anticipate any significant labor dispute events that would result in financial losses.

4.6. Information Disclosure of Cybersecurity Management

4.6.1. Cybersecurity Management Policy:

The Company establishes internal controls under Article 9 of the Regulations Governing Establishment of Internal Control Systems by Public Companies, specifically "Internal Control of Electronic Data Processing Cycles." We have developed various control procedures for information security. The Information Technology Office is responsible for computer information security, and the Audit Room serves as the supervisory unit for information security management. The highest-ranking executive responsible for information security management within the Information Technology Office is the "General Manager."

The Company is committed to managing information security operations in the following manner to reduce the impact of security issues on company operations, prevent damage to the company's image and reputation resulting from internal operational errors, and enhance security protection to safeguard the trust and rights of our suppliers and customers.

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(1) We comply with the executive orders issued by regulatory authorities and adhere to the company's relevant regulations in our operations.

(2) We enforce the management of access rights and personnel distinctions for the Company's information systems and data (including information on suppliers, customers, and sensitive data). Unauthorized personnel are restricted from accessing or retrieving such information to prevent potential losses to the company.

(3) We conduct regular internal audits and engage external organizations to perform information system audits for the company on an annual basis. This is done to identify areas for improvement and provide insights for decision-making.

(4) All employees recruited by the Company are required to complete a personal data confidentiality agreement according to regulations. When necessary due to the nature of business, we may also request the signing of confidentiality agreements with subcontractors, outsourced manufacturers, and customers.

(5) We emphasize the importance of information security protection to all our employees and strive to enhance their awareness and responsibility regarding information security across all departments.

4.6.2. Information Unit establishes protection and response measures for the security of existing information systems and their potential impact on the company's normal operational activities:

Network and Personal Use Security:

(1) Next-Generation Firewall: We utilize a next-generation firewall that provides detailed visibility and analysis of application and user network behavior. This advanced device allows us to speedily and intuitively identify issues, manage user access to external applications and websites, and continuously update threat intelligence. By signing maintenance contracts with the firewall manufacturer, we ensure real-time protection against system vulnerabilities, encrypted malware, malicious websites, botnets, and unknown attacks that may pose a threat to our organization.

(2) The email protection system employs a global anti-spam engine, advanced antivirus engine, malicious URL filtering engine, and multi-layer security protection against DoS attacks and social engineering attacks. Both inbound and outbound emails are routed through the email protection system for inspection before transmission.

(3) Endpoint Protection: Basic antivirus transforms into EDR (Endpoint Detection and Response), adding continuous monitoring of endpoint activities to its original antivirus capabilities. It uses behavior analysis and machine learning to detect anomalies and unknown threats.

(4) Information Security Analysis and Joint Defense: Procurement of related equipment that can analyze network usage and employ built-in artificial intelligence trend algorithms enables automatic real-time alerts and various smart analyses to generate reports, meeting the Company's management, analysis, and audit needs.

(5) Social engineering exercises and vulnerability scanning services: Social engineering exercises can increase employees' information security awareness, and vulnerability scanning can track and remediate existing unpatched vulnerabilities in the Company's hosts, reducing attacks caused by vulnerabilities.

Disaster Recovery Measures:

(1) Service servers are established with redundancy mechanisms in place. In the event of insufficient server performance or server malfunction, automatic failover to other operational servers occurs, reducing the risk of service interruption.

(2) Off-site Data Backup: Daily backup of system data to remote hosts through network backup systems to ensure recovery in the event of data loss.

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(3) Data Center Equipment: Regular inspection and maintenance of equipment such as uninterruptible power supply (UPS) systems, air conditioning systems, and network equipment to minimize the impact of unforeseen disasters.

4.6.3. Losses, Potential Impact, and Response Measures Due to Significant Cybersecurity Incidents in the Recent Year and up to the Printing Date of the Annual Report: None.

