T.S.M.C. - Annual Report 2025 | FinancialReports.eu

TWSE : 1310

2025

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MOPS：http://mops.twse.com.tw Company Website：http://www.smct.com.tw

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Taiwan Styrene Monomer Corporation

Printed on April 20, 2026

Notice to Readers For the convenience of readers, the Annual Report has been translated into English from the original Chiniese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any different in the interpretation of the two version, the Chinese version shall prevail.

I. Spokesman

Name ： Joe Lu

Title ： Director of Investment Division

Tel ： +886 2 396-6007

E-mail ： [email protected]

Acting Spokesman

Name ： Paul Chen

Title ： Chief Financial Officer and Chief Corporate Governance Officer Tel ： +886 2 396-6007

E-mail ： [email protected]

II. Headquarters

Address ： 8F.-1, No. 6, Sec. 1, Roosevelt Rd., Taipei City, Taiwan

Tel ： +886 2 396-6007

Kaohsiung Plant

Address ： No. 7, Industrial 1st Rd., Linyuan Dist., Kaohsiung City, Taiwan Tel ： +886 7 641-4511

III. Stock transfer agency

Name ： Concord Securities Co., Ltd.

Address ： B1, No.176, Sec.1, Keelung Rd., Xinyi Dist., Taipei City Tel ： +886 2 8787-1888

Web ： www.6016.com.tw

IV. Auditors

Name of the accounting firm ： KPMG

Name ： Jason Yin and Lin Wu

Address ： 68F., No. 7, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei City (Taipei 101 Tower) Tel ： +886 2 8101-6666

Web ： www.kpmg.com/tw

V. Overseas Securities Exchange ： None

VI. T.S.M.C. Website ： www.smct.com.tw

	01	Letter to Shareholders ······································································································· 1
Table of Content	02 03	Company Governance ········································································································ 4 2.1 Directors and Management Team ······················································································································ 4 2.2 Remuneration paid to Directors, General Managers and Deputy General Managers in the Most Recent Year12 2.3 Implementation of Corporate Governance ······································································································· 18 2.4 Information on CPA Professional Fee················································································································ 58 2.5 Replacement of CPA ·········································································································································· 58 2.6 The Company’s Chairman, General Manager or any Managerial Officer in Charge of Finance or Accounting Matters Has Not in the Most Recent Year Held a Position at the Accounting Firm of its CPA or at an Affiliated Enterprise of Such Accounting Firm ················································································································· 58 2.7 Changes in Shareholders of Directors, Managerial Officer, and Major Shareholders ······································· 59 2.8 Related Party Relationship among the Company’s top 10 shareholders ·························································· 60 2.9 Consolidated Shareholding Ratio in of Investees ······························································································ 61 Fund Raising ···················································································································· 62 3.1 Capital and Shares ············································································································································· 62 3.2 Corporate Bonds ··············································································································································· 64
		3.3 Preferred Shares ··············································································································································· 64
		3.4 Global Depositary receipts ································································································································ 64
		3.5 Status of Employee Stock Options ···················································································································· 64
		3.6 Status of Employee Restricted Stock ················································································································· 65
		3.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions ················································· 65
		3.8 Funding Plans and Implementation ·················································································································· 65
	04	Operational Highlight ······································································································· 65
		4.1 Business Activities ············································································································································· 65
		4.2 Market and Sales Overview ······························································································································ 68
		4.3 Human Resources ············································································································································· 71
		4.4 Environmental Protection Expenditure ············································································································· 71
		4.5 Labor Relations ················································································································································· 71
		4.6 Cyber Security Management ····························································································································· 74
		4.7 Important Contracts ·········································································································································· 75
	05	Financial Status, Operating Results, and Risk Management ··············································· 76
		5.1 Financial Status ················································································································································· 76
		5.2 Operation Results·············································································································································· 77
		5.3 Cash Flow ·························································································································································· 78
		5.4 Major Capital Expenditure Items ···················································································································· 78
		5.5 Investment Policy for the Most Recent Fiscal Year, and the Main Causes for Profits or Losses, Improvement
		Plans and the Investment Plans for the Coming Year ························································································ 78
		5.6 Analysis of Risk Management ··························································································································· 79
		5.7 Other Important Matters ································································································································ 81
	06	Special Disclosure ············································································································ 81
		6.1 Information of the Company’s Affiliates ··········································································································· 81
		6.2 Private Equity Securities···································································································································· 81
		6.3 Other Necessary Remark ·································································································································· 81
	07	Items Which Might Material Affect Shareholders' Equity or Prices of the Company'
		Securities Specified in Subparagraph 2, Paragraph 3, Article 36 of the Securities and
		Exchange Act. ················································································································· 81

01 Letter to Shareholders

Dear Shareholders,

1.1 2025 Business Report

Taiwan’s export value increased by 34.9% last year (2025) compared to the previous year (2024).; while petrochemical product exports dropped by 9.6%. Marking the second consecutive year of contraction in Taiwan’s petrochemical exports. This indicates two trends: Taiwan’s exports have become highly linked to AI, while traditional industries such as petrochemicals continue to weaken. In addition, mainland China added 20,000 tons of Styrene Monomer (SM) production capacity last year, further worsening the oversupply in the SM market. Downstream SM manufacturers in Taiwan have also continued to shrink due to weak market conditions. As a result, the Company has had to reduce production in response. Coupled with rising energy costs, this has led to a larger loss compared to the previous year.

In the severe situation of the SM market in Northeast Asia last year, the Company actively stabilized production, and engaged in foreign exchange hedging operations to reduce operating losses. However, there is an 24.1% decrease in revenue, the Company incurred a net loss of NT$ 723,550 thousand, and the EPS for the entire year was -1.37.

The consolidated revenue of the Taiwan Styrene Monomer Group in 2025 was NT$ 8,673,776 thousand, and decrease of NT$ 2,749,164 thousand, compared to 2024. The consolidated net loss before tax was NT$ 763,988 thousand, a decrease of NT$ 281,508 thousand, compared to 2024. The consolidated net loss was NT$ 723,550 thousand, and the net loss attributable to the owners of the parent company was NT$ 724,616 thousand in 2025.

The revenue of Parent Company was NT$ 8,477,879 thousand, accounting for 97.74% of the consolidated revenue. Here is a brief summary of Parent Company’s business in 2025:

Main Products Comparison between 2025 and 2024 are as follow- For SM, total production for 2025 was 276,843 tons, an decrease of 15,696 tons compared to 292,539 tons in 2024; total sales volume for 2025 was 275,114 tons, an decrease of 21,126 tons compared to 296,840 tons in 2024. For P-Diethyl benzene(PDEB), sales volume for 2025 was 2,902 tons, an increase of 718 tons compared to2,184 tons in 2024; for toluene, sales volume for 2025 was 5,724 tons, an decrease of 947 tons compared to 6,671 tons in 2024.

The revenue of Parent Company for 2025 was NT$ 8,477,879 thousand, and decrease of NT$ 2,765,415 thousand compared to NT$ 11,243,294 thousand in 2024; our net loss after tax for 2025 was NT$ 724,616 thousand, a decrease of NT$ 343,770 thousand compared to net loss NT$ 380,846 thousand in 2024. The revenue of subsidiaries for 2025 was NT$195,897 thousand, an increase of NT$16,251 thousand compared to NT$ 179,646 thousand in 2024.

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1.2 Summary of Business Plan for 2026

Operating tenet: Sustainable operations, maintain basic business activities and actively pursue transformation
Sales strategy: Mainly domestic sales of SM, and adjust the SM production and sales model by shifting to a trading-based approach to maintain existing business.
Expected number of sales
A. Styrene Monomer (SM)

Outlook for the current year (2026): The International Monetary Fund (IMF) predicts that global economic growth will be 3.3% this year, similar to last year (2025). The global economic outlook is still subject to the policies by the US government. Amid the significant expansion of the petrochemical industry in mainland China, the SM market remains sluggish to date. This year, the Company will continue to focus primarily on domestic SM sales, adjusting sales volumes in line with downstream customer demand.

B. P-Diethyl benzene(PDEB)

Since more than 80% of P-Diethyl benzene products are exported and processed by bidding. We will try our best to obtain bids, and the sales volume target this year is 2,600 tons.

1.3 Future Company Development Strategy

China will continuously increase large amount of new SM production capacity in next two years, with an estimated addition of approximately 3.7 million tons of new capacity, the global economic downturn and poor terminal demand will lead SM market to continue to be sluggish. Therefore, our SM operating strategy this year will continue to focus primarily on domestic sales, while adjusting the production and sales model by shifting toward a trading-based approach to sustain existing business In addition, the Company will actively pursue transformation, expanding into areas such as energy trading, asset management, and renewable energy.

1.4 Influence of External Competitive Environment, Regulatory Environment and Overall Business Environment

The current issues of SM industry: the threat of US tariffs to policies and the rise of unilateralism, which cast a shadow over global economic growth, and new SM production capacity of China, resulting in a serious oversupply in the market. In addition, the entry into force of the Regional Comprehensive Economic Partnership (RCEP) will bring about unequal competition for Taiwan's petrochemical product exports. Furthermore, the increasing environmental awareness in Taiwan, stricter environmental regulations. Kaohsiung City Government asks the companies within its jurisdiction to stop using coal this year (2026), and the imposition of carbon taxes starting by next (2026) year have all raised the operating costs of the Company, making the future operating environment even more challenging.

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The Company will l actively pursue transformation initiatives in order to overcome the successive challenges and enhance revenue performance. The Company will also continue to restructure its reinvestment business performance to ensure sustainable development and long-term growth.

I wish you all good health and good luck

Chairman: General Manager: Accounting Supervisor:

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02 Corporate Governance Report

2.1 Directors and Management Team

2.1.1 Directors

																Ma	rch 27,	2026 Unit: shares;%	2026 Unit: shares;%	2026 Unit: shares;%
Job title	Nationality / Place of	Name	Gender	Date Elected	Term	Date First Elected	Shareholding	When Elected	Current Shar	eholding	Spouse Share	& minor holding	Shareholdin	g by Nominees	Education and Work Experience	Other Position Concurrently Held at the Company or Other Companies	Execu Superviso Spouse	tives, Directors or rs who are related by or within the second		Remark
	Registration		Age				Shares	%	Shares	%	Shares	%	Shares	%			de Title	gree of kinship Name Relation ship

Chairman	R.O.C	Taiwan Styrene Investment Co., Ltd. Representative: Wen-Yuan Lin	Male Above 71	2024.05.31	3 years	2013.04.03	10,000,000	1.89	10,000,000	1.89	－	－	－	－	Master of Civil Engineering, University of Hawaii Vice-Chairman of the State-owned Business Committee of the Ministry of Economic Affairs Chairman of China Steel Corporation Chairman of Taiwan Cogeneration Corporation Chairman of Yangmingshan Tien Lai Resort & SPA Co., Ltd. Chairman of Taiwan Power Company Chairman of Eastern Integrated Marketing Company Managing Director of Bank of Kaohsiung Director of Nanhe Enterprise Co., Ltd. Director of United Renewable Energy Co., Ltd. Independent Director of TRK Corporation	Chairman of Taiwan Styrene Monomer Corporation Chairman of Eastern Broadcasting Co., Ltd. Chairman of Overseas Investment & Development Corp. Director of Yangmingshan Tien Lai Resort & SPA Co., Ltd. Director of Gloria Material Technology Corp. Director of Hong Kang Shipping CO., LTD. Independent director of Locus Cell Co., Ltd.	Director	Jeff Chen	In law	(Note)
							105,000	0.02	105,000	0.02
Director	R.O.C	Taiwan Chemical Green Energy Co., Ltd. Representative: Joseph Wang	Male 61-70	2024.05.31	3 years	2024.05.31	10,000	0.002	10,000	0.002	－	－	－	－	Department of Law, NCHU Director of KMC Chain Industrial Co., Ltd. Independent Director of Aeon Motor Co., Ltd. Independent Director of Golden Huang Long Construction Co., Ltd. Director of Chun Yu Works & Co., Ltd. Chairman of Jade Colorful Co.	Director of Taiwan Styrene Monomer Corporation Chairman of Kings Asset Management Co., Ltd. Chairman of Taiwan Steel Group United Co., Ltd. Chairman of TSG Holding Co., Ltd. Chairman of TSG Technology Industry Holding Co., Ltd. Chairman of TSG Tech Holdings Co., Ltd. Chairman of Gloria Material Technology Corp. Chairman of S-Tech Corp. Chairman of Golden Win International CORP. Chairman of Ho Yang Investment Corp. Chairman of Rong Yang Investment Co., Ltd. Chairman of TSG Hawks Baseball Team Co., Ltd. Chairman of Taiwan Steel Sport Marketing Co., Ltd. Chairman of G-YAO ENTERPRISES LTD. Chairman of ALL WIN ENTERPRISES LTD. Chairman of FAITH ENTERPRISES LTD. Chairman of Alloy Tool Steel Inc. Chairman of Gloria Material Technology Japan Co., Ltd. Chairman of East Win Administration Consultant Co., Ltd. Chairman of Dong Ying Enterprise Co., Ltd. Director of Soft-World International Corporation Director of Taiwan Steel University of Science and Technology Director of D-Link Corporation Director of UFC GYM TAIWAN LIMITED	－	－	－	－
							0	0	0	0
Director	R.O.C	Taiwan Chemical Green Energy Co., Ltd. Representative: Tiffany Wang	Female 51-60	2024.05.31	3 years	2024.05.31	10,000	0.002	10,000	0.002	－	－	－	－	Kuochi Senior Vocational School of Commerce and Technology Director and President of East Win Administration Consultant Co., Ltd.	Director of Taiwan Styrene Monomer Corporation Director and President of East Win Administration Consultant Co., Ltd. Director of Golden Win International CORP. Vice Chairman of Mi Xiang Foods Co., Ltd.	－	－	－	－
							0	0	0	0

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Job title	Nationality / Place of	Name	Gender	Date Elected	Term	Date First Elected	Shareholding	When Elected	Current Shar	eholding	Spouse Share	& minor holding	Shareholdin	g by Nominees	Education and Work Experience	Other Position Concurrently Held at the Company or Other Companies	Execu Superviso Spouse	tives, Directors or rs who are related by or within the second	tives, Directors or rs who are related by or within the second	Remark
	Registration		Age				Shares	%	Shares	%	Shares	%	Shares	%			de Title	gree of kinship Name Relation ship

Director	R.O.C	Chun Yu Works & Co., Ltd. Representative: Chi-Tai Chen	Male Above 71	2024.05.31	3 years	2021.10.14	11,678,000	2.21	11,678,000	2.21	－	－	－	－	Commercial Department, Tainan Senior Commercial Vocational School Chairman, Chun Zu Machinery Industry Co., Ltd. Chairman, Li-Chiao Investment Co., Ltd. Chairman, Chun Bang Precision Co., Ltd. Chairman, Jing-Gang Investment Co., Ltd. Chairman, Chun Yu Investment Co., Ltd. Chairman, Chun Yu Bio-Medical Co., Ltd. Chairman, Chun Yu Factory Co., Ltd. Director, Lon Focus Co., Ltd.	Director of Taiwan Styrene Monomer Corporation Chairman of Pai Chia Yuan Investment Co., Ltd. Director of Chun Yu Works & Co., Ltd. Director of Chun Zu Machinery Industry Co., Ltd. Director of OFCO Industrial Corp. Director of Quin Tain Steel Supervisor of Chun Yu Investment Co., Ltd. Supervisor of Chun Bang Precision Co., Ltd. Supervisor of Chun Yu Bio-Tech Corp Supervisor of TSG Hawks Baseball Team Co., Ltd. Supervisor of Taiwan Steel Sport Marketing Co., Ltd. Supervisor of TONG HORNG METAL INDUSTRIAL CO., LTD.	－	－	－	－
							0	0	0	0
Director	R.O.C	Chuanpu Investment Holding Co., Ltd. Representative: Jeff Chen	Male 41–50	2024.05.31	3 years	2024.05.31	2,871,000	0.54	2,871,000	0.54	－	－	－	－	EMBA , Guanghua School of Management, Peking University Bachelor of Mechanical Engineering, UC Berkeley Research Fellow, Harvard Business School Director of Adimmune Corporation	Director of Taiwan Styrene Monomer Corporation Chairman of Chuanpu Investment Holding Co., Ltd. Chairman of Yu Chuan Cultural Investment Co., Ltd. Chairman of Yaoqi Industrial Co., Ltd. Chairman of Yaotai Industrial Co., Ltd. Chairman of Yaoquan Industrial Co., Ltd. Chairman of Yaoli Industrial Co., Ltd. Chairman of Yingda Agriculture and Animal Husbandry Co., Ltd. Chairman of Nuqing Co., Ltd. Chairman of Lirun Co., Ltd. Director of Bank of Kaohsiung Director of Senhwa Biosciences, Inc. Director of Jingsheng Investment Holdings Co., Ltd. Director of Chengxin Environmental Technology Co., Ltd. Director of Harn Shiuan Co., Ltd. Director of Wen Teng Investment Co., Ltd. Director of Tianpu Enterprise Co., Ltd. Director of TAN -RUEN CO., LTD. Director of Runcheng Co., Ltd. Director of Jiuteng Co., Ltd.	Director	Wen-Yuan Lin	In law	－
							0	0	0	0
Director	R.O.C	An Ching Development Co., Ltd. Representative: Din-Rei, Hsu	Male 61-70	2024.05.31	3 years	2016.04.03	487,000	0.09	487,000	0.09	－	－	－	－	Master of China–United States relations, PCCU Publisher and general manager of SCENE ENTERPRISE CO., LTD. Chief of Taipei TV News Center Deputy Chief, Editorial Department, Independence Evening Post Supervisor of Taiwan Styrene Monomer Corporation	Director of Taiwan Styrene Monomer Corporation Director of SCENE ENTERPRISE CO., LTD. Director of Yuan Yao Development CO., LTD. Director of SHICO SUN HIGH INDUSTRIAL CO., LTD.	－	－	－	－
							0	0	0	0
Director	R.O.C	Kai Chiang Co., Ltd. Representative: Kuo-Ching Chang	Male Above 71	2024.05.31	3 years	2019.01.31	760,000	0.14	800,000	0.15	－	－	－	－	Department of shipping & transportation management, NTOU Chairman of Bank Taiwan Life Insurance	Director of Taiwan Styrene Monomer Corporation	－	－	－	－
							0	0	0	0
Independent Director	R.O.C	Chin-Chen Chien	Male 61–70	2024.05.31	3 years	2019.01.31	0	0	0	0	－	－	－	－	PhD (Accounting), Rutgers University, USA Professor, Department of Accounting, NCKU Independent Director of Ton Yi Industrial Corp. Independent Director of Gloria Material Technology Corp. Independent Director of S-Tech Corp.	Independent Director of Taiwan Styrene Monomer Corporation Director of Chun Yu Works & Co., Ltd. Director of Soft-World International Corporation	－	－	－	－
Independent Director	R.O.C	Jui-Mu Huang	Male 61–70	2024.05.31	3 years	2021.10.14	0	0	0	0	－	－	－	－	Mechanical Engineering , Ming Chi Institute of Technology General manager of CHANG HWA COMMERCIAL BANK, LTD. Deputy general manager and general auditor of Bank of Taiwan	Independent Director of Taiwan Styrene Monomer Corporation Independent Director of United Fiber Optic Communication Inc. Independent Director of Hi-Lai Foods Co., Ltd.	－	－	－	－

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Job title	Nationality / Place of	Name	Gender	Date Elected	Term	Date First Elected	Shareholding	When Elected	Current Shar	eholding	Spouse Share	& minor holding	Shareholdin	g by Nominees	Education and Work Experience	Other Position Concurrently Held at the Company or Other Companies	Execu Superviso Spouse	tives, Directors or rs who are related by or within the second	tives, Directors or rs who are related by or within the second	Remark
	Registration		Age				Shares	%	Shares	%	Shares	%	Shares	%			de Title	gree of kinship Name Relation ship

Independent Director	R.O.C	Tzu-Meng Liu	Male 61–70	2024.05.31	3 years	2023.05.30	0	0	0	0	－	－	－	－	EMBA of NCKU Department of Accounting, CYCU Certified Public Accountant, PwC Partner of Audit Services Department, PwC Director, PwC Associate professor and adjunct expert, NCKU Chairman and consultant of the Southern District Office of CPA ASSOCIATIONS R.O.C.(TAIWAN) Chairman and Executive Director of Tainan Tax Agents Association Executive Director of Accounting Cultural and Educational Foundation, NCKU Member of Utilization of Operation Fund Committee of Science Park Bureau, Executive Yuan Supervisor of Environmental Rights Foundation Mediation Member of Taiwan Tainan District Court Mediation Committee	Independent Director of Taiwan Styrene Monomer Corporation Independent Director of Gloria Material Technology Corp. Independent Director of Finesse Technology Co., Ltd. Independent Director of TAINAN SPINNING CO., LTD.	－	－	－	－
Independent Director	R.O.C	Pei-Ju Chung	Female 31-40	2024.05.31	3 years	2024.05.31	0	0	0	0	－	－	－	－	Department of Finance Banking of USC Executive assistant of Parkview Hotels & Resorts	Independent Director of Taiwan Styrene Monomer Corporation Executive assistant of Jgallop Tech Inc..	－	－	－	－

Note: In order to meet the needs of the Company's business development, Chairman Wen-yuan Lin concurrently serves as the Company's CEO.

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2.1.2 Major Shareholders of Corporate Shareholders

Table 1: Major shareholders of Institutional Shareholders

		March 27,2026

Name of Institutional Shareholders	Major shareholder	Shareholding %

Taiwan Styrene Investment Co., Ltd.	I Tung Yuan Investment Co., Ltd. Chun-Jen Huang Chun-Yi Huang Shih-Chen Huang Hsin-Hsuan Hsu Hsin-Yu Hsu Ming-Ling Yan Chun-Wen Chen Chun-Yan Huang Fang-ChingLin	36.23 10.51 9.78 9.46 4.71 4.71 4.71 4.71 4.71 3.62
Taiwan Chemical Green Energy Co., Ltd.	Kings Asset Management Co., Ltd.	100
Chun Yu Works & Co., Ltd.	Pai Chia Yuan Investment Co., Ltd. Kings Asset Management Co., Ltd. Chun Yu Investment Co., Ltd. Yi Tai Shen Co., Ltd. Sheng Shang Investment Co., Ltd. Ching-Chi Chang Yu-Chi Chang Lien-Ying Ni E-SHENG Steel Co., Ltd. Tsung-Hsin Chen	27.87 9.43 7.75 4.89 4.22 2.52 1.92 1.66 1.60 1.29
Chuanpu Investment Holding Co., Ltd.	Jeff Chen Yen-Chun Lin	99.67 0.33
An Ching Development Co., Ltd.	Lin-Lin Sun Hao Fang Kai-Jian Co.,Ltd.	30.42 18.75 15.42
Kai Chiang Co., Ltd.	Lin-Lin Sun	69.72

Table 2: Institutional shareholders whose major shareholders are institutions

		March 27,2026

Name of Institutional Shareholders	Major Shareholder	Shareholding %
I Tung Yuan Investment Co., Ltd.	E-Sheng Steel Co., Ltd.	100
Kings Asset Management Co., Ltd.	Chun-Yi Huang Joseph Wang Parkland Investment Co.,Ltd.	45 36 19
Parkland Investment Co., Ltd.	PROMINENT SINO HOLDINGS LIMITED	100
Chun Yu Investment Co., Ltd.	Chun Yu Works & CO., LTD.	100
Yi Tai Shen Co., Ltd.	Cong-Xin Chen Ching-Chi Chang Chun Tai, LTD.	18 17 11
Sheng Shang Investment Co., Ltd.	Li-Jong Huang	16
E-SHENG Steel Co., Ltd.	E-TOP Metal Co., Ltd.	100
Kai-Chiang Co., Ltd.	Lin-Lin Sun	69.72

-7-

2.1.3 Professional Qualifications and Independence Status of Directors

Disclosure of Professional Qualifications of Directors and Independence of Independent Directors	Disclosure of Professional Qualifications of Directors and Independence of Independent Directors	Disclosure of Professional Qualifications of Directors and Independence of Independent Directors	Disclosure of Professional Qualifications of Directors and Independence of Independent Directors
			March 27,2026
Condition Name (Note 1)	Professional Qualifications and Experience	Independence Situation	Number of Independent Directors of Other Public Companies
Taiwan Styrene Investment Co., Ltd. Representative: Wen-Yuan Lin	1. Work experience required by the Company’s business, such as business, legal, financial or business management capabilities 2. Work experience: Chairman and director experience of Taipower, Taiwan Cogeneration Corp., China Steel Corp., Eastern Broadcasting,Bank of Kaohsiung,etc.	NA	1
Taiwan Chemical Green Energy Co., Ltd. Representative: Joseph Wang	1. Work experience required by the Company’s business, such as business, legal, financial or business management capabilities 2. Work experience: Chairman and director experience of Gloria Material, Taiwan Steel Group, Shanghai Chun Zu Machinery, etc.; attorney-at-law of a law firm	NA	0
Taiwan Chemical Green Energy Co., Ltd. Representative: Tiffany Wang	1. Work experience required by the Company’s business, such as business, legal, financial or business management capabilities 2. Work experience: Director experience of East Win Administration Consultant and Golden Win International CORP., etc. Vice Chairmanof Mi XiangFoods Co.,Ltd.	NA	0
Chun Yu Works & Co., Ltd. Representative: Chi-Tai Chen	1. Work experience required by the Company’s business, such as business, legal, financial or business management capabilities 2. Work experience: Chairman experience of Chun Bang Precision, Chun Zu Machinery, etc.; Director experience of Chun Yu Works, OFCO Industrial,etc.	NA	0
Chuanpu Investment Holding Co., Ltd. Representative: Jeff Chen	1. Work experience required by the Company’s business, such as business, legal, financial or business management capabilities 2. Work experience: Chairman of Chuanpu Investment Holding and Yu Chuan Cultural; Director of Senhwa Biosciences, , Bank of Kaohsiung,etc.	NA	0
An Ching Development Co., Ltd. Representative: Din-Rei Hsu	1. Work experience required by the Company’s business, such as business, legal, financial or business management capabilities 2. Work experience: Directors of SCENE ENTERPRISE CO., LTD., Yuan Yao Development CO., LTD., SHICO SUN HIGH INDUSTRIAL CO.,LTD.;supervisor of Taiwan Styrene Monomer Corporation.	NA	0
Kai-Chiang Co., Ltd. Representative: Kuo-Ching Chang	1. Work experience required by the Company’s business, such as business, legal, financial or business management capabilities 2. Work experience: Chairman of Bank Taiwan Life Insurance	NA	0
Independent Director: Chin-Chen Chien	1. Work experience required by the Company’s business, such as business, legal, financial or accounting professor certificate from public and private colleges and universities with relevant disciplines required for business, legal affairs, finance, accounting or corporate business 2. Work experience: Independent Director experience of Ton-Yi Industrial Corp., Gloria Material , S-Tech Corp., etc. and professor of Accountingof NCKU	(Note 2)	1
Independent Director: Jui-Mu Huang	1. Work experience required for corporate business such as business, legal affairs, finance, banking or business management capabilities 2. Work experience: General manager of CHANG HWA COMMERCIAL BANK, LTD., deputy general manager, general auditor of Bank of Taiwan.	(Note 2)	2
Independent Director: Tzu-Meng Liu	1. Work experience required by the Company’s business, such as business, legal, financial or business management capabilities 2. Work experience: CPA, director and partner of Audit Services Department,PwC;associateprofessor and adjunct expert,NCKU	(Note 2)	3
Independent Director: Pei-Ju Chung	1. Work experience required by the Company’s business, such as business, legal, financial or business management capabilities 2. Work experience: Executive assistant of Parkview Hotels & Resorts and JgallopTech Inc.	(Note 2)	0

Note 1: None of the directors has any of the conditions specified in Article 30 of the Company Law. Note 2: Status of Independence including followings:

(1) Not the employee of the Company or its affiliates.

