TTCC - Annual Report 2025 | FinancialReports.eu

Stock Code: 8011

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Tai Tung Communication Co., Ltd.

2025 ANNUAL REPORT

URLs for relevant web locations of the Annual Report Market Observation Post System (MOPS): mops.twse.com.tw Tai Tung's website: https://www.ttcc.com.tw

Printed on March 31, 2026

The name, job title, telephone number, and e-mail address of the spokesperson or acting spokesperson

Name of spokesperson: Cheng Yu-Yin

Job Title: Director of Finance Department Telephone number: (02) 2299-1066 E-mail address: [email protected]

Name of Acting Spokesperson: Lee I-Chuan

Title: President and concurrently Vice President of Sales Department Telephone number: (02) 2299-1066

E-mail address: [email protected]

The address and telephone number of the company's headquarters, branch offices, and factories
Address of Head Office: No. 219, Fuhui Rd., Xinzhuang Dist., New Taipei City 242032 Telephone number: (02) 2299-1066
Address of Luzhu Plant: No. 41, Ln. 292, Haihu E. Rd., Luzhu Dist., Taoyuan City 338025

Telephone number: (03) 354-3500

The name, address, URL, and telephone number of the agency handling shares transfer Name: Stock Affairs Department, Fubon Securities Co., Ltd.
Address: 11F, No.17, Xuchang St., Zhongzheng District, Taipei City 100 (Shou-Te Building)
Agency website: www.fubon.com Telephone number: (02) 2361-1300
The names of the certified public accountants who duly audited the annual financial report for the most recent fiscal year, and the name, address, URL and telephone number of the accounting firm to which they belong

Name: Hsieh Tung-Ju, Li Kuan-Hao

Name of the accounting firm: Deloitte Taiwan

Address: 20F, No.100, Songren Rd., Xinyi Dist., Taipei City 100 Website: www.deloitte.com.tw Telephone number: (02)2725-9988

The name of any exchanges where the company's securities are traded offshore, and the method by which to access information on said offshore securities: None.
Company website ： https ： //www.ttcc.com.tw

		Table of Contents	Table of Contents
Chapter	1.	Report to Shareholders .................................................................................		1
Chapter	2.	Corporate Governance Report ......................................................................		7
		I.	Information on the company's directors, supervisors, president, vice
			presidents, assistant vice presidents, and the supervisors of all the	7
			company's divisions and branch units.................................................
		II.	Remuneration paid during the most recent fiscal year to directors, supervisors, the president, and vice president ....................................	18
		III.	The state of the company's implementation of corporate governance	22
		IV.	Information on the professional fees of the attesting CPAs (external auditors). .............................................................................................	48
		V.	Information on replacement of certified public accountant ................	49
		VI.	Where the company's chairperson, president, or any managerial
			officer in charge of finance or accounting matters has in the most
			recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting	50
			firm, the name and job title, and the period during which the
			position was held, shall be disclosed ..................................................
		VII.	Any transfer of equity interests and/or pledge of or change in equity
			interests (during the most recent fiscal year or during the current
			fiscal year up to the date of publication of the annual report) by a
			director, supervisor, managerial officer, or shareholder with a stake	50
			of more than 10 percent during the most recent fiscal year or during
			the current fiscal year up to the date of publication of the annual
			report: ..................................................................................................
		VIII.	Relationship information, if among the company's 10 largest
			shareholders any one is a related party or a relative within the	51
			second degree of kinship of another ...................................................
		IX.	The total number of shares and total equity stake held in any single
			enterprise by the company, its directors and supervisors, managerial officers, and any companies controlled either directly or indirectly	52
			by the company: ................................................................................
Chapter	3.	Information on Capital Raising Activities ..................................................		53
		I.	Capital and Shares ..............................................................................	53
		II.	Information on the company's issuance of corporate bonds. ..............	57
		III.	Status of preferred shares ....................................................................	57
		IV.	Status of global depository receipts ....................................................	57
		V.	Status of employee share subscription warrants and new restricted employee shares ..................................................................................	57
		VI.	Status of issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies ..........	57
		VII.	Status of implementation of the company's capital allocation plans ..	57
Chapter	4.	Overview of Business Operations ................................................................		58
		I.	A description of the business ..............................................................	58
		II.	Market and Sales Overview ................................................................	75
		III.	Employees statistics ............................................................................	90
		IV.	Information on environmental protection expenditures .....................	91
		V.	Labor relations ....................................................................................	92

		VI.	Cyber security management ...............................................................	97
		VII.	Important contracts .............................................................................	103
Chapter	5.	A review and analysis of the company's financial position and financial performance, and a listing of risks................................................................		111
		I.	Financial position ................................................................................	111
		II.	Financial performance ........................................................................	112
		III.	Cash flow ............................................................................................	113
		IV.	The effect upon financial operations of any major capital expenditures during the most recent fiscal year..................................	113
		V.	The annual report shall describe the company's reinvestment policy
			for the most recent fiscal year, the main reasons for the profits/losses generated thereby, the plan for improving re-	114
			investment profitability, and investment plans for the coming year ..
		VI.	Risk management and assessment during the most recent fiscal year and as they stood on the date of publication of the annual report ......	115
		VII.	Other important matters ......................................................................	124
Chapter	6.	Special items to be included. ........................................................................		125
		I.	Information related to the company's affiliates ..................................	125
		II.	State of private placement of securities during the most recent fiscal
			year or during the current fiscal year up to the date of publication of	125
			the annual report .................................................................................
		III.	Other supplementary information .......................................................	125
Chapter	7.	Event	that will pose significant impact to the shareholder's equity or the
		stock	prices as specified in Clause 2 under Article 36-3 of Securities and	125
		Exchange Act in previous year and until the annual report printing date ....

Chapter 1.Report to Shareholders

I. 2025 Business Report

(I) Implementation result of business plan for 2025

Since the development of 5G and AI, the world's demand for data transmission and computing has been constantly increasing. In the past, systems needed to be gradually replaced and upgraded to meet the needs of new technologies. For example, Taiwan Railway Corporation has launched the " Smart Electrical Systems Upgrade Plan " to replace some telephone systems from copper cables to optical cables, and Taiwan Power Company has also launched a ten-year " Power Grid Resilience Strengthening Construction Plan " in 2022 to replace and expand existing power grid lines and equipment. In addition, with the increasing awareness of security, the demand for smart systems has also been rising year by year. For example, the Ministry of National Defense has commissioned the NCSIST to handle the " Smart Surveillance and Security System Deployment Project for Critical Protection Camps ", and has currently implemented the construction of smart systems in about 200 campsites.

The company has long been dedicated to participating in smart construction projects across Taiwan and possesses extensive experience in the sales of fiber optics and communication cables. Beyond years of involvement in the deployment and maintenance of government and corporate equipment, the Company has actively engaged in the establishment of smart systems, regional fiber optic deployment, and pipeline construction in recent years, and achieved significant results.

In 2012, the Company has invested in and established Taiwan Intelligent Fiber Optic Network Co., Ltd. (hereinafter referred to as 'Taifo') as a key strategic move to expand into the fiber broadband network service sector. In response to the growing demand for communication networks, Taifo grew steadily in 2025, up by 9.48% compared with 2024.

The Company’s former factory and office located in the New Taipei Industrial Park has been demolished and has collaborated with affiliate Ching Tong Investment Co.,Ltd and listed developer (5533) Founding Construction & Development Co., Ltd. to construct a factory office building using a joint construction method. The building consists of two buildings, A and B, with 11 floors above ground and 3 floors underground. As of February 2026, the excavation of the first floor of Building A has been completed, while Building B is currently undergoing construction on the 6th and 7th floor modules.

The financial data for 2025 and 2024 are presented in the table below. The decrease in revenue in 2025 compared to 2024 is mainly due to a decrease in telecommunications demand and the fact that most of the projects undertaken by the Company are nearing completion. The decrease in non operating income is mainly due to the disposal of long-term equity Intelligent Network during 2024.

Unit: thousands of NTD

Item	2025	2024	Amount changed	Percentage of change (%)
Operating Revenue	2,075,427	2,487,299	(411,872)	(17)
Gross Profit	537,459	475,847	61,612	13
Net operating profit	281,203	168,115	113,088	67
Non-operating income and expenses	3,406	311,444	(308,038)	(99)
Profit Before Income Tax	284,609	479,559	(194,950)	(41)
Net income for the period	262,459	441,437	(178,978)	(41)
Net income attributable to owners of theparent Company	216,126	406,789	(190,663)	(47)

Note 1: The data is quoted from the Consolidated Financial Statement prepared by this company.

(II) Financial income/expenditure

Unit: thousands of NTD

	2025	2024	Amount changed
Net cash inflow from operating activities	711,386	614,674	96,712
Net cash inflow (outflow) from investing activities	(94,686)	222,222	(316,908)
Net cash inflow (outflow) from financingactivities	(131,570)	(1,293,040)	1,161,470

Note 1: The data in the aforesaid table is quoted from the Consolidated Financial Statement prepared by this company.

(III) Analysis of profit-earning ability

	Year	2025	2024
Profitability (%)	Return on total assets	4.29	6.68
	Return on equity	6.67	11.51
	Ratio of income before tax to paid- in capital	17.15	28.90
	Netprofit margin	12.65	17.75
	Earningsper share(NT$)	1.30	2.43

Note 1: The data in the aforesaid table is quoted from the Consolidated Financial Statement prepared by this company.

(IV) Budget execution

Because we did not disclose the financial estimate in 2025, the budget execution related information is not available in 2025.

(V) Research and development

With the rapid development of AI technology, the global demand for network transmission performance is constantly increasing, among which reducing transmission loss is the top priority. The Company is aligning its product research and development with the trends in network development, while leveraging its existing optical communication product niche to maintain a leading position in the highly competitive market. In order to meet market demand, the Company not only produces and develops fiber optic cables and optical passive components but also conducts product research and development in line with the trend of wireless network development to maintain market competitiveness. This includes upgrading the functionality of the smart wireless network management system developed for the project, establishing DWDM systems between various telecommunications IDC buildings to meet AI artificial intelligence information needs, conducting IOWN all-optical network research, and actively collaborating with manufacturers to conduct high bandwidth testing and business planning for 200G/400G..., as well as actively developing enterprise value-added services such as ICT outsourcing services, security monitoring, cloud services, and digital learning.

II. 2026 Business Plan Overview

(I) Operation approaches and future development strategies

In terms of the operation approaches, we will focus on rendering more efficient manufacturing integration for the copper cables, the fiber optics and the optical passive components so as to provide more accessible sources for our customers when making the purchase. In the optical communication field, we are leading ahead of other competitors in terms of depth and width and it has helped us become "the vendor that provides the full-area products and services for optic fibers." In recent years, in addition to 5G driving global infrastructure construction, the rise of the AI industry has also driven the demand for high-speed computing and information center construction worldwide. The development strategy for 2026 not only focuses on the government's digital development policies and the development of the 5G communication industry to win orders for fiber optic cables, but also actively participates in government network infrastructure construction projects.

The Company is committed to promoting the upgrading of the rail industry with professionalism, management, and integrity as the core. We have partnered with GAMUDA BERHAD to participate in the integration project of equipment and mechanical and electrical systems at the Shehou Depot of the Xizhi Donghu Line (Xidong Line) of the New Taipei Metro. The total length of the Xidong Line is about 5.56 kilometers, and it will connect the Keelung Metro with the Taipei urban road network in the future. It is an important transportation construction to promote the development of the Greater Taipei Living Circle. As the core of overall operation, the Shehou Depot shoulders the tasks such as vehicle maintenance, power and equipment supply, warehouse management, and system integration, and is a key node in ensuring the high reliability of the subway. In the future, the Company will continue to focus on professionalism, integrity, technology, and management, deepen the overall competitiveness of

Taiwan's rail industry and move towards a higher level of international cooperation.

Given that the "Taipei City Government Internet Service Network" established by the Company has provided online services to over 90% of government agencies, our telecommunications services and marketing efforts now focus on corporate and consumer markets, aiming to expand service coverage and introduce emerging services. Based on objectives such as revitalizing Taipei City's existing assets, building a high-quality fiber-optic network, offering citizens low-cost high-speed fiber services, creating a fair telecommunications environment, reducing public expenditures for Taipei City, and enhancing the city's competitive edge, we strive to achieve a win-win-win situation for citizens, businesses, and Taipei City. By leveraging private sector dynamism, we promote the development of Taipei City's fiber-optic network to boost the city's competitiveness.

(II) Estimated sales quantity and basis

Described below is the estimated sales and planning:

1. FTTH related fiber-optic cable, copper cable and fiber optics and infrastructure project

The wire and cable market is a critical component of modern infrastructure and technological development and has become the preferred choice for data transmission. 5G, AI , big data centers, cloud computing, and cybersecurity all require large-scale, intensive deployment of fiber-optic and cable networks to effectively meet market demands.In addition to providing high-quality fiber optic cables and optical communication products, the Company actively participates in public tenders related to network infrastructure, such as the installation of fiber optic conduits, power transmission, traffic control, intelligent surveillance equipment, and electromechanical equipment installation projects.

The export market has leveraged its subsidiary's long-term presence in the Singaporean market, actively collaborating with local telecommunications operators to capitalize on local advantages and engage in various communication-related markets, striving for bids on communication products and equipment installation. Over the years, the Company has also successfully entered Malaysia's public transportation and 5G-related cable construction markets through local agents.

2. Transportation System

In December 2025, the Company successfully obtained the bid for two dual-use rail inspection cars from Taiwan Railway Company. In January 2026, we obtained the contract for the maintenance equipment project of the MRT Xizhi Donghu Line from GAMUDA BERHAD. In 2026, we will continue to actively strive for orders related to other equipment for the Xidong subway line and vehicles for the Keelung subway line and expand the market share of Taiwan's transportation system industry.

3. Operation of telecommunication services

(1) TGSN Government Network: The municipal government requires VPN and internet access circuits, with approximately 3300 lines, and more than three government circuits concentrated in the municipal government computer room. In addition, the Company has expanded the integration of information equipment maintenance and network value-added application services for various government units and participated in various government agency information application services or line rental services.

(2) City Police Station CCTV Circuit Service: The first phase of CCTV construction included a total of 13,699 roadside monitors. According to the newly planned network architecture and the transmission circuits required for high-definition cameras, 400 additional monitors will be added by 2025. In 2026, the original 1,717 monitors from the second phase will be replaced, with an additional 2,283 monitors installed.
(3) Enterprise Dedicated Line: high-grade enterprise fiber internet and dedicated telecommunication circuits are offered to international bandwidth providers, utilizing bandwidth advantages to provide integrated telecommunications services. In 2025, the Company completed the telecom pipeline construction project invested by international manufacturers to build IDC, and in 2026, it continued to cooperate with the aforementioned international manufacturers to provide diversified telecom services for the computing power required by cloud service providers (CSP) stationed in IDC.
(4) Taipei Fiber: The primary customers include small and medium-sized enterprises and individual users. In 2026, we will continue to seek strategic cooperation with enterprise application and content providers to provide smart home information and entertainment services such as enterprise application solutions, network TV, and network equipment, in order to expand the market share.

(III) Important production and sales policy

The company provides integrated services for fiber-to-the-home related products with high quality and competitive price. With the rapid development of cloud technology, artificial intelligence and other advanced technologies in the world, the continuous upgrading of technology and the deepening of AI applications will help improve the performance of 5G and Wifi applications. In the sales of optical communication products, we will integrate communication products, expand the sales field of products, integrate project business across the whole system, and open up markets with strategic alliances of domestic and foreign cooperative manufacturers.

In addition, the Company has stepped into the railway market, not only strengthened the cooperative relationship with the original international testing/equipment factory, and obtained the exclusive authorization of Taiwan market to form a long-term supply chain and endorsement of the original factory, but also actively cooperated with local maintenance and industry consolidation, combined with local maintenance/assembly/warranty energy in Taiwan, and reduced the transportation and overseas maintenance time and risk management of outsourced maintenance. In order to create a complete solution with high technology, high added value and low maintenance risk in the long-term competition, it will be conducive to the stable entry into many MRT and railway projects in the future.

In terms of telecommunications services, the Taipei City Government Service Network (TGSN) assists in planning value-added circuit applications for various agencies to enhance circuit bandwidth demand. Additionally, apart from strengthening strategic collaborations with telecom-grade customers, cable TV operators and Internet Content Providers (ICPs) or Application Service Providers (ASPs), active discussions are held with colocation or cloud service providers regarding circuits and IDC services. For enterprise users, fiber-to-the-building (FTTB) is primarily employed to deliver broadband services with ring protection, while user equipment utilizes optical enterprise-grade switches to provide dual-routed network transmission services. Taipei Fiber offers diverse and high-cost-performance promotional packages for general users and small and medium enterprises in communities, apartments, and public housing.

III. Impact created by external competition environment, statutory environment and overall operation environment.

(I) Foreign exchange fluctuation

Because all of the company's sales and purchase transactions are calculated by foreign currency, the company will be affected by the foreign exchange fluctuation risks. The Company utilizes foreign exchange forward contracts to manage the exposure to exchange rate risks to the extent permitted by the policy.

(II) Telecommunication operation environment

To prevent telecom services from being exploited for fraudulent activities or misused by unauthorized individuals, the Company cooperates with government efforts to combat and prevent fraud by strengthening real-name registration management, restricting or suspending services to users involved in such cases, and implementing other preventive measures. Through public-private collaboration, we aim to enhance collective defense mechanisms to deter and prevent the misuse of network services for fraudulent purposes, thereby safeguarding the rights and interests of our users and the public.

(III) ESG Promotion

ESG (Environmental, Social, and Corporate Governance) has become a core issue for global capital markets and regulatory agencies, serving as an important indicator for measuring a company's competitiveness and financial stability. The International Financial Reporting Standards (IFRS) have issued the IFRS S1 Sustainability Disclosure Standard and IFRS S2 Climate-related Disclosure Standard, requiring companies to include sustainability information in their financial reports to enhance transparency and risk management. To this end, the Financial Supervisory Commission is promoting the "Green Finance Action Plan 3.0", which requires listed and over-the-counter companies to gradually comply with IFRS S1/S2 from 2026. Enterprises need to strengthen carbon governance mechanisms, improve the quality of ESG information disclosure, and incorporate climate risk management into long-term operational strategies. The Company upholds the commitment to sustainable development and will introduce professional consultants from 2024 to evaluate the current status of greenhouse gas emissions. We will conduct annual audits in accordance with ISO 14064-1:2018 standards; In addition, the Company actively promotes the main products to obtain ISO 14067 product carbon footprint certification and has obtained declarations for three products in June 2025.

To further enhance the quality of ESG information disclosure, the Company will prepare and release an ESG sustainability report for the first time in 2025, following the GRI Sustainability Reporting Standards and adopting the TCFD (Climate Related Financial Disclosures) framework. We will also disclose the performance of environmental, social, and corporate governance aspects in accordance with the " Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies ", in order to respond to stakeholders' expectations and demonstrate the results of the Company's sustainable governance. At the same time, the Company will follow its exclusive ESG blueprint, continue to promote greenhouse gas inventory and confidence, and disclose reduction targets and action plans according to the schedule. In addition, in order to comply with international standards and regulatory requirements, the Company will compile sustainability information in accordance with IFRS sustainability disclosure standards starting from 2028, ensuring that our operational strategies are aligned with global sustainability trends, promoting global sustainability, fulfilling corporate social responsibility, and moving towards net zero emissions goals.

We wish you good health and success in everything!

Lee Ching-Hung, Chairman

Chapter 2. Corporate Governance Report

I. Information on the company's directors, supervisors, president, vice presidents, assistant vice presidents, and the supervisors of all the company's divisions and branch units
(I) Directors and Supervisors
1. Information on Directors and Supervisors

																	March 27,2026	March 27,2026	March 27,2026
Job title	Nationality or place of registration	Name	Gender & age	Date of election/ appointment to current term	Term of office	Commencement date of first term	No. of shares held at time of election		No. of shares currently held		Shares currently held by spouse and minor children		Shares no	held through minees	Principal work experience and academic qualifications	Position(s) held concurrently in the company and/or in any other company	Other officer(s), director(s), or supervisor(s) with which the person has a relationship of spouse or relative within the second degree
							No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio			Job title	Name	Relationship
Chairperson (Note 1)	Taiwan, R.O.C.	Lee Ching- Hung	Male Aged 71 - 80	2024. 05.31	3 years	1981.12.21	9,389,116	5.66%	9,389,116	5.66%	786,138	0.47%	-	-	Honorary Master's degree of Engineering from National Taiwan University of Science and Technology Machinery, National Chia-Yi Industrial Vocational High School Fiber Logic Communications, Inc. Legal Representative (Supervisor)	Note 2	President and concurrently Vice President of Sales Department	Lee I-Chuan	Father and daughter
Director	Taiwan, R.O.C.	Xin Di Investment Co., Ltd.		2024. 05.31	3 years	1998.12.22	21,186,166	12.77%	21,186,166	12.77%	-	-	-	-	-	-	-	-	-
	Taiwan, R.O.C.	Legal Representati ve: Lee I- Chuan	Female Aged 41 - 50	2024. 05.31	3 years	2012. 07.11	NA	NA	6,644	0.00%	-	-	-	-	Business Administration, Shih Chien University Master's degree Department of Marketing, Curtin University of Technology, Australia Tai Tung Communication Co., Ltd. Vice President of Business Department	Note 3	Chairperson	Lee Ching- Hung	Father and daughter

Director	Taiwan, R.O.C.	Wang Ho- Ting	Male Aged 71 - 80	2024. 05.31	3 years	2001. 05.30	-	-	-	-	10,000	0.01%	-	-	National Su-Ao marine & Fisheries Vocational High School Vice President of WONDERFUL WIRE CABLE CO., LTD. President of Tai Tung Communication Co., Ltd. Chairperson of DONGGUAN TAITUNG ELECTRIC WIRE CO., LTD.	None	-	-	-
Independent Director	Taiwan, R.O.C.	Wang Yu- Peng	Male Aged 61 - 70	2024. 05.31	3 years	2021. 07.02	-	-	-	-	-	-	-	-	Ph.D. in MBA Program, National Chengchi University Dean of Academic Affairs/Dean of College of Management/Director of Department of Business Administration, College of Design, Shih Chien University	Convenor of the Remuneration Committee/ Audit Committee of the Company Full-time Professor, Department of Business Administration , Shih Chien University	-	-	-
Independent Director	Taiwan, R.O.C.	Huang Li- Chen	Female Aged 51 - 60	2024.05.31	3 years	2021. 07.02	-	-	-	-	-	-	-	-	Master of Business Administration, Shih Chien University Vice President of SAN FAR PROPERTY LIMITED and JINGO INTERNATION AL RECORDS CO., LT Business Executive of Run Long Construction Co Ltd President's Chief Secretary of High wealth Construction Corp.	Member of the Remuneration Committee/ Audit Committee of the Company Deputy General Manager of the Business Department, Sheng De Fu Construction Development Co., Ltd. and Zhao Feng Jiye Construction Co., Ltd. Director and Deputy CEO of Shih Chien University Cultural Education Foundation	-	-	-

Independent Director	Taiwan, R.O.C.	Tsai Chang- Hsi	Male Aged 51 - 60	2024. 05.31	3 years	2023. 06.26	-	-	-	-	-	-	-	-	Master of Business Administration, Shih Chien University Manager at Bank SinoPac Company Limited Senior Sales Manager at SinoPac Leasing Company Limited	Member of the Remuneration Committee/ Audit Committee of the Company Senior Sales Manager at SinoPac Leasing Company Limited	-	-	-
Independent Director	Taiwan, R.O.C.	Liang Wen- Jaw	Male Aged 71 - 80	2024. 05.31	3 years	2024. 05.31	~~-~~	~~-~~	~~-~~	~~-~~	~~-~~	~~-~~	~~-~~	-	Department of Industrial Engineering, Tunghai University Tai Tung Communication Co., Ltd. Supervisor Hon Hai Precision Industry Co Ltd Senior Manager	Audit Committee of the Company	-	-	-

Note 1: Where the chairperson of the board of directors and the general manager or person of an equivalent post (the highest level manager) of a company are the same person, spouses, or relatives within the first degree of kinship, an explanation shall be given of the reason for, reasonableness, necessity thereof, and the measures adopted in response thereto (e.g. increasing the number of independent directors and ensuring that a majority of directors do not concurrently serve as an employee or managerial officer): For the sustainable development of the company’s operations and to advance the succession training plan, Ms. Lee I-Chuan assumed the position of President on April 11, 2024. After the board reelection on May 31, 2024, there are a total of four independent directors. Up till now, more than half of the board members are not concurrently employees or managers.
Note 2: Served as the legal representative (director) and the Chairman for the companies provided below: AgrandTech Limited, Anhui Tung Hua Optic Electronics Co., Ltd., Taiwan Intelligent Fiber Optic Network Co., Ltd., King Tung Resources Co., Ltd. ; served as the Chairman of Xin Di Investment Co., Ltd., the President of TAIFO; served as the legal representative of Inc. and Chien Tung Harbour Service Co., Ltd and SING TUNG TECHNOLOGIES PTE.LTD ; served as supervisor of Ching Tong Investment Co., Ltd.
Note 3: Served as the legal representative (director) for the companies provided below: Taiwan Intelligent Fiber Optic Network Co., Ltd., Anhui Tung Hua Optic Electronics Co., Ltd., King Tung Resources Co., Ltd..; served as the Chairman of Ching Tong Investment Co., Ltd.; and served as the President and concurrently Vice President to Sales Department of Tai Tung Communication Co., Ltd.; served as the legal representative (director) and Chairman of QIONG LIAN CO., LTD. and as the supervisor of XIN DI Investment Co., Ltd.