4.7. Important Contracts

Nature of contract	Parties	Contract date	Main content	Restrictive clauses
Long-Term Loan Contract	Chang Hwa Commercial Bank	June 28, 2022~June 28, 2037	Long-Term Secured Loan	N/A
Medium-Term Loan Contract	First Commercial Bank	March 31, 2022~March 31, 2027	Medium-Term Secured Loan	N/A
Human resources agency	Da Hsin Human Resource Co.,Ltd.	April 1,2024~March 31, 2031	Agreement for the Provision of International Human Resources Service	N/A
Appointment Guarantee Contract	Taichung Commercial Bank	Jan 15, 2026~Jan 15, 2029	To obtain the right to issue domestic secured convertible corporate bonds for the fourth time, apply to the bank for the issuance of a performance guarantee letter.	N/A
Trust agreement	CTBC BANK Co., Ltd.	Jan 15, 2026~Jan 15, 2029	Appoint the bank as the Trustee for the creditor of the Company's corporate bonds	N/A

Review and analysis of Company's financial Position and financial performance, and A Listing of Risks issues

5.1. Financial status:

Unit: NT$ thousand

Year Item	2024	2025	Difference
			Amount	%
Current assets	9,532,483	14,418,702	4,886,219	51.26%
Property, plant and equipment	337,797	417,671	79,874	23.65%
Other assets	124,477	180,685	56,208	45.16%
Total assets	9,994,757	15,017,058	5,022,301	50.25%
Current liabilities	5,865,100	10,081,453	4,216,353	71.89%
Non-current liabilities	130,268	84,954	(45,314)	-34.79%
Total liabilities	5,995,368	10,166,407	4,171,039	69.57%
Share capital	849,633	849,633	0	0.00%
Capital surplus	2,238,007	1,983,117	(254,890)	-11.39%
Retained earnings	920,157	2,029,985	1,109,828	120.61%
Other equities	(8,408)	(12,084)	(3,676)	43.72%
Treasury shares	0	0	0	0%
Equity attributed to stockholders of the company	3,999,389	4,850,651	851,262	21.28%
Total equity	3,999,389	4,850,651	851,262	21.28%
1. Explanation of the main reasons for significant changes (changes exceeding 20% and amounting to more than NTD10 million): (1) The increase in current assets and total assets is due to an increase in inventory and the net balance of accounts receivable. (2) The increase in property, plant and equipment is due to the purchase of real estate. (3) The increase in current liabilities and total liabilities is due to an increase in short-term borrowings and accounts payable. (4) The decrease in non-current liabilities is due to a decrease in long-term borrowings. (5) The decrease in capital surplus is due to the distribution of capital reserve as dividends. (6) The increase in retained earnings, equity attributed to stockholders of the company, and total equity is primarily due to growth in profits for the period. 2. Future plans to address significant impacts: None.

5.2.Financial performance

5.2.1. The main reasons for the material changes in operating income, net operating income and net income before tax over the last two years

Unit: NT$ thousand

Year Item	2024	2025	Difference
			Amount	%
Operating revenue	20,151,857	20,630,392	478,535	2.37%
Less: Operating Returns	(213,398)	(201,943)	11,455	-5.37%
Net operating revenues	19,938,459	20,428,449	489,990	2.46%
Operating costs	(17,712,405)	(17,514,031)	198,374	-1.12%
Operating margin (loss)	2,226,054	2,914,418	688,364	30.92%
Operating expenses	(1,688,565)	(1,504,391)	184,174	-10.91%
Operating net profit (loss)	537,489	1,410,027	872,538	162.34%
Non-operating income and expenses	131,184	6,941	(124,243)	-94.71%
Profit (loss) before income tax	668,673	1,416,968	748,295	111.91%
Income tax expense	(141,317)	(307,095)	(165,778)	117.31%
Net profit (loss) for the year	527,356	1,109,873	582,517	110.46%
Explanation of the main reasons for significant changes (changes exceeding 20% and amounting to more than NTD10 million): (1) The increases in gross profit, operating profit, profit before income tax, income tax, and net profit for the period are all due to the improved profitability of the current year. (2) Non-operating income and expenses increased compared to the prior period, primarily due to a decrease in exchange gains.

5.2.2. The expected sales volume for the next year and its basis are as follows:

The Company's estimated sales volume for 2026 was assessed by comprehensively considering global industry development trends, macroeconomic growth forecasts, changes in end-user application market demand, and upstream supply conditions, while taking into account the Company's historical sales performance and current order intake.