(2) Not the director or supervisor of the Company or its affiliates.

(3) Non-personal shareholders who holds shares, together with those holds by the person’s spouses, minor children or held by the person under other’s names, in aggregate of 1% or more of the total number of issued shares of the Company or ranking in the top ten in holdings.

(4) A Spouse, relative within the second degree of kinship, or lineal relatives within the third degree of kinship of persons not listed in the preceding three paragraphs.

(5) Not serve as a director, supervisor or employee of a company that has a specific relationship with the Company.

(6) Did not provide commercial, legal, financial, accounting or related services to the Company or any affiliate of the Company for which the provider in the past 2 years has received cumulative compensation exceeding NT$500,000.

-8-

Board Diversity and Independence:

(I) The Company has “Nomination Committee” and adopts the “Nomination System for Candidates”, and sets the number of directors according to the current operation scale and development needs. In addition to the statutory basic conditions, it also considers relevant industry knowledge, experience and other fields, and implements the policy of diversifying the composition of the Board of Directors.
(II) The board of directors of the company shall guide the company's strategy, supervise the management and be responsible to the company and the shareholders' meeting, and ensure that the board of directors exercises its functions and powers in accordance with laws and regulations, the articles of association of the company or the resolutions of the shareholders' meeting for the various operations and arrangements of the corporate governance system, and the main policy objectives include:
The composition of the Board of Directors should consider diversity, and formulate an appropriate diversity policy according to its own operation and development needs, including but not limited to the following standards: (1) Basic requirements and values: Gender, age, nationality and culture, etc.
- (2) Professional knowledge and skills: A professional background (e.g., law, accounting, industry, finance, marketing or technology), professional skills and industry experience, etc.
All members of the Board of Director shell have the knowledge, skills and experience necessary to perform their duties. To achieve the ideal goal of corporate governance, the Board of Director shall possess following abilities: (1) Ability to make operational judgments;
- (2) Ability to perform accounting and financial analysis;
- (3) Ability to conduct management administration;
- (4) Ability to conduct crisis management;
- (5) Knowledge of Industry;
- (6) An international market perspective;
- (7) Leadership;
- (8) Ability to make policy decisions;
- (9) legal practice
Presently, the 11 members of the Board of Directors, including 4 Independent Directors, represent diversified perspectives, including a complementary mix of experiences, and backgrounds. The 4 Independent Directors constitute 36% of the Board, and there are 1 concurrent employees, accounting for 9% of the Board. 2 independent directors have served less than 3 years, 2 independent directors have served more than 3 years. The target of the Company is to keep none of independent directors has served 3 consecutive terms (9 years).

The Company currently has 9 male directors and 2 female directors. Although this complies with current laws and regulations, female directors do not yet account for one-third of the seats. This is due to the characteristics of the industry and it is difficult to find talent in a short period of time. To focus on gender equality and diversity in the composition of the board of directors, the Company will seek recommendations from multiple channels such as the industry in the future and strive to increase the number of female directors to improve corporate governance effectiveness and implement a policy of diversity in board members.

(III) The currently (2024.05.31~2027.05.30) achieved diversity of board members:

			Basic component	Basic component	Basic component	Basic component	Basic component	Basic component	Basic component				Industry expe	rience/professi	onal ability
								Length of tenure		Operational	Legal	Financial		Crisis	Industry	International
Name	Gender	Part-time	Age					of independent										Decision-
		employee of the Company	31-40 41-50 51-60 61-70 Above 71					directors Below Above		judgment	practice	accounting	Management	management	knowledge	market view	Leadership	making capacity

							71	3 years	3 years
Wen-Yuan Lin	Male	V					V			V		V	V	V	V	V	V	V
Joseph Wang	Male					V				V	V	V	V	V	V	V	V	V
Tiffany Wang	Female				V					V		V	V	V	V	V	V	V
Chi-Tai Chen	Male						V			V		V	V	V	V	V	V	V
Jeff Chen	Male			V						V		V	V	V	V	V	V	V
Din-Rei Hsu	Male					V				V		V	V	V	V	V	V	V
Kuo-Ching Chang	Male						V			V		V	V	V	V	V	V	V
Chin-Chen Chien	Male					V			V	V		V	V	V	V	V	V	V
Jui-Mu Huang	Male					V			V	V		V	V	V	V	V	V	V
Tzu-Meng Liu	Male					V		V		V		V	V	V	V	V	V	V
Pei-Ju Chung	Female		V					V		V		V	V	V	V	V	V	V

-9-

(IV) Independence of the Board of Directors

The Board of Directors of the Company shall direct company strategies, supervises the management and is responsible to the Company and shareholders. The various procedures and arrangements of the corporate governance system shall ensure that, exercising its authority, the board of directors complies with laws, regulations and the Articles of Incorporation or resolutions of the shareholders meeting. The Board of Directors of the Company emphasizes the function of independent operation and transparency, and the Directors and Independent Directors are independent individuals who exercise their functions and powers independently.
The three independent directors of the Company also comply with the relevant laws and regulations, cooperate with the powers of the Audit Committee, supervise and control the inherent or potential risk, and oversee the effective implementation of the Company's internal control, the hiring (and dismissal) of the CPA, the independence and the fair presentation of the financial reports. Accordance with the "Procedures for Director Election" of the Company, the method of election of directors and independent directors is stipulated, the cumulative voting system and candidates nomination system are adopted to encourage shareholders to participate, and shareholders holding a certain number of shares may propose a list of candidates, and the examination of the qualifications of the candidates and the confirmation of whether there are any violations of the various paragraphs listed in Article 30 of the Company Law, the relevant acceptance operations are carried out and announced in accordance with the law, in addition to protecting the rights and interests of shareholders, but also avoiding the monopoly or excessive abuse of the nomination power to maintain independence.
The Company has established a performance evaluation system for the Board of Directors, and implements an internal self-assessment of the Board of Directors and a self-assessment of the Board of Directors once a year, and the relevant assessment results are disclosed in the Company's annual report and official website after being submitted to the Board of Directors.
The criteria for evaluating the performance of the board of directors includes five aspects:
(1) Participation in the operation of the company;
(2) Improvement of the quality of decision-making by the Board of Directors;
(3) Composition and structure of the Board of Directors;
(4) Election and continuing education of the directors; and
(5) Internal control.
The criteria for evaluating the performance of board members includes six aspects:
(1) Alignment of the goals and missions of the company;
(2) Awareness of the duties of the director;
(3) Participation in the operation of the company;
(4) Management of internal relationship and communication,
(5) The director’s professionalism and continuing education; and
(6) Internal control.

-10-

2.1.4 General Manager, Deputy General Manager, Assistant Manager, Supervisors of Departments and Branches

March 30, 2025

													Managers with	Managers with	a relationship	Remark
							Spouse	/Minor	Shareho	lding by
Title	Nationality	Name	Gender	Appointment Date	Share	olding	Shareh	olding	Nom	inees	Education and work experiences	Currently holding positions in other companies	within the spo degree of		se or second kinship
					Shares	%	Shares	%	Shares	%			Title	Name	Relationship
CEO	R.O.C	Wen-Yuan Lin	Male	2019.01.31	105,000	0.02	-	-	-	-	Master of Civil Engineering, University of Hawaii Vice-Chairman of the State-owned Business Committee of the Ministry of Economic Affairs Chairman of China Steel Corporation Chairman of Taiwan Cogeneration Corporation Chairman of Yangmingshan Tien Lai Resort & SPA Co., Ltd. Chairman of Taiwan Power Company Chairman of Eastern Integrated Marketing Company Managing Director of Bank of Kaohsiung Director of Nanhe Enterprise Co., Ltd. Director of United Renewable Energy Co., Ltd. Independent Director of TRK Corporation	Chairman of Taiwan Styrene Monomer Corporation Chairman of Eastern Broadcasting Co., Ltd. Chairman of Overseas Investment & Development Corp. Director of Yangmingshan Tien Lai Resort & SPA Co., Ltd. Director of Gloria Material Technology Corp. Director of Hong Kang Shipping CO., LTD. Independent director of Locus Cell Co., Ltd.	-	-	-	-
President	R.O.C	T.K. Chung	Male	2021.06.01	59,688	0.01	-	-	-	-	Master of Chemical Engineering, National Taiwan University Director of Taiwan Styrene Monomer Corporation Vice President of Taiwan Styrene Monomer Corporation	Chairman of YUAN-SHIN Material Technology Co., Ltd. Director of Grand Cathay Venture Capital Co., Ltd.	-	-	-	-
Vice President	R.O.C	I-Yuan Cheng	Male	2023.01.01	-	-	250	0.00	-	-	Bachelor of Chemical Engineering, CYCU Director of Kaohsiung Factory of Taiwan Styrene Monomer Corporation	None	-	-	-	-
Director	R.O.C	Joe Lu	Male	2018.03.13	14,958	0.00	-	-	-	-	Dr. Baylor College of Medicine, USA Deputy director of bio-information division, Vita Genomics, Inc. Researcher and Consultant of IBM Taiwan Deputy Manager of the planning office of Taiwan Styrene Monomer Corporation Manager of investment division of Taiwan Styrene Monomer Corporation	Chairman of Grand Capital Co., Ltd. Director of Asia Global Venture Capital II Co., Ltd. Director of Kun Shan International Ltd. Director of Gvision-USA, Inc. Director of Yu Sheng Development Co., Ltd. Director of KunShan Yu; Fu Science and Technology Director of Functional Coating System Technologies Co., Ltd. Director of Hong Kang Shipping Co., Ltd. Director and General Manager of Grand Cathay Venture Capital Co.,Ltd.	-	-	-	-
Director	R.O.C	Celine Hu	Female	2023.09.01	-	-	-	-	-	-	Bachelor of Economics, NTHU Manager of business division of Taiwan Styrene Monomer Corporation	None	-	-	-	-
Chief Financial and Corporate Governance Officer	R.O.C	Paul Chen	Male	2023.07.03	-	-	-	-	-	-	Master of Financial Management, NKUST Chief Financial Officer of Tatung Company Special Assistant to the General Manager of CHINA STEEL CHEMICAL CORPORATION Director of the Accounting Department of CHINA STEEL CHEMICAL CORPORATION	Director of Grand Cathay Venture Capital Co., Ltd. Supervisor of Yangmingshan Tien Lai Resort & Spa Supervisor of Yu Sheng Development Co., Ltd. Supervisor of Hong Kang Shipping Co., Ltd.	-	-	-	-
Chief Accounting Officer	R.O.C	Jessie Chen	Female	2021.11.11	-	-	-	-	-	-	Master of Accounting, National Taipei University Manager of Adecco Personnel Co., Ltd. Assistant Manager of PwC Taiwan	Supervisor of Kunshan Yu Fu Technology Education Consulting Co., Ltd.-	-	-	-	-

-11-

2.2 Remuneration Paid to Directors, General Managers and Deputy General Managers in the Most Recent Year

2.2.1 Remuneration for directors (including independent directors)

Unit: NT$ Thousands

		Director’s Remuneration	Director’s Remuneration	Director’s Remuneration	Director’s Remuneration	Director’s Remuneration	Director’s Remuneration	Director’s Remuneration	Director’s Remuneration	The ratio of the total	The ratio of the total	Remuneration for l	Remuneration for l	Remuneration for l	Remuneration for l	part-time employees	part-time employees	part-time employees	part-time employees	Ttl f bdf	Ttl f bdf	Compensation
		Remuneration (a)		Retirement Pension (b)		Director’s Remuneration (c)		Business Execution Expenses (d)		amount of a, b, c and d to the net Loss after tax		Saary, Bonus and Special Expenses, etc. (e)		Retirement Pension (f)		Employee Compensation (g)				oa o (a++c++e++g) as a % of net loss after tax		Received from Non-
Job title	Name	The	All	The	All	The	All	The	All	The	All	The	All	The	All	The Company		All Consolidated Entities		The	All	consolidated Affiliates or
		Company	Consolidated Entities	Company	Consolidated Entities	Company	Consolidated Entities	Company	Consolidated Entities	Company	Consolidated Entities	Company	Consolidated Entities	Company	Consolidated Entities	Cash amount	Stock amount	Cash amount	Stock amount	Company	Consolidated Entities	Parent Company
Chairman	Taiwan Styrene Investment Co., Lt	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	None
	Representative: Wen-Yuan Lin	120	120	0	0	0	0	50	74	170 (0.024%)	194 (0.027%)	9,410	9,410	108	108	0	0	0	0	9,688 (1.337%)	9,712 (1.340%)	None
Director	Taiwan Chemical Green Energy Co., Ltd	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	None
	Representative: Joseph Wang	120	120	0	0	0	0	50	50	170 (0.024%)	170 (0.024%)	0	0	0	0	0	0	0	0	170 (0.024%)	170 (0.024%)	None
	Representative: Tiffany Wang	120	120	0	0	0	0	40	40	160 (0.022%)	160 (0.022%)	0	0	0	0	0	0	0	0	160 (0.022%)	160 (0.022%)	None
Director	Chun Yu Works & Co., Ltd.	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	None
	Representative: Chi-Tai Chen	120	120	0	0	0	0	50	50	170 (0.024%)	170 (0.024%)	0	0	0	0	0	0	0	0	170 (0.024%)	170 (0.024%)	None
Director	Chuanpu Investment Holding Co., Ltd.	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	None
	Representative: Jeff Chen	120	120	0	0	0	0	50	50	170 (0.024%)	170 (0.024%)	0	0	0	0	0	0	0	0	170 (0.024%)	170 (0.024%)	None
Director	An Ching Development Co., Ltd.	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	None
	Representative: Din-Rei Hsu	120	120	0	0	0	0	40	40	160 (0.022%)	160 (0.022%)	0	0	0	0	0	0	0	0	160 (0.022%)	160 (0.022%)	None
Director	Kai Chiang Co., Ltd.	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	None
	Representative: Kuo-Ching Chang	120	120	0	0	0	0	50	50	170 (0.024%)	170 (0.024%)	0	0	0	0	0	0	0	0	170 (0.024%)	170 (0.024%)	None
Independent Director	Chin-Chen Chien	960	960	0	0	0	0	50	50	1,010 (0.139%)	1,010 (0.139%)	0	0	0	0	0	0	0	0	1,010 (0.139%)	1,010 (0.139%)	None
	Jui-Mu Huang	960	960	0	0	0	0	50	50	1,010 (0.139%)	1,010 (0.139%)	0	0	0	0	0	0	0	0	1,010 (0.139%)	1,010 (0.139%)	None
	Tzu-Meng Liu	960	960	0	0	0	0	50	50	1,010 (0.139%)	1,010 (0.139%)	0	0	0	0	0	0	0	0	1,010 (0.139%)	1,010 (0.139%)	None
	Yu-Chang Lin	960	960	0	0	0	0	30	30	990 (0.137%)	990 (0.137%)	0	0	0	0	0	0	0	0	990 (0.137%)	990 (0.137%)	None
1. Please describe the remuneration policy, system, standards and structure of independent directors, and describe the relationship with the remu In order to improve the remuneration management system for directors and functional members, and give reasonable feedback to the board m with the provisions of article 26 of the Company’s articles of association, when the Company’s directors perform their duties, the Company may their participation in the Company’s operations and the value of their contributions in accordance with the usual standards of the industry. 2. Except as disclosed in the above table, the remuneration received by the directors of the Company for providing services to all companies in the 3. Director Wen-Yuan Lin’s term of office is 2025.01.01~2025.12.31;the remuneration of the driver is NT$577,000.												neration amount according to the responsibilities, risks, investment time and other factors: embers for participating in the Company’s major decision-making and management operations, in accordance pay remuneration, and their remuneration is authorized. The board of directors shall negotiate on the basis of financial report (such as serving as a consultant for non-employees) in the most recent year: none.

-12-

Table of Remuneration Range for the Directors

	Director’s name	Director’s name	Director’s name	Director’s name
Remuneration scale of each director of the Company	The total amount of the first four remunerations(A+B+C+D)		The total amount of the first seven items of remuneration(A+B+C+D+E+F+G)
	The Company	All Consolidated Entities	The Company	All Consolidated Entities
Below NT$ 1,000,000	Wen-Yuan Lin, Joseph Wang, Tiffany Wang, Chi-Tai Chen, Jeff Chen, Din-Rei Hsu, Kuo-Ching Chang, Pei-Ju Chung	Wen-Yuan Lin, Joseph Wang, Tiffany Wang, Chi-Tai Chen, Jeff Chen, Din-Rei Hsu, Kuo-Ching Chang, Pei-Ju Chung	Joseph Wang, Tiffany Wang, Chi-Tai Chen, Jeff Chen, Din-Rei Hsu, Kuo-Ching Chang, Pei-Ju Chung	Joseph Wang, Tiffany Wang, Chi-Tai Chen, Jeff Chen, Din-Rei Hsu, Kuo-Ching Chang, Pei-Ju Chung
NT$ 1,000,000 (inclusive) ~ NT$ 2,000,000 (exclusive)	Chin-Chen Chien, Jui-Mu Huang, Tzu-Meng Liu	Chin-Chen Chien, Jui-Mu Huang, Tzu-Meng Liu	Chin-Chen Chien, Jui-Mu Huang, Tzu-Meng Liu	Chin-Chen Chien, Jui-Mu Huang, Tzu-Meng Liu
NT$ 2,000,000 (inclusive) ~ NT$ 3,500,000 (exclusive)
NT$ 3,500,000 (inclusive) ~ NT$ 5,000,000 (exclusive)
NT$ 5,000,000 (inclusive) ~ NT$ 10,000,000 (exclusive)			Wen-Yuan Lin	Wen-Yuan Lin
NT$ 10,000,000 (inclusive) ~ NT$ 15,000,000 (exclusive)
NT$ 15,000,000 (inclusive) ~ NT$ 30,000,000 (exclusive)
NT$ 30,000,000 (inclusive) ~ NT$ 50,000,000 (exclusive)
NT$ 50,000,000 (inclusive) ~ NT$ 100,000,000 (exclusive)
Above NT$ 100,000,000
Total	11	11	11	11

Note: Chairman Wen-Yuan Lin’s term of office is 2025.01.01~2025.12.31; the remuneration of the driver is NTD$577,000.

-13-

2.2.2 Remuneration for CEO, President and Vice President

Unit: NT$ Thousands

												(A+B+C+D)	(A+B+C+D)	Compensation
		Salary (A)		Severance Pay and Pensions (B)		Bonus and A	llowances (C)	Profit Sharing(D)
												as a % of	Net Loss	Received from
Title	Name		All Consolidated		All Consolidated		All Consolidated	The Company		All Consolid	ated Entities		All Consolidated	Non-consolidated
		The Company		The Company		The Company						The Company		Affiliates or
			Entities		Entities		Entities	Cash	Stock	Cash	Stock		Entities	Parent Company

CEO	Wen-Yuan Lin	6,710	6,710	108	108	2,700	2,700	0	0	0	0	9,518 (1.314%)	9,518 (1.314%)	NA
President	T.K. Chung	3,044	3,044	108	108	513	513	0	0	0	0	3,665 (0.506%)	3,665 (0.506%)	NA
Vice President	I-Yuan Cheng	1,981	1,981	108	108	253	253	0	0	0	0	2,342 (0.323%)	2,342 (0.323%)	NA

Table of Remuneration Range for CEO and General Manager

Remuneration scale of each director of the Company	Director’s Name	Director’s Name	Director’s Name	Director’s Name
	The total amount of the first four remunerations (A+B+C+D)		The total amount of the first seven items of remuneration (A+B+C+D+E+F+G)
	The Company	All companies in the financial report	The Company	All companies in the financial report
Below NT$ 1,000,000
NT$ 1,000,000 (inclusive) ~ NT$ 2,000,000 (exclusive)
NT$ 2,000,000 (inclusive) ~ NT$ 3,500,000 (exclusive)	I-Yuan Cheng	I-Yuan Cheng	I-Yuan Cheng	I-Yuan Cheng
NT$ 3,500,000 (inclusive) ~ NT$ 5,000,000 (exclusive)	T.K. Chung	T.K. Chung	T.K. Chung	T.K. Chung
NT$ 5,000,000 (inclusive) ~ NT$ 10,000,000 (exclusive)	Wen-Yuan Lin	Wen-Yuan Lin	Wen-Yuan Lin	Wen-Yuan Lin
NT$ 10,000,000 (inclusive) ~ NT$ 15,000,000 (exclusive)
NT$ 15,000,000 (inclusive) ~ NT$ 30,000,000 (exclusive)
NT$ 30,000,000 (inclusive) ~ NT$ 50,000,000 (exclusive)
NT$ 50,000,000 (inclusive) ~ NT$ 100,000,000 (exclusive)
Above NT$ 100,000,000
Total	3	3	3	3

-14-

2.2.3 Remuneration for top 5 paid supervisor

												Unit: NT$Thousands	Unit: NT$Thousands	Unit: NT$Thousands
												(A+B+C+D)		Compensation
		Salary (A)		Severance Pay a	nd Pensions (B)	Bonus and Al	lowances (C)	Profit Sharing(D)
												as a % of	Net Loss	Received from
Title	Name	The Coman	All Consolidated	The Coman	All Consolidated	The Coman	All Consolidated	The Company		All Consolid	ated Entities	The Coman	All Consolidated	Non- consolidated
		py	Entities	py	Entities	py	Entities	Cash	Stock	Cash	Stock	py	Entities	Affiliates or Parent Company
CEO	Wen-Yuan Lin	6,710	6,710	108	108	2,700	2,700	0	0	0	0	9,518 (1.314%)	9,518 (1.314%)	NA
President	T.K. Chung	3,044	3,044	108	108	513	513	0	0	0	0	3,665 (0.506%)	3,665 (0. 506%)	NA
Director	Joe Lu	2,133	2,133	108	108	363	363	0	0	0	0	2,604 (0.359%)	2,604 (0.359%)	NA
Vice President	I-Yuan Cheng	1,981	1,981	108	108	253	253	0	0	0	0	2,342 (0.323%)	2,342 (0.323%)	NA
Director	Celine Hu	1,822	1,822	108	108	302	302	0	0	0	0	2,232 (0.308%)	2,232 (0.308%)	NA

Table of Remuneration Range for top 5 paid supervisor

Remuneration scale of each director of the Company	Director’s Name	Director’s Name	Director’s Name	Director’s Name
	The total amount of the first four remunerations (A+B+C+D)		The total amount of the first seven items of remuneration (A+B+C+D+E+F+G)
	The Company	All companies in the financial report	The Company	All companies in the financial report
Below NT$ 1,000,000
NT$ 1,000,000 (inclusive) ~ NT$ 2,000,000 (exclusive)
NT$ 2,000,000 (inclusive) ~ NT$ 3,500,000 (exclusive)	Joe Lu , I-Yuan Cheng, Celine Hu	Joe Lu , I-Yuan Cheng, Celine Hu	Joe Lu , I-Yuan Cheng, Celine Hu	Joe Lu , I-Yuan Cheng, Celine Hu
NT$ 3,500,000 (inclusive) ~ NT$ 5,000,000 (exclusive)	T.K. Chung	T.K. Chung	T.K. Chung	T.K. Chung
NT$ 5,000,000 (inclusive) ~ NT$ 10,000,000 (exclusive)	Wen-Yuan Lin	Wen-Yuan Lin	Wen-Yuan Lin	Wen-Yuan Lin
NT$ 10,000,000 (inclusive) ~ NT$ 15,000,000 (exclusive)
NT$ 15,000,000 (inclusive) ~ NT$ 30,000,000 (exclusive)
NT$ 30,000,000 (inclusive) ~ NT$ 50,000,000 (exclusive)
NT$ 50,000,000 (inclusive) ~ NT$ 100,000,000 (exclusive)
Above NT$ 100,000,000
Total	5	5	5	5

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2.2.4 Managerial Officer Who Distribute Remuneration to Employee and the Status

Unit: NT$ Thousands

						Proportion of total amount
	Title	Name	Stock amount	Cash amount	Total
						to net profit after tax (%)

Managerial Officer	CEO	Wen-Yuan Lin	0	0	0	0
	President	T.K. Chung
	Vice President	I-Yuan Cheng
	Director	Joe Lu
	Director	Celine Hu
	Chief Finance and Corporate Governance Officer	Paul Chen
	Chief Accounting Officer	Jessie Chen

2.2.5 The Analysis of the Ratio of the Total Remuneration Paid to the Company’s Directors, President, Vice Presidents by the Company and all Companies Listed in the Consolidated Financial Statements During in the Most Recent Two Fiscal Years to Net Income, and the Relevance between the Remuneration Policies, Standards, and Packages, Procedure for Determining, and Correlation with Business Performance and Future Risks

Analysis of the proportion of the total remuneration paid to the managing director and deputy general manager of the Company in the last two years to the net profit after tax in the financial report:

	Ratio of total remuneration to net Loss	Ratio of total remuneration to net Loss		Ratio of total remuneration to net Loss	Ratio of total remuneration to net Loss
	after tax			after tax
Title	2024		Title	2025
	The Company	Consolidated		The Company	Consolidated
	(%)	statement(%)		(%)	statement(%)
Directors	(4.31)	(4.32)	Directors	(2.04)	(2.05)
Managerial Officer	(4.18)	(4.18)	Managerial Officer	(0.82)	(0.82)

Note: The proportion of total remuneration of directors, president, and vice president to net loss after tax in fiscal year 2025 decreased compared to fiscal year 2024, mainly due to the increase in net loss after tax in fiscal year 2025.

Policy, standards, and composition of remuneration payment :
(1)The Company has established the Remuneration Committee, whose function is to evaluate, from an expert and objective standpoint, the Company’s policies and systems for the remuneration of directors and managers, and to make recommendations to the Board of Directors for the Board’s reference in decision making.
(2)In accordance with the provisions of the Articles of Association and the "Measures for the Administration of Remuneration for Directors and Functional Members" approved by the Board of Directors, the remuneration of directors for performing their duties shall be agreed upon by the Board of Directors based on the degree of individual directors’ participation in the operation and the value of their contributions. In addition, if the Company has made a profit in the current year, pursuant to the Article 29 of the Company’s Articles of Incorporation, no more than 2.5% of profit may be appropriated as director remuneration, and consider the company's operating results and its contribution to the company's performance, and give reasonable remuneration. Independent directors are paid a fixed monthly remuneration by the board of directors and do not participate in the distribution of remuneration when the company makes profits.
(3)The Company’s employee remuneration policy is determined based on personal work experience, job responsibilities, working ability and performance, the Company’s financial position and operating conditions, and is positively related to operating performance. In addition, if the Company has made a profit in the current year, according to Article 29 of the articles of association, 1%~5% of the scope is allocated for employee remuneration.

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(4)The remuneration policy of the Company’s managerial officers, including salary and bonuses. For the salary, the Company’s internal salary balance is considered the market conditions are referred to, while being deliberated by the Remuneration Committee based on the managerial officers’ rank, educational and industrial background, professional ability and responsibilities, and then submitted to the Board of Directors for resolutions. Bonuses are determined based on the Company’s profit in the current year, taking into account the managerial officers’ positions, contribution, performance target achievement rate, and the Company’s operating performance for that year. Bonuses are reviewed by the Remuneration Committee and sent to the Board of Directors for resolution.
(5)“Remuneration” as used in the Remuneration Committee Charter includes cash compensation, stock options, profit sharing and stock ownership, retirement benefits or severance pay, allowances or stipends of any kind, and other substantive incentive measures. Its scope shall be consistent with that of the remuneration for directors and managers as set out in the “Regulations Governing Information to be published in Annual Reports of Public Companies”.
Procedures for setting remuneration
(1)The performance evaluation of directors and managers shall be based on the provisions of the "Performance Evaluation Measures of the Board of Directors" and the "Articles of Association" of the Company respectively. Other than the Company’s overall operating performance, the industry’s future risks and development trends, the individual’s performance achievement rate and contribution to the Company are also considered when determining the reasonable remuneration given. Relevant performance appraisal and remuneration reasonableness is reviewed by the Remuneration Committee and the Board of Directors, and is subject to review from time to time based on the actual operating conditions and related laws and regulations, while considering the current reasonable trend of corporate governance, in order to achieve a balance between the Company’s sustainable operation and risk control.
(2)According to the performance self-assessment results of the Company’s 2025 Board of Directors, Board members, and members of functional committees, they were all found to be “excellent”. Moreover, according to the Company’s 2025 annual managerial officers’ performance evaluation results, all managerial officers have achieved or exceeded the original target requirements, and the evaluation results based on the Company’s annual operating indicators have reached the highest standards. The remuneration of directors and managerial officers has fully considered their professional capabilities and the Company’s operations and financial position, and is linked to the Company’s overall operating performance, personal performance target management and appraisal results.
Linkages to the operating performance and future risks:
(1)The Company’s overall operating conditions are the main consideration for the review of the relevant payment standards and systems, and the payment standards are approved based on the performance achievement rate and contribution level, to improve the overall organizational team effectiveness of the Board of Directors and the management department. In addition, by referring to the industry’s remuneration standards, the remunerations of the Company’s management is ensured to be competitive in the industry, to retain outstanding management talent.
(2)The important decisions of the Company’s management are based on a balanced consideration of various risk factors. The performance of related decisions is reflected in the Company’s profits, and then is related to the remunerations of the management.
(3)The results of the Company’s operating results and the performance and remuneration of the management are inter-linked to each other, which positively promotes the overall performance of the Company and maximizes the interests of shareholders.