Disclosure of Information Regarding the Professional Qualifications and Experience of Directors and Supervisors and the Independence of Independent Directors

	Directors and Supervisors and the Independence	of Independent Directors	of Independent Directors
		March 27, 2026
Qualifications Name	Professional qualifications and experience (Note 1)	Independence analysis (Note 2)	No. of other public companies at which the person concurrently serves as an Independent Director
Lee Ching-Hung	The founder of Tai Tung, he has led Tai Tung through three transformations since 1981, with extensive experience in the telecommunications industry.	None are under any of the circumstance set forth in any subparagraph of Article 30 of the Company Act.	None
Xin Di Investment Co., Ltd. Legal Representative: Lee I-Chuan	Serving as president and vice president of Sales Department of the Company, familiar with the industry trend of the telecommunications industry with abundant experience in bidding cases and business marketing.		None
Wang Ho-Ting	Serving as vice president of a wire & cable company and legal representative (director, supervisor) of an enterprise, with rich expertise of management and experience in making operational judgement.		None
Wang Yu-Peng	Ph.D. in MBA Program, National Chengchi University, having been teaching at Shih Chien University since 1990, serving as Dean of Academic Affairs, Dean of College of Management, Director of Department of Business Administration, with expertise in accounting, finance, and business management. Currently an	1. A natural-person, and his/her spouse, any relatives within the second degree of kinship are not Independent Directors, supervisors, or employees of	None
	adjunct professor at the Department of Business Administration,	the Company or its affiliates.
	Shih Chien University, he has published management-related research projects and monographs since 1997, and is committed to business administration academic education and nurturing talents.	2. There are no circumstances relating to the number and ratio of shares of the Company held
Huang Li-Chen	Master of Business Administration, Shih Chien University, serving	by the independent director	None
	as vice president in the Sales Department of a construction/real	and their spouse and relatives
	estate company, senior supervisor of General Manager's Office,	within the second degree (or
	President's Chief Secretary of Highwealth Construction Corp.,	through nominees).
	Director and Deputy CEO of Shih Chien University Cultural Education Foundation/Director of North District Alumni Association, with extensive operational judgment and management experience.	3. They do not serve as a director, supervisor, or employee of any company having a specified relationship with the Company. 4. There are no circumstances relating to the amount(s) of any pay received by the independent director for any services such as business, legal, financial, or accounting services provided to the Company or any affiliate thereof within the past 2 years.
Tsai Chang-Hsi	Master of Business Administration, Shih Chien University, serving in the financial industry since 1993 and has amassed over 30 years of experience in this field. Currently holding a position as a senior manager, this person possesses a deep understanding of industry contexts and major industry dynamics. This extensive knowledge significantly benefits the financial operations of the Company. Additionally, the individual's background aligns with the diversity and qualification requirements of the Board of Directors.		None
Liang Wen-Jaw	Department of Industrial Engineering, Tunghai University, Bachelor of Engineering. Served as Director and Senior Manager at an electronics company, Senior Manager at a technology group, and Senior Manager in the Supply Chain Management Department. The practical work included coordinating production planning and production-sales coordination, managing the supply chain and reducing material procurement costs, inventory control and optimization, ensuring timely delivery and revenue tracking, and participating in the formulation of long-term strategic development goals for the network communications business group. These experiences have greatly contributed to the long-term development of the company's production business and meet the board's needs and qualifications for diversification.		None

Note 1: Professional qualifications and experience: Specify the professional qualifications and experience of each Independent Director and supervisor. If a member of the Audit Committee, specify their accounting or finance background and work experience. Additionally, specify whether any circumstance under any subparagraph of Article 30 of the Company Act exists with respect to an Independent Director or supervisor.

Note 2: Describe the status of independence of each independent director, including but not limited to the following: did they or their spouse or any relative within the second degree serve as a director, supervisor, or employee of the Company or any of its affiliates? Specify the number and ratio of shares of the Company held by the independent director and their spouse and relatives within the second degree (or through nominees); do they serve as a director, supervisor, or employee of any company having a specified relationship with the Company (see Article 3, paragraph 1, subparagraphs 5 to 8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies)? Specify the amount(s) of any pay received by the independent director for any services such as business, legal, financial, or accounting services provided to the Company or any affiliate thereof within the past 2 years.
Diversity and Independence of the Board of Directors:
- (1) Diversity of the board of directors:

The Board of Directors of the Company shall direct the Company's strategies, supervise the management and be responsible to the Company and shareholders. Procedures and arrangements relating to corporate governance shall ensure that, in Exercising, the Board of Directors will comply with laws, regulations, Articles of Incorporation, and the resolutions of shareholders' meetings of the Company.

Regarding the structure of the board of directors of the Company, an appropriate number of the board members, which shall not be less than five, shall be determined based on the review of the scale of corporate management and operation and the shareholding of the major shareholders and by taking into consideration of the practical needs for operation.

The board of directors shall have members of diverse backgrounds. The board of directors shall formulate appropriate and diverse strategies based on how the board works, type of operation, and development needs, for which standards covering at least the following two aspects shall be included:

A. Basic qualifications and values: gender, age, nationality and culture.
B. Professional knowledge and skills: including professional background (such as law, accounting, industry, finance, marketing or technology), professional skills and industrial experience.

The board members shall have the necessary knowledge, skill, and experience for performing their duties. To achieve the ideal goal of corporate governance, the Board of Directors shall have the following abilities:

A. ability to make operational judgment;
B. ability to perform accounting and financial analysis;
C. ability to conduct management administration;
D. ability to conduct crisis management;
E. possession of industrial knowledge;
F. possession of perspective of international market;
G. ability to lead; and
H. ability to make decisions.

In order to strengthen corporate governance, and to promote the integrity of the structure, the Company has formulated the "Corporate Governance Best-Practice Principles" in 2018.The Company elected new directors on May 31, 2024, and there will be a total of four independent directors. The current board of directors consists of seven directors, including four new independent directors (Wang Yu-Peng, Huang Li-Chen, Tsai Chang-Hsi and Liang Wen-Jaw). The members have rich experience and professional knowledge in the fields of accounting, corporate management, supply chain management, finance, and construction, and have a broad perspective. Additionally, the Company places strong emphasis on gender equality within the composition of its Board of Directors. On May 10, 2023, the Board approved the "Succession Plan for Succession Planning of Board Members and Important Management Levels," which mandates that at least one of the Board members must be a woman. Currently, the board consists of seven directors, including two female directors, accounting for 28.57%.

The company will implement a diversification policy to establish diversity management goals and develop action plans to improve the gender ratio on the board of directors.

Measures to Enhance Gender Diversity on the Board of Directors.

Gender diversity can bring a variety of perspectives and experiences to the board, enhancing the comprehensiveness and innovation of decision-making. To improve the gender ratio on the board and achieve gender diversity, the company plans to adopt the following specific actions:

A. Strengthen the Gender Diversity Policy

In accordance with the gender diversity policy, clear diversity management goals will be set and displayed on the company's website.

Incorporate gender diversity-related regulations into the "Corporate Governance Best Practice Principles" to ensure the sustainability and enforceability of the policy.

B. Incorporate gender diversity as an important consideration in the nomination process.

Set the requirement that the board must have at least one-third representation from each gender as a reference for determining the number of nominees, ensuring an inclusive nomination process.

C. Integrate ESG strategies

Incorporate gender diversity into the core objectives of the company's sustainable development (ESG) strategy and regularly disclose progress in the ESG report.

D. Strengthen shareholder support.

Convey the importance of gender diversity for the company's long-term development to key shareholders and seek their support for female candidates.

E. Regular reviews and adjustment

Each term, the board members should regularly review the current status and effectiveness of gender diversity on the board and make timely adjustments to measures where improvements are needed.

Disclose the review results and subsequent plans in the annual report to demonstrate the company's transparency and accountability in governance.

Gender diversity is a crucial cornerstone of modern corporate governance and an essential strategy for achieving sustainable development in businesses.

The company will actively implement relevant measures to gradually enhance gender diversity on the board of directors, strengthen governance effectiveness, and improve the corporate image, ultimately creating greater value for shareholders and stakeholders.

The relevant implementation status is as follows

Director Diversity Core Items Name of Director	Gender	Nationality	Concurrently Serving as Employees of the Company	Age Interval	Term of office as independent director	Operational Judgement	Accounting and Financial Analysis	Business Management	Crisis Management	Industrial Knowledge	Perspective of International Market	Leadership	Making decisions
Lee Ching- Hung	Male	Taiwan, R.O.C.	✓	Aged 71-80		✓		✓	✓			✓	✓
										Telecommunications

Xin Di Investment Co., Ltd. Legal Representative: Lee I-Chuan	Female	Taiwan, R.O.C.	✓	Aged 41 - 50				✓	✓				✓
										Telecommunications

Wang Ho-Ting	Male	Taiwan, R.O.C.		Aged 71-80		✓	✓	✓	✓	Wire & Cables	✓
Wang Yu-Peng (Independent Director)	Male	Taiwan, R.O.C.		Aged 61 - 70	2	✓	✓	✓		Academic: Business Administration	✓	✓	✓
Huang Li- Chen (Independent Director)	Female	Taiwan, R.O.C.		Aged 51 - 60	2	✓		✓	✓	Construction/Real Estate	✓	✓	✓
Tsai Chang- Hsi (Independent Director)	Male	Taiwan, R.O.C.		Aged 51 - 60	2	✓	✓	✓	✓	Finance		✓	✓
Liang Wen- Jaw (Independent Director)	Male	Taiwan, R.O.C.		Aged 71 - 80	Newly Appointed	✓		✓	✓	Others from Electronics Industry	✓	✓	✓

(2) Independence of the board of directors:

The board of directors currently consists of seven directors, including four independent directors, and their ratio to the total number of directors is 57%. Except for the chairperson and the legal representative (director) who are currently employees and have a relationship within the second degree of kinship, all others are outside directors, and their ratio to the total number of directors is 71%. None of the circumstances set forth in Article 26-3, Paragraphs 3 & 4 of the Securities and Exchange Act applies with respect to the directors.

Major Shareholders of Corporate Shareholders

March 27, 2026

	March 27,2026
Institutional Shareholders	Major Shareholders of Corporate Shareholders
Xin Di Investment Co., Ltd.	Lee Ching-Hung (99.99%), Li Chia-Hao(0.01%)

Where the major shareholders are institutions, the major shareholders: None.

(II) Information on the company's directors, supervisors, president, vice presidents, assistant vice presidents, and the supervisors of all the company's divisions and branch units

March 27, 2026

Job title	Nationali ty	Name	Gender	Date of election/ appointment to current term	Shares held	Shares held	Sha spou	res held by se and minor children	Share n	s held through ominees	Principal work experience and academic qualifications	Positions concurrently held in other companies at present	Other managerial officer(s) w the person has a relationship or relative within the secon	Other managerial officer(s) w the person has a relationship or relative within the secon	ith which of spouse d degree
					No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio			Job title	Name	Relation ship
Vice President of Sales Department (Note)	Taiwan, R.O.C.	Lee I- Chuan	Female	2024.04.11	6,644	0.00%	-	-	-	-	Master of Business Administration, Shih Chien University Department of Marketing, Curtin University of Technology, Australia Assistant Vice President of Sales Department of Tai TungCommunication Co., Ltd.	Please refer to pages 9	Chairperson	Lee Ching- Hung	Father and daughter
Deputy General Manager of the Transportation Systems Department	Taiwan, R.O.C.	Tsai Han- Wei	Male	2026.03.01							Master's degree in International Marketing from the University of Brighton, Bachelor's degree in Foreign Languages from Soochow University, Project Manager at KING TUNG RESOURCES CO., LTD	None
Plant Manager	Taiwan, R.O.C.	Chan Chih- Hsiung	Male	2016.03.18	60,219	0.04%	-	-	-	-	Department of Industrial Engineering and Management, National Taipei University of Technology, Head of Hardware Division, UNICOM SYSTEM ENG. CORP. Deputy Plant Manager of Tai Tung Communication Co., Ltd.	None	-	-	-
Senior Sales Manager	Taiwan, R.O.C.	Lin Chia- Hui	Female	2024.07.01			-	-	-	-	Department of International Business Soochow University Master's degree Director, Deputy Manager, and Manager of Department of Tai Tung Communication Co., Ltd.	None	-	-	-
Assistant Vice President of R&D Department	Taiwan, R.O.C.	Cho Ko Ching-Wei	Male	2024.04.12	-	-	-	-	-	-	Department of Industrial Engineering and Management, National Taipei University of Technology, Bachelor's Degree R&D Engineer, R&D Specialist, R&D Supervisor of Tai Tung Communication Co., Ltd.	None	-	-	-
Manager of Internet Business Department	Taiwan, R.O.C.	Lee, Shih- Hung	Male	2023.08.01	-	-	-	-	-	-	Ching Yun University (Now Chien Hsin University of Science and Technology) Department of Computer Science and Information Engineering Engineer at Hon-Fu Cable System Engineering Co., Ltd. Engineerat Ding Xun Engineering Co., Ltd. Deputy Manager of Taiwan Intelligent Fiber Optic Network Co., Ltd.	None	-	-	-

Job title	Nationality	Name	Gender	Date of election/appoint ment to current term	Shares held	Shares held	Sha spou	res held by se and minor children	Share n	s held through ominees	Principal work experience and academic qualifications	Positions concurrently held in other companies at present	Other managerial officer(s) w the person has a relationship or relative within the secon	Other managerial officer(s) w the person has a relationship or relative within the secon	ith which of spouse d degree
					No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio			Job title	Name	Relation ship
Assistant Vice President of Project Department	Taiwan, R.O.C.	Tung, Chun- Hsien	Male	2018.02.01	-	-	-	-	-	-	Master of Science in Computer Science and Information Engineering, Tamkang University Senior Project Manager of IBM Taiwan Senior Manager of HP Government and Public Sector Director of System Integration Department of MITAC INCORPORATED	None	-	-	-
Accounting Supervisor	Taiwan, R.O.C.	Ting Szu- Fang	Female	2016.03.18	61,500	0.04%	-	-	-	-	Department of Business Administration, Fu Jen Catholic University Director, Deputy Manager, and Manager of Finance Department of Tai Tung Communication Co., Ltd.	None	-	-	-
Finance Supervisor	Taiwan, R.O.C.	Cheng Yu- Ying	Female	2022.08.09	3,000	0.00%	-	-	-	-	Master of Global Entrepreneurial Management, Fu Jen Catholic University Director, Deputy Manager, and Manager of Finance Department of Tai Tung Communication Co., Ltd.	None	-	-	-
Corporate Governance Officer	Taiwan, R.O.C.	Chen Ching- Hsiu	Female	2024.07.15	-	-	-	-	-	-	Shih Hsin University Institute of Law Manager at SINGTEX Industrial CO., Ltd. Researcher at the Institute for Information Industry Section Manager of C Sun MFG Ltd	None	-	-	-
Manager of Information Office	Taiwan, R.O.C.	Chan Ying-He	Male	2025.12.08							Department of Information Management, Jinwen University of Science and Technology Director of Information Office, YES Health Co., Ltd. (GRANDER GROUP LIMITED ) Senior Manager of Information Office, WATSON'S PERSONAL CARE STORES (TAIWAN) COMPANY LIMITED Director of Information Office, Second Floor GroupCo., Ltd	None

Note 1: Where the chairperson of the board of directors and the general manager or person of an equivalent post (the highest level manager) of a company are the same person, spouses, or relatives within the first degree of kinship, an explanation shall be given of the reason for, reasonableness, necessity thereof, and the measures adopted in response thereto (e.g. increasing the number of independent directors and ensuring that a majority of directors do not concurrently serve as an employee or managerial officer): For the sustainable development of the company’s operations and to advance the succession training plan, Ms. Lee I-Chuan assumed the position of President on April 11, 2024. After the board reelection on May 31, 2024, there are a total of four independent directors. Up till now, more than half of the board members are not concurrently employees or managers.

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

(I) Remuneration to Ordinary Directors and Independent Directors

Unit: thousands of NTD

Job title	Name	Remuneration to directors	Remuneration to directors	Remuneration to directors	Remuneration to directors	Remuneration to directors	Remuneration to directors	Remuneration to directors	Remuneration to directors	Sum of A+B+C+D and ratio to net income (%)	Sum of A+B+C+D and ratio to net income (%)	Remuneration received by directors for	Remuneration received by directors for	Remuneration received by directors for	Remuneration received by directors for	concurrent service as an employer	concurrent service as an employer	concurrent service as an employer	concurrent service as an employer	Sum of A+B+C+D+E+F+G andratiotonet income(%)	Sum of A+B+C+D+E+F+G andratiotonet income(%)	Remuneration received from investee enterprises other than subsidiaries or from the parent company
		Base compensation (A)		Retirement pay and pension (B)		Director profit-sharing compensation (C)		Expenses and perquisites (D)				Salaries, bonuses and special allowances (E)		Retirement pay and pension (F)		Employee profit-sharing compensation (G)				Sum of A+B+C+D+E+F+G andratiotonet income(%)
		The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company		All consolidated entities		The Company	All consolidated entities
																Amount in cash	Amount in stock	Amount in cash	Amount in stock
Chairperson	Lee Ching- Hung	5,582	5,582	-	-	750	750	30	62	6,362 2.94	6,394 2.96		5,159	-	-	-	-	1,383	-	6,362 2.94	12,936 5.99	None
Director	Xin Di Investment Co., Ltd.	-	-	-	-	3,617	3,617	-	-	3,617 1.67	3,617 1.67	-	-	-	-	-	-	-	-	3,617 1.67	3,617 1.67	None
Director	Legal Representative: LeeI-Chuan	-	-	-	-	-	-	30	68	30 0.01	68 0.03	2,686	2,740	118	118	1,502	-	1,502	-	4,336 2.01	4,428 2.05	None
Director	Wang Ho-Ting	-	-	-	-	600	600	30	36	630 0.29	636 0.29	-	-	-	-	-	-	-	-	630 0.29	636 0.29	None
Independent Director	Wang Yu-Peng	240	240	-	-	-	-	66	66	306 0.14	306 0.14	-	-	-	-	-	-	-	-	306 0.14	306 0.14	None
Independent Director	Huang Li-Chen	240	240	-	-	-	-	66	66	306 0.14	306 0.14	-	-	-	-	-	-	-	-	306 0.14	306 0.14	None
Independent Director	Tsai Chang-Hsi	240	240	-	-	-	-	72	72	312 0.14	312 0.14	-	-	-	-	-	-	-	-	312 0.14	312 0.14	None
Independent Director	Liang Wen-Jaw	240	240	-	-	-	-	54	54	294 0.14	294 0.14	-	-	-	-	-	-	-	-	294 0.14	294 0.14	None
1. Please describe the policy, system, standards and structure in place for paying remuneration to directors and describe th remuneration paid:①According to the Company's "Rules Governing the Scope of Powers of Independent Directors," Incorporation, If there is profit (i.e. the pre-tax profit before deducting the distribution of employees' compensation and distributable as remuneration to directors and supervisors shall be appropriated. 2. In addition to what is disclosed in the above table, please specify the amount of remuneration received by directors in t consolidated entities/invested enterprises): None.												e relationship of factors such as the duties a the remuneration to independent directors is remuneration to directors and supervisors) he most recent fiscal year for providing serv				nd risks undertaken and time invested by the directors to the amount of provided in the form of a fixed monthly salary;②According to the Articles of at the end of each fiscal year, no more than 2% of profit of the current year ices (e.g. for serving as a non-employee consultant to the parent company/any

(II) Remuneration to President and Vice Presidents

Unit: thousands of NTD

Job title	Name	Salary (A)	Salary (A)	Severance payment and pension (B)	Severance payment and pension (B)	Rewards and special disbursements(C)	Rewards and special disbursements(C)	Employee profit-sharing compensation (D)	Employee profit-sharing compensation (D)	Employee profit-sharing compensation (D)	Employee profit-sharing compensation (D)	Sum of A+B+C+D and ratio to net income (%)	Sum of A+B+C+D and ratio to net income (%)	Remuneration received from investee enterprises other than subsidiaries or from the parent company
		The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company		All consolidated entities		The Company	All consolidated entities
								Amount in cash	Amount in stock	Amount in cash	Amount in stock
Vice President of Sales Department	Lee I-Chuan	2,686	2,740	118	118	-	-	1,502	-	1,502	-	4,306 1.99	4,360 2.02	None
Vice President of Finance Department (Note)	Lu Hsiu-Fang	1,226	2,196	63	126	-	-		-	107	-	1,289 0.60	2,429 1.12	None

Note: Retired on July 1, 2025

(III) Remuneration to the Five Highest Remunerated Management Personnel

Unit: thousands of NTD

												Unit: thousands	Unit: thousands	of NTD
Job title	Name	Salary (A)		Severance payment and pension (B)		Rewards and special disbursements (C)		Employee profit-sharing compensation (D)				Sum of A+B+C+D and ratio to net income (%)		Remuneration received from investee enterprises other than subsidiaries or from the parent company
		The Company	All consolidated entities	The Company	All consolidated entities	The Company	All consolidated entities	The Company		All consolidated entities		The Company	All consolidated entities
								Amount incash	Amount instock	Amount incash	Amount instock
Vice President of Sales Department	Lee I-Chuan	2,686	2,740	118	118	-	-	1,502	-	1,502	-	4,306 1.99	4,360 2.02	None
Vice President of Finance Department (Note)	Lu Hsiu-Fang	1.226	2.196	63	126	-	-	-	-	107	-	1,289 0.60	2,429 1.12	None
Assistant Vice President of Project Department	Tung, Chun- Hsien	1,860	1,860	99	99	-	-	61	-	61	-	2,020 0.93	2,020 0.93	None
Manager of the Corporate Governance Office	Chen Qing-Xiu	1,255	1,255	66	66	-	-	61	-	61	-	1,382 0.64	1,382 0.64	None
Finance Department Assistant	Zheng Yu-Ying	1,164	1,164	59	59	-	-	109	-	109	-	1,332 0.62	1,332 0.62	None

Note: Retired on July 1, 2025

(IV) Names and Distributions of Employee Profit-Sharing Compensation to Managerial Officers

					Unit: thousands of NTD
Job title	Name	Amount in stock	Amount in cash	Total	As a % of netprofit(%)
President and concurrently Vice President of Sales Department	Lee I-Chuan	0	1,919	1,919	0.8879%
AccountingSupervisor	TingSzu-Fang
Finance Supervisor	ChengYu-Ying
R&D supervisor	Cho Ko Ching-Wei
Assistant Vice President of Project Department	Tung Chun-Hsien
Corporate Governance Director	ChenQing-Xiu

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

						Expressed in thousands of NTD 2025 As a % of net income (%) Amount of all consolidated entities As a % of net income (%) 5.49 11,933 5.52 2.59 6,789 3.14	Expressed in thousands of NTD 2025 As a % of net income (%) Amount of all consolidated entities As a % of net income (%) 5.49 11,933 5.52 2.59 6,789 3.14	Expressed in thousands of NTD 2025 As a % of net income (%) Amount of all consolidated entities As a % of net income (%) 5.49 11,933 5.52 2.59 6,789 3.14
Job title		2024				2025
	Amount of this company	As a % of net income (%)	Amount of all consolidated entities	As a % of net income (%)	Amount of this company	As a % of net income (%)	Amount of all consolidated entities	As a % of net income (%)
Director	7,830	1.92	8,027	1.97	11,857	5.49	11,933	5.52
President and Vice Presidents	8,662	2.13	18,150	4.46	5,595	2.59	6,789	3.14

Note: In 2025, the Chairman did not concurrently serve as the General Manager. Accordingly, their remuneration has been reclassified from the "Concurrent Employee" category to the "Director" category.

According to Article 20 of the Company's Articles of Incorporation, the board of directors is authorized to determine the Company's remuneration to directors according to the degree of participation in the operation of the Company and the value of their contributions at such level as generally adopted by the enterprises of the same industry.

The remuneration to the Company's independent directors may be paid according to the degree of participation in the operation of the Company and the value of their contributions at the typical pay levels adopted by other exchange-Listed companies. The board of directors is authorized to determine the amount.

The board of directors is authorized to determine the amount. According to Article 22 of the Company's Articles of Incorporation, if there is profit (i.e. the pre-tax profit before deducting the distribution of employees' compensation and remuneration to directors) at the end of each fiscal year, no less than 1% of profit of the current year distributable as employees' compensation (The amount of employee compensation should not be less than 60% and should be allocated to grassroots employees) and no more than 2% as remuneration to director shall be appropriated. The above-mentioned employees' compensation and remuneration to directors should be determined by a resolution of the board of directors and reported to the shareholders' meeting.

However, the Company's accumulated losses (including an adjustment to the amount of unappropriated retained earnings) shall have been covered first, and then the employees' compensation and remuneration to directors shall be appropriated according to the preceding ratios.

After closing of accounts, if there is surplus earning, the Company shall first make up the losses for the preceding years and then set aside a legal reserve of 10% of the net profit. Where such legal reserve amounts to the total paid-in capital of the Company, this provision shall not apply. The Company may set aside or reverse another sum as special reserve from the rest according to the laws and regulations. The remaining profit, if any, together with the accumulated unappropriated retained earnings, shall be distributed as shareholders' dividends subject to the proposal for distribution of profits adopted by the board of directors and the approval of the shareholders' meeting.