From an application perspective, in addition to the continued development of existing server and data center-related applications, emerging applications such as electric vehicles, automated manufacturing, and artificial intelligence are gradually expanding, driving increased demand for high-performance memory products. Additionally, with the continuous introduction of new end products such as AI PCs and laptops, changes in market penetration rates may also impact demand for memory products. Related application concepts are expected to gradually extend to diverse industry sectors; however, their actual growth magnitude will remain subject to the overall economic environment, end-market acceptance, and industry supply and demand conditions.

On the supply side, upstream memory chip production status and capacity allocation will continue to influence market supply and demand balance and price trends. Should output growth remain limited while end-user demand gradually recovers, market supply and demand conditions may shift in response to application changes.

Taking into account the aforementioned factors, the Company anticipates that its overall sales performance for 2026 will continue to be subject to multiple factors, including industry cycles, changes in end-user demand, and raw material supply conditions. The Company will continue to integrate R&D, manufacturing, and distribution resources to strengthen the development and sales capabilities of various types of memory modules and SSD products in order to respond to market changes and maintain sound operational development.

5.3.Cash flow

5.3.1. Analysis of changes in cash flow over the past two years

Unit: NT$ thousand

Item	2024	2025	Increase or decrease Variation
			Amount	%
Operating activity	925,790	(3,520,704)	(4,446,494)	-480.29%
Investment activity	31,817	(144,559)	(176,376)	-554.35%
Financing activity	562,227	1,909,629	1,347,402	239.65%
The Effects of Changes in Foreign Exchange Rates for Cash and cash equivalents	1,073	(3,186)	(4,259)	-396.92%
Net cash flows from (used in)	1,520,907	(1,758,820)	(3,279,727)	-215.64%
Explanation of Changes in Percentage Variations: (1) Net cash inflow from operating activities decreased: primarily because net cash inflow from operating activities in the current period decreased compared to the prior period, offset by decreases in accounts receivable and inventories, as well as an increase in accounts payable. (2) Net cash inflow from investing activities decreased: primarily due to the acquisition of property in 2025. (3) Net cash inflow from financing activities increased: primarily due to an increase in short-term borrowings in 2025.

5.3.2.Cash liquidity analysis and improvement plan for insufficient liquidity in the coming year

Unit: NT$ thousand

Cash balance at beginning of period (A)	Estimated Net Cash Flow from Operating Activities (B)	Estimated Cash Outflow (Inflow) (C)	Estimated Cash Surplus (Deficit) (A)+(B)-(C)	Estimated remedy for cash shortage
				Investment plan	Financial plan
708,402	3,500,000	(5,000,000)	(791,598)	-	2,000,000
(1) Estimated cash inflows from operating activities: Primarily generated from the company's operating income. (2) Estimated cash outflows for the year: Mainly due to anticipated increases in operating expenses and loan repayments.

5.4.Impacts on financial operations from major capital expenditures in the most recent FY: N/A.
5.5. The reinvestment policy of the past year, reasons for profits or losses, the improvement plan and investment plan for the coming year

Reinvestment policy: Our current focus is on the core business, with the top priority being the promotion of the Company's branded products.

The current details of the Company's reinvestments are as follows:

Illustrate Item	Amount (Unit: NT$1,000)	Policy	Main Factors for Profit or Loss	Improvement Plan	Future Other Investment Plans
DataCell Technology Limited	108,030	Brand Promotion	Due to the sharp increase in memory prices, profits have also increased concurrently, and an investment income of NT$11,426 thousand was recognized in the most recent year.	N/A	N/A
Team Japan Inc.	5,566	Brand Promotion	Due to the impact of exchange rates and weak purchasing demand, an investment loss of NT$6,517 thousand was recognized in the most recent year.	Expansion of operations to increase profitability and brand promotion.	N/A
Team Grop (SZ) Inc.	82,295	Customer Service and Brand Promotion	Due to the sharp increase in memory prices, profits have also increased concurrently, and an income of NT$10,995 thousand was recognized in the most recent year.	N/A	N/A
Team Datasolution USA Inc.	9,432	Customer Service and Brand Promotion	Due to the sharp increase in memory prices, profits increased correspondingly, with investment income of NT$5,494 thousand recognized in the most recent year.	N/A	N/A

5.6. Risk matters requiring analysis and evaluation
5.6.1. Impact of interest rate and exchange rate changes and inflation on Company's profit and response measures

Interest rate

Unit: NT$ thousand

Item	2025		2024
	Amount	%	Amount	%
Interest revenue (expenses)	14,890	1.06%	50,456	9.39%
operating (loss)income	1,410,027	100.00%	537,489	100.00%

Interest income in 2025 decreased compared to 2024, primarily because the Company's operating scale expanded, increasing inventory procurement requirements, resulting in funds being deployed for operations rather than time deposits.