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2.3 Implementation of Corporate Governance

2.3.1 Operation of the Board of Directors

The number of board meetings held in the most recent year (2025) was 5 [A]. The attendance by the directors was as follows:



		The actual number of	Number of delegated	Actual attendance
Title	Name				Remark
		seats (column) [B]	attendance	rate (%) [B/A]



Chairman	Taiwan Styrene Investment Co., Ltd. Representative: Wen-Yuan Lin	5	0	100%	-
Director	Taiwan Chemical Green Energy Co., Ltd. Representative: Joseph Wang	5	0	100%	-
Director	Taiwan Chemical Green Energy Co., Ltd. Representative: Tiffany Wang	4	1	80%	-
Director	Chun Yu Work Co., Ltd. Representative: Chi-Tai Chen	5	0	100%	-
Director	Chuanpu Investment Holding Co., Ltd. Representative: Jeff Chen	5	0	100%	-
Director	An Ching Development Co., Ltd. Representative: Din-Rei Hsu	4	1	80%	-
Director	Kai Chiang Co., Ltd. Representative: Kuo-Ching Chang	5	0	100%	-
Independent Director	Chin-Chen Chien	5	0	100%	-
Independent Director	Jui-Mu Huang	5	0	100%	-
Independent Director	Tzu-Meng Liu	5	0	100%	-
Independent Director	Pei-Ju Chung	3	2	60%	-
Other matters to be recorded: I. If any of the following circumstances exist, specify the board meeting date, meeting session number, content of the motion(s), the opinions of all the independent directors and the measures taken by the Company’s based on the opinions of the independent directors: (I) Any matter under Article 14-3 of the Securities and Exchange Act: The Company has established an Audit Committee and does not apply the provisions of Article 14-3. For a description of the matters listed in Section 14-5 of the Securities and Exchange Act, please refer to 2.3.2 on the operation of the Audit Committee. (II) In addition to the matters referred to above, any dissenting or qualified of an independent directory that is on record or stated in writing with respect to any board resolution: None. II. The status of implementation of recusals of directors with respect to any motions with which they may have a conflict of interest: specify the director’s name, the content of the motion, the cause for recusal, and whether and how the director voted. None

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III. Information on the evaluation cycle, period(s), scope and of the board of directors’ self-evaluation and the evaluation method and content:

Cycle	Period	Scope	Method	Evaluation content
Once a year	2025.01.01 to 2025.12.31	Overall board of directors	Internal self-assessment of the board of directors	1. Involvement in company operations 2. Improve the quality of board decision-making 3. Board composition and structure 4. Election of directors and continuing education 5. Internal control
		Individual board members	Board member self- assessment	1. Mastery of company goals and tasks 2. Awareness of directors’ responsibilities 3. Involvement in company operations 4. Internal relationship management and communication 5. Professional and continuing education for directors 6. Internal control
		Functional Committees	Committee member self- assessment	1. Involvement in company operations 2. Functional committee responsibilities cognition 3. Improve the decision-making quality of functional committees 4. Composition of functional committees and selection of members 5. Internal control

(I) The 2025 annual performance evaluation results were presented to the board of directors of the Company on March 9, 2026.
(II) Evaluation results: the performance evaluation results of the Company’s overall board of directors, individual directors, audit committee and remuneration committee are “excellent” (90 points or above), indicating the overall operation of the Company’s board of directors, audit committee and remuneration committee the situation is excellent and in line with corporate governance.
IV. Targets that were adopted for strengthening of the functions of the board during the current and immediately preceding fiscal years (e.g., establishing an Audit Committee, increasing information transparency) and the measures taken toward achievement thereof:
(I) The Company has insured directors and key staff with liability insurance. The current insured amount is US$5 million, to diversify the legal liability risks of directors and key managerial officers, and improve corporate governance capabilities.
(II) The operations of the Board of Directors of the Company are exercised in accordance with the provisions of the laws and regulations, the Articles of Association, and the resolutions of the Shareholders’ Meetings. All Directors, in addition to the professional knowledge and skills necessary to perform their duties, should strive for the best shareholder interests based on the principles of loyalty and integrity.
(III) In order to implement corporate governance, protect shareholders' rights and interests and strengthen the functions of the board of directors, the Company was approved by the board of directors on August 07, 2020 to appoint a corporate governance officer to assist the board of directors in its operation.
(IV) Provide information such as courses, sessions, seminars and other information for members of the Board of Directors as a reference for continuing education, in order to improve their knowledge and capabilities in corporate governance, business administration, and risk management.
(V) Disclose relevant information such as the company's internal rules and major resolutions of the board of directors on the MOPS and the company's website to facilitate shareholders to understand the company's dynamics and enhance information transparency.

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2.3.2 Operations of the Audit Committee

1.The Audit Committee of the Company was established to replace all supervisors on January 31, 2019. The committee shall be composed of all independent directors and serve a 3-year term, and may be re-elected to future term. At least one of them shall have accounting or financial expertise and one of them shall be the convener. If he fails to perform its duties, has the right to conduct any appropriate audits and investigations according to its Charter, and has direct communication channels with the Company’s internal audit supervisor, CPA and all employee. The operation method should comply with the “Audit Committee Charter”.
2.The purpose of the Audit Committee is to assist the Board in fulfilling its oversight of the quality and integrity of accounting, auditing, and financial reporting and control practices. Matters reviewed by the Audit Committee include: financial reports, internal control systems, material asset or derivative transactions, material lending funds and endorsements or guarantees, matters in which a director is an interest party, the offering or issuance of securities, hiring or dismissal of CPA and their remuneration, as well as the appointment and discharge of a financial, accounting or internal audit officer.
(1)Review financial reports

The Company’s annual business report, financial report and profit distribution proposal have been reviewed and approved by the Audit Committee and then submitted to the Board of Directors for approval.

(2)Assessing the effectiveness of the internal control system
The results of self-assessment of the internal control system is carried out by all departments to comply with Internal Control Cycle Procedure annually which is verified by the Audit Committee to ensure the Company’s internal control system including to understand the degree of achievement of operational effectiveness and efficiency objectives., reporting reliable, timely, transparent, and complied with applicable rules and regulations, and reasonably ensure that the objectives are achieved. The 2025 "Internal Control System Statement" has been reviewed and approved by the Audit Committee and the Board of Directors on March 9, 2026.
(3)Appointment and assessment of CPA

The Audit Committee regularly evaluates the independence, suitability and reasonableness of the remuneration of the CPAs at the end of each fiscal year. The 2025 CPA service evaluation results were reviewed and approved by the Audit Committee and the Board of Directors on November 12, 2025. Jason Yin and Wu, Lin from KPMG Taiwan both fulfilled the Company’s independence and suitability evaluation standards.

3.The number of the Audit Committee held in the most recent year (2025) was 5 [A] meetings. The attendance of the independent directors is as follows:


				The actual number of		Number of delegated			Actual attendance
Title		Name									Remark
				seats (column) [B]		attendance			rate (%) [B/A]


Independent Director		Chin-Chen Chien		5		0			100%		-
		Jui-Mu Huang		5		0			100%		-
		Tzu-MengLiu		5		0			100%		-
		Pei-Ju Chung		3		2			60%		-
Other matters to be recorded: I. If the operation of the Audit Committee falls under any of the following circumstances, the date of the Board of Directors, the period, the content of the proposal, the results of the Audit Committee’s resolutions, and the Company’s handling of the Audit Committee’s opinions shall be stated. (I) Matters listed in Article 14-5 of the Securities and Exchange Act: Date (Term) Contents Audit Committee Date Audit Committee Resolution Results The Company’s handling of the opinions of the audit committee Results of Board Resolutions 2025.03.12 4thmeeting of the 16thTerm Proposal for the Company’s 2024 Business Report and Financial Statements. 2025.03.12 3rdmeeting of the 3rdTerm All members present agreed to pass Not applicable All directors present agreed to pass Proposal of the Company’s “Evaluation of Internal Control System Effectiveness” and “Internal Control System Statement” of 2024.
	Date (Term)		Contents		Audit Committee Date		Audit Committee Resolution Results	The Company’s handling of the opinions of the audit committee		Results of Board Resolutions
	2025.03.12 4thmeeting of the 16thTerm		Proposal for the Company’s 2024 Business Report and Financial Statements.		2025.03.12 3rdmeeting of the 3rdTerm		All members present agreed to pass	Not applicable		All directors present agreed to pass
			Proposal of the Company’s “Evaluation of Internal Control System Effectiveness” and “Internal Control System Statement” of 2024.

-20-

	Discussion on the progress of the Company's private placement of common stock cash capital increase.
2025.05.07 5thmeeting of the 16thTerm	Proposal for the Company’s Q1 2025 consolidated financial statements.	2025.05.07 4thmeeting of the3rdTerm	All members present agreed to pass	Not applicable	All directors present agreed to pass
2024.08.06 6ndmeeting of the 16thTerm	Proposal for the Company’s Q2 2025 consolidated financial statements.	2025.08.06 5thmeeting of the 3rdTerm	All members present agreed to pass	Not applicable	All directors present agreed to pass
2025.11.12 8rdmeeting of the 16thTerm	Proposal for the Company’s Q3 2025 consolidated financial statements.	2025.11.12 7thmeeting of the 3rdTerm	All members present agreed to pass	Not applicable	All directors present agreed to pass
	Evaluation of independence, competency and performance of the Company’s 2025 Chartered Public Accountant.
	2026 Service Fee for KPMG.
	Proposal for the Company’s 2026 internal audit plan
	Formulate the “Procedures for Professional Accounting Judgments, Changes in Accounting Policies and Estimates,” and revise certain provisions of the Company’s “Management of Financial Statement Preparation Processes” and “Management of the Adoption of International Financial Reporting Standards(IFRS).”
	Formulate the Company’s “Audit Procedures for Changes in Accounting Policies and Estimates” and abolish the previous version thereof

(II) Except for the previously mentioned matters, other matters that have not been approved by the Audit Committee but have been approved by more than two-thirds of all directors: None.
II. An Independent Director’s recusal form discussing and voting on a proposal due to conflict of interest shall state the name of the Independent Director, the content of the proposal, the reason for the withdrawal of interest, and the circumstances of participating in voting: None
III. Communication between Independent Directors, internal audit officer and CPAs should include material matters, methods and results of communication on the Company’s financial and business status).
(I) Communication between the Independent Directors and CPAs:
1. The Company's Audit Committee is composed of all Independent Directors. It holds regular meetings and communicates and discusses with CPAs on the Company's financial business-related proposals. The Audit Committee examines the various forms prepared by the Board of Directors and submitted to the shareholders' meeting (Business Report, Financial Statements, Earnings Distribution Table). And issue the Audit Committee Report in accordance with the regulations.

-21-

The Company’s CPAs regularly conduct audit or review of the annual and quarterly financial statements, with written results or meeting reported to the Audit Committee every quarter, as well as other communications required by relevant laws and regulations.
The Company’s Independent Directors have directed communication channels with internal audit officer and CPAs, and may communicate through email, phone call, interview, or meeting as necessary; and pursuant to the regulations of the competent authority, they regularly check the Company’s financial and business conditions, and communicate directly with the management unit.
(II) Communication between the Independent Directors and internal audit officer:
1.Assessment of the effectiveness of the Company's Internal Control System (issue a Statement of Internal Control System), and submit it to the Board of Directors for resolution after being examined by the Audit Committee.
2.The revision of the “Internal Control Systems” and “Internal Audit Implementation Rules” of the Company shall be submitted to the Board of Directors for resolution after the approval of the Audit Committee.
3.The audit office of the Company regularly issues internal audit reports and tracking reports to the Independent Directors for review. The audit officer attends the Audit Committee Meetings and the Board Meetings to report on the internal audit operation, and fully communicates on the execution of the audit operation, the follow-up reports on the correction of defects, and the operating effectiveness.
4.Before the end of each fiscal year, the audit office of the Company will submit the audit plan for next year to the Board of Directors for resolution after being approved by the Audit Committee.
5.Internal audit office continues to follow up on review opinions of or deficiencies identified by CPAs, and internal units as well as improvements listed in internal control statements. Improvements are submitted in writing to the Board of Directors and the Audit Committee.
(III) Summary of the communication between Independent Directors and the head of internal audit and CPAs:
1.The communication between Independent Directors and internal audit is good. The main communication matters in 2025 are summarized as follows:

Way of Communication	Date (Term)	Communication focus	Communication situation and results	Results of the Company’s handling of the Independent Directors’ opinions
The Audit Committee	2025.03.12 3rdmeeting of the 3rdTerm	Review Internal Audit Reports	All present members agreed to discuss and report to the board of directors	No opinions from the independent directors
		The Company’s “Evaluation of Internal Control System Effectiveness” and “Internal Control System Statement” for 2024
	2025.05.07 4thmeeting of the 3rdTerm	Review Internal Audit Reports
	2025.08.06 5thmeeting of the 3rdTerm	Review Internal Audit Reports
	2025.11.12 7thmeeting of the 3rdTerm	Review Internal Audit Reports
		Proposal for the Company’s 2026 audit plan
Private Conference	2025.11.12	Annual audit report and other communication matters for 2025	Well and acknowledged

-22-

2.The communication between independent directors and certified accountants is good. The main communication matters in 2025 are summarized as follows:

Way of Communication	Date (Term)	Communication focus	Communication situation and results	Results of the Company’s handling of the Independent Directors’ opinions
~~T~~he Audit Committe~~e~~	2025.03.12 3rdmeeting of the3rdTerm	2024 Consolidated and Individual Financial Report	All present members agreed to discuss and report to the board of directors	No opinions from the independent directors
	2025.05.07 4thmeeting of the 3rdTerm	2025 first quarter Consolidated Financial Reports
	2025.08.06 5thmeeting of the 3rdTerm	2025 second quarter Consolidated Financial Reports
	2025.11.12 7thmeeting of the 3rdTerm	2025 third quarter Consolidated Financial Reports
Private Conference	2025.11.12	Annual audit report and corporate governance communication matters for 2025	Well and acknowledged

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2.3.3 Corporate Governance Implementation Status and Deviations from the Corporate

Governance Best-Practice Principles for TWSE/TPEx-Listed Companies and the Reasons

	Implementation Status	Implementation Status	Implementation Status
				Deviations from

				the Corporate
				Governance
				Best-Practice
				Principles for
Items
	Yes	No	Description	TWSE/TPEx-

				Listed
				Companies and
				Reasons
				Thereof

I. Has the Company established and disclosed its Corporate Governance Best-Practice Principles based on the Corporate Governance Best- Practice Principles for TWSE/TPEx Listed Companies?	V		The Board of Directors of the Company approved the "Corporate Governance Best Practice Principles", details of which are available on the Company's website and MOPS.	No major differences.
II. Shareholding Structure and Shareholders’ Rights (I) Does the Company have Internal Operating Procedures for handling shareholders' suggestions, concerns, disputes and litigation matters? If yes, have these procedures been implement accordingly? (II) Does the Company know the identity of its major shareholders and the parties with ultimate control of the major shareholders? (III) Has the Company build and implement the risk management system and firewall between the Company and its affiliates? (IV) Has the Company established internal rules prohibiting insiders trading of securities based on undisclosed information?	V V V V		(I) The Company has set up relevant departments such as spokesperson, stock and legal affairs to deal with shareholders’ suggestions, doubts, disputes and lawsuits, etc., and discloses the contact person and telephone number on the Company’s website to ensure shareholders’ rights and interests. (II) The Company has appointed a stock agency to handle shareholder-related matters. According to the shareholder register of the stock agency, the major shareholders and ultimate controllers, and regularly report the changes in shareholding of directors, managers and major shareholders holding more than 10% of the shares. (III) Subsidiary operation supervision measures have been formulated to control and implement them. (IV) The Company has formulated internal regulations such as "Procedures for the Prevention of Insider Trading Management", which prohibit company insiders and information recipients from using undisclosed information in the market to make illegal profits such as trading negotiable securities. At least once a year, the company conducts education and training for directors, managers and employees on "preventing insider transactions", "internal major information processing procedures" and related orders, and advocates relevant information.	No major differences.
III. Composition and Responsibilities of the Board of Directors (I) Have a diversity policy and specific management objectives have been adopted for the board and have they been fully implemented?	V		(I) The Company has formulated a board diversity policy, and has adopted a candidate nomination system. The "Corporate Governance Best Practice Principles" specifies that the composition of the Board of Directors should be diverse, without restriction on gender, race or nationality, and that the Board as a whole should be competent. The number of directors is set according to the current operation scale and development needs. In	No major differences.

-24-

	Implementation Status	Implementation Status	Implementation Status
				Deviations from

				the Corporate
				Governance
				Best-Practice
				Principles for
Items
	Yes	No	Description	TWSE/TPEx-

				Listed
				Companies and
				Reasons
				Thereof

(II) Has the Company voluntarily established other functional committees in addition to the remuneration committee and the Audit Committee?	V		addition to the statutory basic conditions, it also considers relevant industry knowledge, experience and other fields to implement the composition of the Board of Directors diversity policy. 1. Specific management goals: According to the operation type and development needs, he Company formulates an appropriate diversification policy, including but not limited to the following standards: (1) Basic conditions and values: gender, age, nationality and culture, etc. (2) Professional knowledge and skills: professional background (such as law, accounting, industry, finance, marketing or technology), professional skills and industry experience, etc. 2. The members of the Board of Directors of the Company should generally have the knowledge, skills and qualities necessary to perform their duties, and their overall capabilities should be as follows: (1) Operational Judgment (2) Legal practice ability (3) Financial accounting analysis ability (4) Management ability (5) crisis management ability (6) Industry knowledge (7) international market view (8) leadership (9) Decision-making capacity 3. Implementation of the implementation: (1) The current Board of Directors consists of seven directors, including 4 independent directors, and each director has rich experience and expertise in different fields. (2) The Company pays attention to gender equality among the members of the Board of Directors. Please refer to this annual report for the Board members’ information and diversification policy, target and implementation status. (II) The Company set up the Salary and Remuneration Committee and the Audit Committee in accordance with the law, set up the Nomination Committee on March 24, 2021 and set up the Corporate Social Responsibility Committee in 2017. It was renamed the Sustainable Development Committee on 31 May 2022. The main responsibilities are to review the company's	No major differences.

-25-

	Implementation Status	Implementation Status	Implementation Status
				Deviations from

				the Corporate
				Governance
				Best-Practice
				Principles for
Items
	Yes	No	Description	TWSE/TPEx-

				Listed
				Companies and
				Reasons
				Thereof

(III) Has the Company established rules and methodology for evaluation the performance of the Board of Directors, implemented the performance evaluations on an annually basis, and submitted the results of performance evaluations to the Board of Directors and used them as a reference for determining salary/ compensation for individual directors and their nomination and additional office terms? (IV) Does the Company regularly evaluate its external auditors’ independence?	V V		sustainability policy and sustainability report, and supervise and promote sustainability-related matters and implementation plans. In the future, various other functions will be set up according to the laws and regulations and the needs of the Company’s practical development committee. (III) The Company has established a performance evaluation method for the Board of Directors. The performance evaluation of the Board of Directors of the previous year is carried out before the first quarter of each year, and the recommendations submitted to the board for discussion. Please refer to this annual report for the content and results of the assessment, which can be used as a reference for the remuneration and nomination of directors for renewal. (IV) According to Article 29 of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies,” TWSE/TPEx -listed companies should select professional, responsible and independent CPAs, and should regularly (at least once a year) evaluate the independence of the appointed accountants. The Company’s 2025 CPAs service evaluation results have been reviewed and approved by the 3rdAudit Committee of the 3rdsession on November 12, 2025 and the seventh session of the 8thBoard of Directors of the 16thsession on November 12, 2025. KPMG Taiwan CPA Jason Yin and CPA Lin Wu met the Company’s assessment criteria for independence and suitability; please refer to Note 1 for details.	No major differences. No major differences.
IV. Does the TWSE/TPEx listed Company have in place an adequate number of qualified corporate governance officer with responsibility corporate governance practices (including but not limited to providing information necessary for directors and supervisors to perform their duties, aiding directors and supervisors in complying with laws and regulations, organizing board meetings and annual general meetings of shareholders as required by law, and compiling minutes of board meetings and annual general meetings)?	V		1. To implement corporate governance and improve the effectiveness of the Board of Directors, on August 7, 2020, the Board of Directors approved the establishment of a corporate governance supervisor, and on November 11, 2021, the manager of the Accounting Department was appointed as the corporate governance supervisor, responsible for corporate governance related affairs. Director of Corporate Governance has been in charge of stock affairs and corporate governance related affairs in public offering companies for more than 3 years. 2. The scope of corporate governance at least includes: (1) Handling matters related to the meetings of the Board of Directors and the shareholders’	No major differences.

-26-

	Implementation Status	Implementation Status	Implementation Status
				Deviations from

				the Corporate
				Governance
				Best-Practice
				Principles for
Items
	Yes	No	Description	TWSE/TPEx-

				Listed
				Companies and
				Reasons
				Thereof

			meeting in accordance with the law. (2) Preparing the information of the Board of Directors and the shareholders’ meeting. (3) Assisting directors in their appointment and continuing education. (4) Providing directors with necessary information for business execution. (5) Assisting directors in complying with laws and regulations. (6) Report to the Board on the results of its review of whether the qualifications of independent directors in the nomination, election and term of office comply with relevant laws and regulations. (7) Handling matters related to changes in directors. (8) Other matters in accordance with the Company’s Articles of Association contract. 3. The 2025 business execution of the director of corporate governance is as follows: (1) Assist independent directors and general directors to perform their duties, provide required information and assist directors in arranging further education. (2) Assist the Board of Directors and shareholders in the procedures and resolutions of legal compliance matters. (3) Set the agenda of the Board of Directors and notify the directors seven days in advance, convene the meetings and provide meeting materials. If agenda items require recusal, , it will be reminded in advance, and the minutes of the Board of Directors will be completed within 20 days after the meeting. (4) Is the pre-registration of the date of the shareholders’ meeting handled according to the law, prepare the meeting notice, meeting manual, and minutes within the statutory time limit, and handle the registration of changes in the revision of the Articles of Association or the election of directors. (5) Assess and take out suitable directors’ liability insurance. 4. Please refer to Note 2 for details of the 2025 training for corporate governance supervisors.
V. Has the Company established channels for communicating with its stakeholders (including but not limited to shareholders, employees,	V		The Company has set up a special area for stakeholders on the Company’s website, and can establish communication channels with stakeholders through	No major differences.

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	Implementation Status	Implementation Status	Implementation Status
				Deviations from

				the Corporate
				Governance
				Best-Practice
				Principles for
Items
	Yes	No	Description	TWSE/TPEx-

				Listed
				Companies and
				Reasons
				Thereof

customers, suppliers, etc.) and created a stakeholders section on the Company’s website? Does the Company appropriately respond to stakeholders’ questions and concerns on important corporate social responsibility issues?			the Company’s website, telephone, fax, etc., including safeguarding the interests of shareholders, employees’ rights and integrity with customers, etc. Different stakeholders such as shareholders, customers, suppliers and employees are served with dedicated contact information. Others, such as co- manufacturers, correspondent banks and company employees, can be communicated and coordinated by dedicated departments.
VI. Has the Company appointed a professional shareholders service agent to handle matters related to its shareholders’ meetings?	V		The Company has appointed Agency Department of Concord Securities Co., Ltd. shareholders service agent to handle the matters of the shareholders’ meetings	No major differences.
VII. Information Disclosure (I) Has the Company established a corporate website to disclose information regarding its financials, business, and corporate governance status? (II) Does the Company use other information disclosure channels (e.g., maintaining an English- language website, designating staff to handle information collection and disclosure, appointing spokespersons, webcasting investors conference etc.)? (III) Does the Company publish and report its annual financial report within two months after the end of the fiscal year, and publish and report its financial reports for the first, second and third quarters as well as its operating statements for each month before the specified deadlines?	V V V		(I) The Company has set up a website (http://www.smct.com.tw/) to promptly disclose financial business and Corporate Governance related information in accordance with relevant laws and regulations. (II) The Company’s English website also discloses relevant information simultaneously, discloses company information in the public information observatory in accordance with regulations, and establishes and implements a company spokesperson system. The Company will post relevant information on the Company’s website after holding the corporate briefing. (III) Although the Company did not announce and file its annual financial report within two months after the end of the fiscal year, the first, second, third quarter and annual financial reports and the operating conditions of each month were announced and reported before the specified deadline.	No major differences.
VIII. Has the Company disclosed other information facilitate a better understanding its Corporate Governance Practices (including but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, directors’ and supervisors’ continuing training , the implementation of risk management policies and risk evaluation standards, the implementation of customer relations policies, and purchase of liability insurance for directors and supervisors)?	V		For other important information of the Company that is helpful for understanding the operation of corporate governance, please refer to Note 3 for details.	No major differences.

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	Implementation Status	Implementation Status	Implementation Status
				Deviations from

				the Corporate
				Governance
				Best-Practice
				Principles for
Items
	Yes	No	Description	TWSE/TPEx-

				Listed
				Companies and
				Reasons
				Thereof

IX. Please describe improvements that have already been made based on the Corporate Governance Evaluation results released for the most recent year by the Corporate Governance Center of Taiwan Stock Exchange Corporation, and specify the priority enhancement objectives and measures planned for any matters still awaiting improvement: 1. Improved situation (The list according to the evaluation indicators is as follows): 4.5: The Company's 2024 Sustainability Report has been verified by a third-party verification company to implement our Company's sustainable development policy and enhance industrial competitiveness. 2. Propose enhancement priorities and measures for those who have not yet improved (The list according to the evaluation indicators is as follows): 2.23: The Company should perform an external evaluation of the Board of Directors' performance at least once every three years to improve the board's performance.