The remuneration to president and vice presidents includes salary, retirement pay and pension, rewards, and employee profit-sharing compensation, which shall be determined by taking into consideration their business performance, the responsibilities of their positions, and future risk exposure, and referring to the typical pay levels adopted for similar positions by peer companies.

The standards or structure and system of the remuneration paid by the Company to directors, presidents, and vice presidents will be adjusted depending on the future risk factors, which should not produce an incentive for the directors or managerial officers to engage in activity to pursue remuneration exceeding the risks that the company may tolerate to avoid inappropriate situations such as suffering losses after the remuneration paid by the Company.

III. The state of the company's implementation of corporate governance

(I) The state of operations of the board of directors

The number of board meetings held in 2025 was five (A).The attendance by the directors and supervisors was as follows:

Job title	Name	No. of meetings attended in person(B)	No. of meetings attended by proxy	In-person attendance rate (%)(B/A)	Remarks
Chairperson	Lee Ching-Hung	5	0	100.00	None
Director	Xin Di Investment Co., Ltd. Legal Representative: Lee I-Chuan	5	0	100.00	None
Director	Wang Ho-Ting	5	0	100.00	None
Independent Director	Wang Yu-Peng	4	1	80.00	None
Independent Director	Huang Li-Chen	4	1	80.00	None
Independent Director	Tsai Chang-Hsi	5	0	100.00	None
Independent Director	Liang Wen-Jaw	5	0	100.00	None

Other information required to be disclosed:

I. If any of the following circumstances exists, 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 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 the audit Committee and the provisions of Article 14-3 of the Securities and Exchange Act shall not apply. For more information about the matters set out in Article 14-5 of the Securities and Exchange Act and the state of operations of the audit committee, please refer to page 26.
(II) In addition to the matters referred to above, any dissenting or qualified opinion of an independent directory that is on record or stated in writing with respect to any board resolution: none
II. 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 independent director voted:

Date	Content of the motion	Name of Director	Reasons for avoidance of interests	Voting status
2025.03.07	1. 2024 employee and director remuneration (individual) distribution. 2. Manager level and above/department supervisor salary adjustment 3. Appointment of the legal representative (director) of the subsidiary "TAIWAN INTELLIGENT FIBER OPTIC NETWORK CO., LTD " and the lifting of the non- compete restrictions.	Lee Ching-Hung Lee I-Chuan	Bearing on the personal interest of a director.	Except for directors who recused themselves from conflicts of interest and did not participate in voting, the motion was unanimously approved after the acting chair asking for opinions of other directors present in the meeting.
2025.05.09	Case of appointing the legal representative (director) of the affiliated company " Chien Tung Harbour Service Co., Ltd."	Lee Ching-Hung Lee I-Chuan	Bearing on the personal interest of a director.	Except for directors who recused themselves from conflicts of interest and did not participate in voting, the motion was unanimously approved after the acting chair asking for opinions of other directors present in the meeting.
2026.03.09	1. Proposal for the Individual Allocation of Employee Compensation for Managerial-Level and Above, Department Heads, and Director Remuneration for 2025 2. Appointing the legal representative (director) of subsidiary QIONG LIAN CO., LTD.	Lee Ching-Hung Lee I-Chuan Wang Ho-Ting	Bearing on the personal interest of a director.	Except for directors who recused themselves from conflicts of interest and did not participate in voting, the motion was unanimously approved after the acting chair asking for opinions of other directors present in the meeting.

III. Implementation of Evaluations of the Board of Directors

Evaluation cycle	Evaluation period	Scope of evaluation	Method of evaluation	Evaluation content
Performed once per year	From January 1, 2025 to December 31, 2025	The performance of the individual directors, the board as a whole, and the functional committees (Remuneration Committee and Audit Committee)	Self-evaluations by individual Board members, internal evaluation by the Board, self- evaluations by the functional committees (Remuneration Committee and Audit Committee)	(1) Evaluation of the performance of individual Independent Directors: Familiarity with the goals and missions of the Company; awareness of the duties of an Independent Director; participation in the operation of the Company; management of internal relationships and communication; the Independent Director's professionalism and continuing education; internal control. (2) Evaluation of the performance of the Board: Degree of the Board's participation in the operation of the Company; the quality of the Board's decision making; composition and structure of the Board; election and continuing education of the Independent Directors; internal control. (3) Evaluation of the performance of the functional committees (Remuneration Committee and Audit Committee): Degree of participation in the operation of the Company; awareness of the duties of the functional committee; quality of decisions made by the functional committee; makeup of the functional committee and election of its members;internal control.

The results of the performance evaluation of the board in 2025 have been reported to the board of directors on March 09, 2026.

IV. Evaluation of the objectives to enhance the Board's function, such as establishing an Audit Committee and improving information transparency for the current year and the most recent year:
Amend the company's "Procedure for Lending Funds to Other" and " Procedures for Election of Directors " in a timely manner to comply with legal regulations and meet the operational needs of the Company.
Formulating the "Succession Planning for the Board Members and Management" and "Risk Management Policies and Procedures" to conform to the spirit of corporate governance.
The Company has established a Remuneration Committee, convening more than twice annually to timely assess and review the salary and compensation structure for Independent Directors and managers.
The Audit Committee was established on July 2,2021. The Chairperson and the General Manager are firstdegree relatives. After the re-election on May 31, 2024, there will be four independent directors.
In calling a meeting of the board of directors, a notice shall be sent by registered mail to each director no later than 7 days prior to the scheduled meeting date, and a copy of the minutes of this board of directors meeting shall be distributed to each director within 20 days after the meeting.
The Company's financial information, major meeting resolutions, the attendance at the board meeting by directors, and directors' participation in continuing education have been published on the Market Observation Post System (MOPS) in accordance with the regulations.
The Company arranges for each newly appointed or re-appointed director (including independent directors) to continue to learn knowledge, improve their professional knowledge and skills and knowledge of the law, and be able to actively promote and effectively implement the corporate governance system.

(II) Operation of the Audit Committee

The Company's Audit Committee consists of four independent directors. The main function of the Audit Committee is to supervise the following matters:

Fair presentation of the financial reports of this Corporation.
The hiring (and dismissal), independence, and performance of certificated public accountants of the Company.
The effective implementation of the internal control system of the Company.
Compliance with relevant laws and regulations by the Company.
Management of the existing or potential risks of the Company.

The powers of the Committee are as follows:

The adoption of or amendments to the internal control system pursuant to Article 14-1 of the Securities and Exchange Act.
Assessment of the effectiveness of the internal control system.
The adoption or amendment, pursuant to Article 36-1 of the Securities and Exchange Act of the procedures for handling financial or business activities of a material nature, such as acquisition or disposal of assets, derivatives trading, loaning of funds to others, and endorsements or guarantees for others.
Matters in which a director is an interested party.
Asset transactions or derivatives trading of a material nature.
Loans of funds, endorsements, or provision of guarantees of a material nature.
The offering, issuance, or private placement of equity-type securities.
The hiring or dismissal of a certified public accountant, or their compensation.
The appointment or discharge of a financial, accounting, or internal audit officer.
Annual financial reports signed or stamped by the Chairperson of the Board, managerial officers, and accounting supervisor and the second-quarter financial reports attested by a CPA.
Other material matters as may be required by this Corporation or by the competent authority.

The number of audit committee meetings held in 2025 was four (A). The attendance by the independent directors was as follows:

Job title	Name	No. of meetings attended in person(B)	Actual attendance (%) (B/A)	Remarks
Independent Director/Convenor	Wang Yu-Peng	4	100.00	None
Independent Director	HuangLi-Chen	4	100.00	None
Independent Director	Tsai Chang-Hsi	4	100.00	None
Independent Director	LiangWen-Jaw	4	100.00	None

Other information required to be disclosed:

I. If any of the following circumstances exists, specify the audit committee meeting date, meeting session number, content of the motion(s), the content of any dissenting or qualified opinion or significant recommendation of the independent directors, the outcomes of audit committee resolutions, and the measures taken by the Company based on the opinions of the audit committee.
(I) Any matter under Article 14-5 of the Securities and Exchange Act.

Audit Committee Meeting date and session	Content of the motion	Objections, comments or major suggestions raised by the Independent Director	Audit Committee Meeting resolutions	Company's handling of the comments raised by Audit Committee
March 7, 2025 The 5th Meeting of the 2nd Session	1. Review of the 2024 self-assessment of the internal control system and the preparation of the Internal Control System Statements 2. Review of the 2024 Business Report and Financial Statements 3. Review of the 2024 Earning Distribution Plan 4. . Review the independence and competency evaluation of CPA. 5. Review of the "Service List for Advanced Approval of Non-assurance Services rendered by CPA in 2025." 6. Review of the Renewed Authorization to Deloitte Taiwan for handling Audit Quality Indicator and certification in 2025 7. Review the case that the Company intends to sign a letter of commitment for financial support in order to make its subsidiary KING TUNG RESOURCES CO., LTD. operate normally. 8. Review the case of providing a guarantee for the subsidiary " TAIWAN INTELLIGENT FIBER OPTIC NETWORK CO., LTD " 9. Review the case of revising the " Procedure for LendingFunds to Other."	None	Approved with the consent of all the independent directors present in the meeting	Approved with the consent of all the directors present in the meeting
May 9, 2025 The 6th Meeting of the 2nd Session	1. Consolidated Financial Reports for the 1st Quarter of 2025 2. Review the case of appointing the legal representative (director) of the affiliated enterprise " Chien Tung Harbour Service Co., Ltd.".	None	Approved with the consent of all the independent directors present in the meeting	Approved with the consent of all the directors present in the meeting

Audit Committee Meeting date and session	Content of the motion	Objections, comments or major suggestions raised by the Independent Director	Audit Committee Meeting resolutions	Company's handling of the comments raised by Audit Committee
August 8, 2025 The 7th Meeting of the 2nd Session	1. Review the Consolidated Financial Reports for the 2nd Quarter of 2025 2. Review and revise the "CW-109 Salary Operation" case of internal control procedures.	None	Approved with the consent of all the independent directors present in the meeting	Approved with the consent of all the directors present in the meeting
November 10, 2025 The 8th Meeting of the 2nd Session	1. Review the Consolidated Financial Reports for the 3rd Quarter of 2025 2. Review and execute the dissolution and liquidation procedures of the subsidiary Chiantong Optoelectronics Co., Ltd. 3. Review the endorsement guarantee case provided for the subsidiary " TAIWAN INTELLIGENT FIBER OPTIC NETWORK CO., LTD ". 4. Review and revise the internal control system "CW-109 Salary Operation" and internal audit system "AW-109 Salary Operation" of the Company. 5. 2025 Internal Audit Plan case	None	Approved with the consent of all the independent directors present in the meeting	Approved with the consent of all the directors present in the meeting
March 9, 2026 The 9th Meeting of the 2nd Session	1.Review the 2025 self-assessment of the internal control system and the preparation of the “Internal Control System Statements” 2. Review the 2025 Business Report and Financial Statements. 3. Review the 2025 Earning Distribution Plan motion 4. Review CPA independence and competence evaluation case 5. Review the "Service List for Advanced Approval of Non-assurance Services rendered by CPA in 2026." 6. Review the Renewed Authorization to Deloitte Taiwan for handling Audit Quality Indicator and certification in 2026. 7. Review the signing of "Statement on Capital Increase Commitment" to maintain the normal operation of King Tung Resources Co., Ltd., one of the subsidiaries. 8. Review the case of appointing the legal representative (director) of the subsidiary QIONG LIAN CO.,LTD."	None	Approved with the consent of all the independent directors present in the meeting	Approved with the consent of all the directors present in the meeting

(II) In addition to the matters referred to above, any matter that was not approved by the audit committee but was approved by a two-thirds or greater majority resolution of the board of directors: None.
II. Implementation of recusals of independent directors with respect to any motions with which they may have a conflict of interest: specify the independent director's name, the content of the motion, the cause for recusal, and whether and how the independent director voted: None.
III. Communication between the independent directors and the chief internal audit officer and the CPAs that serve as external auditor (including any significant matters communicated about with respect to the state of the company's finances and business and the method(s) and outcomes of the communication).

Date	Attendants	Communication matters	Communication results and implementation status
2025.03.07	Independent Director Wang Yu-Peng Independent Director Huang Li-Chen Independent Director Tsai Chang-Hsi Independent Director Liang Wen-Zhao CPA Hsieh Tung-Ju Chief Audit Officer Lin Yi-Min	I. Audit Office: (I) Description of the audit results of the audit plan from October 1 to December 31, 2024. II. Certified Public Accountant (CPAs): (I) Explanation of audit results in the fourth quarter of 2024. (II) Explanation of matters under new agenda items and communication with independent directors regarding their opinions.	The independent director has understood and there are no objections to the proposal being passed.
2025.05.09	Independent Director Wang Yu-Peng Independent Director Huang Li-Chen Independent Director Tsai Chang-Hsi Independent Director Liang Wen-Zhao CPA Hsieh Tung-Ju Chief Audit Officer Lin Yi-Min	I. Audit Office: (I) Description of the audit results of the audit plan from March 1 to March 31, 2025 II. Certified Public Accountant (CPAs): (I) The first quarter financial report of 2025 is issued and the verification results are explained. (II) The subsidiary TSNet Technology explained and discussed the lawsuit of Taipei City Police Department.	The director has understood and agreed to approve.
2025.08.08	Independent Director Wang Yu-Peng Independent Director Huang Li-Chen Independent Director Tsai Chang-Hsi Independent Director Liang Wen-Jaw CPA Hsieh Tung-Ju Chief Audit Officer Lin Yi-Min	I. Audit Office: (Ⅰ) Description of the audit results of the audit plan from April 1 to June 30, 2025. II. Certified Public Accountant (CPAs): (I) Description of Review Results for the 2nd Quarter of 2025 (II) Description and discussion of each tracking case:: (1) Tracking the progress of Xinzhi section. (2) NCSIST project progress tracking. (3) The lawsuit of the Taipei City Police Department.	The director has understood and agreed to approve.
2025.11.10	Independent Director Wang Yu-Peng Independent Director Huang Li-Chen Independent Director Tsai Chang-Hsi Independent Director Liang Wen-Jaw CPA Hsieh Tung-Ju Chief Audit Officer Lin Yi-Min	I. Audit Office: (Ⅰ) Description of the audit results of the audit plan from July 1 to September 30, 2025. II. Certified Public Accountant (CPAs): (I) Description of Review Results for the 3rd Quarter of 2025. (II) Description and discussion on the subjects related to each tracking case and consolidated financial report: (1) Tracking the progress of Xinzhi section. (2) NCSIST project progress tracking and cash recovery after completion. (3) The lawsuit of the Taipei City Police Department. (4) The case of train inspection on Taiwan railwaytrack.	The director has understood and agreed to approve.

Date	Attendants	Communication matters	Communication results and implementation status
2026.03.09	Independent Director Wang Yu-Peng Independent Director Huang Li-Chen Independent Director Tsai Chang-Hsi Independent Director Liang Wen-Jaw CPA Hsieh Tung-Ju Chief Audit Officer Lin Yi-Min	I. Audit Office: (I) Explanation of the audit results for the audit plan from October 1, 2025, to December 31, 2025. II. Certified Public Accountant (CPAs): (I) Description of Review Results for the 4nd Quarter of 2025 (II) Discussion on key issues of consolidated statements.	The director has understood and agreed to approve.

(III) The state of the company's implementation of corporate governance, any variance from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies, and the reason for any such variance:

Evaluation item			Implementation status	Deviations from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary description
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 Company has established and disclosed its "Corporate Governance Best-Practice Principles" on the company's website. Because the subsidiary Taifo is currently not a TWSE/TPEx listed company, its Principles will be established depending on the actual situation of the company.	No significant deviation.
II. Shareholding Structure and Shareholders' Rights (I) Does the Company have Internal Operation Procedures for handling shareholders' suggestions, concerns, disputes and litigation matters. If yes, have these procedures been implemented 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 built and implemented a risk management system and a firewall between the Company and its affiliates? (IV) Has the Company established internal rules prohibiting insider trading of securities based on undisclosed information?	V V V V		(I) The Company and its subsidiary Taifo have established a spokesperson system to unify the handling of shareholders' suggestions, concerns, disputes, and other matters by the spokesperson or acting spokesperson. (II) The Company engages a professional stock affairs agent to handle shareholder-related matters and employs dedicated personnel to manage such affairs, enabling it to maintain an accurate record of major shareholders with actual control over the Company. The subsidiary, Taifo, is managed by a designated department responsible for such matters. (III) The Company has formulated relevant internal control regulations to clearly define the management authority and responsibilities of the personnel, assets, and finance between the Company and its affiliates, and has conducted a risk assessment and built an appropriate firewall. (IV) The company has established an"Internal Trading Prevention Procedures" to prevent insider trading, safeguarding the interests of investors and the company. Annually, relevant legal education and awareness programs are provided to insiders, including the company’s board of directors, managers, and all employees. In 2025, the company forwarded the stock exchange’s educational materials to the board of directors, managers, and department heads in January, April, and October. In May, the company conducted an awareness campaign on "Preventing Insider Trading" for all employees, managers, and department heads. On February 3, 2025, and February 2, 2026, the company informed accountants, board members, department heads, and those responsible for financial report preparation that trading of the company's stock is prohibited within 30 days prior to the annual financial report release and within 18 hours after the public announcement (from 2025/2/5 to 2025/3/8 and from 2026/2/6 to 2026/3/10). On April 16, July 17, and October 20, 2025, the company also announced that trading of the company's stock is prohibited within 15 days before the quarterly financial report release and within 18 hours after the public announcement (from 4/24 to 5/10, from 7/24 to 8/09, and from 10/26 to 11/11). To prevent insider trading, the regulation prohibiting directors from trading stocks before financial performance announcements has been incorporated into the company’s "Corporate Governance Practices Code," which was approved by the board on October 4, 2022, and also into the company's "Internal Trading Prevention Procedures," which was approved by the board on March 7, 2025. The director of corporate governance served as the keynote speaker, and held a"propaganda meeting on	No significant deviation. No significant deviation. No significant deviation. No significant deviation.

Evaluation item	Implementation status	Implementation status	Implementation status	Deviations from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary description
			preventing insider trading" for employees, with 11 employees participating in June 18, 2025. Taifo , has not yet established similar procedures but plans to do so in the future based on actual circumstances.
III. Composition and responsibilities of the board of directors (I) Have a diversity policy and specific management objectives been adopted for the board and have they been fully implemented? (II) Has the Company voluntarily established other functional committees in addition to the remuneration committee and the audit committee? (III) Has the Company established rules and methodology for evaluating the performance of its Board of Directors, implemented the performance evaluations on an Evaluation, and submitted the results of performance evaluations to the Board of Directors and used them as reference in determining compensation for individual Independent Directors and their nomination and additional office terms? (IV) Does the Company regularly evaluate its external auditors' independence?	V V V	V	(I) In the "Corporate Governance Best-Practice Principles" formulated by the Company, a diversity policy has Implementation for members of the Board of Directors and fully implemented (please refer to pages 11-14). The diversity policy of the subsidiary Taifo has taken into account business model and development needs in order for the members of the board of directors to have professional skills such as business, finance, and operation and industrial experience. (II) The Company has established the Remuneration Committee in accordance with the law and has implemented it accordingly. On July 2, 2021, the Audit Committee has been set up in the re-election. Other relevant functional committees will be set up in the future depending on the needs of the actual operation. The subsidiary Taifo is currently not a TWSE/TPEx listed company; therefore, neither a Remuneration Committee nor an Audit Committee has been established, but will be established in the future depending on the Company's operating conditions. (III) On November 9, 2018, the "Rules for Evaluating the Performance of its Board of Directors" has been adopted by the Board of Directors, which stipulates that the Board of Directors shall conduct an annual performance evaluation at least once a year. The Company has completed the evaluation of the Board of Directors and its members in January 2026 and reported the evaluation results to the Board of Directors on March 9, 2026. The evaluation is carried out internally by means of questionnaires, and the results: excellent, average grade 4.71 - 4.84.The results of the performance evaluation of the Board in 2025 show that Independent Directors of this term are younger, with more diverse members, leading the Board of Directors and the Company towards a new realm of high-quality sustainable governance. In the future, the Company will evaluate whether to use them as reference in determining compensation for individual Independent Directors and their nomination and additional office terms. The subsidiary Taifo has not formulated the Rules for Evaluating the Performance of its Board of Directors. (V) The Company’s Audit Committee conducts an annual evaluation of the professional competence, independence, and suitability of its external auditors. The evaluation is performed in accordance with Statement No. 10 of The Professional Ethics Committee of the National Federation of Certified Public Accountant Associations of the Republic of China, titled “Integrity, Objectivity, and Independence,” as well as Articles 46 and 47 of the Certified Public Accountant Act (see table below), and the Audit Quality Indicators (AQIs). It has been confirmed that members of the audit engagement team, as well as their spouses and dependents, have not violated independence requirements. The turnover rate of audit personnel at the manager level and above (excluding certified public accountants) is lower than the industry average; the proportion of audit hours contributed by certified public accountants exceeds the industry average; and the proportion of review hours performed by the engagement quality control reviewer (EQCR) is also higher than the industry average, indicating that quality control exceeds industry standards. In terms of innovation, the Company has adopted cloud-based audit platforms and tools, applied digital technologies, and strengthened communication and collaboration with audit support centers to enhance audit	No significant deviation. It will be appointed according to actual situation in the future. No significant deviation No significant deviation

		Implementation status	Implementation status	Implementation status
Yes	No	Summary description
		quality and efficiency. The evaluation results for the most recent year were reviewed and approved by the Audit Committee on March 9, 2026, and subsequently submitted to the Board of Directors for resolution, confirming the independence and suitability of the auditors. The subsidiary Taifo also conducts annual evaluations of the independence and suitability of its external auditors and reports the results to its Board of Directors. The external auditors have no conflict of interest with the subsidiary and maintain their independence The independence and suitability assessment is conducted, and the evaluation results are submitted to the Board of Directors. The certified public accountants have no interests in the company and are independent. 1.Evaluation of Suitability: Item Evaluation content Yes/No 1 Agreeing to others using one's name to conduct business. No 2 Using another accountant's name to conduct business. No 3 Being employed by a person without accountant qualifications to execute accountant duties. No 4 Using the accountant position to engage in unfair competition in business. No 5 Handling matters in which there is a personal conflict of interest. No 6 Acting as a guarantor for non-accountancy related matters under the guise of being an accountant. No 7 Acquiring movable or immovable property managed in the course of business. No 8 Demanding, promising, or accepting illegal benefits or compensation. No 9 Soliciting business through improper means. No 10 Engaging in promotional advertising other than for opening, relocating, merging, client commissions, or referrals from an accountingfirm. No 11 Disclosing business secrets without permission from the relevant authorities, clients,or auditees. No 12 Engaging in other behaviors defined by supervisory authorities that could negatively impact the accountant's reputation. No
		Item	Evaluation content	Yes/No
		1	Agreeing to others using one's name to conduct business.	No
		2	Using another accountant's name to conduct business.	No
		3	Being employed by a person without accountant qualifications to execute accountant duties.	No
		4	Using the accountant position to engage in unfair competition in business.	No
		5	Handling matters in which there is a personal conflict of interest.	No
		6	Acting as a guarantor for non-accountancy related matters under the guise of being an accountant.	No
		7	Acquiring movable or immovable property managed in the course of business.	No
		8	Demanding, promising, or accepting illegal benefits or compensation.	No
		9	Soliciting business through improper means.	No
		10	Engaging in promotional advertising other than for opening, relocating, merging, client commissions, or referrals from an accountingfirm.	No
		11	Disclosing business secrets without permission from the relevant authorities, clients,or auditees.	No
		12	Engaging in other behaviors defined by supervisory authorities that could negatively impact the accountant's reputation.	No

Evaluation item			Implementation status	Implementation status		Deviations from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary description
			2.Evaluation of Independence:
			Item	Evaluation content	Yes/No
			1	The individual currently holds a regular position with the client or the entity being audited, receives a fixed salary, or serves as a director or supervisor.	No
			2	The individual has previously served as a director, supervisor, manager, or a key employee with significant influence on the audit case of the client or the entity being audited, and has left the position within the past twoyears.	No
			3	The individual has a spouse, direct blood relatives, direct relatives by marriage, or collateral blood relatives within the second degree of kinship with the responsible person or manager of the client or the entity being audited.	No
			4	The individual or their spouse or minor children have an investment or share financial interests with the client or the entity being audited.	No
			5	The individual or their spouse or minor children have a lending or borrowing relationship with the client or the entity being audited. However, if the client is a financial institution and the relationship is part of normal business transactions, this is not subject to the restriction.	No
			6	Engaging in management consulting or other non-audit services that could potentially affect independence.	No
			7	Failure to comply with regulations set by the regulatory authorities regarding auditor rotation, handling accounting matters on behalf of others, or other activities that could potentiallyaffect independence.	No
IV. Does the TWSE/TPEx listed company have in place an adequate number of qualified Corporate Governance Officers and has it appointed a chief Corporate Governance Officer with responsible corporate governance practices (including but not limited to providing information necessary for Independent Directors and supervisors to perform their duties, aiding Independent 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		The company appointed a Corporate Governance Officer on May 10, 2023, with Vice President of Finance, Lu Xiu-Fang, concurrently assuming this role. On July 12, 2024, the Board of Directors approved the hiring of a dedicated governance officer responsible for corporate governance matters. The officer has many years of legal and corporate governance experience, meeting the qualifications for the position. On November 10, 2025, a report on the execution of corporate governance was presented to the Board, covering the implementation status for 2025 and the professional development of the Corporate Governance Officer. Please refer to the company's website for further details. At the subsidiary Taifo, dedicated personnel are responsible for managing the Board of Directors and shareholder meeting operations and assisting Independent Directors and supervisors with legal compliance matters.			No significant deviation.
V. Has the Company established channels for communicating with its stakeholders (including but not limited to shareholders, employees, customers, suppliers, etc.)? Is there a dedicated section on the Company's website to appropriately respond to stakeholders' questions and concerns on significant corporate social responsibility issues?	V		The Company has set up a stakeholders section on its company website and designated personnel exclusively dedicated to serving as channels for communicating with its stakeholders and appropriately responded to stakeholders' questions and concerns on important issues. Although the subsidiary Taifo has not set up a stakeholders section but has designated personnel exclusively dedicated to serving as channels for communication responded to stakeholders' questions and concerns on important issues.			No significant deviation.