The Company has a sound financial structure, and in the event of bank borrowings, we maintain close contact with the banks to understand the interest rate trends. This enables us to seek the most favorable borrowing terms and optimize asset allocation. Additionally, we utilize short-term idle funds by investing in fixed-term deposits in both TWD and foreign currencies, as well as low-risk instruments such as callable bonds with a 100% capital guarantee upon maturity.

Exchange rate changes

Unit: NT$ thousand

Item	2025		2024
	Amount	%	Amount	%
Exchange gain (loss)	20,555	1.46%	71,057	13.22%
Operating (loss)income	1,410,027	100.00%	537,489	100.00%

The foreign exchange gain decreased in 2025 compared to 2024, mainly due to fluctuations in exchange rates

In response to the impact of currency rate fluctuations on profitability, the Company has formulated the following measures:

(1) We have adopted a natural hedging strategy by offsetting foreign currency receivables and payables generated from foreign currency transactions. This helps to reduce currency exchange risks.

(2) We maintain close communication with the foreign exchange departments of various banks and constantly gather market exchange rate information. This allows us to stay informed about domestic and international currency rate trends and changes. When necessary, we sell foreign currencies to mitigate the negative impact of exchange rate fluctuations.

(3) When providing quotes to customers or making purchases from suppliers, we take into consideration the potential effects of currency rate fluctuations. We adopt a more conservative and prudent approach by using relatively stable exchange rates as the basis for transactions, thereby reducing the impact of exchange rate volatility on company profits.

(4) We maintain foreign currency deposit accounts with partner banks to meet the demand for foreign currency funds. We also adjust our foreign exchange positions timely in response to currency rate changes, aiming to minimize the impact of exchange rate fluctuations.

3. Inflation

The Company primarily engages in the manufacturing and sales of computer peripheral equipment and storage applications products. We have not been significantly affected by inflation. We regularly adjust our pricing strategies and closely monitor changes in prices to mitigate the potential risks associated with inflation.

5.6.2. Engaging in high-risk, high-leverage investments, lending funds to others, endorsing guarantees, and engaging in derivative commodity trading; the main causes of profit or loss and future response measures

In FY2025, the Company did not engage in high-risk or high-leveraged investments.
In FY2025, the Company did not participate in derivative trading. In the future, we will periodically assess and adjust relevant hedging strategies based on changes in the Company's operations and market trends.
In FY2025, the Company did not provide fund lending to others: None.
In FY 2025, the Company did not provide endorsement guarantees: None.

5.6.3. Future Research & Development Plans and Estimated R&D Expenses

1. Future Research and Development Plans:

A. Commercial-Type Memory Modules

(1) With the launch of Intel Panther Lake CPU, which features a significantly modified architecture and integrates an NPU for AI acceleration, the demand for high-capacity and stable, high-performance memory is expected to increase substantially. The Company will develop and mass-produce high-capacity DDR5 7200 CSO-DIMM (SO-DIMM with CKD) to meet the market's demand for DDR5 AI laptops.

(2) Following the introduction of AMD's Ryzen 8000/9000 series CPUs and the integration of AMD Ryzen AI, its market share has risen to over 50%. The Company plans to fully upgrade its commercial standard memory modules to DDR5 7200MT/s and expand its product line with 64GBx2 modules to address performance requirements.

(3) Development of next-generation DDR5 LPDDR5/5X CAMM2 memory modules for laptops, featuring a memory architecture with 8 sub-channels and an increased data width from the standard 64-bit to 128-bit, delivering both high performance and large capacities (up to 128GB).