Note 1: The important evaluation indicators for the independence and willfulness of the 2023 certified accountants are listed as follows:

2025 Annual Accountant Independence and Suitability Evaluation Form

(I) Evaluation unit: Taiwan Styrene Monomer Corporation

(II) Year of assessment: 2025

(III) Assessment Date: October 2025

(IV) Evaluation and Appointment of Accounting Firms and CPAs: KPMG Taiwan (CPA Jason Yin and CPA Lin Wu)

(V) Assessment content:

With reference to Article 47 of the Certified Public Accountant Act and Bulletin No. 10 on the Code of Professional Ethics for Accountants of the R.O.C., it is stipulated that:

	Assess compliance
Evaluation Items
	Independence situation

1. There is no direct or material indirect financial interest relationship between the CPAs and the Company.	`■`Yes`□`No
2. There is no significant close commercial relationship between the CPAs and the Company.	`■`Yes`□`No
3. The CPAs had no potential employment relationship at the time of the audit of the Company.	`■`Yes`□`No
4. The CPAs have never had any money loan with the Company.	`■`Yes`□`No
5. The CPAs did not accept any significant gifts or gifts from the Company and its directors and managers (the value of which exceeds the standard of social etiquette).	`■`Yes`□`No
6. The CPAs have not provided audit services to the Company for seven consecutive years.	`■`Yes`□`No
7. The CPAs do not hold any shares of the Company.	`■`Yes`□`No
8. The CPAs themselves, their spouse or dependent relatives, and their audit team did not serve as a director, manager of the Company or have a significant influence on the audit case during the audit period or in the last two years, and also determined that they would not hold the aforesaid positions during the future audit period related duties.	`■`Yes`□`No
9. Whether the CPAs have complied with the standards on independence of the Bulletin on the Code of Professional Ethics for Accountants No. 10, and have obtained the “Declaration of Independence” issued by the CPAs.	`■`Yes`□`No

(VI) Evaluation result:

None of the CPAs appointed by the Company have the above-mentioned circumstances, and both fulfilled the standards of independence and suitability.

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Note 2: The 2025 training for Corporate Governance Officer is as follows:

Da	te	Organizer	Course Title	Hours	The Total Training Hours In The Current Year
Start	Until
2025.07.09	2025.07.09	Taiwan Styrene Monomer Corporation	2025 Cathay Sustainable Finance and Climate Change Summit Forum	3	12
2025.08.28	2025.08.29	Chinese Corporate Governance Association	Greenhouse Gas Management Workshop and Sustainability Promotion Seminar – Kaohsiung Session	9

Note 3: Important information on the operation of Corporate Governance:

(I) Employee rights and interests: the Company is human-oriented, abides by relevant labor laws and regulations, protects the legitimate rights and interests of employees, and strives to establish a complete management system for employee welfare, work safety and health, education and training, etc. The interests and the interests of the Company are combined with each other, resulting in the belief of co-prosperity and coexistence.
(II) Employee care: the Company attaches great importance to the safety and health of employees, provides healthcare and assistance services, employees enjoy health checks, and establishes Welfare Committee and related education and training to improve employee communication.
(III) Investor Relationships: the Company has a spokesperson and an acting spokesperson, responsible for the Company’s external relations communication. Real-time announcement of financial, business and important information on the Company’s website and public information observatory, so that investors can be fully informed the Company’s trends to maximize the interests of shareholders. The Company’s adopts electronic voting to exercise of rights for the shareholders meetings.
(IV) Rights of Stakeholders: The Company’s website has various communication and complaint channels to effectively respond to the questions and suggestions raised by stakeholders, so as to safeguard due legitimate rights and interests.
(V) Implementation of risk management policies and risk measurement standards: The Company has always adopted a preventive policy for risk management. In addition to formulating a strict internal control system in accordance with the law and checking the implementation of internal audits regularly and from time to time, it also purchases related insurances such as property insurance, product transportation insurance and public accident liability insurance to avoid risks.
(VI) Implementation of consumer or customer protection policies: On the consumer or customer first policy, relevant internal regulations are formulated in accordance with relevant laws and regulations for employees to implement.
(VII) The Company purchases liability insurance for directors:
The Company purchases liability insurance for all directors for their legal liabilities in the execution of their business scope.
The Company has insured “Director’s Liability Insurance” with Tokio Marine Newa Insurance Co., Ltd. with an insured amount of USD 5 million. Regarding the main insurance conditions for the insurance period from April 22, 2025 to April 22, 2026, Reported to the Board of Directors on May7, 2025.
(VIII)Risk management policies and implementation: The company's risk management policy is to effectively identify, measure, evaluate, supervise and control various risks, enhance the risk awareness of all employees, and hope to control the risks that may arise within a tolerable level, so as to achieve the balance goal of optimizing and rationalizing risks and rewards and benefits.
(IX) Situation of training for directors: The Company provides relevant courses for directors from time to time in accordance with the regulations of “Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies” The training situation in 2025 is as follows:

Title	Name	Date	Organizer	Course Title	Hours
Chairman	Wen-Yuan Lin	2025.07.09	Taiwan Styrene Monomer Corporation	2025 Cathay Sustainable Finance and Climate Change Summit Forum	6
Director	Joseph Wang	2025.04.24	Chinese Corporate Governance Association	Corporate Governance Essentials: Understanding Hidden Signals in Financial Statements through Case Studies	3
		2025.05.07	Soft-World International Corporation	Analysis of Fraud Techniques and Case Studies on Anti- Money Laundering Regulations (including Insider Trading Awareness)	3
		2025.07.31	Chinese Corporate Governance Association	Sustainability, Risk, and Cybersecurity Issues in the AI Era	3
Director	Tiffany Wang	2025.07.09	Taiwan Styrene Monomer Corporation	2025 Cathay Sustainable Finance and Climate Change Summit Forum	6
Director	Chi-Tai Chen	2025.08.07	Taiwan Institute of Directors	How Companies and Directors/Supervisors Can Avoid Insider Trading Violations	3
		2025.11.16	Chinese Corporate Governance Association	Impact of Recent International Tax Law Changes on Business Operations and Response Strategies	3

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Title	Name	Date	Organizer	Course Title	Hours
Director	Jeff Chen	2025.01.17	Bank of Kaohsiung	Senior Management Training Program on Anti-Money Laundering and Counter-Terrorism Financing	3
		2025.05.12	Senhwa Biosciences, Inc.	Legal Compliance of Information Security Management under Ransomware Threats	3
		2025.05.23	Bank of Kaohsiung	Information Security Strategies in Banking from an ESG Perspective	3
		2025.07.18	Bank of Kaohsiung	Practical Analysis of Workplace Misconduct and Sexual Harassment	2
		2025.08.07	Senhwa Biosciences, Inc.	Strengthening Organizational Resilience through Dual- Track Transformation: AI Governance and Sustainability Governance	3
		2025.09.12	Bank of Kaohsiung	Fair Customer Treatment Principles for Financial Services (including Financial Inclusion and CRPD)	2
		2025.09.26	Taiwan Institute of Directors	Insider Trading Prevention Seminar (2025)	3
Director	Din-Rei Hsu	2025.09.26	Taiwan Institute of Directors	Insider Trading Prevention Seminar (2025)	3
		2025.10.31	Taiwan Styrene Monomer Corporation	Legal Compliance Briefing on Insider Equity Transactions (2025)	3
Director	Kuo-Ching Chang	2025.10.16	Financial Supervisory Commission, R.O.C.	15th Taipei Corporate Governance Forum	6
Independent Director	Chin-Chen Chien	2025.05.07	Soft-World International Corporation	Analysis of Fraud Techniques and Case Studies on Anti- Money Laundering Regulations (including Insider Trading Awareness)	3
		2025.08.07	Taiwan Institute of Directors	How Companies and Directors/Supervisors Can Avoid Insider Trading Violations	3
Independent Director	Jui-Mu Huang	2025.07.01	Taiwan Styrene Monomer Corporation	Investor Relations Management Seminar	3
		2025.07.09	Taiwan Styrene Monomer Corporation	2025 Cathay Sustainable Finance and Climate Change Summit Forum	6
		2025.07.25	Securities and Futures Institute (Taiwan)	Legal Compliance Seminar on Insider Shareholding Transactions (2025)	3
		2025.08.13	Hi-Lai Foods Co., Ltd	Green and Transition Finance: Policies, Practices, and Future of Green Securities	2
Independent Director	Tzu-Meng Liu	2025.05.05	Chinese Corporate Governance Association	Enterprise Risk Management	3
		2025.07.31	Chinese Corporate Governance Association	Sustainability, Risk, and Cybersecurity Issues in the AI Era	3
Independent Director	Pei-Ju Chung	2025.07.25	Taiwan Institute of Directors	Insider Trading Prevention Seminar (2025)	3
		2025.09.26	Securities and Futures Institute (Taiwan)	Insider Trading Prevention Seminar (2025)	3

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2.3.4 Composition, responsibilities and operation of the Remuneration Committee

1. Information of the members of Remuneration Committee

March 27, 2026

				Number of members
				who are concurrently
	Condition			members of the
				compensation and
Title		Professional qualifications and experience	Independence situation
				remuneration

	Name			committees of other
				public offering
				companies
Independent Director (Convener)	Chin-Chen Chien	1. A public and private college or university accounting professor certificate with the work experience required for corporate business such as business, legal affairs, or accounting and related disciplines 2. Work experience: Independent Director of Ton Yi Industrial Corp., Gloria Material Technology Corp., S-Tech Corp.; Professor, Department of Accounting, NCKU	I, my spouse, or relatives within the second degree of kinship do not serve as directors, supervisors or employees of the Company or its affiliated companies; do not hold shares in the Company; do not serve as directors, supervisors or employees that have a specific relationship with the Company; the amount of remuneration obtained from providing business, legal, financial, accounting and other services to the Companyor its affiliates in the last 2years	1
Independent Director	Jui-Mu Huang	1. Work experience required for corporate business such as business, legal affairs, finance, banking or business management capabilities 2. Work experience: General manager of CHANG HWA COMMERCIAL BANK, LTD.; Deputy general manager, general auditor of Bank of Taiwan; Independent Director of United Fiber Optic Communication Inc.	As above	1
Independent Director	Tzu-Meng Liu	1. Work experience required by the Company’s business, such as business, legal, financial, accounting 2. Work experience: CPA, Director and Partner of Audit Services Department of PwC; Associate professor and adjunct expert,NCKU	As above	1
Independent Director	Pei-Ju Chung	1. Work experience required by the Company’s business, such as business, legal, financial, accounting or business management capabilities 2. Work experience: Executive assistant of Parkview Hotels & Resorts and Jgallop Tech Inc.	As above	0

Information on the Operation of the Remuneration Committee
(1) The number of the Remuneration Committee meetings held in the most recent year (2025) was 4 meetings [A]. The attendance of the members was as follows:

		No. of meetings attended in	No. of meetings attended	In-person attendance rate
Title	Name				Remarks
		person [B]	by proxy	(%) [B/A]

Convener	Chin-Chen Chien	4	0	100%	-
Member	Jui-Mu Huang	4	0	100%	-
Member	Tzu-Meng Liu	4	0	100%	-
Member	Pei-Ju Chung	3	1	75%	-

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Other information required to be disclosed:

I. If the Board of Directors does not accept, or amends, and recommendation of the Remuneration Committee, specify the board meeting date, meeting session number, content of the recommendations, the outcome of the resolution(s) of the Board of Directors , and the measures taken by the Company with respect to the opinions given by of the opinions of the Remuneration Committee (e.g., if the salary/ remuneration approved by the Board is higher than the recommendation of the Remuneration Committee, specify the difference(s) and reasons): None.
II. With respect to any matter for resolution by the remuneration committee, if there is any dissenting or qualified opinion of a committee member that is on record or stated in writing, specify the remuneration committee meeting date, meeting session number, content of the motion, the opinions of all members, and the measures taken by the Company with respect to the members’ opinion.: None.

III.Discussions and resolutions of the Remuneration Committee, and the Company’s handling of members’ opinions:

Date (Term)	Contents	Resolution result	The Company’s handling of the committee’s opinions
2025.09.18 3rdmeeting of the 6thTerm	Proposed Revisions to the Company's Policy on Employee Compensation Distribution	The participating members agreed to pass the proposal	Handle in accordance with the resolution
	2025 Manager Compensation Adjustment Proposal
2025.12.04 4thmeeting of the 6thTerm	2025 Annual Manager Performance Evaluation and Performance Appraise	The participating members agreed to pass the proposal	Handle in accordance with the resolution
	2026 Work Plan of the Company's Remuneration Committee

3. Remuneration Committee Terms of Reference

The Compensation and Remuneration Committee shall be handled in accordance with the Company’s “Organizational Regulations of the Remuneration Committee.” It shall, with the attention of a good manager, faithfully perform the following functions and powers, and submit the suggestions to the Board of Directors for discussion:

(1) Review this regulation from time to time and propose amendments.
(2) Formulate and regularly review the policies, systems, standards and structures for the annual and longterm performance goals and remuneration of directors and managers.
(3) Regularly evaluate the achievement of the performance objectives of the directors and managers of the Company, and determine the content and amount of their individual salaries based on the evaluation results obtained from the performance evaluation standards.
(4) The performance evaluation and remuneration of directors and managers should refer to the usual level of payment in the industry, and consider the time invested by the individual, the responsibilities he undertakes, the achievement of personal goals, the performance of other positions, and the Company’s recent salary for the same position. Remuneration, which is based on the achievement of the Company’s short-term and long-term business objectives, the Company’s financial status, etc., to evaluate the rationality of the connection between individual performance and the Company’s operating performance and future risks.
(5) Directors and managers should not be led to engage in behavior that exceeds the Company’s risk appetite in pursuit of remuneration.
(6) The proportion of short-term performance bonuses for directors and senior managers and the timing of payment of some variable salaries should be determined in consideration of industry characteristics and the nature of the Company’s business.
(7) Members of this committee shall not participate in discussions or vote on their personal salary and remuneration decisions.

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2.3.5 Composition, responsibilities and operation of the Nomination Committee

In order to improve the functions of the Board of Directors of the Company and strengthen the management mechanism, the “Nomination Committee” was established by a resolution of the Board of Directors on March 24, 2021. According to the organization rules of the Company’s nomination committee, the committee is composed of at least three directors nominated by the Board of Directors, of which more than half of the independent directors participate. At present, the Company’s nomination committee consists of three independent directors.
Responsibilities of the Nomination Committee of the Company:
(1) Formulate establishment standards and membership qualifications for each committee under the Board of Directors, and recommend their organizational rules, and propose amendments to the Board of Directors in due course.
(2) Review the qualifications and potential conflicts of interest of candidates for each committee member, and recommend new members and convener candidates for each committee to the Board of Directors.
Professional qualifications, experience and operation of members of the Nomination Committee
(1) The Nomination Committee of the Company has four members, all of which are composed of independent directors.
(2) The number of the Nomination Committee meetings held in the most recent year (2025) was 1 meetings

[A]. The attendance of members was as follows:

			The actual	Number of
					Actual attendance
Title	Name	Professional qualifications and experience	number of seats	delegated		Remark
					rate (%) [B/A]
			(column) [B]	attendance

Convener	Chin-Chen Chien	A public and private college accounting professor certificate with the work experience required by the Company’s business, such as business, lega affairs, accounting and a relevant department required by the Company’s business	l 1	0	100%	-
Member	Jui-Mu Huang	Work experience required for corporate business such as business, legal, financial or business management capabilities	1	0	100%	-
Member	Tzu-Meng Liu	Work experience required for corporate business such as business, legal, financial, accounting or business management capabilities	1	0	100%	-
Member	Pei-Ju Chung	Work experience required for corporate business such as business, legal, financial, accounting or business management capabilities	1	0	100%	-
Other matters to be recorded: Under the authorization of the board of directors, the committee shall, with the attention of good managers, faithfully perform the listed functions and powers, and submit the proposed recommendations to the board of directors for discussion. The implementation is as follows: Note: Members of the Nomination Committee for the above proposals have dissenting opinions, reservations or major suggestions: None. Date (Term) Contents Resolution result The Company’s handling of the committee’s opinions 2025.11.12 2ndmeeting of the 3rdTerm Resignation of the General Manager Succession Planning Report for the Company's Board Members and Key Management The participating members agreed to pass the proposal Handle in accordance with the resolution Appointment of the General Manager Proposal on the Annual Training Program Planning and Implementation for the Company's Directors

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

	Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Differences and
				Reasons With The
				Code Of Practice
Project Promoted				For Sustainable
	Yes	No	Summary
				Development Of

				TWSE/TPEx-Listed
				Companies
I. Has the Company established a governance framework for promoting sustainable development, and established an exclusively (or concurrently) dedicated unit to be in charge of promoting sustainable development? Has the Board of Directors authorized senior management to handle related matters under the supervision of the board?	V		1. In order to implement the practice and operation of corporate social responsibility, the company established the "Corporate Social Responsibility Committee" with the approval of the Board of Directors in 2017, and renamed "Sustainable Development Committee" in 2022.The Company's "Sustainable Development Committee" is the core organization to promote sustainable governance. The chairman serves as the steering committee and the general manager serves as the chairman of the committee. The committee has 4 groups in total: "Corporate Governance", "Environmental Sustainability", "Raw Materials and Products" and "Employee and Social Care". The corporate governance group serves as the executive secretary, responsible for ESG planning and promotion, and coordinates and integrates matters of each group to achieve annual goals. In 2025, the "Regulations on the Establishment of the Sustainability Development Committee" was revised in accordance with the latest regulations of the competent authorities, and the were newly formulated to continue to strengthen and implement the Company's sustainable governance. 2. The Company's 9th sustainability report was issued in August 2025 after being approved by the 6thmeeting of the 16thBoard of Directors, and the 2025annual sustainable development planning kick-off meeting was held on December 9 of the same year. It referred to relevant government regulations and international trends to deepen sustainable governance while also focusing on development, with a view to achieving corporate sustainability responsibilities of diversity, fairness and inclusion. 3. In response to the Financial Supervisory Commission’s release of the ‘Taiwan Roadmap for Alignment with IFRS Sustainability Disclosure Standards,’ the Company has established a cross-departmental IFRS Sustainability Disclosure Standards task force under the Sustainability Development Committee and formulated an implementation plan. Going forward, the Company will continue to make reference to international standards, integrate sustainability information with financial reporting, facilitate investors’ understanding of the Company’s sustainable value, and respond to stakeholders’ expectations. 4. Each working group of the Sustainability Development Committees' implementation results in 2025 : a."Corporate Governance": The Company's 16thBoard of Directors has a total of 11 members, including 7 general directors (1 female director) and 4 independent directors (1 female independent director), with independent directors accounting for more than 1/3 of the seats. In order to implement the sustainable development of the company, protect the legitimate rights and interests of shareholders, and take into account the interests of other stakeholders, the Company's Board of Directors and operation team manage in a manner that is in the best interests of the company and all shareholders. Through effective supervision mechanisms and regular annual arrangements. training courses to continue to promote and strengthen corporate governance. b."Environmental Sustainability”: The Company follows the responsible care system, commits to regularly evaluate execution performance, and abides by various government regulations to ensure continuous improvement of chemical management and health, safety and environmental protection issues to achieve the development goal of environmental sustainability. 2025 implementation results include:`○`1 Energy Management: The average consumption rate of industrial water 3.266 cubic meters/metric tons. Styrene Monomer meets the target`.`	No major differences.

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			Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Differences and
						Reasons With The
						Code Of Practice
Project Promoted						For Sustainable
	Yes	No	Summary
						Development Of

						TWSE/TPEx-Listed
						Companies
			The average coal consumption rate is 0.1570 metric tons per metric ton of steam.`○`2 Environmental Management: The emissions of flue gas (including Sox, Nox, and particulate matter) and the discharge of wastewater also meets the target.`○`3 Greenhouse Gas Management: CO2reduction reaches approximately 1098.21 metric tons meets the target. c."Raw Materials and Products": The Company strictly controls product quality and attaches great importance to customer opinions, and continues to improve products and services. In 2025, customer satisfaction remained at97.6 points, which is in line with the annual key management goals. Since the Company's important operating bases include Taipei and Kaohsiung, we tend to purchasing from domestic and local suppliers under similar supply conditions. In 2025, the proportion of local procurement of raw material benzene remained at79%, and the proportion of local procurement of raw material ethylene remained at 100 %; while for other projects, the local procurement ratio of the head office increased to98%, and the Kaohsiung plant maintains 100% local procurement. d."Employee Care and Social Responsibility": The Company is committed to creating a good working environment to achieve the goal of personal growth with company development. A total of 4 labor-management meetings were held in 2025 with group insurance, health examinations, education and training, and travel allowance were provided. The Company also abides by relevant regulations such as human rights policies and anti-discrimination. We implements good community negotiation, and continues to respond to the disadvantaged in society.
II. Does the Company conduct risk assessments of environmental, social and corporate governance (ESG) issues related to the Company’s operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies? (Note 2)	V		1. The scope of this disclosure includes performance data on sustainable development and business results of the Company's major operations in Taiwan, mainly the Taipei headquarters and Kaohsiung Plant, from January to December of 2025, in accordance with the significance, sustainability context, stakeholder inclusiveness, and completeness disclosure principles of the Global Reporting Initiative (GRI) guidelines, to ensure the Company's long-term operational capabilities, with risk management covering all operational activities. For the year 2025, the Company collected value chain and industry-related issues, summarized 21 sustainability issues for positive and negative impact assessment, established a total of 12 major themes, strengthened management, reported and disclosed in the sustainability report. 2. The Sustainable Development Committee conducts identification and assessment of environmental, social, and corporate governance risks each year, taking into account the level of stakeholder concern and the impact on the Company's operations, to establish sustainable business goals and continuously optimize them through rolling reviews. The Internal Audit Office formulates the audit plan for the following year based on the risk assessment results by the end of December each year, and implements audit operations after obtaining approval from the Board of Directors, in order to detect potential risks early and take corrective and preventive measures. 3. In the year 2025, the Company has achieved the objectives and measures for risk items identified in relation to ESG in the ISO 9001, ISO 14001, ISO/CNS 45001,and ISO/CNS 14064-1 management systems. A summaryis as follows:			No major differences.
			Major Issues	Project	Description
			Environment	Environmental impact and management	1. Identify and assess risks that may have significant impacts on operational activities due to global environmental changes, and establish management mechanisms and action

-36-

				Implementation(Note 1)	Implementation(Note 1)	Differences and
						Reasons With The
						Code Of Practice
Project Promoted						For Sustainable
	Yes	No		Summary
						Development Of

						TWSE/TPEx-Listed
						Companies
					plans to achieve sustainable development of the company. 2. Implement pollution control through process safety management systems to effectively reduce environmental impacts. 3. Establish environmental protection management procedures are implemented annually in accordance with relevant regulations. The effective operation of the system is ensured through internal and external audits of the environmental management system, thereby reduce environmental risks. 4. Adopt and consistently implement climate-related financial disclosure frameworks to manage risks associated with climate change, conduct rolling reviews of climate change risks and potential impacts on the company. 5. Obtain certifications for environmental management system (ISO 14001) and greenhouse gas inventory verification system(ISO/CNS14064-1) on a regular basis. 6. Based on greenhouse gas emission statistics, actively promote energy conservation and carbon reduction measures to effectively reduce the company's direct and indirect greenhousegas emissions.
			Society	Occupational Safety	1. Environmental pollution prevention, control, and maintenance of work environment and employee health are carried out in accordance with regulatory requirements, and environmental safety and health management, emergency response, and fire facility management procedures are established in compliance with ISO/CNS 45001 certification to ensure effective system operation. 2. Regular safety and health education and training are scheduled, and health seminars are arranged periodically to promote health services and preventive measures, and cultivate employees' emergency response and self-safety management capabilities.
				Product Safety	1. The company's raw material procurement complies with procurement specifications, and products are shipped in accordance with company product specifications, and product marketing and labeling also comply with regulations and international standards. 2. Safety management policies are implemented throughout the

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Implementation [ (Note 1)] Differences and
Reasons With The
Code Of Practice
Project Promoted For Sustainable
Yes No Summary
Development Of
TWSE/TPEx-Listed
Companies
product manufacturing process to
ensure compliance with industrial
safety requirements at all stages.
Suppliers and customers are required
to follow the strictest transportation
safety regulations during the
transportation of raw materials and
products to ensure the safest method
of product transportation.
1. The company has established a code
of conduct for integrity in business
operations, and when entering into
contracts with suppliers, customers,
and other business counterparts, the
terms include compliance with the
company's code of conduct for
Integrity management integrity in business operations.
and regulatory 2. Internal control mechanisms are
compliance implemented to identify relevant
laws and regulations that the
company needs to follow, ensuring
that company employees and
operational procedures comply with
established systems and norms, and
continuous compliance through
internal and external audits.
1. Annual training courses are arranged
for company directors to update their
knowledge on the latest laws,
policies, and international trends.
Strengthen the
Corporate 2. Directors and supervisors liability
operation of the board
Governance insurance is provided for all directors
of directors and the
to protect their interests and enable
functions of directors
them to carry out their duties with
confidence, ensuring stable business
operation and development of the
company.
1. The company values the rights and
opinions of stakeholders and has a
dedicated section on the company's
website for stakeholders as a
communication channel,
continuously reviewing and
improving corporate governance
Improve stakeholder through understanding their
communication concerns and issues.
2. Through a dedicated communication
channel with stakeholders, the
company promotes smooth
communication of internal and
external opinions and information,
meeting the needs of stakeholders in
a timely manner.
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	Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Differences and
				Reasons With The
				Code Of Practice
Project Promoted				For Sustainable
	Yes	No	Summary
				Development Of

				TWSE/TPEx-Listed
				Companies
III. Environmental issues (I) Has the Company set an environmental management system designed to industry characteristics? (II) Does the Company endeavor to use energy more efficiently and to use recycled materials with low environmental impact? (III) Has the Company evaluated the potential risks and opportunities posed by climate change for its business now and in the future and adopted relevant measures to address them?	V V	V	(I) The Company follows the EU REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) chemical regulations and relevant domestic specifications, and provides customers with the highest quality and safe products (Styrene Monomer and PDEB). Continue to implement ISO 9001, ISO 14001, ISO/CNS45001 and ISO/CNS14064-1 systems, and ensure the applicability and effectiveness of the management system through third-party verification every year. Certification Program Version Validity period ISO 9001QualityManagement System 2015 2028/10/29 ISO 14001 Environmental Management System 2015 2027/01/02 ISO 45001 International Occupational Safety and Health Management System 2018 2027/11/14 CNS45001 Taiwan Occupational Safety and Health Management System 2018 2027/11/14 ISO 14064-1(CNS14064-1) Greenhouse Gas Inventory Verification System 2006 Note Remarks: (1) Greenhouse gas emissions are verified once a year, and the 2025emissions are verified on May, 2026. (2) The Company is a regulated entity by the Ministry of Environment, and the verification version of the greenhouse gas inventory verification system is mainly based on the Ministry of Environment version (2006 edition). (II) The products produced by Taiwan Styrene Monomer Corporation, Ltd. are bulk raw materials of petrochemical plastic products, and are not suitable for the use of recycled raw materials. (III) In recent years, global warming has caused a huge impact on climate change. Abnormal weather has caused frequent floods and droughts in various places. Economic losses are difficult to calculate. In severe cases, business operations will be affected. The scope of environmental protection and management has expanded from traditional pollution control to climate change (TCFD) impact reduction, conservation and sustainable development, in order to respond to the global trend of energy conservation and carbon reduction, Taiwan Styrene Monomer Corporation has started to implement various energy conservation measures. In recent years, in line with the government’s greenhouse gas reduction policy, it has promoted effective energy conservation and carbon reduction solutions through process improvement and energy demand management, while also moving towards carbon reduction targets. The Company implements ISO 14064-1 Greenhouse Gas Inventory and Climate Change Financial Disclosure, and through risk management thinking, rolls back the impact of climate change risks and opportunities on The Company. After identification, the potential risks and opportunities of climate change are as follows: 1. Transformation risks - policy and regulatory risks As one of the first batch of entities subject to carbon fee collection by	No major differences. No major differences. No major differences.