Evaluation item			Implementation status	Deviations from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reasons
	Yes	No	Summary description
VI. Has the Company appointed a professional shareholder services agent to handle matters related to its shareholder meetings?	V		The Company has appointed the Shareholder Services Department of Fubon Securities Co., Ltd. to handle matters related to its shareholders' meetings and set up professional personnel to handle relevant matters. The subsidiary Taifo has designated a department exclusivelydedicated to such matters.	No significant deviation.
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, and webcasting investors conference)? (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 created an investors section on its company website to disclose information regarding its financials, business, and corporate governance status in addition to product introduction and marketing information, providing channels for the Company to communicate with its suppliers, customers, Member other stakeholders. The subsidiary Taifo will set up a section specially designated to disclose information regarding its financials, business, and corporate governance status in the future as appropriate. (II) Both the Company and its subsidiary Taifo have maintained English-language websites and designated departments exclusively dedicated to handling information collection and disclosure. (III) Both the Company and its subsidiary Taifo have published and reported their annual financial reports within the time limit.	No significant deviation. No significant deviation. No significant deviation.

VIII. Has the Company disclosed other information to facilitate a better understanding of its corporate governance practices (including but not limited to employee rights, employee wellness, investor relations, supplier relations, rights of stakeholders, directors' and supervisors' continuing education, the implementation of risk management policies and risk evaluation standards, the implementation of customer relations policies, and purchasing liability insurance for directors and supervisors)?
Employee rights: The Company and its subsidiary Taifo have protected the basic rights and interests of employees in accordance with the Labor Standards Act and protected the rights and interests of employees in accordance with the work rules and regulations of the Company and its subsidiary Taifo.
Employee wellness: The Company and its subsidiary Taifo have set up the employee welfare committee to provide subsidies and activities. 3. Investor relations: The Company has created an "Investors Section" on its company website. Investors can learn about the company's information through the Section or inquire about the company's public information through the Market Observation Post System (MOPS), and can contact or make suggestions with the Company's shareholder services or spokesperson at any time. The Company and its subsidiary Taifo have established a spokesperson system, and investors can make suggestions or raise questions with the spokesperson, acting spokesperson, or the shareholder services management section.
Supplier relations: Both the Company and its subsidiary Taifo have established smooth communication channels to maintain good relationships and enter into business transactions with the principle of good faith and reciprocity.
Rights of stakeholders: The Company and its subsidiary Taifo have maintained communication channels and respected and safeguarded their legal rights and interests. When any of a stakeholder's legal rights or interests is harmed, the company shall handle the matter in a proper manner and in good faith.
Succession Planning: The supervisors of departments and offices have completed succession planning and training plan for succession candidates. The assessment table for significant management succession candidates in 2025 has been completed on January 24, 2026 and reported to the Board of Directors on March 9, 2026, and the implementation status of which will be reviewed semi-annually in the future.
Liability insurance for directors and supervisors: The Company has purchased "Liability Insurance for Directors and Managerial Officers" with Cathay Century Insurance Co. Ltd., with an insurance period from January 25, 2026 to January 25, 2027 and insured amount of USD1,000,000, which has been reported on March 09, 2026.
Continuing Education for Directors and the Corporate Governance Officer: The Independent Directors of the Company adhere to the provisions outlined in the "Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies." Following their appointment, they engage in at least six hours of professional development annually in areas such as law, finance, or accounting. The Corporate Governance Officer has completed twelve hours of annual training; both have obtained the relevant certification of completion. For the subsidiary Taifo, which is not a TWSE/TPEx Listed company, the continuing education requirements for Independent Directors and the Corporate Governance Officer do not apply.

Directors' and Corporate Governance Officer's continuing education in 2025 is shown as follows:

		Date of			Continuing
Job title	Name	continuing	Organizer	Course name	education
		education			hours
		2025/7/22	Taiwan Corporate Governance Association	Risk Management and Strategy Analysis for Enterprise Sustainability	3
Chairperson	Lee Ching-Hung
		2025/9/30	Taiwan Corporate Governance Association	Enterprise Innovation Growth and AI	3
	Legal	2025/5/16	Securities and Futures Institute, SFI	2025 Annual Advocacy Conference on Preventing Insider Trading	3
Director	Representative of Xin Di Investment Co., Ltd.: Lee I-	2025/8/22	Taiwan Corporate Governance Association	Operation of Remuneration Committee and Performance Compensation System for Directors and Managers	3
	Chuan
		2025/10/16	Financial Supervisory Commission.	15th Taipei Corporate Governance Forum	6
Director	Wang Ho-Ting	2025/8/14	The Institute of Internal Auditors.	Analysis of the Effectiveness of Director's Diligent Governance and Internal Control Systems	6
Independent Director	Wang Yu-Peng	2025/7/3 2025/7/24	Securities and Futures Institute Securities and Futures Institute	Shareholders' Meeting, Management Right and Equity Strategy AI Future and Enterprise AI Transformation	3 3
Independent Director	Huang Li-Chen	2025/10/31 2025/12/3	Taipei Financial Research and Development Foundation Taiwan Corporate Governance Association	The Risks of Intellectual Property and Trade Secrets That Directors Must Understand Global Trend Analysis - Risks and Opportunities	3 3
Independent Director	Tsai Chang-Hsi	2025/6/20 2025/6/27	Taiwan Corporate Governance Association Taiwan Corporate Governance Association	Analysis of the Effectiveness of Director's Diligent Governance and Internal Control Systems Corporate Governance, Organizational Culture, and Corporate Sustainability	3 3

Independent Director	Liang Wen-Jaw	2025/6/27	Taiwan Corporate Governance Association	Corporate Governance, Organizational Culture, and Corporate Sustainability	3
		2025/7/4	Taiwan Corporate Governance Association	The Path of Sustainable Heritage and AI Transformation	3
		2025/7/16	Taiwan Corporate Governance Association	Sustainable Development Promotion Conference – Taipei Session	3
Corporate Governance Officer	Chen Ching-Hsiu	2025/5/16	Securities and Futures Institute, SFI	2025 Annual Advocacy Conference on Preventing Insider Trading	3
		2025/6/25	Accounting Research and Development Foundatio	Legal Responsibilities and Practical Case Analysis of Corporate"Sustainability Reports"	6
		2025/7/9	Taiwan Stock Exchange	2025 Cathay Pacific Sustainable Finance and Climate Change Summit Forum	6
		2025/7/25	Securities and Futures Institute, SFI	2025 Insider Equity Trading Legal Compliance Promotion Conference	3
		2025/8/11	Taiwan Stock Exchange	Analysis and propaganda course of CDP corresponding to IFRS S2.	6
		2025/10/29	Independent Director Association Taiwan	Practical Seminar on the Operation of xAI Efficient and Compliance Board of Directors in Corporate Governance	3

9. The implementation of consumer protection or customer relations policies: Both the Company and its subsidiary Taifo have adhered to the "Customer First" Philosophy and endeavored to improve customer satisfaction and fully implement quality management to provide quality products to customers. 10. The implementation of risk management policies and risk evaluation standards: Both the Company and its subsidiary Taifo have established internal control systems and comply with internal control systems to reduce risks.For corporate sustainable development and enhancing corporate governance, the Company has formulated the "Risk Management Policies and Procedures," which has been discussed and approved by the board of directors on March 6, 2020.The supervisors of departments and offices have completed the risk management implementation report for the period from November 2024 to October 2025, and the Vice President of Sales Department organized and reported the implementation results of the Companyto the board of directors on November 10,2025.
IX. Please describe improvements that have already been made based on the Corporate Governance Evaluation results released for the most recent fiscal year by the Corporate Governance Center, Taiwan Stock Exchange, and specify the priority enhancement objectives and measures planned for any matters still awaiting improvement. 1. The "Periodic Discussion and Suggestions for Board of Directors Performance Evaluation" has been discussed and approved by the Remuneration Committee on March 9, 2026.Based on the operation and the demand of this company, the indicators and the content of the Board of Directorperformance evaluation are still adequate.

(IV) If the company has a compensation committee or nomination committee in place, the

composition and operation of such committee shall be disclosed:

To ensure corporate governance and a sound system for compensation of the directors, supervisors and managerial officers, the Company has established the Remuneration Committee in accordance with "Article 14-6 of the Securities and Exchange Act" and "Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange." For more information on the Remuneration Committee Charter, please refer to the Company's website. Currently, no Nomination Committee has been established.

The Remuneration Committee is composed of three members and they are elected from among the independent directors. Convener: The convener of the current session is Mr. Wang Yu-Peng, the independent director. The Remuneration Committee Meeting shall be convened twice per year.

The information of remuneration committee members is as follows:

March 27, 2026

				March 27,2026
Qualification Name Capacity		Professional qualifications and experience	Independence analysis	Number of other public companies at which the person concurrently serves as remuneration committee member
Independent Director/Convenor	Wang Yu- Peng	Please refer to page 10 for information on directors and supervisors.		None
Independent Director	Huang Li- Chen			None
Independent Director	Tsai Chang- Hsi			None

The information of operation of the remuneration committee:
(1) The Company's remuneration committee has a total of three (3) members. (2) The term of the current members is from June 11, 2024 to May 30, 2027.The number of remuneration committee meetings held in the most recent fiscal year (2025) was: 3 (A).The attendance by the members was as follows:

Job title	Name	No. of meetings attended in person(B)	Actual attendance (%)(B/A)	Remarks
Independent Director/Convenor	Wang Yu- Peng	3	100.00	None
Independent Director	Huang Li- Chen	3	100.00	None
Independent Director	Tsai Chang- Hsi	3	100.00	None

Other Matters to be Recorded by Independent Directors:

If the board of directors does not accept, or amends, any recommendation of the remuneration committee, specify the board meeting date, meeting session number, content of the recommendation(s), 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 remuneration committee (e.g. if the salary/compensation approved by the board is higher than the recommendation of the remuneration committee, specify the difference(s) and the reasons): Not applicable.
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: Not applicable.
Scope of duties

The Remuneration Committee shall exercise the care of a good administrator to faithfully perform the following duties and present its recommendations to the Board of Directors for discussion. The suggestion on remuneration of supervisors is submitted to the Board meeting for discussion, subject to the provisions stipulated

in the Articles of Incorporation regarding remuneration to supervisors or is resolved by the shareholders to authorize to the Board of Directors.

(1) Prescribe and periodically review the performance review and remuneration policy, system, standards, and structure for directors, supervisors and managerial officers.
(2) Periodically evaluate and prescribe the remuneration of directors, supervisors, and managerial officers.
1. Material resolutions of the remuneration committee

			The measures taken by
Date of meeting of the
remuneration	Content of the motion	Outcome of resolution	the Company with
			respect to the members'
committee			opinion

	1. Review on the 2024 distribution of employees' compensation and
	remuneration (in gross amount) to directors and supervisors
	2. Review on the 2024 distribution of employees' compensation and		Be submitted to the
	remuneration (in gross amount) to directors and supervisors	Approved with the	board of directors for
2025.03.07	3. Review of manager and department supervisor salary adjustment.	consent of all the	approval with the
	4. Deliberate the salary proposal for the newly appointed manager of	members present in the	consent of all the
	the management department.	meeting	directors present in the
	5. Revise the "Regulations on Salary Management".		meeting
	6. Periodic review of the Board of Director performance evaluation and
	suggestions
			Be submitted to the
	1. Review the promotion proposal for the Finance Department	Approved with the	board of directors for
2025.08.08	supervisor.	consent of all the	approval with the
	2. Review the promotion proposal for the Testing Laboratory	members present in the	consent of all the
	supervisor.	meeting	directors present in the
			meeting
	1. Review the financial director's salary adjustment proposal.
			Be submitted to the
	2 Review of the year-end bonus proposal for managerial-level staff
	. (inclusive) and department heads.	Approved with the	board of directors for
2025.11.10	3. Proposal for the evaluation and revision of the company’s	consent of all the	approval with the
		members present in the	consent of all the
	compensation and performance assessment systems.	meeting	directors present in the
	4. Formulation of the remuneration committee's calendar of work for		meeting
	the next year
	1. Review of salary adjustment proposal for managerial-level staff
	(inclusive) and department heads.
	2. Evaluate the scope of grassroots employees.
	3. Review on the 2025 distribution of employees' compensation and
	remuneration (in gross amount) to directors and supervisors
	4. Review on the 2025 distribution of employees' compensation and		Be submitted to the
	remuneration (in gross amount) to directors and supervisors	Approved with the	board of directors for
2026.03.09	5. Review the proposal for the new head of the Information Room	consent of all the	approval with the
	and the head of the Transportation System Division.	members present in the	consent of all the
	6. Review on the promotion proposal for the new senior manager and	meeting	directors present in the
	manager of the finance department.		meeting
	7. Revise the "Employee Salary Management Measures", "Employee
	Cash Remuneration Measures", and "Employee Stock Subscription
	and Remuneration Payment Measures".
	8. Periodic review of the Board of Director performance evaluation and
	suggestions

(V) The state of the company's promotion of sustainable development, any variance from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies, and the reason for any such variance:

Item	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
I. Does the Company formulate exclusively (or concurrently) dedicated units to implement sustainable development governance structure, and does the Board appoint executive-level positions with responsibility for sustainable development governance, and status of the Board's supervision? 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? 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 renewable materials with low environmental impact? (III) Has the Company evaluated the potential risks and	V V V	V V	In the second quarter of 2022, the company’s Board of Directors approved the establishment of a Sustainability Development Task Force, chaired by the General Manager and supported by thecorporate governance supervisor as the dedicated officer responsible for executing ESG-related initiatives. In the first quarter of 2023, the Board was informed of a plan to include all subsidiaries within the group under this framework. The greenhouse gas inventory is based on the 2023 annual data as the baseline year, with an annual review of the previous year's greenhouse gas inventory. In accordance with the requirements of the competent authority and the dedicated roadmap, the company will, starting from 2025, hold annual communication meetings with the board of directors to prepare the sustainability report for the previous year, and upload the sustainability report by the end of August. The Company conducts risk assessments on environmental, social, and governance (ESG) issues related to its operations in accordance with the principle of materiality and has formulated the "Risk Management Policies and Procedures," which has been approved by the board of directors on March 6, 2020, with each department/office as a risk control unit in charge of the risk assessment in the unit and the president or the board of directors responsible for decision-making or auditing. The supervisors of departments and offices have completed the risk management implementation report for the period from November 2024 to October 2025, and the President organized and reported the implementation results of the Company to the board of directors on November 10, 2025. The report has been posted on the company's website. The subsidiary Taifo will evaluate the need to establish a risk management framework based on actual operational requirements, to ensure alignment with the company’s risk governance and ESG objectives. (I) The Company abides by international environmental protection standards. In December 2020, it obtained ISO 14001:2015 certification, which was renewed in December 2023 and remains valid until December 21, 2026. The first ans second annual surveillance audit were successfully completed on October 25, 2024 and October 30,2025. Although the subsidiary Taifo has not set an environmental management system, when formulating management regulations and standard operating procedures, it has, however, taken into consideration various environmental management factors. (II) The Company and its subsidiary always endeavor to use energy more efficiently and try to use renewable materials as many as possible to reduce the environmental impact; however, they have not formulated relevant policies.. But the Company's indoor and outdoor decoration projects continue to replace traditional T-BAR lights with LED energy-saving lamps, and use green building materials that are reusable, recyclable, and help reduce waste. We also purchase household appliances mainly based on the Energy Efficiency Label of the Ministry of Economic Affairs The subsidiary Taifo implements electronic operations and adopt online sign-off to significantly reduce the use of paper and promotes energy saving and carbon reduction to reduce the impact on the environment. (III) The potential risks and opportunities posed by climate change have not been systematically integrated with the	No significant deviation No significant deviation. No significant deviation. Will be planned and developed in the future depending on the actual needs Will be planned and developed

opportunities posed by climate change for its business now and in the future and adopted relevant measures to address them? (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 wastes? 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? (II) Has the Company established and implemented reasonable employee welfare measures (including salary/compensation, leave, and other benefits), and are business performance or results appropriately reflected in employee salary/compensation? (III) Does the Company provide a safe and healthy workplace for employees and regularly provide 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	V V V V V	V	Company's risk governance framework. The Company and its subsidiary Taifo will plan and develop in the future depending on the actual needs. (IV) The Company has implemented a waste reduction plan in 2025 based on the environmental management system's second level document environmental target management procedure. The total output of waste in 2024 is 78 metric tons, and the total output of waste in 2025 is 24.5 metric tons,and the Compnay and its subsidiaries have promoted energy conservation practices such as turning off lights when not in use, saving water, and implementing seasonal air conditioning temperature controls during the summer months. These measures have contributed to achieving energy-saving and carbon reduction goals. Additionally, Taichinet has commissioned licensed waste disposal contractors to handle the removal and treatment of discarded fiber optic cables 34.841 metric tons in 2024 and 18,919 metric tons in 2025. (I) The employee work rules and management regulations of the Company and its subsidiary Taifo are formulated in accordance with the Labor Standards Act and relevant laws and regulations. The rights and obligations of workers and employers conform to the labor laws and regulations, and the legal rights and interests of the employee are protected. The company has also formulated proper management policies and procedures, and the management policies do not violate the international human rights conventions. (II) The Company has established the "Tai Tung's Code of Practice," "Regulations for Employees' Compensation," "Regulations for Performance Review," "Regulations for Employees' Cash Compensation," "Regulations for Employee Stock Option and Distribution of Compensation," "Regulations for Repurchasing Shares to Transfer Shares to Employees," and other relevant regulations in order for business performance to be appropriately reflected in employee salary/compensation. For employee welfare, please refer to page 92.The Company's female employees account for 26.25% of the total employees, with the female senior management account for 33.33%.Both the Company and its subsidiary Taifo have set up the employee welfare committee to handle the employees' welfare. (III) The Company and its subsidiary Taifo have equipped with a 24-hour security protection mechanism. Both regularly provide on-the-job training for employees to protect the employees' safety at work, conduct health examinations and other employees' welfare measures, and regularly update and advocate the regulations for occupational safety and health. In 2024, a total of 7 employees involved in the occupational accidents, accounting for 2.61% of the total number of employees. In 2025, a total of 6 employees involved in the occupational accidents, accounting for 2.3% of the total number of employees. Improvement measures: Continue to obtain the license of the operator of dangerous machinery and equipment Employees are reminded to stay safe during their commute and are encouraged to use public transportation. Occupational safety and health awareness training is also provided. The company regularly conducts fire drills, and no fire incidents have occurred at the company or its subsidiary, Taifo. (IV) All handling personnel and supervisors of the Company and its subsidiary Taifo have actively participated in the advocacy sessions provided by the competent authorities and the professional courses organized by various organizations. For more information, please refer to pages 92-95.The functions of employees are developed and enhanced by providing employees with an open and diverse learning environment. (V) The Company and its subsidiary Taifo comply with relevant regulations concerning customer privacy, marketing, and labeling of products and services. Both have received certifications from domestic and international entities such as the Ministry of Economic Affairs. The Company has established a dedicated section for stakeholders on its website, where consumers can engage in two-way communication through provided links. Taifo has developed	in the future depending on the actual needs Will be planned and developed in the future depending on the actual needs No significant deviation No significant deviation No significant deviation No significant deviation No significant deviation

protection and grievance policies? (VI) Has the company formulated supplier management policies requiring suppliers to comply with relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights, and what is the status of their implementation? The employee work rules and management regulations of the Company and its subsidiary Taifo are formulated in accordance with the Labor Standards Act and relevant laws and regulations. The rights and obligations of workers and employers conform to the labor laws and regulations, and the legal rights and interests of the employee are protected. The company has also formulated proper management policies and procedures, and the management policies do not violate the international human rights conventions.		V	policies to protect consumer rights and customer complaint procedures and has designated customer service personnel to handle grievances. Both the Company and its subsidiary Taifo have conducted appropriate assessments before making business transactions with suppliers. (VI) Both the Company and its subsidiary Taifo have conducted appropriate assessments before making business transactions with suppliers. If a supplier violates its social responsibility or supplier policies, it will bear the obligation to compensate for damage; however, no terms for termination or rescission of the contracts at any time have been specified. The subsidiary Taifo has formulated the Regulations for Supplier Management, Performance Appraisal, and Rewards, requiring suppliers to follow relevant regulations on issues such as environmental cleaning and maintenance, human rights and occupational safety. All suppliers abide by the regulations on relevant issues.	Will be developed in the future depending on the actual needs
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	Starting from 2025, the Company will prepare the parent company's perpetual report annually in accordance with GRI Standards and the Climate Related Financial Disclosure (TCFD) framework, and in accordance with the "Guidelines for the Preparation and Application of Perpetual Reports by Listed Companies", in order to comply with regulatory standards and disclosure requirements; The subsidiary has not yet prepared a perpetual report.	The subsidiary Taifo will plan and prepare in the future depending on the actual needs.
VI. If the Company has adopted its own sustainable development best-practice principles based on the "Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies," please describe any deviation from the principles in the Company's operations: The Company has adopted its own "Sustainable Development Best-Practice Principles" and there is no deviation from the principles in its operations. The subsidiary Taifo has also set up its own sustainable development principles in November 2022 and its operation is also the same as the established principles. . VI. Other important information to facilitate better understanding of the company's promotion of sustainable development: 1. Environmental protection: The Company abides by international environmental protection standards with business waste being removed by the waste disposal organization endorsed by the Environmental Protection Administration, and complies with the relevant laws and regulations to implement pollution prevention tasks to maintain environmental hygiene. The domestic sewage is collected in the septic tank and then discharged into the sewer system for further treatment at the sewage treatment plant in the industrial area to ensure a healthy community and maintain environmental quality. The subsidiary Taifo promotes policies such as turning off lights and air conditioning when leaving and using both sides of paper to utilize energy more efficiently and implements energy saving and carbon reduction policies such as environmental protection and power saving to reduce ecological destruction. 2. Social contribution, international charity service, social service and public service: Currently, Mr. LEE, CHIN-HUNG, the Chairman of this company, is serving as the 19th Chairman of "Taiwan Area Wires and Cables Industrial Association." ( September 2023 to August 2026 )During normal days, he is not only dedicated in promoting the association affairs but has also spent most of his time in engaging in the activities planned by the association for stimulating the development of the wire and cable industries. In the meantime, the subsidiary TAIFO is engaging in the service to promote the application of the public broadband network in order to ramp up the performance of the optic fiber network system in Taipei City. 3. Consumer rights and interests: The Company strictly abides by the contract and fulfills its obligation. In addition to safeguarding the rights and interests of the company, it also protects consumer rights and interests. The subsidiary Taifo complies with the Personal Data Protection Act. No matter whether the application, activation, change, billing and accounting, services, etc., is conducted, the personal data is strictly protected. 4. Human rights: The employees of the Company and its subsidiary Taifo have equal employment opportunities. The company provides a conducive work environment and ensure that there is no discrimination and harassment. 5. Safety and Health: The Company adheres to government regulations on labor safety and health and promotes various safety and health initiatives. Taifo reduces the installation of underground pipelines; any excavation or construction is followed by the proper disposal of the resultingwaste and debris to maintain the cleanliness and safetyof the construction sites.