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(4) Continuing to develop and integrate key components for DDR5, ensuring optimal performance and cost advantages of the products.
(5) Continuing to advance towards an automated smart factory production approach to increase production capacity and reduce manufacturing costs.
(6) Research and development of memory products based on the latest chip processes.
(7) Continuing to establish and maintain a state-of-the-art platform to ensure product compatibility.

B. Industrial-Grade Memory Modules

(1) Developing high-quality, high-stability server-grade R-DIMM modules to enhance stability and data integrity under long-term, high-load operations. These modules meet the needs of AI training, AI inference, edge computing, and high-performance computing applications, providing comprehensive solutions for data centers and enterprise-grade servers.
(2) In alignment with memory IC manufacturers' process advancements, the entire series of industrial-grade modules will be upgraded to DDR5 7200MT/s speed specifications. Simultaneously, wide-temperature (-40°C to 85°C) product lines will be developed to enhance operational stability in harsh environments such as high temperatures, high vibration, and high dust. These modules are widely applicable in smart manufacturing, in-vehicle systems, networking equipment, and edge AI servers.
(3) Development of new embedded memory modules, LPDDR5/5X CAMM2, which offer high bandwidth and low power consumption compared to traditional SO-DIMM, significantly enhancing computational and energy efficiency for AI edge devices and high-end embedded systems. This is particularly suitable for compact industrial computers, smart medical devices, and unmanned system platforms.
(4) Developing high-frequency CSO-DIMM and CU-DIMM modules with extended temperature range support for the industrial-grade market to enhance stability and signal integrity during extended operation in high-temperature environments, thereby meeting the demands of smart factories, automation equipment, and telecommunications infrastructure for highly reliable memory solutions.

C. T-Force Gaming Memory Modules

(1) Developing a single 128GB 4RANK-CQDIMM high-capacity module to support the high memory density and bandwidth requirements of large-scale AI model inference, data analytics, and virtualization applications, thereby enhancing overall system performance and scalability flexibility.
(2) Through advancement in PCB characteristic development performance and integration of IC sorting technology, the Company is producing DDR5 O.C. 9600+MHz and higher-speed memory modules that lead the market in ultra-high-frequency performance.
(3) Development of high-capacity, low-latency memory modules to meet the demands of the gaming market.
(4) Continuous research and development of high-speed heat dissipation solutions for DDR5 gaming products.
(5) Continuing to conduct research on the overclocking characteristics of advanced-node memory particles and developing gaming memory modules with consistent quality and stability.

D. T-CREATE Creator Memory Modules

(1) Developing high-capacity creator server memory modules with superior stability and

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overclocking capabilities to meet the high data throughput demands of generative AI, large language model (LLM) training, and high-resolution content creation applications, delivering solutions characterized by high bandwidth, high capacity, and sustained stable operation over extended periods. Through optimized signal integrity (SI) design, power integrity (PI) optimization, and thermal management architecture, the modules ensure data accuracy and system stability during high-frequency operation and sustained heavy-load conditions, addressing the requirements of AI model training, data preprocessing, large-scale database computing, and real-time inference generation use cases, thereby enabling creators and AI developers to enhance computational efficiency and productivity.

(2) Research and development of LPDDR5/5X CAMM2 memory products utilizing next-generation modular design to enhance expansion flexibility and high-bandwidth performance for thin-and-light platforms. Compared to traditional SO-DIMM, the CAMM2 architecture features superior signal integrity and lower operating voltage characteristics, effectively reducing power consumption and extending battery life. The products are positioned for premium thin-and-light laptops, mobile workstations, and AI edge creation platforms, addressing the high-bandwidth and high-energy efficiency requirements of generative AI applications, video editing, 3D rendering, and high-resolution content creation, delivering mobile creation solutions that combine performance with battery endurance.