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	Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Differences and
				Reasons With The
				Code Of Practice
Project Promoted				For Sustainable
	Yes	No	Summary
				Development Of

				TWSE/TPEx-Listed
				Companies
(IV) Did the Company collect data for the past two years on greenhouse gas emissions, volume of water consumption, and the total weight of waste, and establish policies for greenhouse gas reduction, reduction of water consumption, or management of other waste?	V		the government, the Company has been well prepared and has been actively promoting relevant response measures. The Kaohsiung plant has installed more renewable energy power generation equipment than required, with a mandatory capacity of 720kW and an actual installed capacity of 781Kw, effectively increasing the proportion of renewable energy use and reducing energy carbon emissions. At the same time, the Company has planned to submit a voluntary reduction plan, using technical benchmarks to specify the reduction rate as the annual greenhouse gas emission target for 2030. From a financial perspective, this policy has led to an increase in fixed assets but a decrease in operating costs. The related investment has limited impact on the Company's overall operations and is within a controllable range. 2. Physical Risk – Immediate Due to the increase in extreme weather events, the frequency of typhoons and rainstorms has increased, which may cause flooding in the Kaohsiung plant area, affecting the operation of the plant area. After evaluation, it may cause financial losses to the Kaohsiung plant. The Kaohsiung plant has completed the installation of waterproof gates, Possible financial impact on fixed assets (waterproof gate equipment) so it has an impact on overall operations. The degree does not have much impact. 3. Resource Efficiency Opportunities In addition to cooperating with the government’s water conservation policy, the Company established a wastewater treatment and recycling system to reduce the dependence on raw water resources and reduce wastewater discharge, which may cause a slight increase in operating costs to finance, but it will not have much impact on the overall operational impact. 4. Energy Source Opportunities Due to the high proportion of energy costs in The Company’s manufacturing process, The Company actively develops renewable energy. The Company has completed the installation of renewable energy power generation equipment. It can reduce energy costs, and has the opportunity of energy sources. The possible impact on finance is the increase of fixed assets (solar equipment), the increase of intangible assets (corporate reputation), and the reduction of operating costs (cost of electricity), but the impact on the overall operation will not be affected constitute too much influence. (IV) The Company, Taiwan Styrene Monomer Corporation in accordance with the management measures for the inventory and registration of greenhouse gas emissions announced by the Ministry of Environment, and the international standard for greenhouse gases ISO 14064, conducts the inventory and registration of the emission of the whole plant, and is verified by an impartial third-party verification unit: Bureau Veritas Certification Taiwan. Veritas will conduct verification, and upload the emission inventory and report, verification statement and summary report to the National Greenhouse Gas Platform. 1. Greenhouse gas net emissions reduction target: (1) Short term: Reduce emissions by 10% by 2025 compared to the 2018 base year. (2) Medium term: Reduce emissions by 30% by 2030 compared to the 2018 base year. (3) Long term: In line with the country’s long-term reduction goals, we aim to achieve net zero emissions by 2050. 2. Reduction measures in 2025:	No major differences.

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				Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Differences and
								Reasons With The
								Code Of Practice
Project Promoted								For Sustainable
	Yes	No		Summary
								Development Of

								TWSE/TPEx-Listed
								Companies

			Gr	eenhouse gas emission statis	tics of the Company’s Kaohsiung plant		in recent years
				Project	2023	2024	2025
					Emission equivalent	Emission equivalent	Emission equivalent
			Scope 1 GHG emissions (metric tons CO2e)		174,823.1376	251,339.8492	290,191.6119
			Scope 2 GHG emissions (metric tons CO2e)		25,923.7536	30,080.1965	26,228.5158
			Scope 1 + Scope 2 (metric tons CO2e)		200,746.891	281,420.046	316,420.128
			Scope 1 + Scope 2 after deductingout-sale steam		-	266,114.298	282,607.114
			Annual output of SM (tons)		269,265.116	292,539.223	276,842.963
			Greenhouse gas emission intensity (ton CO2e/ton SM)		0.746	0.91	1.02

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Implementation [ (Note 1)] Differences and
Reasons With The
Code Of Practice
Project Promoted For Sustainable
Yes No Summary
Development Of
TWSE/TPEx-Listed
Companies
Remark:
(1) Scope 1 refers to emission sources directly owned or controlled by the
Company, including stationary combustion sources, process emissions,
mobile combustion sources in transportation and fugitive emission sources.
Emission sources directly owned or controlled by the company, including
stationary combustion sources, process emissions, mobile combustion
sources in transportation, and fugitive emission sources.
(2) Scope 2 refers to indirect energy emissions (such as purchased steam and
electricity). The emission equivalent in 2023 uses the electricity coefficient
of that year as 0.494kg CO2e/kWh, the emission equivalent in 2024 uses
the electricity coefficient of that year as 0.474kg CO2e/kWh, the emission
equivalent in 2025 uses the electricity coefficient of that year as 0.424kg
CO2e/kWh, and the emission equivalent in 2025 continues to use the
electricity coefficient of 2025.The Company’s greenhouse gas emission
calculation based on the following hierarchy for selecting emission factors:
Priority is given to emission factors derived from direct measurement or
mass balance calculations. If such data are unavailable, nationally published
emission factors are applied. In the absence of applicable national factors,
internationally recognized emission factors are used. Additionally,
reference is made to the “Greenhouse Gas Emission Factors” table
announced by the Environmental Protection Administration on February 5,
2024 (Official Letter No. 1139101231).
The Global Warming Potential (GWP) values are adopted from the Fifth
Assessment Report (AR5) published by the Intergovernmental Panel on
Climate Change.
(3) The greenhouse gas emissions in 2025 were verified by the third-party unit
BV (Taiwan Weili International Quality Assurance Verification Co., Ltd.) of
our Kaohsiung plant. The data has been Verification is scheduled to be
conducted between April and May, 2026. The source of fuel activity data
for stationary source equipment is the use of direct measurements.
2. The Kaohsiung plant is located in Lin Yuan District, Kaohsiung City.
According to the Water Risk Assessment Tool developed by the
World Resources Institute, the area where the company is located
is not considered a high water-stressed area. In 2025, the water
intake of Kaohsiung Plant was 1,328 million liters, and the water
recycling volume of the process 111,195 million liters, water
recovery rate of 98.82%. Water intensity 0.00373 million
liters/metric ton – SM production.
Water consumption statistics of the Company’s Kaohsiung plant in recent years
Unit: million liters
Project 2023 2024 2025
Water intake 1201.89 1307.22 1327.59
Displacement 232.12 236.48 234.06
Water consumption 969.77 1,070.74 1,093.54
Steam for sale 75.82 69.07 109.32
Evaporation loss 893.95 1001.67 984.21
Process water circulation 100,483.31 114,623.97 111,195.22
Process water recovery rate 98.82% 98.87% 98.82%
SM annual output (ton) 88.73% 91.03% 90.97%
Water consumption per unit product
269,265 292,539 276,843
(million liters/metric ton SM)
Remark:
1. Beginning in 2025, reporting will be based on the verified results of the recycling
rate.
2. The source of new water is the Fengshan Reservoir.
3. The usage of raw water, purchased steam, water intake and steam sales are the
information provided by the monthly accounting report, and the data source is
obtained from the measurement and statistics of the in-plant flowmeter.
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			Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Differences and
								Reasons With The Code Of Practice For Sustainable Development Of TWSE/TPEx-Listed Companies
Project Promoted
	Yes	No	Summary


			4. The source of water discharge data is industrial center wastewater bills. 5. Water consumption = water intake - water discharge. 6. Evaporation loss =Evaporation and drift losses, together with process and domestic water consumption losses, are estimated based on the cooling tower circulation volume. 7. The process water circulation volume is calculated based on the designed circulation volumes of steam and cooling water used in the process, and is adjusted according to the actual volumes for each year. 8. Process water recovery rate (R1) = process water circulation volume / (water intake - externally sold steam + process water circulation volume). 9. Process water recycling rate (R2) = (Process water circulation volume − Cooling tower circulation volume) / (Water intake + Process water circulation volume − Cooling tower circulation volume). 10. Water consumption per unit product is based on the annual average consumption rate derived from accountingstatistics. 3. The waste produced by the Company’s Kaohsiung Plant is general industrial waste and no hazardous industrial waste. The treatment methods include recycling, incineration and landfill. The waste in the factory is collected, stored and disposed of according to the provisions of the industrial waste storage, removal and treatment methods and facility standards. All the waste is entrusted to qualified cleaning companies for treatment. At the same time, it included in the factory’s “Environmental Protection Management Procedures” and shall be implemented in accordance with the Waste Disposal Law and the relevant subsidiary regulations. The total weight of waste generated in 2025 was11,387.447 tons, of which the total amount of waste transferred during disposal 9,058.12 tons, the total amount of directly disposed waste is300.42 tons,and the waste recyclingrate is 97.36%.
			2025waste disposal statistics of the Company’s Kaohsiung plant Unit: metric tons

			Project	On-site disposal		Offsite disposal
				Weight	How to handle	Weight	How to handle
			General garbage	-	-	28.89	Incineration (excluding energy recovery)
			Waste wood	-	-	3.03
			Waste plastics	-	-	2.2
			sludge	-	-	0.18
			Waste catalyst	-	-	239.71	Buried
			Spent ion exchange resin			0
			Sludge	-	-	26.41
			Fly ash	-	-	7,438.48	Recycling
			Bottom ash	-	-	1,319.22
			Defective product heavy industry	2,329.327	Recycling	-	-
			Total	2,329.327		9,058.12
			4. To align with global efforts to address climate change, the "Climate Change Adaptation Act" was passed in the third reading by the Legislative Yuan, which sets a national long-term greenhouse gas reduction target of achieving net zero emissions by 2050. The company is committed to implementing corporate sustainability responsibilities by continuously promoting action plans through our Sustainability Development Committee, adopting climate- related financial disclosures (TCFD), conducting greenhouse gas

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				Implementation(Note 1)	Implementation(Note 1)	Differences and
						Reasons With The
						Code Of Practice
Project Promoted						For Sustainable
	Yes	No		Summary
						Development Of

						TWSE/TPEx-Listed
						Companies
				inventories and third-party verifications since 2015. We have set targets to reduce greenhouse gas emissions 30% by 2030 with the standard 2018. Through carbon management, in line with our corporate culture of environmental friendliness. Sustainable performance 2025 Performance statement Greenhouse gas emissions continue to decrease The steam turbine driving the lubrication oil system of Compressor PC-271 was retrofitted to an electric motor drive, reducing steam consumption and lowering boiler fuel usage. On an annual basis, this modification reduces natural gas consumption by 554 Km³/year, increases electricity consumption by 120 MWh/year, and results in a CO₂ emissions reduction of 1,098.21 metric tons. No impact on water sources The water intake of the Kaohsiung plant is 1,328 million liters, which only accounts for approximately 1.82% (<5%) of the daily industrial water supply from Fengshan Reservoir, which has not affected the water source due to water intake. The water recovery rate meets the goal The Kaohsiung plant's process water recycling volume is 111,195 million liters, with a water recoveryrate of 98.82% The recycling rate of waste over 90% The total weight of waste generated was 11,387.447 tons, the recycling rate of waste was 97.36%. No excess emissions The pollutant emission concentration is in line with the commitment value of the factory, and there is no discharge exceeding the standard. The total amount of environmental protection expenditure within 3 years is over 170,000 thousand The total amount of environmental protection expenditure is 68,998 thousand. The cumulative total investment amount reached NT$170 million.
				Sustainable performance	2025 Performance statement
				Greenhouse gas emissions continue to decrease	The steam turbine driving the lubrication oil system of Compressor PC-271 was retrofitted to an electric motor drive, reducing steam consumption and lowering boiler fuel usage. On an annual basis, this modification reduces natural gas consumption by 554 Km³/year, increases electricity consumption by 120 MWh/year, and results in a CO₂ emissions reduction of 1,098.21 metric tons.
				No impact on water sources	The water intake of the Kaohsiung plant is 1,328 million liters, which only accounts for approximately 1.82% (<5%) of the daily industrial water supply from Fengshan Reservoir, which has not affected the water source due to water intake.
				The water recovery rate meets the goal	The Kaohsiung plant's process water recycling volume is 111,195 million liters, with a water recoveryrate of 98.82%
				The recycling rate of waste over 90%	The total weight of waste generated was 11,387.447 tons, the recycling rate of waste was 97.36%.
				No excess emissions	The pollutant emission concentration is in line with the commitment value of the factory, and there is no discharge exceeding the standard.
				The total amount of environmental protection expenditure within 3 years is over 170,000 thousand	The total amount of environmental protection expenditure is 68,998 thousand. The cumulative total investment amount reached NT$170 million.
IV. Social issues (I) Has the Company formulated relevant management policies and procedures in accordance with relevant laws and regulations and international human rights conventions?	V		(I) The Company in order to fulfill its corporate social responsibilities and implement human rights protection, the Company abides by the laws and regulations of the locations where it operates, agrees with and supports the United Nations’ Universal Declaration of Human Rights, the Global Compact, and the International Labor Organization Convention. Violations and violations of human rights fully reflect the responsibility to respect and protect human rights, treat and respect all employees, contract workers, temporary staff and customers with dignity, and continue to enhance and improve the management of human rights-related issues. The Company attaches great importance to harmonious and good labor relations and smooth communication channels for employees. The Company has set up a complaint handling committee and an investigation team in accordance with the Gender Equality Act, and has formulated “Sexual Harassment Prevention and Management Operational Procedures,” as well as related measures and procedures for handling employee complaints. During the reporting period, no employee reported any incident of discrimination, sexual harassment or violation of labor rights.			No major differences.

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				Implementation(Note 1)		Differences and
						Reasons With The Code Of Practice For Sustainable Development Of TWSE/TPEx-Listed Companies
Project Promoted
	Yes	No		Summary


				2025 Implementation Policy
			Policy	Practice	Influence Object
			Eliminate unlawful discrimination to reasonably secure job opportunities	The Company creates a good environment for the career development of employees, formulates personnel management rules and regulations, and evaluates performance and promotion based on job performance and development potential, sexual orientation, age, marriage, appearance, physical and mental disabilities,shall be treated differently.	All employees
			Prohibit child labor	The Company has formulated work rules. In order to ensure compliance with corporate social responsibility and ethical standards, all recruited staff are adults over the age of 18, and child labor isprohibited.	All employees
			Prohibition of forced labor	The Company has formulated work rules and shall not use any form of slavery or coercion to force employees to perform involuntary labor.	All employees
			Provide a safe, hygienic and healthy working environment	In addition to the prevention and control of environmental pollution, as well as the maintenance of the working environment and the health of employees, operating procedures such as environmental safety and health management, emergency response and firefighting facility management are formulated in accordance with government regulations, and have passed ISO/CNS 45001 (occupational safety and health management system) certification to ensure the efficient operation of the system. Including the prevention of occupational disasters through hazard identification, risk management, occupational safety performance, health promotion plans, employee health management, and safety and health education and training to achieve a healthy workplace. The Taipei head office conducts employee health checks every year and a half, and the Kaohsiung Plant conducts employee health checks every year.	All employees
			Support union operations	The Company has established an industrial union and signed a group agreement, which is an independent labor organization to ensure employees’ rights of association and negotiation. Regular labor–management meetings are held, and any issues related to labor–management relations are fully communicated through agreement between labor and management, so there are no disputes.	All employees
			Regularly review and evaluate relevant systems and actions	The administration office of the head office and the factory administration team review the Company’s “work rules” and “promotion and transfer measures” and other human rights-related rules and regulations every year.	All employees
			Anti-Corruption, Prohibition of Bribery and Bribery	In order to strengthen the ethical standards of behavior of the Company’s internal staff and implement honest management, we have established “Code of Ethics,” “Work Rules” and “Code of Integrity Management” within the Company. The contents include preventing conflicts of interest and avoiding self-interest Opportunities, confidentiality obligations,fair dealing, protection and	All employees

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				Implementation(Note 1)		Differences and
						Reasons With The
						Code Of Practice
Project Promoted						For Sustainable
	Yes	No		Summary
						Development Of

						TWSE/TPEx-Listed
						Companies
				proper use of company assets, compliance with laws and regulations, encouragement to report any illegal or violation of the Code of Ethics, and disciplinary measures. This code will be implemented after being approved by the Board of Directors, and sent to independent directors and reported the shareholders’ meeting, communicated with employees and the anti-corruption policies publicized.
			Respect privacy and implement information security	The Company has formulated the “Personal Data Protection Management Measures” and combined with the “Work Rules” to strengthen the Company’s management of data confidentiality; the information security section is aimed at different information operations such as entities, networks, operating platforms, data management, application systems, and operating procedures. All levels are controlled by security level. The Company also implements information security policy tools (such as firewalls, intrusion detection systems, antivirus software, mail filtering) to achieve the effectiveness of information control.	All employees
			Human rights related training and performance: Human rights-related training content includes prohibition of forced labor, prohibition of child labor, anti-discrimination, anti-harassment, implementation of working hours management, protection of humane treatment, and provision of a healthy and safe working environment; through publicity and announcements, employees can understand how employees at all levels perform their duties. During the process, we have the responsibility to help prevent the occurrence of illegal workplace violations, and provide a complaint hotline to create a friendly working environment. Provide health promotion publicity, labor safety hygiene and fire safety training, first aid training, etc. The 2025annual performance is listed as follows: 1. To implement human rights and gender equality, Taiwan Styrene Monomer Corporation employs employees based solely on professional ability and experience, and has never been determined by race, ideology, religion, sect, place of origin, place of birth, gender, marriage, constellation, blood type, physical or mental obstacles, etc. are considered differently. During the reporting period, the Company did not have any incidents involving violations of the rights of indigenous peoples. 2. It is indeed handled in accordance with relevant anti-discrimination laws and regulations, and no employee reported being discriminated against. 3. The Company does not employ or use child labor, and we have not received any reports of forced labor from our employees. There have been no labor disputes between labor and management. 4. We regularly arrange health checks for our employees. In 2025, a total of 27 employees at the Taipei head office participated in the general health examination, the Kaohsiung plant will have a total of 149 general health checks and 57 special health checks There were no employees identified as requiring third or fourth level health management, and there have been no reported cases of occupational diseases.

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	Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Differences and
				Reasons With The
				Code Of Practice
Project Promoted				For Sustainable
	Yes	No	Summary
				Development Of

				TWSE/TPEx-Listed
				Companies
(II) Has the Company established and implement reasonable employee welfare measures (include salary/compensation, leave, and other benefits), and are business performance or results appropriately reflected in employee salary/compensation?	V		5. There was no breach of privacy rights or information security incidents. (II) The Taipei head office also has a Welfare Committee in accordance with the “Organization Guidelines for Employee Welfare Committees” promulgated by the Labor Committee, and 100% of the employees participate in it. The Kaohsiung plant has another labor union. Except for the manager level and above and the general affairs director, 9 people did not join the labor union in 2025 A total of 94% of employees are union members and have signed a group agreement. It is also an independent labor organization that ensures employees’ rights of association and negotiation. The 205 performance is listed below: 1. In addition to coordinating the Company’s Welfare Committee funds and promoting various welfare measures that are superior to the Labor Standards Act, the Welfare Committee also takes the initiative to care for colleagues and provide a variety of welfare options to improve physical and mental development and maintain the spirit of freedom and rights granted to the people by the Constitution. In accordance with the regulations on labor pensions, Taiwan Styrene Monomer Corporation, Ltd. pays 6% of the pension on a monthly basis based on the average salary of employees (refer to the monthly salary grading table), and saves it in the pension individual account for old workers established by the Bureau of Labor Insurance. 2. In accordance with Article 14-6 of the “Securities and Exchange Act” and the “Measures for the Establishment and Exercise of Powers of the Compensation Committee for Companies Listed on Stocks or Trading in the Business Office of Securities Firms,” the Company has established a Compensation and Benefits Committee to provide professional and objective status to the Company. Evaluate the remuneration policies and systems of directors and managers, and formulate organizational rules for the remuneration committee for compliance. 3. According to Article 29 of the “Articles of Association,” the remuneration of directors shall be paid. The remuneration of directors shall be the net profit before tax of the Company for the current year (that is, the profit before tax is deducted from the profit before the distribution of employees and directors’ remuneration). Within the range of five is the employee’s remuneration and not more than 2.5% is the director’s remuneration. 4. The annual remuneration of the Company’s managers includes salary, bonuses and employee bonuses from surplus distribution; the salaries and remunerations are based on the usual level of payment in the industry, and consider the rationality of personal performance, company operating performance and future risks. The Board of Directors makes recommendations for reference in its decision-making; among them, the positions held by managers for 2021, the distribution of bonuses and employee bonuses for the performance of the managers’ participation in business contributions are proposed and distributed by the Board of Directors and approved by a regular shareholders’ meeting. Regarding the remuneration of senior executives, in addition to being approved by the Remuneration Committee in accordance with laws and regulations, relevant information is also disclosed in “Remuneration of General Managers and Deputy General Managers in the Annual Report of the 2021 Annual General	No major differences.

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	Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Differences and
				Reasons With The
				Code Of Practice
Project Promoted				For Sustainable
	Yes	No	Summary
				Development Of

				TWSE/TPEx-Listed
				Companies
(III) Does the Company provide employees with a safe and healthy working environment, and implement regular safety and health education for employees? (IV) Has the Company established effective career development training programs for employees? (V) Does the Company comply with the relevant laws and international standards with regards to customer health and safety, customer privacy, and marketing and labeling of products and services, and implement consumer protection grievance policies? (VI) Has the Company formulated a supplier management policies requiring suppliers to	V V V V		Meeting of Shareholders.” 5. Showcasing a commitment to employee rights and implementing various measures based on compensation and benefits, including disbursing year-end bonuses and performance incentives, as well as providing maternity subsidies, travel allowances, birthday gifts, etc. (III) Since the establishment of our factory in Linyuan Industrial Park, Kaohsiung County in May 1980, we have attached great importance to “industrial safety, hygiene and environmental protection.” In the early days, it only focused on industrial safety, hygiene and environmental protection in the “factory,” and gradually developed to take the “responsible care system” as its responsibility. There are “Safety and Sanitation Management Procedures” (KE-80-02) and “Safety and Sanitation Facilities Management Procedures” (KE-80-03). In 2025, two internal audits and one external audit were carried out, and the external audit was completed by BV. Audit and verification, the Company implements industrial safety, environmental protection, and hygiene management through the management procedures of each management system, and conducts regular follow-up review and continuous improvement in order to ensure the safety and health of all people, and to achieve a full range of safety and health management. At the beginning of the establishment of the factory, OHSAS18001 and TOSHMS occupational safety and health management system were introduced. It was converted to ISO 45001 and CN S45001 the management department in 2020. The system is applicable to all workers within the workplace of the T.S.M.C. Kaohsiung plant workers. There were no accidents in the Company during the year. ( Number of fires: 0 and casualties: 0) (IV) Regular recurring training for professional functions To meet the needs of ISO/CNS 14001 internal auditor training and process safety management execution concept training, Taiwan Styrene Monomer Corporation Kaohsiung Plant has implemented different education training sessions in 2025. The courses include occupational safety and health administrator training, chemical solvent operation Supervisor training, equipment operator training, safety management training, etc., with total training hours of 2,527 hours. (V) Adhering to ethical conduct standards and relevant regulations in the execution of internal and external business operations, and establishing operational procedures and "Personal Data Protection Management Measures" within the company. For employee or customer data, only authorized personnel with proper permissions are allowed to access. If access is required for business purposes, a "Personal Data Retrieval Request Form" must be filled out, and approval is granted only after undergoing relevant review processes and confirming compliance with legal regulations, with strict limitations on usage. The company conducts annual customer satisfaction surveys and complaint handling to actively communicate with customers and establish and strengthen customer relationships, ensuring a long-term and stable cooperative mode. (VI) Since its establishment, Taiwan Styrene Monomer Corporation has formed high-quality partnerships with upstream suppliers and customers, so that employees have a good working environment and fulfill their corporate responsibility for environmental protection.	No major differences. No major differences. No major differences. No major differences.

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			Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Implementation(Note 1)	Differences and
								Reasons With The Code Of Practice For Sustainable Development Of TWSE/TPEx-Listed Companies
Project Promoted
	Yes	No	Summary


comply with relevant regulations on issues such as environmental protections, occupational safety and health, or labor rights, and what is the status of their implementation?			Major suppliers and customers at home and abroad are all in line with local environmental protection, occupational safety and health, and labor rights regulations. The Company has established supplier evaluation procedures, and takes environmental protection, occupational safety, and integrity management into consideration. Taiwan Styrene Monomer Corporation Kaohsiung Plant evaluates suppliers according to the “Supplier Evaluation Procedures.” In 2025, 88suppliers were evaluated, accounting for 30.56% of the suppliers. The evaluation content includes organizational system, environmental protection, planning ability, delivery goods pass rate, on-time delivery rate, document response, safety, quality, after-sales service, etc., the evaluation result isqualified,and thepass rate is 100%.
			2025 T.S.M.C	. KaohsiungPlant	Supplier Evaluation Results
			Supplier category	Number of homes	Number of appraisers/category percentage		Pass rate (%)
			Mechanical hardware	75	7	9. 33%	100%
			Motor electrical	31	7	22.58%
			Meters and Measuring Instruments	28	7	25%
			Chemical	17	7	41.18%
			Industrial safety and environmentalprotection	44	15	34.09%
			Office supplies	12	4	33.33%
			Maintenance works	29	15	51.72%
			Other	52	26	50%
			Total	288	88	30.56%
V. Does the Company refer to international reporting standards or guidelines when preparing its sustainability report and other reports disclosing non- financial information? Does the Company obtain third party assurance or certification for the reports above?	V		1. The Company prepares sustainability reports in accordance with the GRI 2021 Guidelines and complies with the requirements listed in the "Operation Procedures for Preparation and Reporting of Sustainability Reports by Listed Companies" issued by the Taiwan Stock Exchange. The report also addresses climate change-related financial disclosures (TCFD), United Nations Sustainable Development Goals (SDGs), Sustainability Accounting Standards Board (SASB), and "Practical Guidelines for Sustainable Development of Listed and OTC Companies". 2. The sustainability report is prepared through rigorous internal procedures. The statistical data disclosed in the report are collected and compiled by the company through self-assessment. The financial data are sourced from financial reports audited and certified by PricewaterhouseCoopers Taiwan, in accordance with International Financial Reporting Standards (IFRSs). Environmental, safety, and health-related data are presented using internationally recognized indicators. Some data are referenced from publicly available information published by government agencies and presented using commonly used numerical values. Since this year, the Company plan to submit the report to an external third-party verification unit for verification this year. We look forward to disclosing information through the advanced Sustainability Report, implementing the company's sustainable development policy, and enhancing industrial competitiveness					No major differences.
VI. If a company has adopted its own sustainable development best practice principle based on the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”, please describe any deviation from the principles in the Company’s operations: The Company’s “Sustainable Development Best Practice Principles” is compiled with reference to the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and related laws and regulations issued byTWSE/TPEx and no discrepancyfound.
VII. Other important information to facilitate better understanding of the Company’s promotion of sustainable development: Please refer to the relevant information of “Sustainable Development” on our website, http://www.smct.com.tw/Responsibility/responsibility.

VI. If a company has adopted its own sustainable development best practice principle based on the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”, please describe any deviation from the principles in the Company’s operations: The Company’s “Sustainable Development Best Practice Principles” is compiled with reference to the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies” and related laws and regulations issued by TWSE/TPEx and no discrepancy found. VII. Other important information to facilitate better understanding of the Company’s promotion of sustainable development: Please refer to the relevant information of “Sustainable Development” on our website, http://www.smct.com.tw/Responsibility/responsibility.