(VI) Status of Climate-related Implementation:

(VI) Status of Climate-related Implementation:
Item	Implementation status
1. Description of the Board of Directors' and management’s oversight and governance of climate-related risks and opportunities. 2. Description of how the identified climate-related risks and opportunities impact the company’s business, strategy, and financial planning (in the short, medium, and long term.) 3. Description of the financial impacts of extreme weather events and transition actions. 4. Description of the procedures undertaken to identify, evaluate, and manage climate risks, and how they are integrated into the risk management system. 5. Where scenario analysis is utilized to evaluate resilience to climate change risk, describe the underlying scenarios, parameters, assumptions, factors, and key financial impacts. 6. Where transition plans have been made to manage climate risks, explain plan details and the indicators and goals utilized for the identification and management of Water risks and transition risks. 7. Where internal carbon pricing is utilized as planning tool, explain the pricing basis. 8. If climate-related targets have been set, information should be provided on the scope of activities covered, the categories of greenhouse gas emissions addressed, the timeline for implementation, and the annual progress toward achieving these targets. If carbon offsets or Renewable Energy Certificates (RECs) are used to meet the targets, the source and amount of the offset emissions or the number of RECs used should also be disclosed. 9. Greenhouse Gas (GHG) Inventory Verification, Reduction Targets, Strategies, and Specific Action Plans	The company’s Risk Management Committee, led by the General Manager, is responsible for coordinating responses to corporate risks. The committee is composed of department heads from Administration, Information Technology, Finance, Corporate Governance, Sales, and Manufacturing. As part of the committee, the Corporate Governance Department is responsible for identifying and assessing climate-related risks, ensuring that the company responds effectively. Climate risks include carbon inventory and compliance management required by government carbon emission policies, which may increase operational costs. Extreme weather events—such as typhoons and heavy rainfall—could also disrupt supply chain stability, leading to raw material shortages and increased transportation costs. To address the aforementioned risks, Tai Tung Communication Co., Ltd. reports annually to the Board of Directors on its risk management efforts to ensure effective oversight and implementation of governance mechanisms. The company also monitors relevant regulatory developments in accordance with government policies and climate-related risks. It continues to conduct greenhouse gas inventories to assess the impact on operations and ensure compliance with regulatory requirements. The Company's greenhouse gas inventory data benchmark year is set for 2023, and third-party verification will be completed in the same year. SGS will issue a verification statement, laying a transparent and trustworthy foundation for organizational carbon governance; The Company also sets a goal of reducing greenhouse gas emission intensity by 30% compared to the benchmark year of 2023 by 2030. We develop energy-saving and emission reduction plans every year, set environmental emission control targets, and regularly hold meetings to review and ensure effective reduction of greenhouse gas emissions. In 2024, we will continue to carry out independent inspections and internal audits to strengthen institutional stability and self-management capabilities. In 2023, the emissions of Category I and II were 1999.2189 metric tons of CO2e, and the emission intensity was 0.9823 metric tons of CO2e∕ revenue per million yuan; In 2024, it was 1994.4236 metric tons of CO2e, and the emission density was 0.8018 metric tons of CO2e/million yuan revenue, which decreased by about 18%. The data for 2025 has been preliminarily compiled, and internal verification procedures are currently in progress. The final data will be disclosed in the Company’s Sustainability Report. Based on preliminary estimates, the combined Scope 1 and Scope 2 emissions amount to 1,825.7418 metric tons of CO₂e, with an emissions intensity of 0.8797 metric tons of CO₂e per NT$1 million in revenue, representing a decrease of approximately 10% compared to the base year.

Item

Implementation status

1. Description of the Board of Directors' and management’s oversight and
governance of climate-related risks and opportunities.
2. Description of how the identified climate-related risks and
opportunities impact the company’s business, strategy, and financial
planning (in the short, medium, and long term.)
3. Description of the financial impacts of extreme weather events and
transition actions.
4. Description of the procedures undertaken to identify, evaluate, and
manage climate risks, and how they are integrated into the risk
management system.
5. Where scenario analysis is utilized to evaluate resilience to climate
change risk, describe the underlying scenarios, parameters,
assumptions, factors, and key financial impacts.
6. Where transition plans have been made to manage climate risks,
explain plan details and the indicators and goals utilized for the
identification and management of Water risks and transition risks.
7. Where internal carbon pricing is utilized as planning tool, explain the
pricing basis.
8. If climate-related targets have been set, information should be provided
on the scope of activities covered, the categories of greenhouse gas
emissions addressed, the timeline for implementation, and the annual
progress toward achieving these targets. If carbon offsets or Renewable
Energy Certificates (RECs) are used to meet the targets, the source and
amount of the offset emissions or the number of RECs used should also
be disclosed.
9. Greenhouse Gas (GHG) Inventory Verification, Reduction Targets,
Strategies, and Specific Action Plans

The company’s Risk Management Committee, led by the General
Manager, is responsible for coordinating responses to corporate
risks. The committee is composed of department heads from
Administration, Information Technology, Finance, Corporate
Governance, Sales, and Manufacturing. As part of the committee,
the Corporate Governance Department is responsible for identifying
and assessing climate-related risks, ensuring that the company
responds effectively. Climate risks include carbon inventory and
compliance management required by government carbon emission
policies, which may increase operational costs. Extreme weather
events—such as typhoons and heavy rainfall—could also disrupt
supply chain stability, leading to raw material shortages and
increased transportation costs. To address the aforementioned risks,
Tai Tung Communication Co., Ltd. reports annually to the Board of
Directors on its risk management efforts to ensure effective
oversight and implementation of governance mechanisms. The
company also monitors relevant regulatory developments in
accordance with government policies and climate-related risks. It
continues to conduct greenhouse gas inventories to assess the impact
on operations and ensure compliance with regulatory requirements.
The Company's greenhouse gas inventory data benchmark year is set
for 2023, and third-party verification will be completed in the same
year. SGS will issue a verification statement, laying a transparent
and trustworthy foundation for organizational carbon governance;
The Company also sets a goal of reducing greenhouse gas emission
intensity by 30% compared to the benchmark year of 2023 by 2030.
We develop energy-saving and emission reduction plans every year,
set environmental emission control targets, and regularly hold
meetings to review and ensure effective reduction of greenhouse gas
emissions. In 2024, we will continue to carry out independent
inspections and internal audits to strengthen institutional stability
and self-management capabilities.
In 2023, the emissions of Category I and II were 1999.2189 metric
tons of CO2e, and the emission intensity was 0.9823 metric tons of
CO2e∕ revenue per million yuan; In 2024, it was 1994.4236 metric
tons of CO2e, and the emission density was 0.8018 metric tons of
CO2e/million yuan revenue, which decreased by about 18%.
The data for 2025 has been preliminarily compiled, and internal
verification procedures are currently in progress. The final data will
be disclosed in the Company’s Sustainability Report. Based on
preliminary estimates, the combined Scope 1 and Scope 2 emissions
amount to 1,825.7418 metric tons of CO₂e, with an emissions
intensity of 0.8797 metric tons of CO₂e per NT$1 million in revenue,
representing a decrease of approximately 10% compared to the base
year.

(VII) The state of the company's performance in the area of ethical corporate management, any variance from the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies, and the reason for any such variance:

Evaluation item	Implementation status	Implementation status	Implementation status	Deviations from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
I. Establishment of ethical corporate management policies and programs (I) Does the Company have an ethical corporate management policy approved by its Board of Directors, and by-laws 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? II. Ethical Management Practice (I) Does the company evaluate business partners’ ethical records and include ethics-related clauses in business contracts?	V V V V		(I) The Company has adopted its own "Ethical Corporate Management Best-Practice Principles" and "Employee Code of Ethics," which stipulate that Independent Directors, supervisors, managerial officers, and all employees shall have integrity and fairness and comply with government laws and regulations when executing the Company's business and the audit unit is responsible for the formulation of the ethical management policy and prevention programs and supervision over the implementation. The subsidiary Taifo has adopted the "Codes of Ethical Conduct for Directors, Supervisors, and Managerial Officers," explicitly providing the ethical management policy and practice. (II) In addition to stipulating in the relevant management regulations that all employees should promptly notify management when finding any act in violation of the policies and code of ethics, the Company provides advocacy for employees through internal department meetings on an irregular basis. The subsidiary Taifo has adopted the "Codes of Ethical Conduct for Directors, Supervisors, and Managerial Officers." (III) All the Company's employees sign the Non-Disclosure Agreement and abide by the employee work rules, prohibiting the employees from fraud, disclosure of the Company's secrets, or other wrongful acts resulting in losses to the Company. The subsidiary Taifo has adopted the "Codes of Ethical Conduct for Directors, Supervisors, and Managerial Officers," which state the operations and procedures, behavior guidelines, and punishment and appeal system for violations, followed by implementation. (I) The Company has established in its “Code of Ethical Conduct” and “Employee Code of Ethics” that employees are prohibited from directly or indirectly offering or accepting any improper benefits, including gifts, hospitality, or other inappropriate advantages. The subsidiary, Taifo, conducts comprehensive evaluations prior to entering into contracts with counterparties. In addition, integrity clauses have been incorporated into certain contracts with government agencies and major clients.	No significant deviation. No significant deviation. No significant deviation. No significant deviation.

Evaluation item	Implementation status	Implementation status	Implementation status	Deviations from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
(II) Has the company set up a dedicated unit to promote ethical corporate management under the board of directors, and does it regularly (at least once a year) report to the board of directors on its ethical corporate management policy and program to prevent unethical conduct and monitor their implementation? (III) Has the company established policies to prevent conflict 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? III. Implementation of Complaint Procedures (I) Has the company established specific whistleblowing and reward procedures, set up conveniently accessible whistleblowing channels, and appointed appropriate personnel specifically responsible for handling complaints received from whistleblowers? (II) Has the company established standard operation procedures for investigating the complaints received, follow-up measures taken after investigation, and mechanisms ensuring such complaints are handled in a confidential manner? (III) Has the company adopted proper measures to protect whistleblowers from retaliation for filing complaints?	V V V V V V V		(II) The Company's departments concurrently serve as a dedicated unit to promote ethical corporate management, and they implement and perform ethical management according to the scope of their duties and report to the board of directors on their implementation once a year. It has reported to the board of directors on the implementation of ethical management on November 10, 2025. The subsidiary Taifo has designated the Audit Office as the dedicated unit to be in charge. If any unethical conduct has been found, it can carry out the audit at any time and report to the board of directors. (III) For conflicts of interests in business, the relevant supervisors have been informed in advance by the Company and its subsidiary Taifo that they should recuse themselves to avoid conflicts of interests. When any conflict of interests is involved in a proposal at a given board of directors meeting, the concerned persons should not participate in discussion of or voting on the proposal and leave the meeting according to the principle of recusal. (IV) The Company and its subsidiary Taifo have effective accounting and internal control systems in place to enforce ethical corporate management. The internal auditors also regularly audit compliance with the above-mentioned systems. (V) The Company regularly communicates to employees the Company's determination, policies, and the consequences of violations; the annual educational training was completed on November 21, 2025, conducted by the head of the management department, lasting 0.5 hours with 13 attendees. Subsidiary Taifo has not yet held such training. (I) The Company has appointed the Management Department and Audit Office specifically responsible for handling complaints. The subsidiary Taifo has not established whistleblowing channels and appeal system. (II) The Company has explicitly provided in the "Employee Code of Ethics" the standard operation procedures for investigating the complaints received and relevant operation procedures for mechanisms ensuring such complaints are handled in a confidential manner. The subsidiary Taifo has not provided such procedures. (III) The Company has explicitly provided in the "Employee Code of Ethics" the standard operation procedures for investigating the complaints received and relevant operation procedures for mechanisms ensuring such complaints are handled in a confidential manner, and the identity of the whistleblower and complaints received from whistleblowers are handled in a confidential manner. The subsidiary Taifo has never met with whistleblowers being retaliated against for filing complaints.	No significant deviation. No significant deviation. No significant deviation. The subsidiary Taifo will provide such training programs depending on the actual needs. The subsidiary Taifo will establish relevant systems for handling such matters depending on the actual needs. The subsidiary Taifo will establish relevant systems for handling such matters depending on the actual needs. No significant deviation.

Evaluation item	Implementation status	Implementation status	Implementation status	Deviations from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the Reasons
	Yes	No	Summary description
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		Relevant regulations have been disclosed in the "Investors Section" on the Company's website, and the Company's information, relevant corporate culture, and business information have been disclosed in a timely, open, and transparent manner on the Market Observation Post System (MOPS).	The subsidiary Taifo will set up a section specially designated to disclose information depending on the actual needs.
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 adopted its own "Ethical Corporate Management Best-Practice Principles" and there is no deviation from the principles in its operations. The subsidiaryTaifo will formulate its ownprinciples in the future dependingon the situation.
VI. Other significant information that would aid in understanding the operation of the Company's ethical management, which may include, but is not limited to, reviews and amendments of the established ethical management guidelines: Both the Company and its subsidiary Taifo comply with the Company Act, Securities and Exchange Act, TWSE/GTSM listing rules, or other laws or regulations regarding commercial activities as the underlying basic premise to facilitate ethical corporate management. However, the subsidiary Taifo is not a TWSE/TPEx listed company,and will establish the corporategovernanceprinciples dependingon the actual needs in the future.

(VIII) Other significant information that will provide a better understanding of the state of the company's implementation of corporate governance may also be disclosed:
The shareholders' meetings of the Company and its subsidiary Taifo are not held on a popular date to protect the rights and interests of shareholders.
The Company has formulated the "Procedures for Handling Material Inside Information" and a list of members of the unit specifically responsible for handling internal material information to establish the mechanisms for the handling and disclosure of material inside information by the company, in order to prevent improper information disclosures and to ensure the consistency and accuracy of information released by the Company to the public and avoid any violation and the occurrence of insider trading.
The subsidiary Taifo has formulated the "Operational Regulations for Spokesperson" and "Rules Governing the Operating Procedures for Public Information Reporting" establish the mechanisms for the handling and disclosure of material inside information by the company, in order to prevent improper information disclosures and to ensure the consistency and accuracy of information released by the Company to the public.
(IX) The section on the state of implementation of the company's internal control system shall furnish the following:
Statement on the Internal System:
- https://mopsov.twse.com.tw/nas/cont06/c8011114011150316.pdf
The CPA audit report: None.

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

1. Board of Directors Meeting:	1. Board of Directors Meeting:
Date	Material Resolution
The 7th Meeting of the 16th Session March 7, 2025	1. 2024 distribution of Independent Directors' and employees' compensation and remuneration (in gross amount) motion 2. 2024 employee and director remuneration (individual) distribution. 3. Manager level and above/department supervisor salary adjustment 4. Appointment of the legal representative (director) of the subsidiary " TAIWAN INTELLIGENT FIBER OPTIC NETWORK CO., LTD " and the case of lifting the non-compete restriction. 5. In order to make the subsidiary KING TUNG RESOURCES CO., LTD. operate normally, it is planned to sign a letter of commitment for financial support. 6. 2024 self-assessment of the internal control system and the preparation of the Internal Control System Statements motion 7. 2024 Business Report and Financial Statements motion 8. 2024 Earning Distribution Plan motion 9. The case of independence and competency assessment of CPA. 10. Service List for Advanced Approval of Non-assurance Services rendered by CPA in 2024 motion 11. Renewed Authorization to Deloitte Taiwan for handling Audit Quality Indicator and certification in 2024 motion 12. Amendments to the "Articles of Incorporation" 13. Revise the "Procedure for Lending Funds to Others". 14. Revision of the "Method for Election of Directors". 15. Revise the "Regulations on Salary Management". 16. Revise the "Operational Procedures for Preventing Insider Trading". 17. Newly appointed Manager of the Management Department. 18. Planning for the 2025 Annual Shareholders' Meeting. 19. Application for short- and medium-term amount limits to the financial institution.
The 8th Meeting of the 16th Session April 25, 2025	1. Amendment to the "Articles of Association" "
The 9th Meeting of the 16th Session May 9, 2025	1. Consolidated Financial Reports for the 1st Quarter of 2025 2. Appointing the legal representative (director) of the affiliated company " Chien Tung Harbour Service Co., Ltd." 3. Application for short-term amount limits to the financial institution.
The 10th Meeting of the 16th Session August 8, 2025	1. Consolidated Financial Reports for the 2nd Quarter of 2025 2. Revise the internal control system "CW-109 Salary Operation" 3. Promotion proposal for the head of the finance department. 4. Promotion case for testinglaboratorysupervisor.
The 11th Meeting of the 16th Session November 10, 2025	1. Review the salary adjustment proposal for the financial supervisor. 2. Review of the year-end bonus proposal for managerial-level staff (inclusive) and department heads. 3. Proposal for the evaluation and revision of the company’s compensation and performance assessment systems. 4. Consolidated Financial Reports for the 3rd Quarter of 2025 5. Execute the dissolution and liquidation procedures of the subsidiary Chiantong Optoelectronics Co., Ltd.. 6. the endorsement guarantee case provided for the subsidiary " TAIWAN INTELLIGENT FIBER OPTIC NETWORK CO., LTD ". 7. Revise the internal control system "CW-109 Salary Operation" and internal audit system "AW-109 Salary Operation" of the Company. 8. 2026 Internal Audit Plan case 9. Application for short and medium-term financing quotas from financial institutions. 10. Providing collateral to subsidiary " TAIWAN INTELLIGENT FIBER OPTIC NETWORK CO., LTD " with shared quotas between the company and the subsidiary. 11. Providing collateral to Sunny Bank. 12. 2026 budget 13. 2026 business plan 14. Revise the Internal Management Act. 15. Revise the "Guidelines for the Preparation and Declaration of SustainabilityReports".
The 12th Meeting of the 16th Session March 9, 2026	1. Organizational restructuring proposal. 2. Newly appointed Information Room Manager and Transportation System Business Unit Manager. 3. Senior Manager and Manager Promotion Case in the Finance Department. 4. Evaluate the scope of grassroots employees. 5. Revise the"Regulations on Job Agency","Regulations on Salary Management","Regulations on Employee Cash

Date	Material Resolution	Material Resolution
	Remuneration", and "Regulations on Employee Stock Subscription and Remuneration Payment". 6. 2025 employee and director remuneration (total amount) distribution. 7. Proposal for the Individual Allocation of Employee Compensation for Managerial-Level and Above, Department Heads, and Director Remuneration for 2025 8. Manager level and above/department supervisor salary adjustment 9. 2025 self-assessment of the internal control system and the preparation of the "Internal Control System Statements" 10. 2025 Business Report and Financial Statements. 11. 2025 Earning Distribution Plan motion 12. CPA independence and competence evaluation case 13. "Service List for Advanced Approval of Non-assurance Services rendered by CPA in 2026." 14. Renewed Authorization to Deloitte Taiwan for handling Audit Quality Indicator and certification in 2026. 15. In order to make its subsidiary KING TUNG RESOURCES CO., LTD. operate normally, the Company intends to sign a letter of commitment for financial support. 16. Appointment of legal representative (director) of subsidiary (QIONG LIAN CO., LTD.) 17. Convening of 2026 Annual Meeting of Shareholders. 18. Application for short- and medium-term amount limits to the financial institution
2. Shareholders' Meeting:
Date	Material Resolution	Implementation status
2025.05.26	I. Management Presentation (Company Reports): 1. 2024 Business Report 2. 2024 Audit Committee Reports 3. Endorsement/guarantee amount 4. Investment in the Mainland China 5. Report on the 2024 distribution of Directors' and employees' compensation and remuneration. 6. Report on the 2024 Directors’ Remuneration Payments 7. Report on the Execution of the Treasury Share Buyback Program II. Adoption of Proposals: 1. Approval of 2024 Business Report and Financial Statements motion 2. Approval of 2024Earning Distribution Plan motion III. Matters of Discussion: 1. Amendments to the "Articles of Incorporation" 2. Revise the "Procedure for Lending Funds to Others". 3. Revise the 'Method for Election of Directors' proposal.	Set on June 23, 2025 as the ex dividend reference date, and distribute cash dividends on July 11, 2025 Obtained the approval letter for change of registration on July 28, 2025.

(XI) Where, during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report, a director or supervisor has expressed a dissenting opinion with respect to a material resolution passed by the board of directors, and said dissenting opinion has been recorded or prepared as a written declaration, disclose the principal content thereof: Not applicable.

IV. Information on the professional fees of the attesting CPAs (external auditors):

			Unit: thousands of NTD	Unit: thousands of NTD	Unit: thousands of NTD	Unit: thousands of NTD
Name of CPA firm	Names of CPAs	CPAs Audit Period	Audit fees	Non-Audit Fees (Note)	Total	Remarks
Deloitte Taiwan	Hsieh Tung-Ju, Li Kuan-Hao	2025.01.01~ 2025.12.31	2,850	185	3,035

Note 1: Referring to the relevant fees paid for transfer pricing report, secondary reviews of English statements, and uploading of the employees' salary verification checks

(I) 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: Not applicable.
(II) When the audit fees paid for the current fiscal year are lower than those for the previous fiscal year by 10 percent or more, the reduction in the amount of audit fees, reduction percentage, and reason(s) therefor shall be disclosed: Not applicable.
V. Information on replacement of certified public accountant:

(I) About the predecessor CPA

Date of replacement	N/A	N/A	N/A	N/A	N/A
Reason for replacement and description	N/A
Termination or appointment rejection by the appointer or CPAs	Parties Condition			CPA	Appointer
	Proactive termination of appointment			N/A	N/A
	Appointment/reappointment rejection			N/A	N/A
Opinions in and reason for audit reports issued other than unqualified opinion in the last two years	None
Are there any controversies with the distributing party?	Yes		Accounting principles or practices
			Disclosure of financial statements
			Audit scope or procedure
			Others
	None	✓
	Description: N/A
Other disclosures (The items that should be disclosed as being specified in sub-clause 1-4 to 1-7 provided in Clause 6 under Article 10 of this Criteria.)	None

(II) About the succeeding CPA

(II) About the succeeding CPA
Name of CPA firm	N/A
Names of CPAs	N/A
Date of appointment	N/A
The accounting processing method or the accounting principles established for the specific trading before the appointment, together with the comment inquiry that may be issued for the financial report and the result.	N/A
The written comments raised by the Succeeding CPA on those raised by the preceding CPA.	None

(III) The letter replied by the preceding CPA for the matters specified in sub-clause 1 and subclause 2-3 provided in Clause 6 under Article 10 of this Criteria: Not applicable.
VI. Where the Company's chairperson, President, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its and has certified public accountant or at an affiliated enterprise of such accounting firm, the name and job title, and the period during which the position which belonged held, shall be disclosed. The term "affiliated enterprise of a certified public accountant's accounting firm" refers to one in which the certified public accountants at the accounting firm of the attesting certified public accountant hold more than 50 percent of the shares, or of which such accountants hold more than half of the Independent Directorships, or a company or institution listed as an affiliated enterprise in the external publications or printed Certified the accounting firm of the certified public accountant: Not applicable.
VII. Any transfer of equity interests and/or pledge of or change in equity interests (during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report) by a director, supervisor, managerial officer, or shareholder with a stake of more than 10 percent during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report:
(I) Changes in shareholding ： https://mops.twse.com.tw/mops/#/web/query6_1
(II) Equity transfer information: The situation where the opponent is not subjected to equity transfer is serving as the interest party.
(III) Equity pledge information: The situation where the opponent is not subjected to equity pledge is serving as the interest party.

VIII. Relationship information, if among the company's 10 largest shareholders any one is a related party or a relative within the second degree of kinship of another:

							March 27,2026; Unit: shares	March 27,2026; Unit: shares	March 27,2026; Unit: shares
Name	Shares held by the principal		Shares held by spouse and minor children		Total number of shares held under the name of another party		Names and relationships between the top ten shareholders including spouses, second degree of kinship to another		Remarks
	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	No. of shares	Shareholding ratio	Name	Relationship
Xin Di Investment Co., Ltd. Representative: Lee Ching-Hung	21,186,166	12.77%	-	-	-	-			-
	9,389,116	5.66%	786,138	0.47%	-	-	Lee Yi-Juan	Father and Daughter	-
Lee Ching-Hung	9,389,116	5.66%	786,138	0.47%	-	-	Lee Yi-Juan	Father and Daughter	-
Ching Tong Investment Co., Ltd. Representative:: LeeYi-Juan	2,289,268	1.38%	-	-	-	-	-	-	-
	6,644	0.00%	-	-	-	-	Lee Ching-Hung	Father and Daughter	-
Yuanta Securities Co., Ltd. Representative:: Chen Hsiu-Wei	1,990,000	1.20%	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	-	-
Lin Gau-Hung	1,650,000	0.99%	-	-	-	-	-	-	-
Sin ho Fa Co., Ltd. Representative:: Kao Hsi-Chuan	1,478,000	0.89%	-	-	-	-	-	-	-
	196,000	0.12%					Chuan mei Investment Co., Ltd	Representative	-
Wu Jen-Tang	1,470,690	0.89%	-	-	-	-	-	-	-
Chuan mei Investment Co., Ltd Representative:: Kao Hsi-Chuan	1,389,000	0.84%	-	-	-	-	-	-	-
	196,000	0.12%	-	-	-	-	Sin ho Fa Co., Ltd	Representative	-
Wang Li-Hung	1,120,671	0.68%	-	-	-	-	-	-	-
Shih Chia-Chou	1,053,000	0.63%	-	-	-	-	-	-	-

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

			Unit: thousand shares; December 31, 2025	Unit: thousand shares; December 31, 2025	Unit: thousand shares; December 31, 2025	Unit: thousand shares; December 31, 2025
Investee enterprise (Note 1)	Investment by the Company		Investment by the Directors, Supervisors, Managerial Officers and Directly or Indirectly Controlled Entities of the Company		Total investment
	No. of shares	Shareholding ratio(%)	No. of shares	Shareholding ratio(%)	No. of shares	Shareholding ratio(%)
Qionglian Co., Ltd.	2,000	100.00	-	-	2,000	100.00
AgrandTech Limited (Samoa)	4,978	100.00	-	-	4,978	100.00
Anhui Tung Hua Optic Electronics Co.,Ltd.(Note2)	(Note 2)	97.00	-	-	(Note 2)	97.00
SING TUNG TECHNOLOGIES PTE. LTD.	631	97.00	19	3.00	650	100.00
Taiwan Intelligent Fiber Optic Network Co.,Ltd.	124,913	68.22	9,669	5.28	134,582	73.50
King Tung Resources Co., Ltd.	30,500	89.71	2,700	7.94	33,200	97.65
Datong Construction Co., Ltd.(Note3)	510	51.00	140	14.00	650	65.00
Chien Tung Harbour Service Co., Ltd.	16,820	24.03	-	-	16,820	24.03

Note 1: The Company adopts the equity method for investments.