(3) Continuing to conduct research on the stability and durability characteristics of advanced-node memory particles and developing creator memory modules with consistent quality and reliability. Future storage products will focus on the high-performance demands brought by AI, IoT, and edge computing, meeting market applications through faster response times, higher capacity, and enhanced durability. Simultaneously, ESG trends are driving products to adopt environmentally friendly materials and recyclable designs, reducing carbon footprint and achieving sustainable development. Furthermore, hardware and software integration will become core, providing smart solutions such as data backup and recovery to create a comprehensive user experience that satisfies dual requirements for intelligence and environmental sustainability

E.Solid State Drives (SSDs)

(1) As NAND Flash technology continues to evolve, particularly with the increasing number of 3D NAND structural layers (such as 176-layer, 232-layer, and higher), the storage density per SSD chip has significantly improved, and overall storage capacity continues to expand. High-capacity SSDs (such as 4TB, 8TB and above) are gradually becoming mainstream in the market, driving the widespread adoption of high-density storage products. This trend provides more efficient and reliable storage solutions for high-performance computing, content creation, and data center applications to meet the ever-growing demand for data access.

(2) The PCIe 5.0 specification are being progressively introduced in the high-end market, with a theoretical transmission speed reaching 14 GB/s, significantly enhancing data transmission performance. As the PCIe 5.0 standard is gradually commercialized, this technology can meet the demands of artificial intelligence training, high-performance computing (HPC), big data analytics, and high-resolution image processing applications for high-speed, low-latency transmission. PCIe 5.0 provides robust performance support for next-generation servers, workstations, and professional storage equipment, driving the industry into a new phase of high-efficiency computing.

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F. External Solid State Drives (External SSDs)

(1) USB4 and Thunderbolt 5 are progressively becoming market mainstream, delivering data transmission speeds of 40 Gbps or higher. These high-speed interfaces significantly enhance the read/write performance and overall user experience of external SSDs, enabling rapid transfer of large files and supporting high-resolution imaging, 4K/8K video editing, and artificial intelligence computing and other demanding applications. This technology provides creators and professional users with an efficient, low-latency data access environment, substantially optimizing workflow and productivity.

(2) External SSDs are trending toward lightweight and high-durability design. Future products will integrate shock resistance, water resistance, and dust resistance functionalities to meet the high reliability requirements of mobile workers and outdoor environments.

(3) With the increasing demand for large capacities from creators and gamers, external SSDs will launch products with larger capacities (e.g., 30TB and above). Future products are expected to integrate artificial intelligence features, such as automatic data categorization and smart compression, to enhance data management efficiency and user experience.

(4) The T-Create CinemaPr Series is designed for video and audio content creators, offering high-speed data transmission, high-capacity storage, and stable performance. The product fully supports 4K/8K video editing, RAW image processing, and other high-performance work scenarios, while also ensuring portability and reliability. Precisely meeting the demands of the professional market, effectively enhancing the efficiency and user experience for creators.

G. Memory Cards

(1) SD Express will gain further adoption, offering higher transmission speeds (exceeding 4GB/s), to meet the demands of 8K video recording and high-resolution image processing.

(2) CFexpress standards will become increasingly important in the high-end photography and videography market, particularly for professional-grade equipment, supporting higher sustained write speeds and larger capacity requirements.

(3) Industrial and IoT Applications: Memory cards will be increasingly deployed in smart cities, industrial automation, and IoT devices, emphasizing characteristics such as high-temperature resistance, shock resistance, and moisture resistance.

H. USB Flash Drives

(1) With the widespread adoption of USB4, the transmission speed and performance of USB flash drives will be further enhanced, with theoretical maximum speeds reaching 40 Gbps, making high-performance USB flash drives increasingly practical.

(2) Advances in NAND Flash technology continue to increase the storage capacity of USB flash drives, with multi-terabyte capacity USB flash drives expected to emerge, while product size becomes smaller and more portable.

(3) USB flash drives will enhance data security by integrating hardware encryption chips, biometric authentication (such as fingerprint recognition), or quantum encryption technology to ensure the security of data transmission and storage

I. Application Software Development

(1) Teamtest2 (TEAM DRAM Mass Production Testing Program): Utilizes industrial-grade testing algorithms and patented grading technology, supporting the latest DDR5 specifications and overclocking module testing, with significantly higher testing efficiency compared to industry peers and commercial software. It has also obtained approval from high-end system manufacturers and IPC stringent validation.

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(2) TEST_Utility (TEAM Mass Production Testing Management System): Integration of work order IoT, cloud platforms, and test program databases, managing and deploying DRAM mass production testing operations across the entire factory, statistics on the number of board changes, enhancing testing efficiency and quality management capabilities.