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Climate-Related Information of TWSE/TPEx Listed Company

1. Implementation of Climate-Related Information

Item	Implementation status
1. Describe the board of directors' and management's oversight and governance of climate-related risks and opportunities.	The Company's "Sustainable Development Committee" is the core organization to promote sustainable governance. The chairman serves as the steering committee and the general manager serves as the chairman of the committee. The committee has 4 groups in total: "Corporate Governance", "Environmental Sustainability", "Raw Materials and Products" and "Employee and Social Care". The corporate governance group serves as the executive secretary, responsible for ESG planning and promotion, and coordinates and integrates matters of each group to achieve annual goals. In 2025, Methods for Establishing a Sustainable Development Committee were also revised to continue to strengthen the company's sustainable governance goals.
2. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the business (short, medium, and long term).	The Sustainability Committee holds regular meetings every year to mainly discuss the implementation goals and results of each working group, improve sustainable development and corporate governance by paying attention to the latest development trends and regulations domestically and overseas, and regularly report sustainable development to the Board of Directors every year Implementation situation. The Company's eighth sustainability report was issued in August 2025, and the 2025 Sustainable Development Plan Kick-off Meeting was held on December 9 of the same year. With reference to relevant government regulations and international trends, the Company deepened sustainable governance while focusing on talent development in order to achieve diverse, fair and inclusive corporate sustainable management responsibilities. The Company's board of directors regularly listens to reports from the management team (including ESG) every year. The management must propose the company's strategy to the board of directors. In addition to judging the success potential of the relevant strategy, the board of directors must also appropriately review the progress of the strategy and urge the management team to make adjustments when necessary to fulfill its supervisory responsibilities.
3. Describe the financial impact of extreme weather events and transformative actions.	The scope of this disclosure includes performance data on sustainable development and business results of the Company's major operations in Taiwan, mainly the Taipei headquarters and Kaohsiung Plant, from January to December of 2025, in accordance with the significance, sustainability context, stakeholder inclusiveness, and completeness disclosure principles of the Global Reporting Initiative (GRI) guidelines, to ensure the Company's long-term operational capabilities, with risk management covering all operational activities. In 2025, we referred to international sustainability standards (GRI, SASB, TCFD) and the United Nations Sustainable Development Goals (SDGs), collected value chain and industry-related issues, summarized 21 sustainability issues for positive and negative impact assessments, established a total of 11 major themes, strengthened management, and reported and disclosed in the sustainability report.
4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.	The Sustainable Development Committee conducts identification and assessment of environmental, social, and corporate governance risks each year, taking into account the level of stakeholder concern and the impact on the Company's operations, to establish sustainable business goals and continuously optimize them through rolling reviews. The Internal Audit Office formulates the audit plan for the following year based on the risk assessment results by the end of December each year, and implements audit operations after obtaining approval from the Board of Directors, in order to detect potential risks early and take corrective and preventive measures.
5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and major financial impacts used should be described.	Implement pollution control through process safety management systems to effectively reduce environmental impacts.

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6. If there is a transition plan for managing climate-related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.	The Company currently has no transformation plan to manage climate- related risks.
7. If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.	The Company currently do not use carbon pricing as a tool internally.
8. If climate-related targets have been set, the activities covered, the scope of greenhouse gas emissions, the planning horizon, and the progress achieved each year should be specified. If carbon credits or renewable energy certificates (RECs) are used to achieve relevant targets, the source and quantity of carbon credits or RECs to be offset should be specified.	Please refer to the table below (1-2).
9. Greenhouse gas inventory and assurance status and reduction targets, strategy, and concrete action plan (separatelyfill out inpoints 1-1 and 1-2 below).	Please refer to the table below (1-1 & 1-2).

1-1 Greenhouse Gas Inventory and Assurance Status for the Most Recent 2 Fiscal Years
(1) The complete greenhouse gas inventory and assurance information will be disclosed in the 2025 sustainability report.
(2) The complete greenhouse gas inventory and assurance information disclosure in 204 is as follows:

	Total emissions (metric tons)	Intensity (tons/Million turnover)	Verification agency	Verify results
Category 1	246,659.3548	24.1204	Bureau Veritas Certification	Approved
Category 2	28,866.1004

Note 1: Category 1 refers to emissions sources directly from the Company owned or controlled, including stationary combustion sources, process emissions, mobile combustion sources in transportation and fugitive emission sources.
Note 2: Category 2 refers to indirect energy emissions (such as purchased steam and electricity). The emission equivalent in 2024 will use the electricity coefficient of that year, which is 0.474kg CO2e/kWh, and the emission equivalent in 2025 will use the electricity coefficient of 2024.
Note 3: The Company's greenhouse gas emissions follows a specific hierarchy for selecting emission coefficients, prioritizing measurements or mass balance calculations, followed by national emission coefficients. If no such coefficients are available, internationally recognized coefficients shall be applied. Furthermore, the "Greenhouse Gas Emission Factor" table, as announced by the Ministry of Environment on February 5, 2024 (Ref. No. 1139101231), is cited. Global Warming Potential (GWP) values are based on the IPCC Fifth Assessment Report (AR5).
Note 4: The greenhouse gas emissions in 2024 are data verified by a third-party unit from Kaohsiung Plant. Since the greenhouse gas emissions in Category 3 are not significant and have statistical difficulties, only significant indirect greenhouse gas emissions are used for identification. Partial inventory and quantification were conducted without third-party verification.
Note 5: The source of fuel activity data for fixed source equipment adopts direct measurement values.

1-2 Greenhouse Gas Reduction Targets, Strategy, and Concrete Action Plan

Item	Estimated Completion Time	Execution Progress	Execution Progress
		Taipei	Kaohsiung
Designate and establish full-time (part-time) units	June 2024	Completed in January 2023	Since the verification was completed in 2015 , and inspections and verifications are currently carried out every year.
Completion in greenhouse gas inventory	May 2024	Completed in May 2024
Conduction by external verification	May 2025	Completed in May 2025

Carbon reduction goals
(1) Short-term goal: reduce emissions by 10% in 2025 compared with 2018.
(2) Mid-term goal: reduce emissions by 30% in 2030 compared with 2018.
(3) Long-term goal: In line with the national long-term reduction target, net zero emissions by 2050.
Greenhouse gas emissions reduction measures by 2025:
(1) At Plant 1, the compressor PC-271 auxiliary lube oil steam turbine will be modified to be driven by an electric motor, reducing steam consumption and lowering boiler fuel usage. This will result in an annual natural gas reduction of 554 thousand cubic meters (554 km³/year).
(2) CO2 reduction 1,098.21 metric tons

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

			Implementation Status	Deviations from
				the Ethical
				Corporate
				Management
Evaluation Items
	Yes	no	Description	Best Practice

				Principles for

				TWSE/TPEx Listed
				Companies and
I. Establishment of ethical corporate management policies and programs (I) Does the Company have an ethical corporate management policy approved by the Board of Directors, and bylaws and publicly available documents addressing its corporate conduct and ethics policy and measures, and commitment regarding implementation of such policy from the Board of Directors and the top management team? (II) Whether the company has established an assessment mechanism for the risk of unethical conduct; regularly analyzes and evaluates, within a business context, the business activities with a higher risk of unethical conduct; has formulated a program to prevent unethical conduct with a scope no less than the activities prescribed in Article 7, paragraph 2 of the Ethical Corporate Management Best Practice Principles for TWSE/TPE Listed Companies? (III) Does the company clearly set out the operating procedures, behavior guidelines, and punishment and appeal system for violations in the unethical conduct prevention program, implement it, and regularly review and revise the plan?	V V V		(I) The Company’s “Ethical Corporate Management Best Practice Principle” was approved by the Board of Directors, which clearly stipulates that directors, executive management and employees should comply with laws and regulations during execution of business operation. (II) The Company has established the “Ethical Corporate Management Best Practice Principle,” which is the Company’s implementation of the plan to prevent unethical conduct, analyze relatively high risk non- ethical conduct and activities within its scope of business, comply with legal and ethical principles to preserve company assets, equity and image, and strengthen relevant preventive measures. (III) The Company has established a “Code of Ethics Conduct” and “Ethical Corporate Management Best Practice Principle,” which clearly specifies programs to prevent unethical conduct and also complies with the Company Act, the Securities and Exchange Act, the Business Entity Accounting Act, and the relevant regulations for TWSE/TPEx listed Companies, disciplinary and appeal systems for violations. The Company has implemented the measures and regularly reviews the plan for amendments.	No major differences. No major differences. No major differences.
II. Ethical Management Practice (I) Does the Company assess the ethics records of those it has business relationships with and include ethical conduct related clauses in the business contracts?	V		(I) The Company engaged in commercial activities in a fair and transparent manner. Prior to any commercial transactions, the Company shall take into consideration the legality of trading counterparties and whether any of them are involved in unethical conduct, and shall avoid any dealings with persons so involved. When entering into contracts with other trading counterparties, the Company shall include in such contracts terms requiring compliance with ethical corporate management policy to ensure that business dealings are carried out in good faith.	No major differences.

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			Implementation Status	Deviations from
				the Ethical
				Corporate
				Management
Evaluation Items
	Yes	no	Description	Best Practice

				Principles for

				TWSE/TPEx Listed
				Companies and
(II) Has the Company set up a dedicated unit to promote ethical corporate management under the Board of Directors, and does it regularly (at least once a year) report to the Board of Directors on its ethical management policy and program to prevent unethical conduct and monitor their implementation? (III) Has the Company established policies to prevent conflicts of interests, provided appropriate communication and complaint channels, and properly implemented such policies? (IV) Does the Company have effective accounting and internal control systems in place to enforce ethical corporate management? Does the internal audit unit follow the results of unethical conduct risk assessments and devise audit plans to audit compliance with the systems to prevent unethical conduct or hire outside accountants to perform the audits? (V) Does the Company provide internal and external ethical corporate management training programs on a regular basis?	V V V V		(II) The Company designates the Corporate Governance Group as a dedicated unit to promote ethical corporate management policy, responsibilities of this group include assisting the Board of Directors and management team in formulating and monitor the implementation standards. The group has reported the implementations of ethical corporate management to the Board of Directors on November 12, 2025. (III) The Company has established ”Ethical Corporate Management Best Practice Principle” and "Code of Ethical Conduct" to prevent from conflicts of interests and provide a proper channel for reporting any illegal or improper behavior, and a dedicated section for stakeholders on the Company's website to provide appropriate channels for reporting. (IV) The Company has established an effective accounting system and internal control system. The audit unit is responsible for regular and irregular auditing operations, reporting to the Board of Directors regularly, and also appointed CPAs to review The Company’s financial statements regularly. (V) The Company conducts regular annual internal training program and related information sessions for directors, managers, and employees, and organizes relevant continuing education courses based on the training hours completed by directors.	No major differences. No major differences. No major differences. No major differences.
III. Implementation of Complaint Procedures (I) Has the Company established specific whistleblowing and reward procedures, set up conveniently accessible whistle- blowing channels, and appointed appropriate personnel specifically responsible for handling complaints received from whistleblowers? (II) Has the Company established standard operating procedures for investigating the complaints received, follow-up measures taken after investigation and mechanisms ensuring such complaints are handled in a confidential manner?	V V		(I) The Company has established “Regulations of Whistleblowing Cases on Illegal, Immoral and Unethical Conduct” and “Handling employees' grievances”, and has established a complete reporting system and channels. The website has a dedicate section for stakeholders which provides corresponding contact windows for different stakeholders, so that reports and complaints can be expressed via multiple reporting channels, and responded by dedicated personnel. (II) The Company has established the “Regulations of Whistleblowing Cases on Illegal, Immoral and Unethical Conduct” and “Handling employees' grievances.” The Company will keep confidential and protect the whistleblowers, complainants or investigators. Documentations of case acceptance, investigation processes, investigation results and	No major differences. No major differences.

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			Implementation Status	Deviations from
				the Ethical
				Corporate
				Management
Evaluation Items
	Yes	no	Description	Best Practice

				Principles for

				TWSE/TPEx Listed
				Companies and
(III) Has the Company adopted proper measures to protect whistleblowers from retaliation for filing complaints?	V		relevant documents shall be retained. (III) The Company accepts anonymous and anonymous reporting, and keeps the whistleblower and the contents of the report confidential.	No major differences.
IV. Strengthening information disclosure Does the Company disclose its ethical corporate management policies and the results of their implementation on its website and the Market Observation Post System (MOPS)?	V		The Company has set up Chinese and English website and an external mailbox to disclose information on Ethical Corporate Management Best Practice Principle. The information disclosure and reporting channels are still smooth to ensure that the information is disclosed to the competent authority or the public in an Integral, fair, correct, timely manner.	No major differences.
V. If the company has adopted its own ethical corporate management best practice principles based on the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, please describe any deviations between the principles and their implementation: The Company has established the “Ethical Corporate Management Best Practice Principle,” “Code of Ethical Conduct” and “Staff Work Rules,” and operates in accordance with these codes without major differences.
VI. Other important information to facilitate a better understanding of the status of operation of the company’s ethical corporate management policies (e.g., the company’s reviewing and amending of its ethical corporate management best practice principles): The Company adheres to the spirit of ethical corporate management, abides by the Company Act, the Securities and Exchange Act and other laws and regulations, and promotes the policy of ethical corporate management by the customers/(venders), directors, managers and colleagues, so that the Company can develop towards the concept of sustainable management; investment in shareholders, use professional and diligent management to ensure fair, sustainable and competitive returns and create the best interests of shareholders; provide working conditions that protect the health and safety of each employee, listen to employees and sincerely face employee complaints and complaints problems, encourage and assist employees to develop relevant skills and knowledge, and avoid illegal activities. The Company values the rights and opinions of every stakeholder in order topromote the sustainable development of the Company.

2.3.8 Other significant Information that will provide a Better Understanding of the Company’s Corporate Governance Practices

The significant information of the Company is immediately announced on the Market Observation Post System (MOPS) in accordance with the regulations of the competent authority, and the relevant implement status of corporate governance is also disclosed on the Company’s website. The brief descriptions are as follows:

The Company discloses material information to investors in a timely manner in accordance with regulations, and regularly holds corporate briefings to announce operating results.
The Company’s newly appointed directors, managers and other insiders will provide the latest version of the “Regulations and Directions related to insider equity of TWSE/TPEx Listed Companies” that insiders can comply with.
The Company also updates relevant information of insider equity trading on the website of TWSE to insiders form time to time.

2.3.9 Internal Control Status

1. Internal Control Manual:

The Company has fully disclosed the "Internal Control System Statement" on the Market Observation Post System (MOPS) in accordance with the regulations of the competent authority. The query method is as follows:

MOPS http://mops.twse.com.tw > Corporate Governance > Internal Control Area > Internal Control Manual Announcement

If CPA was engaged to conduct a special audit of internal control system, the CPA audit report shall be disclosed: None.

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2.3.10 Material resolutions of a shareholders meeting or a board of directors meeting in 2025 up to the date of publication of the annual report.

Important resolutions and implementation of the 2025 Extraordinary Meeting of Shareholders and the Annual General Meeting of Shareholders:

Meetingdate	Important Resolutions	Important Resolutions	Implementation situation	Implementation situation
2025.05.28 Regular shareholders’ meeting	1. Adopted the 2024 Business Report and Financial Statements.		The relevant forms have been submitted to the competent authority for reference and announcement in accordance with the Company Act and other relevant laws and regulations.
	2. Approved the appropriation of profit or loss of 2024.		The Company will suffer a net loss after tax in 2024 and no dividend will be distributed as decided bythe shareholders' meeting.
	3. To amend the Rules of Articles of Incorporation.		This has been processed in accordance with the revised procedures and uploaded to MOPS and the Companywebsite.
2. Important resolutions of the Board of Directors in 2025 and upto the date ofpublication of the annual report:
Date/session		Important Resolutions		Resolution
2025.03.12 4thmeeting of the 16thTerm		1. Proposal for the Company’s 2024 Business Report and Financial Statements. 2. 2024 profit and loss appropriation plan. 3. Draft a bill to define the scope of grassroots employees and amend Articles 2 and 29 of the Company's " articles of the association. 4. Proposed amendments to the Company's organizational chart. 5. Report on the handling of the Company's private placement of common stock cash capital increase. 6. Convene the Company's 2025 Annual General Meeting. 7. The Company's 2025 Annual General Meeting accepts shareholder proposals related to the nomination of independent director candidates. 8. The Company’s subsidiary plans to reduce the amount of cash capital to return shareholders' shares. 9. The Company’s 2024 Annual Internal Auditing Report and Statement of Internal Control.		 Approved as proposed and implemented as the resolution.  The relevant discussion items have been declared at MOPS.
2025.05.07 5thmeeting of the 16thTerm		1. The Company's consolidated financial report for Q1 of 2025. 2. The Company proposes to apply for a comprehensive credit line renewal case from a financial institution. 3. The Company proposes to apply for a comprehensive credit line renewal case from a financial institution. 4. The Company proposes to apply for a comprehensive credit line renewal case from a financial institution. 5. The Company proposes to apply for a new comprehensive credit line from a financial institution.		 Approved as proposed and implemented as the resolution.  The relevant discussion items have been declared at MOPS.
2025.08.06 6thmeeting of the 16thTerm		1. The Company's consolidated financial report for Q2 of 2025. 2. Prepare the Company's 2024 ESG report. 3. The Company proposes to apply to a financial institution for a credit line for forward foreign exchange derivatives.		 Approved as proposed and implemented as the resolution.  The relevant discussion items have been declared at MOPS

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Date/session	Important Resolutions	Resolution
2025.09.18 7thmeeting of the 16th	1. The Company’s investee accounted for under the equity method, Wonderland Enterprise Co., Ltd., plans to conduct a cash capital increase; whether the Company will participate in such capital increase. 2. Proposed amendments to the Company’s “Regulations Governing the Distribution of Employee Compensation.” 3. Managerial salary adjustment plan for 2025.	 Resolution 1: Upon consultation by the Chairperson with all attending directors, it was resolved to defer this proposal for further deliberation.  Resolutions 2 and 3: Approved as proposed and executed in accordance with the resolutions.  The relevant discussion items have been declared at MOPS
2025.11.12 8thmeeting of the 16thTerm	1. The Company's consolidated financial report for Q3 of 2025. 2. Proposed 2026 Business Plan and Budget Statements. 3. Evaluation of independence, competency and performance of the Company's 2025 Chartered Public Accountant. 4. The Company's 2026 audit plan. 5. Proposed amendments to certain provisions of the Company’s procedures on “Professional Accounting Judgments, Changes in Accounting Policies and Estimates,” “Management of Financial Statement Preparation Processes,” and “Management of the Adoption of International Financial Reporting Standards (IFRS)”. 6. Establishment of the Company’s “Audit Procedures for Changes in Accounting Policies and Estimates,” and repeal of the “Audit Procedures for Changes in Accounting Policies and Estimates”. 7. The Company proposes to apply for a comprehensive credit line renewal case from a financial institution. 8. The Company proposes to apply for a comprehensive credit line renewal case from a financial institution. 9. The Company proposes to apply for a comprehensive credit line renewal case from a financial institution. 10. The Company proposes to apply for a comprehensive credit line renewal case from a financial institution. 11. The Company proposes to apply for a comprehensive credit line renewal case from a financial institution. 12. The Company proposes to apply for the renewal of its comprehensive credit facilitywith a financial institution	 Resolution 1: Upon the chairperson’s inquiry and with the consent of all attending directors, it was resolved to defer this matter for further discussion.  Resolutions 2 to 12: Approved as proposed and implemented in accordance with the resolutions.  The relevant discussion items have been declared at MOPS
2026.03.09 9thmeeting of the 16thTerm	1. 2025 Annual Business Report and Financial Statements. 2. 2025 Appropriation of profit and loss. 3. To change of CPA of the Company. 4. Convene the Company’s 2026 Annual General Meeting 5. The Company’s 2026 Annual General Meeting accepts shareholder proposals related to the nomination of director (including independent director) candidates. 6. The Company’s 2025 Annual Internal Auditing Report and Statement of Internal Control. Amendments to Certain Provisions of the Company’s “Self-Assessment Procedures”. 7. The Company proposes to apply for a comprehensive credit line and financinglimit renewal from financial institutions.	 Approved as proposed and implemented as the resolution.  The relevant discussion items have been declared at MOPS.

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Important resolutions of the Audit Committee in 2025 and up to the date of publication of the annual report:

Date/Session	Important Resolutions	Resolution
2025.03.12 3rdmeeting of the 3rdTerm	1. 2024 Annual Business Report and Financial Statements. 2. 2024 Appropriation of profit and loss. 3. Draft a bill to define the scope of grassroots employees and amend Articles 2 and 29 of the Company's articles of association. 4. Report on the handling of the Company's private placement of common stock cash capital increase. 5. The Company’s subsidiary plans to reduce the amount of cash capital to return shareholders' shares. 6. The Company’s 2024 Annual Internal Auditing Report and Statement of Internal Control.	 Approved as proposed and implemented as the resolution.
2025.05.08 4thmeeting of the 3rdTerm	1. The Company's consolidated financial report for Q1 of 2025.	 Approved as proposed and implemented as the resolution.
2025.08.07 5thmeeting of the 3rdTerm	1. The Company's consolidated financial report for Q2 of 2025.	 Approved as proposed and implemented as the resolution.
2025.09.18 6thmeeting of the 3rdTerm	1. The Company’s investee accounted for under the equity method, Wonderland Enterprise Co., Ltd., plans to conduct a cash capital increase; whether the Company will participate in such capital increase.	 Upon consultation by the Chairperson with all attending directors, it was resolved to defer this proposal for further deliberation.
2025.11.12 7thmeeting of the 3rdTerm	1. The Company's consolidated financial report for Q3 of 2025. 2. Evaluation of independence, competency and performance of the Company's 2025 Chartered Public Accountant. 3. 2026 Service Fee for KPMG. 4. The Company's 2026 audit plan. 5. Proposed amendments to certain provisions of the Company's procedures on Professional Accounting Judgments, Changes in Accounting Policies and Estimates,” “Management of Financial Statement Preparation Processes,” and “Management of the Adoption of International Financial Reporting Standards (IFRS)”. 6. Establishment of the Company’s “Audit Procedures for Changes in Accounting Policies and Estimates,” and repeal of the “Audit Procedures for Changes in AccountingPolicies and Estimates”.	 Approved as proposed and implemented as the resolution.
2026.03.09 8thmeeting of the 3rdTerm	1. 2025 Annual Business Report and Financial Statements. 2. 2025 Appropriation of profit and loss. 3. To change of CPA of the Company. 4. The Company’s 2025 Annual Internal Auditing Report and Statement of Internal Control. 5. Amendments to Certain Provisions of the Company’s “Self- Assessment Procedures”.	 Approved as proposed and implemented as the resolution.

2.3.11 In the most recent year and as of the publication date of the annual report, a director or has expressed a dissenting opinion with respect to a material resolution passed by the board of directors, and said dissenting opinion has been recorded or prepared as a written declaration, disclose the principal content thereof: None.

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2.4 Information on CPA Professional Fees

2.4.1 Professional Fees of CPA

				Unit: NT$Thousand	Unit: NT$Thousand	Unit: NT$Thousand
Accountingfirm	Name of CPA	CPA’s Audit Period	Audit Fee	Non-Audit Fee	Total	Remark
KPMG	Jason Yin	2025.01.01 to 2025.12.31	3,212	0	3,212	-
	Lin Wu

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

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

2.5 Replacement of CPA:

A. Regarding the former CPA

A. Regarding the former CPA
Replacement Date	March 9, 2026
Replacement reasons and explanations	The original CPAs of the Company were Jason Yin and Lin Wu from KPMG. Due to internal restructuring, the CPAs of the Company were changed to Jason Yin and Yung-Sheng Wang, beginning from 1stquarter, 2026.
Describe whether the Company terminated or the CPA did not accept the appointment	Party Condition			CPA	The Company
	Termination of appointment			NA	NA
	No longer accepted (continued) appointment			NA	NA
Other issues (except for unqualified issues) in the audit reports within the last twoyears	None
Differences with the company	Yes	-	Accounting principles or practices
		-	Disclosure of Financial Statements
		-	Audit scope or steps
	None	
	Remarks/specify details
Other Revealed Matters	None

B. Regarding the successor CPA

B. Regarding the successor CPA
Name of accounting firm	KPMG
Name of CPA	Jason Yin and Yung-Sheng Wang
Date of appointment	beginning from 1stquarter, 2026
Consultation results and opinions on accounting treatments or principles with respect to specified transactions and the company's financial reports that the CPA might issue prior to the engagement.	NA
Succeeding CPA’s written opinion of disagreement toward the former CPA	NA

2.6 The Company's Chairperson, General Manager or Any Managerial Officer in Charge of Finance or Accounting Matters Has in the Most Recent Year Held a Position at the Accounting Firm of its CPA or at an Affiliated Enterprise of Such Accounting Firm: None.

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2.7 Changes in Shareholders of Directors, Managerial Officer, and Major Shareholders

2.7.1 Changes in shareholdings of directors, managers and shareholders holding more than 10% share in the Company

The Company has fully disclosed the information on the Market Observation Post System (MOPS) in accordance with the regulations of the competent authority. The query method is as follows:

MOPS http://mops.twse.com.tw > Basic information > Shareholding, pledge and transfer by directors, supervisors and major shareholders

2.7.2 Equity Transfer Information:

Information of transfers of equity interests by a director, supervisor, managerial officer, or shareholder with a stake of more than 10 percent, where the counterparty of any such transfer of equity interests is a related party: None.

2.7.3 Equity Pledge Information:

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2.8 Information of the Top Ten Largest Shareholders who are Related Parties or have a Spousal or Familial Relationship within the Second Degree of Kinship

March 27, 2026

							If the top ten shareholders	If the top ten shareholders
							are related to each other
							or are spouses or relatives
			Spouse and minor		Holding	shares in the
	Holding of shares						within the second degree
			children hold shares		name	of others
Name							of kinship, their names or		Remark

							names and relationships
							(Note 3)
	Number Of	Shareholding	Number	Shareholding	Number	Shareholding
							Name	Relationship
	Shares	Ratio(Note 2)	Of Shares	Ratio(Note 2)	Of Shares	Ratio(Note 2)

Frank C. Chen Foundation for Culture and Education Representative : Tian-Pu Chen	28,750,000	5.45%	(Note 4)	(Note 4)	(Note 4)	(Note 4)	NA	NA	-
Chun Yu Works & Co., Ltd. Representative : Chung-Chun Weng	11,678,000	2.21%	(Note 4)	(Note 4)	(Note 4)	(Note 4)	NA	NA	-
Taiwan Styrene Investment Co., Ltd. Representative : Zheni-Shi Huang	10,000,000	1.89%	(Note 4)	(Note 4)	(Note 4)	(Note 4)	NA	NA	-
Taiwan Steel Group United Co., Ltd. Representative : Joseph Wang	7,195,000	1.36%	0	0%	0	0%	NA	NA	-
Chun Yu Investment Co., Ltd. Representative : Chung-Chun Weng	6,618,000	1.25%	(Note 4)	(Note 4)	(Note 4)	(Note 4)	NA	NA	-
Chun Bang Precision Co., Ltd. Representative : Chung-Chun Weng	6,440,000	1.22%	(Note 4)	(Note 4)	(Note 4)	(Note 4)	NA	NA	-
Yuan Yao Development Co., Ltd. Representative : Mei-Siang Fong	5.500,000	1.04%	(Note 4)	(Note 4)	(Note 4)	(Note 4)	NA	NA	-
Wonderland Enterprise Co., Ltd. Representative : Jin-Chang Hsiao	5.500,000	1.04%	(Note 4)	(Note 4)	(Note 4)	(Note 4)	NA	NA	-
Ho Yang Investment Co., Ltd. Representative : Joseph Wang	5,067,000	0.96%	0	0%	0	0%	NA	NA	-
Yu-Bin Yang	5,065,000	0.96%	(Note 4)	(Note 4)	(Note 4)	(Note 4)	NA	NA	-

Note 1: All the top 10 shareholders shall be listed. The legal person shareholders are listed the name of the legal person shareholder and the name of the representative separately.

Note 2: The calculation of the shareholding ratio refers to the calculation of the shareholding ratio in the name of oneself, the spouse, the minor child or the use of another person.

Note 3: The shareholders listed in the previous disclosure, including legal persons and natural persons, shall disclose their relationship with each other in accordance with the issuer’s financial reporting standards.

Note 4: The shareholder is not an insider declared by the company, so the relevant materials of his spouse, minor children or holding shares in the name of others cannot be obtained.