Note 2: Obtained the approval letter for cancellation of registration from the Market Supervision Administration of Chuzhou City on February 2, 2026; Unissued shares.

Note 3: On August 11, 2023, obtained the letter No. 1128057404 from the New Taipei City Government - New Taipei Prefecture Economic Bureau, approving the dissolution registration.

Chapter 3.Information on Capital Raising Activities

I. Capital and Shares

(I) Type and source of capital
Type of stock

1. Type	of stock	of stock
Type of stock Registered ordinary shares				Unit: shares
	Authorized capital			Remarks
	Outstanding shares	Unissued shares	Total
	165,921,891	34,078,109	200,000,000	None

2. Source of capital stock

Unit: Share; NTD

						Unit: Share;NTD	Unit: Share;NTD	Unit: Share;NTD
(Month) (year)	Issue price (NT$)	Authorized capital		Paid-up capital		Remarks
		Number of shares (shares)	Amount (NT$ thousands)	Number of shares (shares)	Amount (NT$ thousands)	Source of capital stock	Offset by any property other than cash	Others
2021/02	10	200,000,000	2,000,000	142,636,246	1,426,362	NT$50,559,000; authorized by Commercial Registration No. 11001019880	None	-
2021/05	10	200,000,000	2,000,000	147,642,417	1,476,424	NT$50,062,000; authorized by Commercial Registration No. 11001070960	None	-
2022/02	10	200,000,000	2,000,000	148,555,450	1,485,554	NT$9,130,000; authorized by Commercial Registration No. 11101017560	None	-
2022/05	10	200,000,000	2,000,000	149,456,062	1,494,560	NT$9,006,000; authorized by Commercial Registration No. 11101089210	None	-
2022/08	10	200,000,000	2,000,000	150,921,891	1,509,218	NT$14,658,000; authorized by Commercial Registration No. 11101166050	None	-
2023/11	10	200,000,000	2,000,000	170,921,891	1,709,218	Cash capital increase of NT$200,000,000; authorized by Commercial Registration No. 11230219520	None	-
2024/07	10	200,000,000	2,000,000	165,921,891	1,659,218	Cash capital increase of NT$50,000,000; authorized by Commercial Registration No. 11330105720	None	-

Information Relating to the Shelf Registration System: Not applicable.

(II) List of major shareholders

March 27, 2026

		March 27, 2026
Shares Names of major shareholders	No. of shares held	Shareholding ratio
Xin Di Investment Co., Ltd.	21,186,166	12.77%
Lee Ching-Hung	9,389,116	5.66%
CHING TONG INVESTMENT CO.,LTD	2,289,268	1.38%
Yuanta Securities Co., Ltd.	1,990,000	1.20%
Lin Gau-Hung	1,650,000	0.99%
SinhoFaCo.,Ltd.	1,478,000	0.89%
Wu Jen-Tang	1,470,690	0.89%
Chuanmei Investment Co., Ltd.	1,389,000	0.84%
Wang Li-Hung	1,120,671	0.68%
Shih Chia-Chou	1,053,000	0.63%

(III) Company's dividend policy and implementation thereof

1. Dividend policy:

According to the Company's Articles of Incorporation, if there is profit (i.e. the pretax profit before deducting the distribution of employees' compensation and Independent Director remuneration) at the end of each fiscal year, no less than 1% of profit of the current year distributable as employees' compensation No less than 60% of this employee's remuneration should be distributed to grass-roots employees. )( and no more than 2% as remuneration to Independent Director shall be appropriate. The above-mentioned employees' compensation and remuneration to Independent Directors should be determined by a resolution of the Board of Directors and reported to the shareholders' meeting.

The Company may have the profit distributable as employees' compensation in the preceding paragraph distributed in the form of shares or in cash. Qualification requirements of employees entitled to receive shares, or cash may include the employees of parents or subsidiaries of the company meeting certain specific requirements. The remuneration to directors in the preceding paragraph shall only be paid in cash. The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of Independent Directors, have the profit distributable as employees' compensation and remuneration to Independent Directors distributed, and in addition a report of such distribution shall be submitted the shareholders' meeting. However, the Company's accumulated losses (including an adjustment to the amount of unappropriated retained earnings) shall have been covered first, and then the employees' compensation and remuneration to directors shall be appropriated according to the preceding ratios.

After closing of accounts, if there are earnings, the Company shall first make up the losses for the preceding years (including an adjustment to the amount of unappropriated retained earnings) and then set aside a legal reserve of 10% of the net profit. Where such legal reserve amounts to the total paid-in capital of the Company, this provision shall not apply. The Company may set aside or reverse another sum as special reserve from the rest according to the laws and regulations. The remaining profit, if any, together with the accumulated unappropriated retained earnings, shall be distributed as shareholders' dividends subject to the proposal for distribution of profits adopted by the Board of Directors and the approval of the shareholders' meeting.

The Company is at the violations' growth stage. Based on its long-term financial planning, the dividends and profit-sharing compensation may be distributed to the shareholders in the form of shares or in cash. The ratio of share dividends and cash dividends is determined depending on the actual Profitability the current year and the financial planning of the Company; however, the ratio of cash dividends should not be lower than 10% of the current distribution of profits.

The dividend distributions proposed at the most recent shareholders' meeting

The Company proposes to distribute a cash dividend of NT$116,145,324 from the distributable earnings of 2025, with a dividend of NT$0.7 per share, based on 165,921,891 outstanding shares. Subject to approval at the Annual General Shareholders’ Meeting, the Chairman shall be authorized to set the ex-dividend date and payment date. The cash dividend will be distributed to shareholders in accordance with their shareholding as recorded in the shareholders’ register on the ex-dividend date.

(IV) Effect upon business performance and earnings per share of any stock dividend distribution proposed or adopted at the most recent shareholders' meeting: None.
(V) Compensation of employees, directors, and supervisors
The percentages or ranges with respect to remuneration to employees, Independent Directors, and supervisors, as set forth in the Company's Articles of Incorporation:

According to Article 20 of the Company's Articles of Incorporation, the Board of Directors is authorized to determine the Company's remuneration to Independent Directors according to degree of participation in the operation of the Company and the value of their contributions at such level as generally adopted by the enterprises of the same industry. The remuneration to the Company's independent directors may be paid according to the degree of participation in the operation of the Company and the value of their contributions at the typical pay levels adopted by other exchange-Listed companies. The board of directors is authorized to determine the amount.

The Board of Directors is authorized to determine the amount. According to the provisions of Article 22 of the Company's Articles of Incorporation, if there is profit (i.e. the pre-tax profit before deducting the distribution of employees' compensation and remuneration to Independent Directors) at the end of each fiscal year, no less than 1% of profit of the current year distributable as employees' compensation No less than 60% of this employee's remuneration should be distributed to grass-roots employees. and no more than 2% as remuneration to Independent Director shall be appropriated.

The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of Independent Directors, have the profit distributable as employees' compensation and remuneration to Independent Directors distributed, and in addition a report of such distribution shall be submitted the shareholders' meeting. However, the Company's accumulated losses (including an adjustment to the amount of unappropriated retained earnings) shall have been covered first, and then the employees' compensation and remuneration to directors shall be appropriated according to the preceding ratios.

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

The basis for estimating the amount of employee, director, and supervisor compensation in 2025	The basis for calculating the number of shares to be distributed as employee compensation	The discrepancy between the actual distributed amount and the estimated figure
Estimation in accordance with the company's Articles of Incorporation	None	The discrepancy, if any, is recognized in profit or loss for theyear 2026.

Information on any approval by the board of directors of distribution of compensation:
(1) The amount of any employee compensation distributed in cash or stocks and compensation for directors and supervisors.

			Unit: NTD
Distribution method		Amount	The discrepancy between the actual distributed amount and the estimated figure
Cash	Stock
✓		Employee remuneration: 7,451,036 Director remuneration: 4,967,357	The discrepancy, if any, is recognized in profit or loss for theyear 2026.

(2) The amount of any employee compensation distributed in stocks, and the size of that amount as a percentage of the sum of the after-tax net income stated in the parent company only financial reports or individual financial reports for the current period and total employee compensation: None.

The actual distribution of employee, director, and supervisor compensation for the previous fiscal year of 2024 (with an indication of the number of shares, monetary amount, and stock price, of the shares distributed), and, if there is any discrepancy between the actual distribution and the recognized employee, director, or supervisor compensation, additionally the discrepancy, cause, and how it is treated:

Unit: shares; NT$ thousands

	Board of Directors' approval of proposed distribution amount	Board of Directors' approval of proposed distribution amount	The discrepancy	Cause of discrepancy
	No. of shares	Amount
Employee compensation distributed in cash	0	12,995,188	0	None
Director profit-sharing compensation	0	6,497,594	0	None

(VI) Status of a company repurchasing its own shares: None
II. Information on the company's issuance of corporate bonds (including overseas corporate bonds): Not applicable.
III. Status of preferred shares: None.
IV. Status of global depository receipts: None.
V. Status of employee share subscription warrants and new restricted employee shares: None.
VI. Status of issuance of new shares in connection with mergers or acquisitions or with acquisitions of shares of other companies: None.
VII. Status of implementation of the company's capital allocation plans: None. Five.

Chapter 4. Overview of Business Operations

I. A description of the business
(I) Scope of business
(1) The Company's major lines of business:
1) C805050 Industrial Plastic Products Manufacturing
2) F401010 International Trade
3) E599010 Piping Engineering
4) F113010 Wholesale of Machinery
5) F113020 Wholesale of Electrical Appliances
6) F113030 Wholesale of Precision Instruments
7) F113070 Wholesale of Telecommunication Apparatus
8) F119010 Wholesale of Electronic Materials
9) F213010 Retail Sale of Electrical Appliances
10) F213040 Retail Sale of Precision Instruments
11) F213060 Retail Sale of Telecommunication Apparatus
12) F213080 Retail Sale of Machinery and Tools
13) F219010 Retail Sale of Electronic Materials
14) CE01010 General Instrument Manufacturing
15) CB01010 Mechanical Equipment Manufacturing
16) CC01070 Wireless Communication Mechanical Equipment Manufacturing
17) CC01060 Wired Communication Mechanical Equipment Manufacturing
18) E603010 Cable Installation Engineering 19) E701030 Controlled Telecommunications Radio-Frequency Devices Installation Engineering
20) CC01020 Electric Wires and Cables Manufacturing
21) E601010 Electric Appliance Construction 22) G801010 Warehousing
23) CC01030 Electrical Appliances and Audiovisual Electronic Products Manufacturing
24) CC01080 Electronics Components Manufacturing 25) E701010 Telecommunications Engineering
26) F118010 Wholesale of Computer Software
27) F218010 Retail Sale of Computer Software
28) I301010 Information Software Services
29) J504011 Cable Radio and Television System Operator
30) E605010 Computer Equipment Installation
31) G901011 Type I Telecommunications Business
32) G902011 Type II Telecommunications Business
33) J502020 Community Shared Antenna System TV Equipment
34) E701020 Satellite Television KU Channels and Channel C Equipment Installation
35) F213030 Retail Sale of Computers and Clerical Machinery Equipment 36) F114080 Wholesale of Track Vehicle and Component Parts Thereof 37) F115020 Wholesale of Ores 38) F214080 Retail Sale of Track Vehicle and Component Parts Thereof 39) F215020 Retail Sale of Ores

  - 40) E603080 Traffic Signs Installation Engineering 41) C804020 Industrial Rubber Products Manufacturing 42) C804990 Other Rubber Products Manufacturing 43) C901030 Cement Manufacturing 44) C901050 Cement and Concrete Products Manufacturing 45) CA01050 Steel Secondary processing 46) CA01990 Other Non-ferrous Metal Basic Industries 47) CA02010 Manufacture of Metal Structure and Architectural Components 48) CA02990 Other Metal Products Manufacturing 49) F106010 Wholesale of Hardware 50) F111090 Wholesale of Building Materials 51) G799990 Other Transportation Support 52) B101010 Coal Mining 53) F112020 Wholesale of Coal and Coal Products 54) F113090 Wholesale of Traffic Sign Equipment and Materials 55) F206010 Retail Sale of Hardware 56) F211010 Retail Sale of Building Materials 57) E603090 Lighting Equipment Construction 58) E604010 Machinery Installation 59) EZ05010 Instrument and Meters Installation Engineering 60) CD01020 Rail Vehicle and Parts Manufacturing 61) IG03010 Energy Technical Services 62) CC01100 Controlled Telecommunications Radio-Frequency Devices and Materials Manufacturing

  - 63) G903010 Telecommunications Business 64) F114010 Wholesale of Motor Vehicles 65) F214010 Retail Sale of Motor Vehicles

  - 66) F114990 Wholesale of Other Traffic Means of Transport and Component Parts There of

  - 67) F214990 Wholesale of Other Traffic Means of Transport and Component Parts There of

  - 68) CB01990 Other Machinery Manufacturing 69) CA01010 Iron and Steel Smelt 70) CD01030 Motor Vehicles and Parts Manufacturing 71) CD01990 Other Transport Equipment and Parts Manufacturing

  - 72) ZZ99999 All business activities that are not prohibited or restricted by law, except those that are subject to special approval.

(2) The subsidiary Taifo's major lines of business: Taipei Fiber, Taipei Optical Fiber for rent, telecommunications dedicated lines, enterprise electric circuits, and government network circuits
The relative weight of each business:

	Unit: thousands of NTD	Unit: thousands of NTD
Product item	2025
	Net operating revenue	The relative weight of each business activity (%)
Fiber optical cables and Fiber to the Home(FTTH)	468,282	22.56

related accessories
Engineering	552,359	26.62
Internal and external communication transmission cables	222,672	10.73
Communication services	724,934	34.93
Others	107,180	5.16
Total	2,075,427	100.00

3. (1) The Company's products:

Mainproducts	Mainproduct usage
Fiber optic cables	Used for communication, network, mobile phone, CATV and other industries to transmit voices, signals, images, digits,etc.
Fiber to the Home (FTTH) related accessories	PON products for Fiber to the Home (FTTH) - optical splitter, optical fiber patch cord, pigtail, wall-mount fiber distribution/rack-mountpatchpanel
Engineering	Optical fiber network construction and cabling engineering
Internal and external communication transmission cables	Used for telecommunications to transmit signals of the switching system and information equipment

(2) The main services of the subsidiary Taifo are as follows:

Category of main product

Important application

Taipei Fiber internet services

Offering high-quality and affordable FTTH (Fiber to
the Home) internet services with speeds of 300M,
600M, and 1G for both general users and public
housing residents.
Partnering with third parties to jointly provide popular
video services, including traditional diversified
channels and on-demand video content similar to cable
TV.
Additional services such as WIFI and smart security
monitoringare also available.

Enterprise dedicated line

Leasing
circuit
services
or
providing
telecommunications customers with backbone circuits
utilized for transmission between base stations or
machine rooms, and telecommunications optical fibers
utilized by large-sized enterprises for among different
computer rooms, or providing enterprises with VPN,
point-to-point transmission, or enterprise electric
circuits for Internet access.
Providing professional or enterprise-grade internet
products for small and medium-sized business clients
and SOHO professionals, including fixed IP leasing
services as required bycustomers.

Category of main product	Important application
Government network circuits	Provides institutions and schools in Taipei City with point-to-point dedicated lines, virtual private network (VPN), or electric circuits for Internet access.
Optical fiber construction	Regional optical fiber cable laying and surrounding telecom pipeline construction.

New products planned for development:

The Company's future research and development focuses on the development of new leading products responding to customers' construction needs or international market trends in a timely manner to increase the depth and breadth of the product line, and through strategic alliances and the upstream and downstream integration to enhance research and development capabilities, it expects to keep pace with international manufacturers and become an all-inclusive FTTH product provider.

The Company began to transform the production into optical fiber cables in 2000 and later strengthened technology research and development. Originally for producing optical fiber cables, the production technology has been upgraded to optical fiber transmission and receiving-end supporting products, such as optical splitter and other passive components.

(1) The Company's new products planned for development in the future are outlined as follows:

Plan items	New product to be developed	Development direction
1	Bundled Optical Cable (improved)	Improve the equipment and process technology, reduce the damage and improve the production stability, and cooperate with the development of high- core transmission requirements, which can further expand the system planning and product application scope.
2	SS23 (Improved Version)	In order to meet the limited space above the rack, the cabinet is designed to prevent insect invasion, provide customers with the cabinet to effectively fix the splitter and arrange and store optical fiber jumpers, avoid cable entanglement or damage, and provide construction efficiency and subsequent maintenance convenience.
3	Electrical Lightbox	Customization provides customers with installation requirements, and is used for optical fiber distribution system in outdoor and floor weak current rooms. It has IP56 protection level, can properly store jumpers and tail fibers, provide good heat dissipation, and ensure the stable and safe operation of optical fiber network system.
4	Roadside Waterproof Cabinet (including bracket)	This equipment enclosure has an IP66 protection level and is suitable for fiber optic and electrical systems in outdoor or harsh environments. The enclosure is equipped with screw locks to ensure safety protection, and provides ample space for wiring inside. It is also equipped with stainless steel nameplates for easy maintenance and inspection by construction units, improving overall reliability and management efficiency.

(2) Provided below are the new services that will be developed by the subsidiary TAIFO:

New services to be developed:	Development direction
AI Data Park Telecommunications Services	The demand for circuit and network export bandwidth in AI data centers (IDCs) is rapidly increasing due to the explosive growth of AI workloads. We actively participate in the circuit and bandwidth planning projects of cloud service providers (CSPs) that have entered various data centers in the early stages, and complete the interconnection plans of various data centers to meet the future demand for massive telecommunications services.
Data ParkDark Fibre / Optical Wavelength Services	Provides telecom-grade customers with high-performance and highly reliable transmission lines, ideal for low-latency, high-throughput data exchange between data centers (IDCs).
Telecom Park Collaboration	1. The Company Participates in the conduit and data room infrastructure project at Tai Tung Communication Co., Ltd. “New Ling Telecom Park,” offering telecom duct and fiber facilities hosting and leasing services. 2. The Company aims to expand cooperation with international-class ISPs and CSPs operating within the telecom park. 3. Seek strategic cooperation with major IDC operators and integrate multi-party resources to cut into IEPL, SD-WAN, IDC,securityand cloud service markets.
Product Development for Small and Medium-Sized Enterprises	In response to the growing data upload demands of the AI era, the Company offers internet packages for businesses and small and medium-sized enterprises with symmetrical speeds of 100 Mbps, 300 Mbps, 600 Mbps, and 1 Gbps, bundled with 3 IP, 6 IP, or 8 IP configurations to meet a variety of user needs.
Diversified Streaming Content	Offer a wide range of streaming content toprovide users with more viewing options: 1. Strengthen cooperation with LiTV and provide users with different choices. 2. Seek cooperation with different OTT operators.
Cloud-Based Video Surveillance Service Leasing	We offer video surveillance service leasing to government agencies, schools, enterprises, institutions, and the general public. This model allows customers to avoid large upfront capital expenditures , thereby reducing the financial burden of system deployment

(II) Overview of the industry
Current status and development of the industry
- (1) Current industrial climate:
  - --The Company

With the rapid growth of cloud computing and AI/5G applications, the global market's demand for high-speed transmission is increasing, which highlights the importance of the optical communication industry. According to research firm Spherical Insights, the global optical communication and network market is estimated to be worth approximately $21.36 billion in 2022, and is projected to reach $48.74 billion by 2032, with a compound annual growth rate of 8.6%. The Asia Pacific region is expected to be the fastest-growing region for optical communication.

With the increase of data centers, urbanization, the improvement of network penetration, the rise of generative AI, and the demand for large-scale language models, optical communication is being promoted as the main solution for internal connectivity in data centers. The establishment of 5G and future 6G base stations, with fiber optic cables serving as the backbone of the backhaul network, is crucial for supporting high-speed wireless communication.[ i]

References: https://money.udn.com/money/story/5607/9195240 --The subsidiary Taifo

In Taiwan, the telecommunications industry’s enterprise-facing services primarily focus on providing domestic and international data connectivity, as well as broadband internet access for business clients. These services also encompass Internet of Things (IoT) solutions, cybersecurity offerings, and comprehensive ICT integrated solutions. Driven by the recent wave of digital transformation and rapid technological advancements, telecom services have expanded into multi-cloud architectures, cloud platforms, and AI applications. With the rise of 5G, telecom providers are integrating big data and AI technologies to develop industry-specific application scenarios—such as smart factories, telemedicine, and green energy—to meet the diverse needs of enterprises. In the past two years, global efforts to promote ESG-driven digital transformation, along with the 2050 net-zero carbon emission target, have further pushed telecom applications toward the development of smart energy and sustainable solutions.

①Current Status of the Circuit Ownership Industry: In recent years, the broadband market in Taiwan is nearly saturated. Being affected by the intensified substitution effect of the mobile broadband, weaker growing momentum is seen in the number of optic fiber broadband subscribers. Despite this, driven by the increased application demand of the consumers in online video watching, the use of social networking site and the file downloading, stronger demand for the high-speed network transmission is experienced in the market. Corresponding to the NCC policy, continuous speed increasing and fare reducing strategies have been exercised by Chunghwa Telecom for the HiNet users with a hope to stimulate consumer's interest in using the optic fiber broadband. Besides this, Chunghwa Telecom also worked with the operators in combining the optic fiber and the Wi-Fi 6 application and it has led to the launching of 2G/1G newer speed for the optic fiber network. As a result, stronger growth momentum is seen in the number of broadband users.

② In recent years, fixed net operators such as Far Eastone and Taiwan Mobile have started their transformation programs to the revenue that will be generated by the cybersecurity communication, the IoT and the cloud services. Owing to the contribution from the group's e-commerce revenue, it has significantly brought about higher profit earnings for Taiwan Mobile. In this respect, its fixed net construction is appealing to the mobile network demand through the high unit price network service. In terms of the household market, the approaches are focusing on the integration of their mobile services and cable TV resources. Through integrated services and special fares, the operators are promoting their own mobile broadband and cable online service. With the network TV service getting more popular, it has affected the development of the domestic cable TV operators that they are forced to transform their operation to promoting the cable online services. In the meantime, the operators are upgrading their cable online service proactively in order to provide high-speed online service for their cable TV users. In this way, consumers are attracted to use the value-added installation service for the integrated cable TV and network.
③ In Taiwan, cable television operators have been impacted by the integration of internet platforms and the launch of IPTV services by set-top box providers such as OVO, which has affected the growth of cable TV subscribers. As a result, cable TV operators have proactively focused on promoting cable internet services through attractive pricing plans to encourage consumers to adopt value-added services that integrate television and internet. Additionally, cable TV providers are upgrading their cable internet technologies to offer high-speed internet services to their subscribers.
(2) Industrial development
--The Company (overseas, domestic)

It is projected that the fiber optic cable market will reach $13.92 billion by 2025 and $20.94 billion by 2030, with a compound annual growth rate of 10.46% during the forecast period (2025-2030).

==> picture [376 x 230] intentionally omitted <==

As the demand for ultra-low latency in artificial intelligence workloads continues to grow, the intensification of 5G networks has driven the development of fiber optic deep coverage architectures, and ultra large scale data center operators are gaining unprecedented fiber optic capacity to bypass traditional operators, accelerating the growth rate of the fiber optic market. Geopolitical tensions have also prompted tech giants to expand their submarine routes, and even in mature economies, the size of the fiber optic market continues to grow.

Bandwidth demand is growing rapidly, and operators now regard fiber as the only infrastructure capable of meeting the requirements of 8K video, cloud gaming, and real-time collaboration. Global IP traffic is increasing at an annual rate of 22%, with streaming media and cloud services accounting for 82% of the traffic. As both developed and emerging regions advance toward gigabit-level access targets, the fiber optic cable market is experiencing faster order cycles, longer contract terms, and broader geographic deployment.

Each 5G small base station requires dedicated fiber optic backhaul transmission, which requires three to five times more cables than traditional 4G base stations. The edge cloud architecture further promotes this trend by requiring low latency links between base stations and micro data centers, and extends fiber optic to further suburban networks. As communication industry players compete to lay new lines, competition is becoming increasingly fierce, which also confirms the role of fiber optic as a key foundation for ultra-low latency mobile services.[ii ]

References:https://www.gii.tw/report/moi1850969-fiber-optic-cable-market-share-analysis-industry.html?utm_source=chatgpt.com

--The subsidiary Taifo

① Technological Innovation and ESG-Oriented Business Model

With the explosive growth of AI applications, the demand for cloud infrastructure and edge computing has increased, prompting the industry to invest in expanding IDC (Internet Data Center) facilities, enhancing computing power, and improving the performance of 5G networks to support high-performance computing environments. Furthermore, by 2026, the the 6G standard will continue to be formulated, exploring applications in higher frequency bands. In response to the global net-zero emission targets, the telecommunications industry will actively integrate energy-saving technologies and renewable energy to reduce its carbon footprint. The industry's carbon reduction strategies in 2026 will include green energy base stations, widespread use of solar, wind, and hydrogen fuel cell technologies, reducing dependence on traditional energy sources.