(3) SPD_Utility2 (TEAM SPD Burning Program): Supports DDR5 SPD mass production burning and customized process integration, combined with cloud work order IoT and SPD databases for automated operations, establishing exclusive TSPD production history and traceability mechanisms, enhancing quality control and process transparency.

(4) Barcode_Utility (TEAM Automated Labeling System): Smart label production and query system, integrating mass production and customization processes, enhancing label management efficiency and operational flexibility.

(5) Product Serial Number Tracking System: Integrating smart tags and a production history traceability system, providing global consumers with a comprehensive and real-time product serial number query service on the Company's official website, enhancing quality transparency and brand trust.

(6) SMART_Tool (Flash Product S.M.A.R.T. Utility Program): Integrates Flash product information reading and performance testing features, applied in mass production line inspection and quality verification. It also provides consumers with a convenient tool for real-time product information queries, enhancing product transparency and brand reliability.

(7) SSD Tool Box (TEAM TCG OPAL Exclusive Utility Program): Supports security feature services for specific SSD products.

(8) Smart Manufacturing (Industrial-Grade) AIoT Applications: Integrating ERP work order IoT, production digitization, inventory inquiry management, BOM checking, SMT feeding inspection, examination and verification for part numbering, automated card opening integration, IC sorting, and MTBF, and more mass production application functions, enhancing process transparency and operational efficiency, and strengthening smart manufacturing management capabilities.

(9) Manufacturing Execution System (MES): A smart manufacturing and production management system deployed at TeamGroup's smart factory, covering production information, process control, and knowledge management across order integration, production, quality, instrumentation, RMA, production history, training and education, and knowledge base

The estimated development budget for the R&D Department is NTD2,634 thousand. This investment aims to develop more competitive products and enhance the brand value.

5.6.4. Effect on the company's financial operations of important policies adopted and changes in the legal environment at home and abroad, and measures to be taken in response:

With the change in the U.S. political landscape in 2025, the new administration is advancing a trade policy centered on comprehensive tariffs, causing significant restructuring of global supply chains. Especially in the semiconductor field, major-power competition has entered a stage of intense heat, with trade restrictions and localization production requirements becoming increasingly stringent. Taiwan, leveraging its leading technological strength and comprehensive supply chain ecosystem, demonstrates strong resilience and strategic value in a volatile market. Benefiting from potential front-loading effects in the supply chain driven by new policies, coupled with support from strong demand for advanced storage solutions in AI servers and high-performance computing, memory prices have stabilized and begun to

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appreciate. The Company closely monitors international developments, adopting strategies of "flexible inventory adjustment" and "supply chain diversification" to ensure production capacity flexibility. With the long-term stable contributions from project customers, we remain optimistic about expanding our market share and are committed to achieving record-breaking revenue for the full year.

5.6.5. Effect on the company's financial operations of developments in science and technology (including cyber security risks) as well as industrial change, and measures to be taken in response:

Cybersecurity Risk Impact: Information security threats continue to evolve with the rapid development of cyberattacks and phishing scams. Cyberattacks may lead to the leakage of company trade secrets and the misuse of personal data to defraud customers or suppliers, thereby damaging the company's image and reputation.
Cybersecurity Response Measures: Planning for Network and Personal Usage Security

(1) Establishing network firewalls to enhance internal and external network security.
(2) Installing endpoint antivirus software to prevent malware and cyberattacks.
(3) Strengthening phishing email defenses and improving email filtering capabilities to reduce fraud risks.
(4) Regularly patching system vulnerabilities and conducting social engineering exercises to raise employee cybersecurity awareness.

5.6.6. Effect on the company's crisis management of changes in the company's corporate image, and measures to be taken in response

TeamGroup, with its outstanding design aesthetics and forward-looking specification definitions, continues to lead industry standards. Through establishing deep strategic alliances with leading global B2B enterprises, our brand market share has significantly increased in the international market. In 2025, our performance was particularly outstanding, and we successfully set a new revenue record.

Entering 2026, the Company brand's shipment volume remains steadily growing. In addition to deepening our global retail distribution footprint, the Company is actively leveraging its core advantages to expand B2B project business in advanced industrial control applications and AI infrastructure. With precise business marketing, advanced R&D capabilities, and rigorous production and raw material inventory control mechanisms, we will make every effort to achieve our dual goals of revenue and profitability.