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2.9 Consolidated Shareholding Ratio of Investees

	March 27,2026;Unit: Shares	March 27,2026;Unit: Shares	March 27,2026;Unit: Shares	March 27,2026;Unit: Shares	March 27,2026;Unit: Shares	March 27,2026;Unit: Shares
			Investment Of Directors,
			Supervisors, Managers		Comprehensive
	The Company’s Investment
			And Directly Or Indirectly		Investment
Reinvestment Business
			Controlled	Enterprises

	Number Of	Shareholding	Number Of	Shareholding	Number Of	Shareholdin
	Shares	Ratio	Shares	Ratio	Shares	gRatio
Grand Cathay Venture Capital Co., Ltd.	40,000,000	25.00%	－	－	40,000,000	25.00%
Functional Coating System Technologies Co., Ltd.	1,802,325	36.05%	－	－	1,802,325	36.05%
Universal Investments Limited	80	40.00%	－	－	80	40.00%
YSIC Ltd.	50,449,923	99.99%	－	－	50,449,923	99.99%
Yuan-Shin Materials Technology Corp. Ltd.	5,000,000	100.00%	－	－	5,000,000	100.00%
Yangmingshan Tien Lai Resort & SPA	25,865,618	65.07%	4,807,774	12.10%	30,673,392	77.17%
Hong Kang Shipping CO., LTD	700,000	35.00%	－	－	700,000	35.00%
Kun Shan International Ltd.	－	－	－	100.00%	－	100.00%
Kunshan Yu Fu Technology Education Consulting Co., Ltd.	－	－	－	100.00%	－	100.00%
Grand Capital Co., Ltd.	－	－	－	100.00%	－	100.00%
Tien-Lai Enterprise Co., Ltd.	－	－	1,475,000	50.00%	1,475,000	50.00%

Note: The investments accounted for equity method.

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03 Capital Overview

3.1 Capital and Shares

3.1.1 Capitalization

Unit: share; NTD

	Par Value	Authorized Capital	Authorized Capital	Paid-in Capital	Paid-in Capital		Remark
							Capital
Years		Number of	Amount	Number of	Amount	Source of Capital	Increased by	Others
		shares		shares			Assets Other
							than Cash
68.11	10	30,000,000	300,000,000	7,500,000	75,000,000	Cash issue of 75,000,000 at creation	－
69.09	10	30,000,000	300,000,000	30,000,000	300,000,000	Reissue of 225,000,000 in cash	－
70.08	10	50,000,000	500,000,000	35,000,000	350,000,000	Cash capital increase issue of 50,000,000	－
71.04	10	50,000,000	500,000,000	50,000,000	500,000,000	Reissue of cash 150,000,000	－
76.05	10	100,000,000	1,000,000,000	100,000,000	1,000,000,000	500,000,000 capital increase from surplus	－	(76) Taiwan Financial Certificate(1)No. 00452
77.08	10	150,000,000	1,500,000,000	150,000,000	1,500,000,000	500,000,000 capital increase from surplus	－	(77) Taiwan Financial Certificate(1)No. 08547
78.07	10	180,330,000	1,803,300,000	180,330,000	1,803,300,000	Surplus capital increase 303,300,000	－	(78) Taiwan Financial Certificate(1)No. 23774
79.09	10	216,566,000	2,165,660,000	216,566,000	2,165,660,000	Surplus to capital increase 362,360,000	－	(79) Taiwan Financial Certificate(1)No. 02187
80.07	10	260,283,000	2,602,830,000	260,283,000	2,602,830,000	Surplus capital increase 437,170,000	－	(80) Taiwan Financial Certificate(1)No. 01472
84.05	10	313,112,149	3,131,121,490	313,112,149	3,131,121,490	Capital increase from surplus to 528,291,490	－	(84) Taiwan Financial Certificate(1)No. 25397
85.05	10	392,332,709	3,923,327,090	392,332,709	3,923,327,090	Surplus capital increase 792,205,600	－	(85) Taiwan Financial Certificate(1)No. 27060
87.06	10	431,565,979	4,315,659,790	431,565,979	4,315,659,790	Surplus capital increase 392,332,700	－	(87) Taiwan Financial Certificate(1)No. 52170
89.07	10	552,600,000	5,526,000,000	461,826,455	4,618,264,550	Surplus to capital increase 302,604,760	－	(89) Taiwan Financial Certificate(1)No. 57762
90.06	10	552,600,000	5,526,000,000	485,151,024	4,851,510,240	233,245,690 surplus to capital increase	－	(90) Taiwan Financial Certificate (1) No. 138425
92.07	10	675,000,000	6,750,000,000	534,156,178	5,341,561,780	Surplus capital increase 490,051,540	－	(92) Taiwan Financial Certificate (1) No. 0920133877
94.07	10	675,000,000	6,750,000,000	566,529,279	5,665,292,790	Capital increase from surplus 323,731,010	－	Jingguanzheng Yizi No. 0940127690
96.07	10	675,000,000	6,750,000,000	588,969,290	5,889,692,900	Capital increase from surplus 224,400,110	－	Jingguanzheng Yizi No. 0960040233
97.08	10	675,000,000	6,750,000,000	606,479,298	6,064,792,980	175,100,080 capital increase from surplus	－	Jingguanzheng Yizi No. 0970040302
97.12	10	675,000,000	6,750,000,000	591,479,298	5,914,792,980	Cancellation and repurchase of 15,000,000 treasuryshares	－	－
98.03	10	675,000,000	6,750,000,000	590,672,298	5,906,722,980	Cancellation and repurchase of 807,000 treasuryshares	－	－
98.06	10	675,000,000	6,750,000,000	580,340,298	5,803,402,980	Cancellation and repurchase of 10,332,000 treasuryshares	－	－
101.12	10	675,000,000	6,750,000,000	502,733,109	5,027,331,090	776,071,890 yuan for capital reduction	－	Jingguanzhengfa Zi No. 1010048476 Jingshu Shangzi No. 10101251550
103.10	10	675,000,000	6,750,000,000	527,869,764	5,278,697,640	Capital increase of 251,366,550 from surplus	－	Jingguan Zhengfa Zi No. 1030027404
111.03	10	900,000,000	9,000,000,000	527,869,764	5,278,697,640	－	－	Jingshu Shangzi No. 09901165040

				Unit: Share
		Authorized Capital
Share Type	Issued Shares	Unissued Shares	Total	Note

Common Stock	527,869,764	372,130,236	900,000,000	Shares of Listed Companies

Information about the general reporting system: None.

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3.1.2 List of Major Shareholders

		March 27,2026 Shareholding Ratio 5.45% 2.21% 1.89% 1.36% 1.25% 1.22% 1.04% 1.04% 0.96% 0.96%
Shareholding
	Shares Held	Shareholding Ratio
Name of Major Shareholders

Frank C. Chen Foundation for Culture and Education	28,750,000	5.45%
Chun Yu Works & Co., Ltd.	11,678,000	2.21%
Taiwan Styrene Investment Co., Ltd.	10,000,000	1.89%
Taiwan Steel Group United Co., Ltd.	7,195,000	1.36%
Chun Yu Investment Co., Ltd.	6,618,000	1.25%
Chun Bang Precision Co., Ltd.	6,440,000	1.22%
Yuan Yao Development Co., Ltd.	5,500,000	1.04%
Wonderland Enterprise Co., Ltd.	5,500,000	1.04%
Heyang Investment Co., Ltd.	5,067,000	0.96%
Yu-Bin Yang	5,065,000	0.96%

3.1.3 Dividend Policy and Implementation Status

Dividend policy stipulated in the articles of incorporation

If the Company makes a profit (i.e., net profit before tax before deducting the portion set aside for employees' and directors' remuneration) within a fiscal year, 1%-5% of the profit shall be reserved as the employees' remuneration and no more than 2.5% as the directors' remuneration; in case of accumulated loss, however, a portion of the profit shall first be reserved to cover the loss. Employees' remuneration shall be distributed in the form of shares or cash. The distribution of remuneration shall be approved by the majority of the directors present at the board of directors meeting attended by at least two-thirds of all directors, and shall be reported at the shareholders' meeting.

The Company shall apply the current year's earnings, if any, to pay for the profit-seeking enterprise income tax first, offset accumulated losses, and then set aside 10% as legal capital reserve. The special capital reserve may be appropriated based on the Company’s business needs. The board of directors shall propose the appropriation of the remaining earnings, if any, and undistributed earnings in previous years and report to the shareholders’ meeting. The proportion of cash dividends in the distribution proposal shall not be less than 30% of the total dividends; if it is necessary for a major investment plan and improvement of the financial structure, or when there is a sudden and major capital demand, the cash dividend payout rate will be adjusted to 10% to 30%. However, if the cash dividend per share is less than NT$0.1, stock dividends may be distributed instead.

The proposed dividend distribution at the shareholders' meeting
Resolution by the Board of Directors, March 9, 2026 not to distribute dividends for 2025 appropriation of profit and loss.
Explanation of expected major changes in dividend policy: None.

3.1.4 Effect upon business performance and earnings per share of any stock dividend distribution proposed or adopted at the most recent shareholders' meeting: None.

3.1.5 Compensation of Employees and Directors

Information or scope of the percentage of employee remuneration and directors’ remuneration as stated in the Company’s Articles of Association:

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The total amount of employees' remuneration appropriated in accordance with the provisions of preceding paragraph shall be remuneration distributed to non-executive employees no less than 20%. Remuneration of employees shall be in stock or cash, which shall be implemented by the Board of Directors with the presence of more than two-thirds of the directors and a resolution approved by more than half of the directors present, and reported to the shareholders’ meeting.

The estimated basis for the estimated employee compensation and directors’ compensation for the current period, the calculation basis for the number of shares for employee compensation distributed by stock, and the accounting treatment if the actual distribution amount is different from the estimated amount:
(1) Since the current year is a net loss before tax, it is not planned to distribute employee remuneration and directors’ remuneration.
(2) If there is a major change in the amount of distribution approved by the Board of Directors before the date of approval of the annual consolidated financial report, the change will adjust the original annual expenses. Annual adjustments are recorded.
Remuneration distribution approved by the Board of Directors:
(1) Cash or stock distributions of employee remuneration and directors' remuneration: Not applicable.
(2) The amount of employee remuneration distributed in stock and its proportion to the net profit after tax and total employee remuneration in the current period’s individual or individual financial report: None.
The actual distribution of employee remuneration and directors’ remuneration in the previous year (including the number of shares allotted, amount, and share price), and the discrepancies between the recognized employee’s remuneration and director’s remuneration, and the number of differences, reasons and handling should be stated:

Since the Company had a net loss after tax in 2025, then there is no distribution of employee remuneration and director remuneration, which has no difference from the amount recognized in the accounts in 2024.

3.1.6 Buyback of Treasury Stock

Term of Repurchase	1stbatch	2ndbatch	3rdbatch	4thbatch
Purpose of the Share Buyback	Share transfer to employees	Share transfer to employees	To maintain credit and shareholders' equity	Share transfer to employees
Scheduled Buyback Period	January 4, 2006 to March 3, 2006	April 4, 2006 to June 3, 2006	September 24, 2008 to November 22, 2008	March 25, 2020 to May 22, 2020
Scheduled Buyback Price Range	13.00~18.00	12.00~15.00	5.23~10.00	8.61~25.77
Type and Number of Shares Buyback	Common Share 807,000 shares	Common Share 10,332,000 shares	Common Share 15,000,000 shares	Common Share 1,040,000 shares
Amount of Shares Buyback	NT$12,119,378	NT$143,314,554	NT$107,933,335	NT$15,186,712
Number of Retired and Transferred Shares	Cancelled	Registered	Cancelled	Transfer has been processed
Cumulative Number of the Company’s Treasury Shares Held	0 share	0 share	0 share	0 share
Cumulative Number of the Company’s Treasury Shares as a Percentage of the Total Number of the Company’s issued Shares (%)	0%	0%	0%	0%

3.2 Corporate Bonds: None.

3.3 Preferred Shares: None.

3.4 Global Depository Receipts: None.

3.5 Status of Employee Stock Options: None.

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3.6 Status of Employee Restricted Stock: None.

3.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions: None.

3.8 Funding Plans and Implementation:

As of the day before the annual report is published, the contents and implementation status of the previous issuance or private placement of securities that has not yet been completed or has been completed within the last three years but the benefits of the plan have not yet been realized:

The Company has fully disclosed the information on the Market Observation Post System (MOPS) in accordance with the regulations of the competent authority. The query method is as follows:

(1) MOPS http://mops.twse.com.tw > Investment area > Private Equity Area > Private placement information inquiry

(2) MOPS http://mops.twse.com.tw > Investment area > Fundraising Plan Execution area

04 Operation Highlight

4.1 Business Activities

4.1.1 Business Content

Main Content
(1) Production and sales of Styrene Monomer, intermediate products and by-products.
(2) Processing of Styrene Monomer monomers and intermediate products and production and sales of processed products (subject to approval by the Investment Commission of the Ministry of Economic Affairs).
(3) Import and sell Styrene Monomer and other related chemical raw materials and products. The operation of the business is handled in accordance with the relevant laws and regulations.
Proportion of business:

Product item	Operating percentage
SM	93.3%
PDEB	2.6%
Others	4.1%

The Company’s current products and services
(1) SM (2) PDEB (3) Toluene (4) Hydrogen (5) Steam (6) EB

4.1.2 Industry Overview

1. Current Situation and Development of Styrene Monomer Industry

The Company's main product - Styrene Monomer is polystyrene among the five major plastics, is also a bulk petrochemical raw material. The basic raw material of plastics such as acrylonitrile-butadieneStyrene Monomer resin (ABS), which is a key intermediate raw material in the petrochemical industry.

The relationship between upstream, mid-stream and downstream of Styrene Monomer industry


Project	Upstream	Midstream	Downstream

Related Products	Benzene, Ethylene	Styrene Monomer	PS (Polystyrene), EPS (Expanded Polystyrene), ABS (Acrylonitrile- Butadiene- Styrene Monomer Resin), SBR (Styrene Monomer Butadiene Rubber)
Related Companies	CPC	T.M.S.C., GPPC, FCFC	Chi Mei, TTC, LCY GRIT, TSRC, and etc.

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Development trend and competition of Styrene Monomer products
Currently, general-purpose plastics such as ABS and PS are widely used in home appliances, 3C products, furniture, and auto parts. Due to their excellent process ability, dimensional stability, and popular price, they are still the most widely used engineering plastics, so the demand for Styrene Monomer is also proportional to global economic growth (GDP).

According to data from the International Monetary Fund (IMF), the global economic growth rate in 2025 stood at 3.3%, consistent with the figure for 2024. Despite global challenges arising from the implementation of reciprocal tariffs by the United States, the surge in investment within technology sectors such as Artificial Intelligence (AI) offset some of the negative impacts. Furthermore, as inflation decelerated, monetary policies eased, allowing central banks to continue cutting interest rates to support sustained economic expansion. China’s economic growth rate in 2025 was 5%, maintaining the same level as in 2024. Domestic demand in China remained weak, and the real estate market continued to be sluggish. While deflationary pressure persisted as a major internal challenge and external pressure mounted due to U.S. tariff policies, Chinese enterprises achieved a diversified strategic layout by shifting exports toward Europe and Latin America, resulting in export performance that exceeded expectations. In 2025, China added 2 million tons of new Styrene Monomer (SM) capacity, bringing its total capacity to over 23.5 million tons, which accounts for more than 50% of global capacity. Consequently, China transitioned from a net importer of styrene to a net exporter, with net exports reaching approximately 72,000 tons. Major downstream sectors—including ABS, PS, and EPS—continued to launch new production capacities, reaching a peak commissioning period. The Chinese market is steadily moving toward self-sufficiency and expanding its export footprint. This shift has significantly impacted the Company and our downstream customers. Intense market competition and the structural imbalance between supply and demand within the industry chain have made it difficult for the styrene sector to achieve profitability. Regarding the domestic market: Domestic Demand: 1.3 million tons, Domestic Production: 1.58 million tons, Imports: 24,000 tons, Exports: 300,000 tons. The Company’s production and sales volumes last year were 276,843 tons and 275,714 tons, respectively. These figures represent a 17.2% decrease compared to the original annual targets of 334,290 tons and 333,000 tons. Total annual revenue decreased by approximately 24.6% year-onyear. The Company has consistently maintained excellent relationships with its clients. Last year, 99.9% of our styrene sales were supplied to domestic customers, while 0.1% was exported to the South Asian market.

4.1.3 Technology and R&D Overview

For sustainable operations, the Company takes its own business as the core, continuously improves the process and quality, reduces energy consumption, waste and carbon, and removes bottlenecks in the production line; in order to pursue excellent and innovative products, it develops a variety of high-value application products to enhance the Company’s competitiveness. In 2024 and 2025, the Company relatively invested NT$ 0 thousand in research and NT$0 in development.

The Company’s core business is styrene monomer. We continue not only de-bottlenecking of the production lines and increase the production efficiency, but process carbon reduction, the new product application and value-added improvement.

(1) The Company continues to develop materials applicable to electronic products and medical devices, extended the development of their applicable commercial fields, and has provided well-known domestic and international enterprises to conduct tests; the Company has already received positive responses.
(2) The Company aims to vertically integrate specialized chemical arterial which has obtained patents from numerous countries.

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(3) The Company also cooperate with other companies in the development of commercialized professional coated machines of special chemical materials to commercialize and popularize by improving coating efficiency and quality.
(4) The Company converts heating system fuel and rotating equipment drive energy based on energy price differences, and searches for high-efficiency catalysts to achieve the best operating costs.
(5) Establish Plant Information Management System (PIMS) to integrate production data and combine it with AI technology to improve overall factory efficiency. Cooperate with the Linyuan Industrial Park's AI smart technology improvement plan promoted by the Industrial Development Agency of the Ministry of Economic Affairs to improve factory safety, production efficiency and competitiveness.

4.1.4 Long- Term and Short-Term Business Development Plans

Short-Term Plan
(1) Continuously improve or update the process and equipment, and optimize production capacity and intelligent efficiency, so as to reduce energy consumption and improve the efficiency of raw material use.
(2) Introduce heat integration, waste heat recovery and energy conversion to reduce greenhouse gas emissions. Implement voluntary greenhouse gas reduction plans to achieve designated reduction targets
(3) Continuous wastewater recycling and promotion of water conservation measures.
(4) Pay attention to market dynamics and price trends of raw materials and products, and adjust inventory as soon as possible to reduce inventory depreciation losses.
(5) Assist subsidiaries/affiliated companies to increase profits, continue to handle China asset disposals, and handle capital reduction/clearing and settlement operations for overseas companies to retrieve funds, and seek investment targets for innovation, profit or strategic cooperation.
(6) Promote process safety management system, strengthen safe operation of plant processes, avoid unexpected shutdown losses, and reduce the risk and hazards of chemical leakage through appropriate equipment inspection and maintenance.
(7) Cooperate with the Ministry of Economic Affairs’ Industrial Development Agency to introduce the “Linyuan Industrial Park 2025 Smart Technology Introduction Plan” to strengthen factory safety, environmental protection, and fire emergency management capabilities and build a safe working environment.
Long-term plan
(1) Respond to energy policies, adjust energy cost structure, and reduce the impact of climate change impact risks.
(2) Deepen the vertical integration of upstream and downstream, develop downstream products, and reduce the impact of business cycle on products.
(3) Continuously optimize energy costs, enhance the added value of products, and create operational performance.
(4) Establish massive data collection and analysis technology to optimize equipment operation to improve process quality, improve equipment utilization, production efficiency and optimize industrial safety and environmental performance.
(5) In line with government policies, plans to install new natural gas boilers to replace coalfired cogeneration plants and net zero emissions will be achieved by 2050.

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4.2 Market and Sales Overview

4.2.1 Market Analysis

Main product sales areas: Styrene Monomer is mainly sold domestically.
Market share:

Competing peers of the Company’s related products are: GPPC and FCFC. Market share in Taiwan last year (2025): 21.2%

The future supply and demand of the market and its growth potential
Looking ahead to this year (2026), the International Monetary Fund (IMF) estimates that global economic growth will be 3.3% this year. Maintaining the same growth trajectory as the previous two years. However, the global economy still faces challenges from multiple risk events, including escalating trade frictions, heightened geopolitical tensions, and high levels of public debt. Conversely, investments in technology sectors such as AI and the adaptability of enterprises are viewed as key factors sustaining global economic resilience. Additionally, China's economic growth is expected to slow due to structural issues, making the diversification of export markets a primary focus for its development.

The new styrene monomer production capacity reached 2 million tons in China last year, and the new capacity is expected to be 3.33 million tons this year, an increase from last year. The downstream styrene monomer production capacity is expected to increase by about 1.68million tons of ABS, about 0.6 million tons of PS, while EPS expects no new capacity in China. The new capacity is expected to create a demand for styrene monomer of about 1.51 million tons, Consequently, the growth rate of styrene production capacity significantly outpaces demand growth, exerting persistent pressure on market equilibrium. As Chinese manufacturers focus on export opportunities to offload excess capacity, cost competition has left little room for profitability in the styrene sector. The Company's downstream customers face increasingly fierce competition in overseas markets, and traditional downstream development remains constrained. The sector is shifting toward high-value-added and differentiated specifications. Regional capacity rationalization is expected to accelerate, exemplified by the South Korean government’s leadership in restructuring its petrochemical industry. The operating strategy of the Company this year is to continue to reduce expenditures, short-chain supply, and focus on domestic sales.

Competitive niches, long-term opportunities, threats, and countermeasures
(1) Competitive niches
- A. Continuously strive for improvements in production efficiency across all production lines to maintain competitive advantage.
- B. In the regional economic environment, SM products and raw materials are mainly shortchain supplied, and reasonable inventory of raw materials and finished products are effectively controlled to avoid significant fluctuations in market prices that would impact the company's operating performance.
- C. At the same time, the Company will continue to improve environmental protection and energy conservation to achieve sustainable management and operation of the Company and factories.
(2) Development advantages and disadvantages
- A. Development favorable factors
  - (a) The company strives to reduce production costs in order to improve profitability: The renovation of the styrene monomer plant has been completed, which will help reduce production costs. We also replaced high-efficiency catalysts and continued to improve production operations to make our products more competitive.

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(b) The SM production capacity this year in China is estimated to be only 3.33 million t/year, and the demand for new SM downstream production capacity is estimated to reach approximately 1.51 million t/year.
(c) Economic experts forecast that the U.S. Federal Reserve is expected to cut interest rates in the second half of this year, which is expected to support the economic recovery in the U.S.
B. Development Disadvantages
(a) The new US government will prioritize the implementation of policies such as imposing additional tariffs and restricting immigration, bringing uncertainty to the global economy.
(b) Geopolitical tensions such as the Russia-Ukraine war and the Israel-Kazakhstan conflict remain major global risks.
(c) The Regional Comprehensive Economic Partnership (RCEP) in Asia has been signed and entered into force. China, Japan and South Korea, which originally did not have a free trade agreement (FTA), also have tax reduction benefits for each other, which will bring greater competitive pressure to Taiwan's traditional industries such as plastics.
(d) Taiwan passed the "Climate Change Response Act" on January 10, 2023 and will begin to impose a carbon tax as soon as 2026, which will increase operating costs.
(e) Kaohsiung City’s coal removal policy in 2025 will lead to an increase in the Company’s operating costs.
(f) If all ECFA early harvest lists are terminated, Taiwan’s exports of petrochemical products will be seriously affected.
C. Response to Such Factors
(a) It is planned to install new natural gas boilers to replace coal-fired cogeneration plants to comply with the government's net zero emissions policy and reduce carbon fee expenditures.
(b) Pursue continuous improvement in occupational safety, environmental protection, and enhance production efficiency to promote the overall integrated effects of energy saving and waste reduction.
(c) Enhance transportation scheduling capabilities to ensure smooth operation of the styrene monomer production line; adjust the integration level of upstream and downstream industries to mitigate the impact of anti-dumping measures and the influx of new production capacity from China.

4.2.2 Usage and manufacturing processes for the Company's main products

1.The Company’s main product, styrene monomer, is a key intermediate raw material in the petrochemical industry. Its downstream derivatives are various plastics such as: PS, ABS, SAN, SBR, EPS, etc. It is closely related to people’s livelihood and has a wide range of uses.
2.Para-Diethyl Benzene: It is used as an adsorbent in the adsorption and separation process of paraxylene produced in the aroma factory. Its function is to desorb the para-xylene adsorbed in the molecular sieve. It has been adopted by famous process factories at domestic and abroad.
3.Product process introduction:
(1) Styrene Monomer production process: It uses benzene and ethylene as raw materials to obtain styrene monomer through two processes of alkylation reaction and dehydrogenation reaction.
- Alkylation process: benzene + ethylene ethylbenzene

==> picture [388 x 108] intentionally omitted <==

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

Benzene
Diethyl
Benzene
Alkylation
Reactor
Crude
Benzene Alkylation Ethylbenzene Distillation Zone Ethylbenzene
Ethylene Reactor
Residual oil
----- End of picture text -----

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Dehydrogenation

Dehydrogenation process: Ethylbenzene Styrene Monomer

==> picture [401 x 135] intentionally omitted <==

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

Ethylbenzene
Hydrogen
Ethylbenzene
+ Reactor Separating Distillation Styrene Monomer
Tank Zone
Steam
Toluene
Aqueous Absorption Boiler Feedwater
phase Tower
----- End of picture text -----

(2)PDEB process: PDEB is produced by highly selective disproportionation reaction of ethyl benzene.

==> picture [426 x 60] intentionally omitted <==

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

Benzene (Recycled for the use of Ethylbenzene Processing)
Ethylbenzene Reactor Distillation zone Post processing Para-Diethyl Benzene
----- End of picture text -----

4.2.3 Supply situation for the Company’s major raw materials

Benzene: mainly supplied by CPC Corporation and imported from abroad.
Ethylene: mainly supplied by CPC Corporation.

4.2.4 Information on major suppliers and sales customers in the last two years

Information on major suppliers in the last two years

Unit: NT$ Thousands

			2024			2025	2025
			Ratio to net	Relationship			Ratio to net	Relationship
Project	Name	Amount	purchases for the	with the	Name	Amount	purchases for the	with the
			whole year (%)	Issuer			whole year (%)	issuer
1	First	7,561,857	70.25%	none	First	5,770,641	69.50%	none
2	Second	1,227,232	11.40%	none	Second	890,488	10.73%	none
3	other	1,974,718	18.35%	none	other	1,641,359	19.77%	none
	Net purchase	10,763,807	100.00%	none	Net purchase	8,302,488	100.00%	none

Note 1: Explanation of the reasons for the increase or decrease of changes: changes in market prices and purchase quantities Note 2: For business reasons, replace it with a code name

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2. Information on major sales customers in the last two years

Unit: NT$ Thousands

			2024				2025
				Relationship
			Ratio to net sales of				Ratio to net sales of	Relationship
Project	Name	Amount		with the	Name	Amount
			the whole year [%]				the whole year [%]	with the issuer
				issuer

1	A	5,171,627	46.00%	none	A	3,290,251	38.81%	none
2	B	2,194,690	19.52%	none	B	1,951,601	23.02%	none
3	other	3,876,977	34.48%	none	other	3,236,027	38.17%	none
	Net sales	11,243,294	100.00%	none	Net sales	8,477,879	100.00%	none

Note 1: Explanation of the reasons for the increase or decrease of changes: changes in market prices and purchase quantities Note 2: For business reasons, replace it with a code name

4.3 Human Resource

				The current year ends on
	Year	2024	2025
				2026.03.31

Number of employees	Staff	77	74	73
	Staff	116	110	110
	Total	193	184	183
	Average age	45.5	43.83	43.83
Average years of service		14.75	12.25	12.17
Breakdown of Education Level (%)	Ph.D.	1.04%	1.09%	1.09%
	Master	15.03%	15.22%	15.30%
	Bachelor	72.53%	70.64%	70.50%
	Senior High School	8.81%	10.33%	10.38%
	Below (and include) Middle School	2.59%	2.72%	2.73%

4.4 Disbursements for environmental protection

Any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to environmental pollution incidents: None.

4.5 Labor Relations

4.5.1 The Company’s employee benefit plans, continuing education, training, retirement systems, and the status of their implementation, and the status of labor-management agreements and measures for preserving employees' rights and interests

1. Employee welfare plans, continuing education, training, retirement systems and their implementation A harmonious and good labor–management relationship is the driving force for the growth of the enterprise, and it also helps to enhance the corporate image. Therefore, in order to create a good working environment and improve the performance of employees, the Company strives for the stability of life and the development of talents of colleagues, so as to achieve the goal of combining personal growth and company development. In addition to strictly abiding by labor laws, the Company also has various welfare

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measures that are superior to the Labor Standards Act. Relevant welfare measures include employee dividends and share subscriptions, regular health inspections, etc., and arranges employee education and training funds to improve employees’ various professional skill.