Telecom operators will also require all suppliers to meet ESG (Environmental, Social, and Governance) standards, driving the green transformation of the industry chain. Overall, by integrating 5G, AI, and green energy technologies, telecom operators will be able to ensure network performance while achieving sustainability goals. Transformation not only involves technological upgrades but also a commitment to future environmental and social responsibilities. The industry must embrace these trends to maintain a competitive edge in the global market.

② The Wi-Fi-based hot spot

Being affected by the trend of digital convergence, a strong bond has been established for the fixed-net and the mobile-net services. Under this trend, the mobile operators are forced to launch the unlimited fare for the low-price 4G mobile broadband. Being easier and simpler in setting the network base station with the smartphone, it has created more PWLAN users in the Taiwan market. Furthermore, the traffic-sharing restrictions for the 5G services and the digitalized city policy being aggressively developed by these six major metropolitan cities are also contributed to the soaring PWLAN users in Taiwan since 2020; for example, the on-pack AP NAT for the optic fiber product in capacity over 100M as being promoted in Taipei City. In addition, the Wi-Fi-oriented ONT is also offered for 60M product. In the meantime, many application services designed for mobile devices are also available in the fixed-net related devices. In this regard, the method using the Wi-Fi as the split means for the 4G mobile broadband has become a tool being accepted by the mobile operators over the past years.

The links between the upstream, midstream, and downstream segments of the industry supply chain

The Company produces and sells optical cables, Fiber to the Home (FTTH) related accessories, and communication transmission cables. The upstream segments are mainly copper optical fiber manufacturers, parts manufacturing plants, plasticizing raw material manufacturing plant, and metal raw material manufacturing plant and the downstream are mainly network product distributors, network system operators, telecommunications operators, communication equipment operators, etc. The linkage diagram of the upstream, midstream, and downstream segments of the industry supply chain is shown as follows:

==> picture [362 x 316] intentionally omitted <==

The subsidiary Taifo belongs to the telecommunications industry, and the links between the upstream, midstream, and downstream segments of the telecommunications industry supply chain can basically be divided into system suppliers such as Alcatel Lucent, Cisco, and other transmission and switching systems; terminal equipment suppliers, such as OTT and other terminal equipment and service (placed on the client side) suppliers, e.g. internet connection manufacturers or application service providers (IP TV, online game companies, etc.) The midstream segment refers to the Company and the downstream is telecommunications retailers, such as distributors, and the products or services finally go to the telecommunications users.

==> picture [443 x 168] intentionally omitted <==

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

Upstream Segment Midstream Segment Downstream Segment
System Equipment Terminals and Services Telecommunications
System Suppliers Retailers
Terminals and
Terminal Terminals and
Services
Equipment Services
Terminal Manufacturers Taiwan Intelligent Fiber Optic Telecommunications
Network Co., Ltd. (Taifo) Retailers
Content Service
Service Providers
----- End of picture text -----

Future development trend of the product and the competitive environment
--The Company:

Fiber optic communication technology is constantly innovating, such as higher bandwidth, lower latency, and longer transmission distances. These technological advancements will drive the application of fiber optics in more fields, including data centers, enterprise networks, and home broadband. The long-term development trend of fiber optic communication technology remains optimistic.[iii]

References:https://aigc.cmoney.tw/answer/%E5%85%89%E7%BA%96%E9%80%9A%E8%A8%8A%E7%94%A2%E6%A5%AD-18-11746560

AI has moved from concept validation to large-scale commercial applications, rapidly expanding into core areas such as software/hardware, telecommunications and media, as well as smart manufacturing, generative content, personalized marketing, and the integration of 5G/6G and edge computing, becoming an important foundation for reshaping global industrial development.[i] Under this trend, our company will continue to strengthen its competitiveness with technology as the foundation and value as the core, and steadily embrace the new era of digital economy.[iv]

References:https://money.udn.com/money/story/11799/9222917

--The subsidiary Taifo

Normally, the telecommunication products can be divided into the following: Voice service, networking service , circuit lease service, cloud services and content applications(IoT/AI/ML) Based on the product positioning developed by BCG (Boston Consulting Group), the revenue growth rate and the market share phases will be referenced to analyze the product development trend:

==> picture [371 x 192] intentionally omitted <==

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

Star Industry Question Marks Industry
Cloud services Networking
services
Content
applications
Cash Cow Industry Sunset Industry
Optic fiber Voice services
circuits
Market Share Increase↗ Market Share Decrease ↘
High Growth Rate
↖
Low Growth Rate
↗
----- End of picture text -----

(1) Voice service (conventional urban telephone system) business

By now, such business has been regarded as the "sunset industry" because such market is sharply recessed due to the wide-spreading mobile phones and the rise of network telephones (Line, etc.)

(2) Networking services

Such business is regarded as the "Question marks industry. " Because most of the "last mile" business in local market is operated by Chunghwa Telecom, it would be hard for the private ISP to realize the FTTH. Being spurred by the digital convergence trend, certain application services requiring bigger bandwidth lime IP TV will become the mainstream of the market.

(3)

Optic fiber circuits

In this sector, the product is regarded as the "Cash Cow industry" because it means that pretty high production value will be expected in the market. Being stimulated by the continuous application services, it would be impossible for the sDSL used by the conventional copper cables to satisfy the broadband demand. In addition to the "last mile" trend of the optic fiber, the 5G networks are also the optic fiber networks that should be deployed in dense manner.

(4) Cloud service and content application:

Such product is regarded as the "Star industry." The wide-spreading broadband network has triggered the emergence of the content applications and cloud services. For example, SaaS (Software as Service), IaaS (Infrastructure as Service), the consumer handsets and the APP application on the tablet PC. They are the service-related products enjoying rapid growth in the market. Through LBS (Location Base Service) and FMC (Fix Mobile Convergence), stronger bond will be established for mobile and fixed-net. Likewise, the household and the network can be connected through smart household application services like E-home and Smart TV. There are also other types of high-end applications such as AI, machine learning and block-chain metaverse. It is expected that these new-rise applications will be fused together with various forms of broadband network continuously. Therefore, huge market potential is envisaged.

(5) Competition environment:
① Analysis of fixed-net competition

The fixed-net operators possessing sound network construction will enjoy higher competitive edge because they can provide more superior services. In Taipei, the municipal government has opened its conduits for the Company's use, allowing it to achieve an FTTH coverage rate of over 99% for households. The Company, due to its high-density fiber optic cable installations and superior network equipment, outperforms other fixed network providers in the market currently dominated by copper cables in terms of quality and stability. However, in terms of the last-mile connection to buildings, the Company still faces higher installation costs compared to other fixed-line networks.

② Analysis of broadband networking competition

In recent years, violent competition has been seen in the market price due to the change of market share resulting from the mergers among telecommunication operators in 2022 as well as the declining of circuit fees and networking fees due to the bandwidth cost and the competition.In spite of this, increasing demands will be expected for the IP TV, smart home and healthcare that the application service fees will be climbing year after year. Because we are the "last mile" circuit resource owner, we can combine more strategic partners to control over the end-users.

(III) Technology and research

Research and development expenditures for the 2 most recent fiscal years

Unit: thousands of NTD

year	2024	2025
Amount	3,377	3,466

The subsidiary Taifo's expenditures for research and development work

Invigorates Smart City (AIOT), smart healthcare, smart transportation, smart buildings, smart energy conservation, smart security, smart campus, smart government, and other smart applications have been vigorously developed. In order to strive for the abovementioned business opportunities and to maintain market competitiveness of the company, the Company will continue to carry out research and development work on products. The Company does not have a research and development department of its own and its research and development work is concurrently carried out by the staff in the technical department; therefore, the expenditures for research and development work are not separately listed.

Successfully developed techniques or products

R&D result in previous two years achieved by this company:

year	Product line	R&D result
2025	All-dry Bundle type Optical Cable	In order to cooperate with the implementation of ESG's sustainable development, it is planned to develop full-dry bundle optical cable; Compared with the traditional rubber-filled optical cable, it is easier to install and maintain, and the environmental protection design can also meet the waterproof requirements, which can be applied to indoor and outdoor, pipeline and overhead space environments.
2025	Field Casting Passes through the Ditch Cover Plate Bifurcation Set.	The internal structure of the optical cable junction box passing through ditch cover plate is improved and designed as a structural kit module with pre-arranged optical cables and optical divergence, which is beneficial to the effective utilization of the optical cable storage and divergence function under the ditch, simplifies the traditional construction method of pulling the optical cable onto the light pole when it diverges, and reduces the construction time.
2025	SS23 Improved Edition	In order to meet the needs of customers, the expansion space of optical splitter is added above FDF1.8 and 2.2 meters cabinets.
2024	Fine Diameter Groove Optical Cable	Compared to the original 24~300 core groove products, it effectively reduces the outer diameter by 20%, supporting expansion to 400~600 cores, which enhances overall planning, design,andproduct application breadth.
2024	Kwun Tong Industrial Use Photoelectric Composite Box	To prevent personnel on coastal embankments from falling into the sea, the box is equipped with a detection system. The material is 304 stainless steel with an IP68 rating. The exterior is coated with a high-salt and acid-resistant powder coating. Internally, it carries two sets of 48-core FDUs, AP devices, power supplies, and server networks.

In addition to continuously optimizing its L3 transmission network with IP core network technology, the subsidiary Taifo, has deployed multiple NG-PON systems to provide FTTH 2G bandwidth services to customers, as well as several DWDM systems to offer high-bandwidth transmission services. Furthermore, it has successfully launched and is operating various cloud-based value-added network applications and an integrated management and monitoring system platform.

(IV) Long-term and short-term business development plan
Short-term plan:

--The Company

(1) Grasp emerging technology business opportunities, expand product and business maps
In response to the development trends of industries such as metaverse, 5G/6G applications, AI, and electric vehicles, we provide high-quality and competitively priced communication products, including wires and cables, optical cables, and optical communication equipment; Simultaneously integrating communication products, deepening cooperation with customers in various industries, expanding product application areas, and actively stepping into system integration project business.

(2) Deepen international cooperation and actively expand overseas markets

By participating in domestic and international bidding projects and collaborative initiatives, we have accumulated cross-border cooperation experience, strengthened relationships with overseas clients and partners, gained insights into local industry trends and market demands, and gradually expanded our overseas market presence.

(3) Improve production efficiency and quality management

Continuously optimize production equipment and process management, improve production efficiency and product quality to meet market demand and strengthen overall operational efficiency.

(4) Strengthen supply chain management and enhance operational flexibility

Establish a stable and efficient raw material supply chain management mechanism to ensure quality and supply stability, effectively reduce inventory levels and shorten delivery times to enhance overall supply chain competitiveness.

(5) Close to the market demand and enhance the competitiveness of products.

Continuously grasp market demand and industry trends, optimize product design and functional configuration to meet customers' diverse application needs, strengthen product differentiation and market competitive advantages.

(6) Actively pursue domestic and overseas project orders.

Actively deploy and strive for various domestic and overseas construction projects, expand revenue sources, and enhance market visibility and business growth momentum.

(7) Strengthen employee skill training and safety production management

Systematically promote employee skills training, especially focusing on key technology inheritance and professional ability development, and at the same time strengthen safety production education and management mechanism to reduce operational risks and ensure production stability.

--Subsidiary TAIFO: Continue to strengthen engaging in basic telecommunication services

(1) Taipei optic fiber service: The target customer is the broadband household users in Taipei City for which we will provide the FTTH wire and the networking services.
(2) Circuit lease: The target customer is the RSP (Re-Sell Provider) for which we will provide the required circuit.
(3) Telecommunication optic fiber: The target customers are the mobile operators or the large-scale customer for which we will provide the base station or the equipment room for carrying out the transmission.
(4) Enterprise Optic Fiber: Enterprise optic fiber: The target customer is the large-sized or medium-sized enterprises in providing the optic fibers for their VPN, point-topoint transmission or networking.
(5) Government network circuit: Such service item is provided for the government institutions and schools in Taipei City. Such product is used in the data transmission service.

Long-term plan:
--The Company
(1) Uphold core business philosophy and reinforce leadership in the optical communications industry

Guided by the core philosophy of integrity and diligence, the Company adheres to its quality policy of fully implementing quality-first management and delivering customer satisfaction through superior products and services. By integrating manufacturing capabilities in copper cables, fiber optic cables, and passive optical components, the Company provides comprehensive product applications and technical support services. It continues to expand both the depth and breadth of its presence in the optical communications sector and is committed to establishing its market position as a full-spectrum provider of Fiber-to-the-Home (FTTH) products and services.

(2) Establish a global presence and expand international markets steadily

Seizing opportunities arising from global telecommunications industry developments, the Company expands into overseas markets through investments in international operations and strategic alliances. By adopting a global perspective combined with localized market engagement strategies, it builds a comprehensive marketing and service network, accurately captures market trends, expands its business footprint, and progressively enhances its global competitiveness.

(3) Continue investing in R&D to strengthen technological innovation

The Company continues to increase investment in research and development, driving innovation and development of advanced optical cables and related technologies. These efforts aim to enhance product performance, reduce production costs, and respond swiftly to market changes, thereby strengthening product quality and technological barriers while maintaining its industry-leading position.

(4) Implement environmental sustainability and promote green manufacturing

Environmental protection is incorporated into the Company’s operational strategy. By promoting green manufacturing processes, optimizing production procedures, and upgrading equipment, the Company reduces energy consumption and carbon emissions while minimizing waste generation, thereby achieving its sustainable development goals.

(5) Adopt eco-friendly materials and fully implement ESG principles

The Company actively develops and adopts recyclable and environmentally friendly materials in line with ESG requirements and global trends. These initiatives enhance corporate social responsibility performance, strengthen brand image, and create long-term enterprise value.

(6) Integrate sustainability with core business growth

ESG and sustainability objectives are deeply integrated into the Company’s operations and product strategies. Through technological innovation, lowcarbon products, and global market expansion, the Company aims to achieve stable long-term operational performance, enhance corporate value, and create shared benefits for all stakeholders.

--The subsidiary Taifo

(1) Telecommunications Services for AI Data Center Parks
(2) Dark Fiber and Optical Wavelength Services in Data Center Parks
(3) Telecom Park Partnership Business Development
(4) SME Customer Development
(5) Diversification of Audio-Visual Content
(6) Cloud-Based Video Surveillance Rental Services

II. Market and Sales Overview

(I) Market analysis
Market share

--The Company

The primary businesses of the Company are "Optical cable and optic fiber FTTH related products", "internal and external transmission wires." In 2025, the domestic sales ratio is 98.36% and our export market is focusing on the SE Asia regions and it accounts for 1.64% of market share. Based on the "Annual Production and Sales Statistics Bulletin for Industrial Products"[v] issued by Department of Statistics, Ministry of Economic Affairs, x it pointed out that the total sales value of optical cables, communication wires and cables in 2025 is a sum of NT$110.8 billion, of which the optical cables account for about NT$2.1 billion. In 2025, the annual turnover of this company is more than NT$1.35billion, of which the optical cables took NT$0.43 billion in total. As a result, it is estimated that the market share of the optical cables sold by this company is about 20%.

References:https://www.moea.gov.tw/MNS/dos/content/Content.aspx?menu_id=6819

--The subsidiary Taifo

Our main service items are Taipei optic fiber, Taipei optic fiber circuit lease, exclusive telecommunication optic fiber, enterprise circuit and government network circuit. All of the aforesaid items are operated in Taipei City.

After launching the service of the "Taipei optic fiber" in Neihu District and Nangang District on 11/11/2014, we have completed the operation of "Taipei optic fiber" in all of 12 administrative districts in Taipei City in 2016.With further development of the business, more market share has been obtained for "Taipei optic fiber" step by step. As for the "Government network circuit," the entire service was almost transferred to TAIFO by now because the Company network services are leased by all institutions under Taipei City Government as the first priority according to the "Commissioned Construction and Operation Project Contract for Optic Fiber Network in Taipei City."

Demand and supply conditions and growth for the market in the future
--The Company

The rapid development of smart devices, Internet of Things (IoT) applications, and digitalization across industries has spurred a surge in internet connectivity, driving the demand for optical fiber cables. These cables are renowned for their unmatched speed and reliability, which are crucial for robust communication networks in homes, businesses, and public spaces. With the push of cloud computing and big data analytics, the demand for data centers continues to grow, further intensifying the need for advanced optical fiber solutions. In response, the market has seen the emergence of Dense Wavelength Division Multiplexing (DWDM) and related optical technologies that enhance data transmission capabilities. Moreover, the industry's focus on sustainable development has led to the creation of environmentally friendly optical fiber cables, aligning with a shift towards ecological awareness in the telecommunications sector. As environmental factors become increasingly significant, the adoption of sustainable fiber solutions is expected to shape the future of the market.

--The subsidiary Taifo

Due to the continuously strong demand for telecommunications broadband networks driven by AI applications, supply and demand are expected to exhibit a pronounced imbalance in growth in the future. According to market forecasts, by 2027, global AI-related data traffic is projected to expand at a compound annual growth rate (CAGR) exceeding 40%, driving massive data exchange between data centers (IDC-toIDC) and creating demand for ultra-high bandwidth. Meanwhile, networks must be equipped with low-latency transmission, multi-route redundancy, and zero-interruption protection to support AI training and real-time inference applications.

Moreover, because the mobile 5G techniques are designed with bigger bandwidth (Embb), mass links (mMTC) and ultra-low delay (uRLLC) features, it will bring out vigorous business opportunities for the telecommunication value-added service industry. In the meantime, it can be widely applied in the following fields such as media entertainment, robot, manufacturing, retail, public safety, Vehicle-to-everything, public transportation, energy, agriculture, finance and healthcare. It will not only access consumer's life but will satisfy user's demand for the higher bandwidth application. Furthermore, the growing market scale of domestic data center and cloud computation will also contribute to satisfying the circuit demand. The primary demand for the exclusive telecommunication optic fiber is nothing more than the backbone circuit of mobile base stations. The development of and the demand for the 5G service provided by the mobile operators also contribute to the continuous growth of the base station bandwidth. Because the construction of smart city and other information demand, future market will be expanding for the TGSN circuit when implementing the network for Taipei City Government.

Abiding by the transparent, rational and non-discriminating principles, TAIFO provides all types of telecommunication and cable TV services as well as the fixed communication network service at the same quality as other operators. It is the plan of TAIFO to cooperate with Category-II telecommunication, cable TV and other operators in operating the broadband public optic fiber network platform. Because the rising of broadband network and application service will stimulate the demand for the optic fiber circuit, the growing potential is envisioned for the market in the future.

Competitive niche
--The Company
(1) Rich experiences in engaging in major telecommunication infrastructure projects and resources

The Company possesses strong capital resources, professional expertise, and a highly qualified workforce. It has long participated in major telecommunications and public infrastructure projects, serving a wide range of clients including government agencies, state-owned enterprises, private corporations, and leading broadband telecommunications operators, such as Chunghwa Telecom, fixed-line operators, Taiwan Railways Administration, Taiwan High Speed Rail, and cable television system operators. The Company has successfully transformed from a traditional wire and cable manufacturer into a developer and manufacturer of optical cables and Fiber-to-the-Home (FTTH)-related components. Leveraging extensive production experience and in-house core technology development, the Company has established a strong track record in key infrastructure projects, including those for the Taiwan Railways Administration, the National Center for High-performance Computing, metro systems, Chunghwa Telecom’s HiNet optical broadband services, as well as fiber network deployment projects for numerous domestic private operators. It has also participated in the construction of Singapore’s nationwide fiber optic network and metro optical cable projects in Malaysia, gradually positioning itself as one of the leading and competitive optical cable manufacturers both domestically and internationally.

(2) Customized product design capabilities

he Company leverages the customer development capabilities of its sales team and the product design expertise of its R&D department to provide highly customized product solutions tailored to clients’ specific requirements and application needs. Through close cross-functional communication and collaboration, the Company is able to rapidly integrate internal resources and align perspectives, while maintaining flexibility to adjust according to project requirements. This high level of responsiveness enables the Company to successfully secure various domestic and international tenders and effectively meet diverse customer demands

(3) Comprehensive product portfolio and rich production experiences

The Company offers a comprehensive range of optical cable products and, leveraging its in-house R&D capabilities, is able to manufacture various specifications of loose-tube, slotted-core, ribbon, and composite optical cables. It is also the only domestic manufacturer capable of producing stainless steel tube optical cables, effectively assisting customers in overcoming technical challenges associated with indoor deployment at access network endpoints. In addition, by providing related components such as optical patch cords and optical splitters, the Company delivers integrated Fiber-to-the-Home (FTTH) solutions and has established itself as a professional one-stop service provider.

(4) Strategic alliances and resource integration

The Company actively participates in various large-scale system integration projects. In addition to establishing long-term and stable partnerships with upstream and downstream supply chain partners and industry peers, it enhances production efficiency and resource complementarity through vertical integration. Furthermore, by expanding collaboration through strategic alliances, the Company broadens its scope of cooperation, enhances product diversification and market competitiveness, and achieves overall synergies.

(5) Steady quality and technique-oriented after-service

The Company places high quality at the core of its production objectives. Its products comply with multiple international standards and have obtained various domestic and international certifications. As an approved supplier to Chunghwa Telecom and several global telecommunications operators, the Company has established long-term and stable partnerships. Leveraging its in-house core technology capabilities, the Company also regularly dispatches professional technical personnel to conduct product briefings and training sessions for major domestic and international clients, providing timely and professional technical support.

(6) Professional construction team and turnkey services

The Company has a professional and experienced construction team capable of providing comprehensive services, including product supply, construction planning, and deployment. By integrating product design with construction capabilities, customized products can more precisely meet clients’ actual needs. In addition, the Company offers turnkey project services that combine materials and construction, effectively helping clients reduce manpower and resource 投入 while enhancing project execution efficiency.

(7) Testing Laboratory

The Company has established a testing laboratory in accordance with international standards and has obtained certification from the Taiwan Accreditation Foundation (TAF). As a TAF-accredited laboratory with professional qualifications, it provides clients with fair, objective, and independent third-party testing and certification services aligned with international standards, meeting industry development and societal needs.

(8) Sustainable Operation and Environmental Responsibility

The Company is committed to sustainable operations and actively promotes greenhouse gas inventory and control, strengthens environmental management mechanisms, and proactively discloses carbon emission-related information to mitigate the risks of global warming and extreme climate caused by excessive greenhouse gas emissions. Through systematic greenhouse gas management and energy-saving measures, the Company aims to ensure efficient resource utilization, enhance investor confidence in its environmental sustainability commitments, and contribute to the sustainable development of the global ecosystem.

--The subsidiary Taifo

Provided below are advantages:

(1) Taipei City Government marketing brand resources: In the Company, the FTTH product is termed as "Taipei optic fiber" in order to compete with another competitive brand "HiNet" being used in the market. Further, we also worked with Taipei City Government to hold the inauguration ceremony hoping to achieve higher promotion and marketing effect.
(2) The Company network service is leased by Taipei City Government as the first priority: During TAIFO network operation period, all institutions under Taipei City Government will lease TAIFO network services as the first priority.
(3) Burden-free, higher flexibility: All network systems of TAIFO are privately implemented and they are brand-new and fully optic fiber-based systems. It is configured in the latest version of fastest GPON architecture for serving as the customer-end access network. It can compete with the Japanese and the Korean systems in terms of speed and efficacy. In addition to providing customers with symmetric broadband services ranging from 100 Mbps to 1 Gbps, the Company also offers high-capacity broadband circuits ranging from 10 Gbps to 100 Gbps for enterprise users, AI application providers, and cloud service providers, supporting both upstream and downstream transmission.
Advantageous, disadvantageous factors for development vision and measures to be taken --The Company
(1) Positive factors:
- ① The next-generation innovative digital service will be provided by fusing 5G with cloud, edge computing and AI. In the meantime, the popularity of the Internet also spurs the demand for the optical cable market. Optical cables can be utilized to transmit more data while providing signal bandwidth in significance. With the increasing demand for high-speed operation by consumers, such demand can be realized by the optic fiber connection. To meet the trend of continuous 5G infrastructure, the telecommunication operators will strive for higher income for the optical cable market.
- ② In fact, Tai Tung Communication Co., Ltd. has been developing the Taiwan market over the past years. As a result, Tai Tung was engaging in the construction bidding cases offered by the government and the network construction cases offered by the telecommunication operators. In this respect, Tai Tung can provide high-quality optical communication related equipment, wires, cables and optical cables. In the meantime, Tai Tung also provides engineering maintenance and optic fiber deploying services. For this reason, Tai Tung is equipped with the advantages required for developing the optical communication industry.
- ③ With the prevalence of cloud computing and big data applications, data centers are rapidly expanding and upgrading. Fiber optics, serving as the primary transmission medium within and between data centers, are driving the development of the fiber cable market.

④ As urban areas become smarter, the demand for fiber optic communication infrastructure correspondingly increases. AI applications, particularly Edge AI in smart cities, require support for high-efficiency communication of numerous sensors and devices, making fiber optics an ideal choice.
⑤ Optical cables and optical communication systems feature high efficiency and low energy consumption. When integrated with the Company’s comprehensive product design capabilities, they enable customers to build low-carbon, high-performance communication infrastructure aligned with digital transformation, ESG, and sustainable development policies, thereby further enhancing the Company’s long-term value.