From the beginning of 2025 through the date of publication of the annual report, the Company's operations proceeded smoothly without any risk events that would adversely affect the Company's corporate image. Going forward, the Company will continue to reward all shareholders through innovative and high-quality products.

5.6.7. Expected benefits and possible risks associated with any merger and acquisitions, and mitigation measures being or to be taken: None.
5.6.8. Expected benefits and possible risks associated with any plant expansion, and mitigation measures being or to be taken: None.
5.6.9. Risks associated with any consolidation of sales or purchasing operations, and mitigation measures being or to be taken: None.
5.6.10. The effect upon and risk to the Company in the event a major quantity of shares belonging to a Director, Supervisor, or shareholder holding greater than a 10 percent stake in the Company has been transferred or has otherwise changed hands, and mitigation measures being or to be taken: None.

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5.6.11. The effect upon and risk to the company associated with any change in governance personnel or top management and mitigation measures being or to be taken: None.

5.6.12. Litigious and non-litigious matters: None.

5.6.13. Other important risks and mitigation measures being or to be taken: None.

5.7. Other important issues: None.

Special items

6.1. Information on affiliated companies: The Company's consolidated business report, consolidated financial statements, and relationship report for related parties for the most recent fiscal year have been published on the MOPS. The query path is: MOPS Market Observation Post System > Single Company > Download e-Document> Related Party Three Statements Area. (https://mopsov.twse.com.tw/mops/web/t57sb01_q10)

6.2. Private equity securities transactions during last year and this year to date: None.

6.3. Other necessary additional statements: None.

Matters that have a significant impact on shareholders' equity or the prices of securities as set forth in Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange Act during the most recent FY as of the date on which the annual report was printed: None.

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TEAMGROUP Team

Team Group Inc.

Chairman: Hsia Dann-Ning

AI assistant

TEAM — Annual Report 2025

52452_rns_2026-04-23_9feb1fba-97d9-42ce-bee1-d8fdee0e2764.pdf

Team Group Inc.

2025 Annual Report

Contents

1. Letter to Shareholders

2025 Operating Performance and R&D Achievements

1. Positioning for large volume and high-end market share to expand market share :

2. Strengthening industrial control, AI, and OEM application segments:

3. Leading high-speed DDR5 memory and Gen 5 SSD Technology:

4. Cultivating next-generation talents:

Sales volume forecast

External Competition, Legal Environment and Overall Business Environment

3. Remuneration for General Manager and Vice General Manager

4. Names of the managers distributing employee remunerations and the distributing status

2.3. Corporate governance

2.3.1. Operation status of the Board of Directors

2.3.6. Climate-Related Information Disclosure of TWSE/TPEx Listed Companies

1-1 Greenhouse gas inventory and assurance for the past two years

1-1-1 Greenhouse Gas Inventory Information

1-1-2 Greenhouse Gas Assurance Information

1-2 Greenhouse Gas Reduction Targets, Strategies, and Action Plans

2.4. Professional Service Fees for Attesting CPAs

Future Research and Development Layout and Application of New Technologies:

> Technological Differentiation and Patent Moat:

Related U.S. Application Data

4.1.2. Industry Overview

1.Current Situation and Development

3. Development Trends and Competitive Landscape:

Competitive Landscape:

4.1.3. Techniques and research development status

C. Comprehensive After-Sales Service Chain Evolution

2. Production process

5.2.Financial performance

5.3.Cash flow

5.3.1. Analysis of changes in cash flow over the past two years

5.3.2.Cash liquidity analysis and improvement plan for insufficient liquidity in the coming year

3. Inflation

5.6.2. Engaging in high-risk, high-leverage investments, lending funds to others, endorsing guarantees, and engaging in derivative commodity trading; the main causes of profit or loss and future response measures

5.6.3. Future Research & Development Plans and Estimated R&D Expenses

1. Future Research and Development Plans:

A. Commercial-Type Memory Modules

B. Industrial-Grade Memory Modules

C. T-Force Gaming Memory Modules

D. T-CREATE Creator Memory Modules

E.Solid State Drives (SSDs)

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TEAM Annual Report 2025