2. Various employee rights protection measures

The Company began to implement labor retirement measures in 1986, and set up a labor retirement reserve supervision committee in accordance with the law to manage the retirement reserve. In 2018, in response to the revision of the Labor Standards Act, the Company also actively cooperated with the revision of work rules and related management measures to comply with legal requirements and create a win-win situation for labor and management.

3. Retirement systems

(1) Withdrawal and management of pension
A. In accordance with the provisions of Article 56 of the Labor Standards Act (“Old System”), the Company allocates labor retirement reserves on a monthly basis, establishes a special account to store them, and establishes a labor retirement reserve supervision committee to supervise them.
B. In accordance with the Regulations on Labor Pensions (”New System”), the Company shall pay 6% of the employees’ monthly average wages (refer to the monthly wage grading table) in accordance with the law, and deposit them in the Labor Pension Individual Specialized Department established by the Bureau of Labor Insurance.
(2) Retirement conditions
A. voluntary retirement
- (a) Those who have worked in the Company for more than 15 years and are at least 55 years old.
- (b) Those who have worked in the Company for more than 25 years.
- (c) Those who have worked in the Company for more than ten years and are at least 60 years old.
B. order retirement
- (a) At least sixty-five years old.
- (b) Those who are mentally or physically disabled and unable to perform their duties shall be subject to the disability of the first to sixth levels of labor insurance.
C. early retirement

Age plus seniority >= 60 and there are special reasons, including family or health factors, and approved.

D. Those who choose the new system of labor and retirement: workers must be at least 60 years old.
(3) Requirements for claiming pensions
A. If the Labor Pension Regulations (New System) applies, the employee shall apply to the Bureau of Labor Insurance for their pension, and the pension shall be calculated according to its regulations: (a) Workers who have reached the age of 60 and have worked for less than 15 years shall apply for a one-time pension.
- (b) Workers who have reached the age of 60 and have worked for more than 15 years should receive a monthly pension.
- (c) Workers continue to work after receiving pensions, and their years of service are recalculated. The number of times a worker can receive this contribution pension and its benefits is limited to once a year.
B. For those who apply the provisions of the Labor Standards Act (the old system), the pension shall be paid in accordance with Article 55 of the Labor Standards Act, and the calculation method is as follows:
- (a) According to their working experience, two bases will be given for each full year; however, if the working experience exceeds 15 years, one base will be given for every full year. The maximum total is limited to forty-five bases. Less than half a year will be counted as half a year, and more than half a year will be counted as one year.
- (b) In accordance with the provisions of Paragraph 2 of Article 7, workers who are forced to retire and whose mental or physical disability is caused by the performance of their duties shall be subject to an additional 20% in accordance with the provisions of the preceding Article.
- (c) The pension base refers to the average monthly salary (including meal allowances, transportation allowances, shift allowances, overtime pay, and non-vacation wages) earned

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during the six months prior to the effective date of retirement. The calculation method of the average wage shall be in accordance with the relevant provisions of the Labor Standards Act and the Enforcement Rules of the Labor Standards Act.

(4) Other
A. Although workers have reached the age of 65, those who are retained by the Company may continue to work.
B. The term of service years as mentioned in these Measures shall be calculated from the date of entering the Company’s work, but the following years of service shall not be counted:
- (a) If he resigns and interrupts his work, if he works for the Company again, his past working experience will not be counted.
- (b) Seniority during the period of leave without pay shall not be counted.
C. In the event of the death of a worker whose age and years of service conform to one of the conditions of voluntary retirement or ordered retirement in Article 4 of these Regulations, a pension shall be paid out.

4. Labor agreement situation

The Company established an industrial trade union in 1988 and signed a collective agreement, and in accordance with the Labor Standards Act, regular labor–management meetings are held.

5. Work environment and employee personal safety protection measures

The Company has been committed to industrial safety, environmental protection, energy saving and waste reduction and employee care for a long time. In addition to complying with relevant domestic regulations, it has passed ISO 45001 international occupational health and safety management system certification, CNS 45001 Taiwan occupational safety and health management system certification, and ISO 14001 international environmental management system certification.

In accordance with the Occupational Safety and Health Act, the Company provides pre-employment physical examinations and labor safety and health education and training when employees are hired. Regular health examinations and anomaly follow-up examinations are carried out for in-service employees every year. Implement health counseling and follow-up management. For those who engage in operations that are particularly harmful to health, implement specific items of health inspection and implement health management. At the same time, each unit implements internal and external education and training according to the nature of its work and arranges professional license training, such as organic solvent work, Courses on specific chemical operations, first aid personnel, hypoxia operations, Class A boiler operators and process operations.

For the environmental protection, safety and sanitation operation of the factory area, in addition to the inspection of various environments and facilities, and the measurement of the operating environment every six months, a complete audit procedure has been established. The internal management system audit of environmental safety and health is carried out every six months, and the relevant audit by the third-party verification unit is accepted every year. In addition, management review organizations at the Company and factory levels were established respectively. The general manager and the factory manager held management review meetings to conduct regular reviews of various environmental safety and health affairs, review the operation situation, set goals and directions, and implement continuous improvement and enhancement of environmental safety and health performance.

In order to effectively prevent the occurrence of occupational diseases and occupational disasters, in addition to formulating an occupational safety and health management plan in accordance with the provisions of the Occupational Safety and Health ACT, setting up occupational safety and health business supervisors and management personnel, carrying out work environment inspections every six months, and the industrial environment room according to the annual arrangement. On a fixed date, each unit will implement the automatic inspection method audit, and the staff of the industrial safety office will conduct regular inspections in each operating environment. In addition to the labor safety-related operation specifications, the relevant specifications of each management system and the material safety data sheet are published on the Company’s internal website for employees to read, so that employees can have a deeper understanding of the concept of safety and hygiene and internalize them in their lives.

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4.5.2 Losses due to labor disputes in the last two years and up to the date of publication of the annual report, and disclose the estimated amount and countermeasures that may occur at present and in the future

The Company’s labor–management interaction is good, and it has been awarded the National Labor– Management Relationships Excellent Institution for many times. All labor–management issues can be smoothly resolved at the monthly labor–management meeting. Therefore, in the last two years and as of the publication date of the annual report, there have been no labor–management disputes or losses. The Company will continue to maintain a good interaction mechanism with labor and harmonious labor–management relations, and it is expected that there will be no labor disputes and losses in the future.

4.6 Cyber Security Management

4.6.1 Describe the information security risk management framework, the information security policy, the specific management plan and the resources invested in the information security management, etc.:

Information Security Risk Management Framework: To strengthen the information security management of the company and ensure the security of data, systems, and networks, an Information Security Implementation Committee (as shown in the organizational chart) will be established. The committee will be responsible for planning and implementing the information security management system, holding regular review meetings to track improvement results, and reducing information security risks.

==> picture [338 x 182] intentionally omitted <==

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

Chairman
Vice-Chairman
Management Representative
Promoting Promoting Promoting
File management
Commissioner Commissioner Commissioner
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Information Security Policy:
(1) All information security management regulations of the company must comply with relevant government regulations, such as the Personal Data Protection Act, Copyright Act, National Security Act, Electronic Signature Act, and other related standards.
(2) The Information Technology Department will be responsible for the establishment and promotion of the information security system.
(3) Information security education and training will be implemented to raise awareness of information security among personnel.
(4) Mechanisms for managing information hardware facilities and software will be established to coordinate the allocation and utilization of company-wide resources.
(5) Information security factors should be incorporated into the design of new information systems to prevent incidents that may compromise system security.
(6) Permissions for the use of information systems and network services will be regulated to prevent unauthorized access.
(7) Firewalls will be installed to prevent illegal intrusion, destruction, theft, or tampering of data.
(8) Anti-virus software will be installed and regular virus scanning will be conducted.
(9) Information security is the responsibility of everyone, and all employees must comply with information security policies, procedures, and operational requirements.

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  - (10) Measures for protecting the information data center will be established, and relevant maintenance and upkeep will be conducted regularly.

  - (11) Internal audit plans for information security management system will be formulated and regular internal audits and management reviews will be conducted.

  - (12) Business continuity management plans and backup/restoration measures will be established to ensure continuous operation of business.

  - (13) Evaluation and review of information security policies will be conducted periodically and on an ad hoc basis.

  3. Information security specific management plan:

  - (1) Specific scenarios:

     - A. Establishing company policies and procedures for information security management to regulate personnel's information security operations.

     - B. Implementing an information security management system to enforce protective measures for information security.

     - C. Providing information security education and training, as well as related awareness campaigns, to enhance personnel's awareness of information security.

  - (2) Measures:

     - A. External Threats

(a) Conducting vulnerability detection and updates for network security devices.
(b) Reviewing privileged account management for system access, identifying abnormal records, and confirming alert mechanisms.
(c) Monitoring virus protection and updating status of application software.
```
 - B. Authorization Management
```
(a) Implementing controls for personnel account authorization.
(b) Implementing controls for system operation behaviors.
```
 - C. Access Control
```
(a) Implementing controls for internal/external access measures.
```
 - D. System Availability
```
(a) Enhancing the reliability of hardware equipment and software systems.
(b) Monitoring network status.
(c) Establishing emergency response and notification mechanisms for system service interruptions.
i. Information security protection and backup measures.
ii. Information recovery.
1. Implementation of Information Security Management:
2. (1) An Information Security Promotion Committee was established in September 2023, with one Chief Information Security Officer and two dedicated information security personnel appointed. The Company has also established information security management policies, information security objectives, and management systems (ISMS procedures). Internal audits of the ISMS are conducted annually, and management review meetings are held regularly to ensure the establishment, implementation, operation, monitoring, review, and continuous improvement of the ISMS.
3. (2) In 2025 and up to the publication date of the annual report, one company-wide information security awareness training session was conducted, with a total of 181 participants and 271.5 total training hours.
4. (3) In 2025 and up to the publication date of the annual report, three information security personnel completed a total of 96 hours of certified professional information security training.
5. (4) The Company promptly announces the latest important information security protection regulations and precautions, conducts unannounced social engineering drills, and performs regular disaster recovery exercises.
4.6.2 List the losses, possible impacts and countermeasures caused by major information security incidents in the most recent year and up to the date of publication of the annual report. If it cannot be reasonably estimated, the facts that cannot be reasonably estimated shall be stated: None.

4.7 Important Contracts

Except for general commercial transactions, the Company does not currently have any significant contracts.

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05 Financial Status, Operating Results, and Risk Management

5.1 Financial Status

5.1 Financial Status
			Unit: NT$ Thousands

			Difference
Project	2024	2025

			Amount	%

Current assets	2,477,115	1,955,075	(522,040)	(21.07)
Property, Plant and Equipment	3,212,795	2,966,303	(246,492)	(7.67)
Intangible assets	3,731	2,494	(1,237)	(33.15)
Other assets	4,326,465	5,037,888	711,423	16.44
Total assets	10,020,106	9,961,760	(58,346)	(0.58)
Current liabilities	2,238,344	2,188,966	(57,540)	(2.21)
Non-current liabilities	263,760	244,858	(18,902)	(7.17)
Total liabilities	2,502,104	2,433,824	(68,280)	(2.73)
Share capital	5,278,698	5,278,698	-	-
Capital surplus	129,663	129,663	-	-
Retained earnings	692,970	(28,980)	(721,950)	(104.18)
Other equity	1,290,470	2,020,980	730,510	56.61
Treasury shares	-	-	-	-
Non-controlling interests	126,201	127,399	1,198	0.95
Total equity	7,518,002	7,527,936	9,934	0.13

The main reasons for the significant changes in assets, liabilities and shareholders’ equity for the last two years:

The main reasons for the increase or decrease ratio of more than 20% and 1% of the total assets:

Current Assets – Due to decreases in accounts receivable and inventories during the current period, other assets decreased.
Retained Earnings – Retained earnings decreased as a result of a net loss incurred during the current period.

3. Other equity - Due to other comprehensive (profit) and losses in the current period (i.e. (1) unrealized evaluation gains and losses on equity instrument investments measured at fair value through other comprehensive gains and losses and (2) associated enterprises and joint ventures recognized using the equity method The share of other comprehensive profits and losses (items not reclassified to profit or loss) increased, resulting in an increase in other equity.

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5.2 Financial Status

5.1.1 The main reasons for the significant changes in operating income (loss), net operating profit and net profit before tax for the last two years

Unit: NT$ Thousands


			Difference
Item	2024	2025


			Amount	%


Operating revenue	11,422,940	8,673,776	(2,749,164)	(24.07)


Operating costs	11,771,760	9,216,061	(2,555,699)	(21.71)


Gross loss	(348,820)	(542,285)	(193,465)	(55.46)


Operating expenses	203,499	180,033	(23,466)	(11.53)


Operating income (loss)	(552,319)	(722,318)	(169,999)	(30.78)


Non-operating income and expenses	69,839	(41,670)	(111,509)	(159.67)


loss before tax	(482,480)	(763,988)	(281,508)	(58.35)


Income tax expense (benefit)	(98,873)	40,438	(58,435)	(59.10)


Net loss	(383,607)	(723,550)	(339,943)	(88.62)

Other comprehensive income (loss) for the year
	799,723	973,355	173,632	(21.71)
(net of income tax)


Total comprehensive income (loss) for the year	416,116	249,805	(166,311)	(39.97)

Analysis and explanation of the main reasons for major changes:

Gross operating loss, operating loss, net loss before tax and net loss for the current period will increase in 2025 compared to 2024, mainly due to higher annual repair costs in 2025, Gain from recovery in value of inventories in 2025, and decreased Gains on financial assets (liabilities) at fair value through profit or loss compared to 2024.
The increase in net other comprehensive (profit) losses is mainly due to the recognition of (1) unrealized evaluation gains and losses on equity instrument investments measured at fair value through other comprehensive gains and losses and (2) associated enterprises and joint ventures recognized using the equity method Share of other comprehensive profits and losses - caused by items not reclassified to profit or loss compared with 2024.

5.2.2 Expected sales volume and its basis

Please refer to “1 Report to Shareholders.”

5.2.3 The potential impact on the Company’s future financial operations and response actions

No significant effect.

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5.3 Cash Flow

5.3.1 Cash flow analysis for the current year

5.3.1 Cash flow analysis for the current year
			Unit: NT$Thousands
			Difference
Project	2024	2025
			Amount	%

Operating activities			185,556	64.50
	(287,665)	(102,109)

Investing activities			(47,513)	(73.29)
	64,827	17,314

Financing activities			62,949	67.56
	93,174	156,123

Effect of exchange rate			(23,888)	(102.40)
	23,327	(561)

Net increase (decrease) in cash and cash equivalents	(106,337)	70,767	(177,104)	(166.55)

1. Analysis of cash flow:

(1) Operating activities: The increase in net cash outflow was mainly due to the decrease in the purchase of raw materials at the end of 2025 compared with the same period last year.
(2) Investing activities: The decrease in net cash inflows was mainly due to prepaid investment payments in 2025, as well as a decrease in proceeds from the disposal of equity-method investments and dividends received compared to the same period last year.
(3) Financing activities: The increase in net cash inflow was mainly due to the recovery of unclaimed dividends from shareholders in 2025, as well as the acquisition of minority interests by a subsidiary in 2024, which resulted and the absence of cash dividend distributions in 2025.
Improvement plan for illiquidity: There is no cash illiquidity situation.
Cash flow analysis for the coming year:

3. Cash flow analysis for the coming year:	3. Cash flow analysis for the coming year:	3. Cash flow analysis for the coming year:	3. Cash flow analysis for the coming year:
				Unit: NT$Thousands
	Estimated net cash flow	Net cash outflow from	Estimated cash	Leverage of cash surplus(deficit)
Beginning cash
	from operating	investing and	surplus (deficit)
balance①				Investment plans	Financing plans
	activities②	financingactivities③	①+②-③

568,522	(291,991)	284,751	561,282	-	-
Analysis of cash flow: 1. Operating activities: It is expected that operating profit has not yet recovered in the first half of 2026 resulting in a cash outflow from operating activities 2. Investing activities: It is mainly capital expenditure incurred to meet production needs. 3. FinancingActivities: It is expected to be used to repaybank loans.

Operating activities: It is expected that operating profit has not yet recovered in the first half of 2026 resulting in a cash outflow from operating activities

5.4 Major Capital Expenditure Items: None.

5.5 Investment Policy for the Most Recent Fiscal Year, and the Main Causes for Profits

or Losses, Improvement Plans and the Investment Plans for the Coming Year

The most recent annual reinvestment policy is to eliminate the weak and retain the strong, retain reinvestment companies with sound physique and good performance, and deal with non-core investment projects in a timely manner. The profit or loss of reinvestment depends on the prosperity and decline of the industry where the investment target is located, the domestic economic situation and business strategy. A reinvested enterprise that has made a loss in non-industry investment can turn a loss into a profit.

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5.6 Risk Management

5.6.1 The impact of interest rate, exchange rate changes and inflation on the Company’s profit and loss and future countermeasures

1. In terms of interest rates:

In response to possible changes in interest rates, the Company will adjust the allocation of long-term and short-term loans and negotiate with financial institutions for better interest rates. In the future, we will continue to monitor trends in interest rates and adjust the position of our long-term and short-term loans in a timely manner to reduce the impact of those interest rate changes.

2. Exchange rate:

The Company’s product prices and raw material purchase prices are all denominated in US dollars, and will closely monitor exchange rate changes to reduce the impact of exchange rate fluctuations on the Company’s profit and loss.

3. Inflation:

According to the statistics of the General Accounting Office of the Executive Yuan, the consumer price index (CPI) in 2023 increased by an average of 2.49% compared with 2022.In the future, in response to inflation, the Company will continue to focus on reducing production and sales costs, and pay close attention to supply, demand and prices of raw materials and materials, and flexibly adjust inventory to reduce the impact of price fluctuations on the Company’s operations.

5.6.2 Policies, main reasons for profit or loss and future countermeasures for engaging in high-risk, high-leverage investments, lending funds to others, endorsement guarantees and derivatives trading

The Company is not currently engaged in high-risk, high-leverage investments, capital lending to others, and endorsement guarantees.
The trading of derivatives is handled in accordance with the Guidelines for Derivatives Trading, in the aim to mitigate foreign exchange risks. In addition, the Company will closely monitor market changes, with conservative trading strategies for derivatives.

5.6.3 Future R&D plans and estimated R&D expenses

For the research and development plan, please refer to the description of the business content in “04 Operational Highlight” of this annual report, and the plans are all implemented on schedule.

5.6.4 The impact of important domestic and foreign policies and legal changes on the Company’s financial business and countermeasures

In 2025, there were no changes in policies and laws that had a significant impact on The Company’s financial business.

5.6.5 The impact of technological changes and industrial changes on the Company’s financial business and countermeasures

Although the Company is in a mature industry, there is no revolutionary technology to produce alternative products, but the Company will still take proactive actions to improve the process to improve process efficiency, develop new production technology for related products, enhance the added value of products, and strengthen the Company’s competitiveness.

5.6.6 Influence of corporate image change on corporate crisis management and countermeasures

The Company adopts a prudent and conservative business strategy, fulfills its responsibilities for work safety and environmental protection, and establishes a pragmatic corporate image of the Company. At present, there is no change in the corporate image. The Company continues to strengthen the management team’s awareness of crisis management, and develops preventive measures in advance to avoid the occurrence of crises.

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5.6.7 Expected benefits and possible risks of mergers and acquisitions and countermeasures

The Company currently has no ongoing merger and acquisition operations.

5.6.8 Expected benefits and possible risks of plant expansion and countermeasures

The Company currently has no plant expansion going on.

5.6.9 Risks and countermeasures for purchase or sales concentration

Incoming goods:

The main supplier of the Company’s raw materials is CNPC, Taiwan. Occasionally or when the supply is reduced, it can be purchased from the international market immediately to supplement it, and the raw materials required for production should be fully supplied.

In terms of sales:

The Company’s sales customers remained stable, and the Company strengthened its customer service to stabilize the domestic sales market.

5.6.10 Directors, supervisors or major shareholders holding more than 10% of the shares, the impact and risks of large-scale transfer or replacement of shares on the Company and countermeasures

In 2025, the directors, supervisors or major shareholders holding more than 10% of the Company’s shares did not transfer or replace a large number of shares.

5.6.11 The impact and risks of the change of management rights on the Company and countermeasures

The management rights of the Company in 2024 were stable up to the date of publication of the annual report, and there is no fear of change.

5.6.12 For litigation or non-litigation events, the Company and its directors, supervisors, general managers, substantive persons in charge, major shareholders with a shareholding ratio of more than 10%, and affiliated companies have been determined by judgment or are still in the process of being affiliated. If the outcome of a major lawsuit, non-litigation or administrative dispute may have a significant impact on shareholders’ rights and interests or securities prices, the facts at issue, the amount of the subject matter, the start date of the lawsuit, the main parties involved, and the date of publication of the annual report shall be disclosed. Handling the situation

The Company currently has no major litigation, non-litigation or administrative disputes.

5.6.13 Other important risks and countermeasures

To ensure information security and its management mechanism, the company follows the "Information Security Control Guidelines for Listed and OTC Companies" issued by the Taiwan Stock Exchange, establishes relevant management methods and processing standards for compliance and use, and builds layered control and protection mechanisms in terms of management, personnel, and protection. This is to effectively control enterprise information system risks and maintain continuous operation. The details are as follows:
(1) Establish information security policies and promote organizations.
(2) Personnel resource security.
(3) Media disposal.
(4) Access control.
(5) Physical and environmental security.
(6) Information security incident notification and response.
(7) Regular internal and external information security audits and reporting to management on the implementation of information security.
(8) Conduct annual information security education and training for employees to strengthen their awareness of information security risks. Information security supervisors and personnel receive professional information security courses.
(9) Implement protective measures such as antivirus software, network firewalls, email filtering mechanisms, and active threat defense (IPS).

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As hackers' attack techniques continue to evolve and their methods constantly change, it is impossible to completely eliminate the occurrence of network attacks. However, the company has already possessed considerable information security protection measures and education training to reduce the impact of network threat attacks.

5.7 Other Important Matters: None.

06 Special Disclosure

6.1 Information of the Company’s Affiliates

The Company has fully disclosed the information on the Market Observation Post System (MOPS) in accordance with the regulations of the competent authority, including relationship enterprise organization chart, basic information of affiliated companies, Information on the same shareholders for those who are presumed to have control and affiliation, Information on directors, supervisors and general managers of related companies, Industries covered by the business of the overall affiliated company, operational status of each affiliated company and consolidated financial statements of related businesses. The query method is as follows:

(1) MOPS http://mops.twse.com.tw > Basic information > E-book > the three reporting forms for affiliated enterprises area, Financial statements.
(2) Website of the Company https://www.smct.com.tw > Investor area > Financial information > Financial statements.

6.2 Private Equity Securities:

The Company's 1st Special Shareholders' Meeting on March 15, 2024 authorized the Board of Directors to issue ordinary shares through a cash capital increase in the form of private placement, subject to market conditions and the Company's operational needs, within a limit of no more than 50,000 thousand common shares. According to the provisions of Article 43-6 of the Securities and Exchange Act, it will be handled once (or no more than three times) within one year from the date of resolution of the Special Shareholders’ Meeting. As of the processing deadline, the Company has not submitted any application to the competent authority. Due to the expiration of the processing period stipulated in the law, the Company's Board of Directors passed a resolution on March 12, 2025 that it will not be processed within the expiration date.

The Company has fully disclosed the information on the Market Observation Post System (MOPS) in accordance with the regulations of the competent authority and immediately release material information. The query method is as follows:

(1) MOPS http://mops.twse.com.tw > Investment area > Private placement area > Private placement information.

(2) MOPS http://mops.twse.com.tw > Material information > Advanced search.

6.3 Other Necessary Remark: None.

07 Items Which Might Material Affect Shareholders' Equity or Prices of the Company's Securities Specified in Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange Act: None.

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T.S.M.C. — Annual Report 2025

51769_rns_2026-05-05_767600b9-c20b-4857-83ee-9b9980956532.pdf

Taiwan Styrene Monomer Corporation

I. Spokesman

Acting Spokesman

II. Headquarters

Kaohsiung Plant

III. Stock transfer agency

IV. Auditors

Name of the accounting firm ： KPMG

V. Overseas Securities Exchange ： None

01 Letter to Shareholders

Dear Shareholders,

1.1 2025 Business Report

1.2 Summary of Business Plan for 2026

1.3 Future Company Development Strategy

1.4 Influence of External Competitive Environment, Regulatory Environment and Overall Business Environment

02 Corporate Governance Report

2.1 Directors and Management Team

2.1.1 Directors

2.1.2 Major Shareholders of Corporate Shareholders

2.1.3 Professional Qualifications and Independence Status of Directors

Board Diversity and Independence:

(III) The currently (2024.05.31~2027.05.30) achieved diversity of board members:

(IV) Independence of the Board of Directors

2.1.4 General Manager, Deputy General Manager, Assistant Manager, Supervisors of Departments and Branches

2.2 Remuneration Paid to Directors, General Managers and Deputy General Managers in the Most Recent Year

2.2.1 Remuneration for directors (including independent directors)

2.2.2 Remuneration for CEO, President and Vice President

2.2.3 Remuneration for top 5 paid supervisor

2.2.4 Managerial Officer Who Distribute Remuneration to Employee and the Status

2.3 Implementation of Corporate Governance

2.3.1 Operation of the Board of Directors

2.3.2 Operations of the Audit Committee

2.3.3 Corporate Governance Implementation Status and Deviations from the Corporate

Governance Best-Practice Principles for TWSE/TPEx-Listed Companies and the Reasons

2025 Annual Accountant Independence and Suitability Evaluation Form

(VI) Evaluation result:

Note 3: Important information on the operation of Corporate Governance:

2.3.4 Composition, responsibilities and operation of the Remuneration Committee

1. Information of the members of Remuneration Committee

3. Remuneration Committee Terms of Reference

2.3.5 Composition, responsibilities and operation of the Nomination Committee

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

Climate-Related Information of TWSE/TPEx Listed Company

1. Implementation of Climate-Related Information

1-2 Greenhouse Gas Reduction Targets, Strategy, and Concrete Action Plan

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

2.3.8 Other significant Information that will provide a Better Understanding of the Company’s Corporate Governance Practices

2.3.9 Internal Control Status

1. Internal Control Manual:

2.3.10 Material resolutions of a shareholders meeting or a board of directors meeting in 2025 up to the date of publication of the annual report.

2.4 Information on CPA Professional Fees

2.4.1 Professional Fees of CPA

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

2.5 Replacement of CPA:

A. Regarding the former CPA

B. Regarding the successor CPA

2.7 Changes in Shareholders of Directors, Managerial Officer, and Major Shareholders

2.7.1 Changes in shareholdings of directors, managers and shareholders holding more than 10% share in the Company

2.7.2 Equity Transfer Information:

2.7.3 Equity Pledge Information:

2.8 Information of the Top Ten Largest Shareholders who are Related Parties or have a Spousal or Familial Relationship within the Second Degree of Kinship

2.9 Consolidated Shareholding Ratio of Investees

03 Capital Overview

3.1 Capital and Shares

3.1.1 Capitalization

3.1.2 List of Major Shareholders

3.1.3 Dividend Policy and Implementation Status

3.1.4 Effect upon business performance and earnings per share of any stock dividend distribution proposed or adopted at the most recent shareholders' meeting: None.

3.1.5 Compensation of Employees and Directors

3.1.6 Buyback of Treasury Stock

3.2 Corporate Bonds: None.

3.3 Preferred Shares: None.

3.4 Global Depository Receipts: None.

3.5 Status of Employee Stock Options: None.

3.6 Status of Employee Restricted Stock: None.

3.7 Status of New Shares Issuance in Connection with Mergers and Acquisitions: None.

3.8 Funding Plans and Implementation:

T.S.M.C. Annual Report 2025