(2) Negative factors:

① Facing the upgraded techniques in the optical cable specifications, the stability demonstrated by quality and efficacy is crucial. Before implementing the optical cables, the cable test related international standards are formulated in order to ensure that the optical cables will meet the specification standard. In spite of this, third-party testing laboratories meeting the professional standard are not easy to find. Due to this, longer time will be required for sending to the overseas laboratory for testing in order to obtain the qualified test report. As a result, it has caused higher test cost, delayed the project schedule and incurred troubles for the customer.
② Chinese and Indian manufacturers have secured a lot of shares from the international market with extremely low prices. This is especially true of the Chinese manufacturers because they used to offer extremely low prices such that is not easy for us to compete in the international market. Meanwhile, the optical cable and related products market is highly competitive, with numerous players. Some competitors adopt low-price strategies, placing downward pressure on product pricing. Even with integrated advantages, the Company’s gross margins may still be affected due to the price-driven nature of tendering mechanisms.
③ Under the global net-zero emissions target for 2050, fiber cable manufacturing will need to meet environmental protection and energy reduction requirements, and clients will also demand sustainability certifications and qualifications from the Company.

(3) Countermeasures:

① Tai Tung Communication Co. established an independent testing laboratory in 2020, which operates in compliance with TAF standards, and successfully obtained TAF certification in 2022. Currently, all the Company's cables can be tested in this independent laboratory. The Company also provides commissioned testing services, accepting samples from industry peers and customers to ensure the professionalism and credibility of test results.
② The Company adheres to the principle of fair competition and does not engage in destructive price competition. Instead, it focuses on market segmentation and product positioning, while emphasizing technological upgrades and innovation to enhance product differentiation and competitiveness. Currently,

the Company is the only domestic manufacturer capable of producing stainless steel tube optical cables. It continues to invest in R&D and technological advancement to create clear differentiation in product performance and quality compared to competitors, thereby mitigating the adverse impact of price competition on the market.

③

. The Company has obtained environmental management-related certifications, including ISO 14001, ISO 14064, and ISO 14067, and is actively pursuing additional international environmental standards such as ISO 50001. Throughout the certification processes, the Company strictly complies with environmental regulations and continuously adopts environmentally friendly manufacturing processes and green materials to enhance environmental sustainability. In addition, the Company plans to implement the ISO 27001 Information Security Management System to strengthen information security governance, establish comprehensive risk control mechanisms, and safeguard both corporate and customer data. Through the comprehensive implementation of green manufacturing, environmental initiatives, and information security management, the Company not only ensures regulatory compliance but also enhances its corporate image and market competitiveness.

--The subsidiary Taifo

(1) Positive factors:
① Taipei City government agencies, schools, and the Taipei Mass Rapid Transit Corporation will prioritize renting Taifo’s fiber network services during the contract period (until December, 2036), securing revenue. Additionally, public facilities owned by the city such as common conduits, storm and sewage systems, sidewalks, elevated roads, bridges, embankments, and MRT facilities are available for Taifo to affix fiber cables without a usage fee, significantly reducing the Company's maintenance costs.
② 5G network bandwidth demand: Currently, the 5G base station coverage radius is much smaller than 4G.Therefore, the density in deploying 5G base station should be higher than 4G.For this purpose, sufficient optic fiber resources will be required for achieving more efficient bridging effect. Facing the more stringent requirements for the infrastructure in Taipei City, it would not be easy to implement the network. In this respect, Taifo is equipped with the experiences in implementing the optic fiber network for Taipei City. As a result, it would be the best option to satisfy the bandwidth required by the telecommunication operators.
③ Resources required by Category-II telecommunication operators and noncircuit owners: Over the past years, TAIFO has established dense GPON optic fiber network in Taipei City. As a result, TAIFO is able to provide massive optic fiber flow required by Category-II telecommunication operators and non-circuit owners in terms of engine room backbone transmission or the Last Mile login networking.

(2) Negative factors:
① Login resistance and expenses: Normally, the tenants are still doubting about the electromagnetic wave. Besides this, most of the buildings in Taipei City are old-fashioned mansions or apartments. As a result, we may encounter bigger construction challenges and the tenant's mindset in resisting against the construction.

Countermeasures:

When encountering the tenant's resistance during the construction process, we need to persuade them so that our engineers may carry out certain destructive works such as nailing, handing and drilling. In fact, the optic fiber is not only harmless but will bring about conveniences for customers. Therefore, it can ease tenant's worry and resistance in order to reduce the obstacles to the minimum.

② Impact of lower mobile 4G fare: Due to the 4G limitless fare solution offered by the telecommunication operators in 2018, it has created the malicious competition environment and the fares are dropping to the uncontrollable status. Due to this reason, most consumers are attracted by the lower fare solution that the number of ADSL users are decreasing year after year. Because the domestic market is limited in scale, 4G mobile networks will be enough for the house-renting groups or the single families. As a result, it has not only inhibited the growth of the broadband users but has also prevented most operators from expanding their market.

Countermeasures:

Facing the approach of the 5G generation and the IoT era, high-speed bandwidth will be required for many value-added application services. As a result, it is anticipated that the stability and expandability of the optic fiber fixed net will become more popular over time. Therefore, we need to launch the marketing beforehand so that we may educate consumers to take a step ahead in experiencing the high-speed quality offered by the optic fiber.

③ Facing the aggressive moves taken by Chunghwa Telecom trying to grasp more shares from the TV watching market, the broadband networking is now vigorously promoted by the cable TV operators. Apart from competing for the household market, the cable TV operators also launched cooperation with the fixed net operators and engage in the competition with lower fare. With the joining of more and more competitors, it has eroded the original profit margin. In view that the Company is lower in market awareness, it will be hard for it to grasp more business opportunities.

Countermeasures:

It is our plan to increase exposure through social media marketing. Further, we will also work with Taipei City Government in placing the public service advertisement in the major MRT station in order to acquired wider exposure. In addition, we plan to create the niche market By coordinating with the concentrated construction of social housing policy initiated by Taipei City Government. In the meantime, we will work with the sponsoring unit in holding the outdoor activities for specific venues hoping to grasp additional business opportunities from the niche market.

(II) Usage and manufacturing process in main products

--The Company

Main products and usage

Main products and usage
Mainproduct	Usage
Fiber optic cables	Used for communication, network, mobile phone, CATV and other industries to transmit voices, signals, images, digits,etc.
Fiber to the Home (FTTH) related accessories	PON products for Fiber to the Home (FTTH) - optical splitter, optical fiber patch cord, pigtail, wall-mount fiber distribution/rack-mountpatchpanel
Internal and external communication transmission cables	Used for telecommunications to transmit signals of the switching system and information equipment

2. Manufacturing processes

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--The subsidiary Taifo

The products offered by Subsidiary TAIFO are optic fiber circuit and networking services. Based on the customer type, they will be classified as Taipei optic fiber, dedicated enterprise line and government network circuit. Provided below are the main purposes:

Main products (Service type)	Important application
Taipei Fiber internet service	Providing high-quality and affordable FTTH (Fiber to the Home) broadband services for general users and public housing residents, offering symmetric speeds of 300 Mbps, 600 Mbps, and 1 Gbps. In collaboration with third- party partners, it delivers popular video services, including a diverse range of traditional cable TV-like channels and video-on-demand (VOD) content. The Company also offers value-added services such as Wi-Fi solutions and smart securitysurveillance.
Enterprise dedicated line internet service	Leasing circuit services or providing telecommunications customers with backbone circuits utilized for transmission between base stations or machine rooms, and telecommunications optical fibers utilized by large-sized enterprises for among different computer rooms, or providing enterprises with VPN, point-to-point transmission, or enterprise electric circuits for Internet access. As for the medium and smaller sized enterprise customers and the SOHO group, we provide the professional or enterprise type of networking products such as the fixed IP lease service required by the customer.
Government network circuits	Provides institutions and schools in Taipei City with point-to-point dedicated lines,virtualprivate network(VPN),or electric circuits for Internet access.
Fiber network deployment	Regional fiber optic cable installation and supporting telecommunications duct infrastructure development.

2. Manufacturing processes

Telecommunications services consist of network communication equipment components and other equipment (such as ROADM, MAN, GPON, FDN, Router, Switch, Server farm, Storage, ERP/BSS/OSS, customer and service system).The operations management unit, according to the market and customer needs, conduct process management, set up service standards, and services can only be provided after being reviewed and approved by NCC. The processes are developed as follows:

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(III) Supply situation for the company's major raw materials
--The Company

The Company's major raw materials are of good quality, with regular delivery time and reasonable price, and depending on the market supply and demand conditions, the Company enters into long-term purchase contracts so that the sources of raw materials are stable and reliable, with the better relationship between demand and supply.

Major raw material	Name of supplier	Supplysituation
Copper Wire	PEWC,Walsin Lihwa	Reliable. Stable.
Optical fiber strands	SUMITOMO	Reliable. Stable.

--The subsidiary Taifo

Because Taifo engages in the fixed communications network business, the section of major raw materials does not apply.

(IV) A list of major suppliers and clients
A list of any clients accounting for 10 percent or more of the company's total sales amount in either of the 2 most recent fiscal years, the amounts sold to each, the percentage of total sales accounted for by each, and an explanation of the reason for increases or decreases in the above figures:

--The Company

Unit: NT$1,000；%

	--The Company	--The Company	--The Company	--The Company		Unit: NT$1,000；%	Unit: NT$1,000；%	Unit: NT$1,000；%
Item	2024					2025
	Name	Amount	As a percentage of annual net sales(%)	Relationship with the issuer	Name	Amount	As a percentage of annual net sales(%)	Relationship with the issuer
1	Customer A	556,352	22.37	None	Customer B	396,535	19.11	None
2	Customer B	453,281	18.22	None	Customer C	347,703	16.75	None
3	Customer C	389,122	15.64	None	Customer D	210,118	10.12	None
	Others	1,088,544	43.77		Others	1,121,071	54.02
	Net sales	2,487,299	100.00		Net sales	2,075,427	100.00

Reasons for increase/decrease:

In 2025, higher ratio of net sales for customer B is seen and it was mainly because of changes in the sales mix and adjustments in telecommunications service tariffs.
In 2025, higher ratio of net sales for C-customer is seen and it was mainly because of changes in the sales mix and fluctuations in customer demand.
In 2025, higher ratio of net sales for customer D is seen and it was mainly driven by revenue recognition in line with project progress.

--The subsidiary Taifo

Expressed in thousands of NTD

Item		2024	2024				2025
	Name	Amount	As a percentage of annual net sales(%)	Relationship with the issuer	Name	Amount	As a percentage of annual net sales(%)	Relation with The issuer
1	A	447,377	51.26	None	A	390,461	40,87	None
2	B	2,960	0.34	None	B	103,386	10.82	None
3	Note	92,221	10.57	None	Note	94,476	9.89	None
4	Others	330,126	37.83	None	Others	367,070	38.42	None
	Net sales	872,684	100.00		Net sales	955,393	100,00

Note: It is the engineering revenue being recognized for the service concession right by providing the construction service for swapping the operation.

Reason for increase/decrease: It is mainly because of customer's higher demand for the telecommunication services.

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

--The Company

Unit: thousands of NTD ； %

Item	2024	2024	2024	2024	2025	2025	2025
	Name	Amount	As a percentage of the annual net purchase(%)	Relation with The issuer	Name	Amount	As a percentage of the annual net purchase(%)	Relation with The issuer
1	PEWC	89,356	14.63	None	Walsin Lihwa	78,483	16.14	None
2	Others	521,262	85.37	None	PEWC	71,050	14.61	None
					Others	336,660	69.25
	Net purchase amount	610,618	100.00		Net purchase amount	486,193	100.00

Reasons for increase/decrease:

In 2025, higher ratio of net sales for Walsin Lihwa is seen and it is mainly because increased customer demand.
In 2025, the proportion of purchases from PEWC decreased, it is mainly due to a decrease in customer demand.

--The subsidiary Taifo:

Unit: thousands of NTD ； %

						Unit: thousands of NTD`；`%	Unit: thousands of NTD`；`%	Unit: thousands of NTD`；`%
Item		2024				2025
	Name	Amount	As a percentage of the annual net purchase(%)	Relation with The issuer	Name	Amount	As a percentage of the annual net purchase(%)	Relation with The issuer
1	A	18,296	73.66	Parent company	A	16,383	79.37	Parent company
2	B	1,263	5.08	None	B	4,259	20.63	None
3	Others	5,280	21.26	None	Others
	Net purchase amount	24,839	100.00		Net purchase amount	20,642	100.00

Reason for increase/decrease: It is mainly because of the demand for business operation.

III. Employees statistics: Employee statistics for the most recent 2 fiscal years up to the annual report publication date

--The Company:

--The Company:
	year	2024	2025	Current fiscal year as of March 31, 2026
Number of employees	Direct labor	155	146	152
	Indirect labor	70	73	74
	Managerialpersonnel	43	42	42
	Total	268	261	268
Average age		42.1years old	42.8years old	42.3years old
Averageyears of service		8years	8.8years	8.2years
Percentage Distribution of Academic Qualifications	Doctoral degree	0.00%	0.00%	0.00%
	Master's degree	5.22%	4.60%	4.85%
	College and/or Junior College degree	45.52%	45.59%	45.90%
	Senior high school (and below)	49.26%	49.81%	49.25%
--The subsidiary Taifo:
	year	2024	2025	Current fiscal year as of March 31, 2026
Number of employees	Direct labor	89	88people	86people
	Indirect labor	30	27people	26people
	Managerialpersonnel	7	6people	6people
	Total	126	121people	118people
Average age		40.6years old	41.0years old	41.3years old
Averageyears of service		6.63years	7.36years	7.87years
Percentage Distribution of Academic Qualifications	Doctoral degree	0.00%	0%	0%
	Master's degree	7.90%	8.3%	7.63%
	College and/or Junior College degree	74.6%	72.7%	73.73%
	Senior high school (and below)	17.50%	19.0%	18.64%

--The subsidiary Taifo:

IV. Information on environmental protection expenditures

(I) According to laws and regulations if it is required to apply for a permit for installing anti-pollution facilities, or permit of pollution drainage, or to pay anti-pollution fees, or to organize and set up an exclusively responsible unit/office for environmental issues, the description of the status of such applications, payment or establishment shall be made:
The Company does not belong to the businesses that pollute the environment and are regulated the laws and regulations, so the above does not apply to the Company.
In response to maintenance or equipment and cable replacement needs, the subsidiary Taifo has commissioned a waste removal and disposal company with the government's accreditation to dispose of obsolete equipment and cables.
(II) The strategies and measures adopted in response to environmental pollution:
In compliance with the Waste Disposal Act, the Company shall sort, store, centrally manage, clear and transport the generated waste and report the actual removal quantity according to the waste disposal plan and the waste removal and disposal contract to keep the system running smoothly. Details of the disposal procedures are as follows:
- (1) Planning of the site for temporary storage of recyclable waste: The units are required to store scrap materials in the scrap materials area inside the plant for temporary storage.
- (2) Scrap materials area: Where wastepaper, waste plastic, waste iron, waste aluminum, and other recycled materials are sorted and centrally managed.
- (3) Clearance and transport: Recycling work is performed by the commissioned company; the waste is cleared and transported in accordance with relevant regulations.
The subsidiary Taifo: None.
(III) Describing the process undertaken by the company on environmental pollution improvement for the most recent 2 fiscal years and up to the annual report publication date. If there had been any pollution dispute, its handling process shall also be described: Not applicable to the Company nor its subsidiary Taifo.
(IV) Setting forth the company's investment on the major anti-pollution facilities, the use purpose of such facilities and the possible effects to be produced: Not applicable to the Company nor its subsidiary Taifo.
(V) Explaining the current condition of pollution and the impact of its improvement to the profits, competitive position and capital expenditures of the company, as well as the projected major environment-related capital expenses to be made for the coming 2 fiscal years: Not applicable to the Company nor its subsidiary Taifo.

V. Labor relations

(I) List all employee benefits, 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.
Employee benefits

To encourage harmonious labor - management relations, enhance employee solidarity, and care employee benefits, in addition to providing labor insurance, national health insurance, the Company and its subsidiary Taifo have set up their own Employee Welfare Committee to implement employee benefit plans and facilitate exchanges of opinions between labor and management, thereby strengthening staff harmony and their solidarity towards the Company. The employee benefits to which the Company's employees are entitled:

(1) Staff outing: The Company organizes annual domestic tours to show its appreciation for all the hard work the employees have done and improve employees' physical and mental health.
(2) Year-end bonus: Bonuses are granted for Chinese New Year holidays according to individual work performance and the company's operating conditions. (The same applies to the subsidiary Taifo.)
(3) Festive Allowances: : In addition to providing allowances for the three major festivals, the Company also presents mooncake gift boxes to employees during the Mid-Autumn Festival. In 2025, the Employee Welfare Committee introduced additional festive allowances for occasions such as Mother’s Day, Father’s Day, and Christmas to further enhance employee well-being.
(4) Employee cafeteria: The Company provides employees with free, clean, and delicious meals. (The same applies to the subsidiary Taifo.)
(5) Labor insurance/national health insurance: All employees participate in labor insurance and national health insurance according to the law. (The same applies to the subsidiary Taifo.)
(6) Education and training: In addition to conducting the orientation training for newcomers, the Company has a comprehensive talent development plan to schedule on-the-job training for its employees so that every employee can contribute what he or she has learned, improve his or her work capabilities, and create the overall profit of the Company and individuals. (The same applies to the subsidiary Taifo.)
(7) Others: including health examinations, employee uniforms, subsidies for mobile phone bills, etc. (The same applies to the subsidiary Taifo.)

Continuing education and training

In order to ensure the employee talent development and achieve the common goals together with the Company, the Company adheres to the concept of "cultivating talents and caring for employees," creating an excellent operation mode, providing employees with an open and diverse learning environment. Employees can constantly challenge themselves to go beyond limits to growth through internal and external training and guidance from supervisors or colleagues; at the same time, they can maximize their satisfaction through the comprehensive training system.

The information on the continuing education and training of the Company sending employees for training in 22028 are as follows:

employees for training in 22028 are as follows:
			No. of
Course name	Amount	Hours	shareho lders
2025 National Industrial Zone Entry Joint Work Safety Inspection Guidance and Promotion Exchange Plan	NT$109,100	4	1
2025 IFRS Sustainability Disclosure Standards Promotion Seminar		3.5	3
2025 Legal Compliance Seminar on Insider Equity Transactions		3	1
2025 Corporate Governance Evaluation Promotion Seminar		3	2
2025 Safe Workplace and Sustainable Well-being Promotion Seminar		4	1
2025 Far EasTone Telecommunications Co., Ltd. Supply Chain Carbon Inventory		5	2
2025 Insider Trading Prevention Promotion Seminar		3	2
2025 Taiwan Biodiversity Forum		6	1
2025 Taiwan Cybersecurity Incident Response Annual Conference		6	1
2025 TAF Online Symposium for Supervisors of Chemical and Ionizing Radiation Laboratories, Proficiency Testing Providers, and Reference Material Producers		4.5	1
2025 Online Symposium for Laboratory Supervisors in Testing Fields of Acoustics and Vibration, Mechanical Testing, Non- Destructive Testing, and Temperature Measurement		4	1
2025 Cathay Sustainable Finance and Climate Change Summit Forum		6	1
AI Applications, Legal Issues, and Audit Practices Seminar		3	1
Listed company business dissemination seminar		4	2
Analysis of CDP Questionnaire in Alignment with IFRS S2		6	4
IFRS 18: Presentation and Disclosure in Financial Statements		3	1
IR & Engagement Trends: ESG and Sustainable Investment Forum		3.5	1
General Occupational Safety and Health Training		6	7
Class B Occupational Safety and Health Administrator Refresher Training		16	1
Practical Internal Auditing for Subsidiaries		6	1
Taipei City Road Construction Supervision and On-Site Management Certification Training (Refresher Training)		8	5
How Internal Auditors Interpret Business Performance and Risks from IFRS Financial Statements under Corporate Governance		6	1
Seminar on AI-Driven Corporate Governance and Practical Board Operations		3	1

Taipei Metro Grade A and Grade B Contractor Safety Training	7.5	14
Hands-on Training on Generative AI for Image Extraction and Forensic Analysis	6	1
Grade A and Grade B Contractor Safety Training Program	7.5	12
Risk Management and Strategic Analysis for Corporate Sustainability	3	1
Online Seminar on Corporate Disaster Prevention Trends and Innovative Technologies	7	1
Corporate Innovation, Growth, and AI Applications	3	1
Fire Safety Manager Refresher Training	6	1
Legal Responsibilities and Practical Case Analysis for Corporate SustainabilityReport Preparation	6	1
Practical Auditing Techniques	6	1
15th Taipei Corporate Governance Forum	6	1
Personal Data Breach Notification System for Telecommunications Enterprises	3.5	1
Labor Inspection Practices: Compliance Requirements and Documentation Preparation for Enterprises	6	2
Greenhouse Gas Inventory Practical Promotion Seminar	4	1
Regulatory Analysis and Audit Focus for Boards of Directors and Functional Committees(Audit and Compensation Committees)	6	1
Practical Training Program on IT Operations Auditing	6	1
Cybersecurity, Security Incident Detection, and AI Audit Framework	6	1
General Occupational Safety and Health Training for the Construction Industry	18	5
Practical Analysis of Key Rulings and Interpretations on Business Tax	4	1
Operations of the Compensation Committee and Performance- Based Compensation Systems for Directors and Executives	3	1
Seminar on Workplace Bullying Prevention and Retention Strategies for Migrant Workers in the ManufacturingIndustry	3	2
Continuing Education Program for Chief Accounting Officers of Issuers, Securities Firms, and Stock Exchanges	12	2

The information on the continuing education and training of the subsidiary Taifo sending employees for training in 2025 are as follows:

The information on the continuing education and training of ending employees for training in 2025 are as follows:	the subsidiary Taifo
Course name	Hours
ISO 27001 Internal Auditor Training	12
Internal Auditing Empowered by AI: Deep Integration and Applications	6
Business Intelligence and Data Analytics Methods	6
Impact of Amendments to the Company Act on Internal Auditing and Anti-Money Laundering Compliance	6
Class A Occupational Safety and Health Supervisor	6
Class A Occupational Safety and Health Supervisor Training (Construction Industry)	6
Continuing Education for Principal Accounting Officers of Issuers, SecuritiesFirms, and SecuritiesExchanges	12

3. Retirement Systems and Their Implementation

The labor pension system prescribed in the "Labor Pension Act" applicable to the Company is a defined allocation pension plan regulated by the government, which requires that the Company shall on a monthly basis contribute labor pension funds, i.e., six percent of the worker's monthly wage to individual labor pension accounts at the Bureau of Labor Insurance. The amounts that the Company should appropriate for labor pension in 2025 and 2024 according to the percentages prescribed in the defined allocation plan have been recognized as expenses in the consolidated statement of comprehensive income totaling NT$12,695 thousand and NT$13,182 thousand, respectively and in the parent company only statement of comprehensive income totaling NT$7,702 thousand and NT$7,863 thousand, respectively.

The labor pension system prescribed in Taiwan's "Labor Standards Act" applicable to the Company is a defined allocation pension plan. The payment of employee pensions is calculated based on years of service and six months' average wage of the worker at the time when the retirement is approved. The Company shall appropriate labor pension reserve funds 2% of the total monthly wages of their employees and deposit such amount in a designated account at the Bank of Taiwan in the name of the Supervisory Committee of Labor Retirement Reserve.

The labor pension system prescribed in the "Labor Pension Act" applicable to the subsidiary Taifo is a defined allocation pension plan. The Company shall on a monthly basis contribute labor pension funds, i.e., six percent (6%) of the worker's monthly wage to individual labor pension accounts at the Bureau of Labor Insurance.

Employer/employee agreement and protection of various employee rights:

All regulations of the Company and its subsidiary Taifo are subject to the Labor Standards Act for the principle of compliance, with diverse channels being provided to build an environment for open communication and better understanding of employees' satisfaction from management and welfare system. The rights and obligations of both employers and employees are based on the requirements of the Labor Standards Act, the relevant laws and regulations, and the Company's administrative rules. The Company maintains harmonious labor - management relations, implements a human-based management system, and strengthens two-way communications between labor and management so that employers and employees can grow and thrive together.

The status of the Company's personnel related to transparency of financial information obtaining relevant certificates specified by the competent authority
(1) Number of persons meeting the qualifications for principal finance and accounting officers of public companies: 1 person
(2) Number of persons obtaining the accountant's certificate R.O.C.(Taiwan): 0 persons
(3) Certified Internal Auditor (CIA) certification: 0 persons
(4) The status of continuing education of principal accounting officers in the most recent year (2025):

year (2025):
Organizer	Course name	Hours
Accounting Research and Development Foundation in Taiwan	Continuing Education for Principal Accounting Officers of Issuers, Securities Firms,and Securities Exchanges	12

Employee code of conduct or ethics

To ensure harmonious labor - management relations and continue the excellent corporate culture for purpose of strengthening the company's core values and achieving sustainable development, in addition to improving employee benefits and the contents of continuing education and training in respect of systems and implementing the retirement system and labor - management meeting in accordance with the law, given that the company's operation should be conducted on the basis of integrity, for employees' ethical practice, the Company also under the management consideration of internal control formulated the "Work Rules" and "Employee Code of Ethics," and personnel management regulations, which explicitly stipulate that both employees and employer of the Company should be dedicated to the establishment of corporate ethics and professional ethic so that employees can understand clearly the code of conduct or ethics that they should follow to ensure the development of the company.

Work environment and measures for protecting employee personal safety

The Company's and its subsidiary Taifo's measures for maintaining the work environment and protecting employee personal safety are as follows:

(1) Provide labor insurance, national health insurance, and group insurance for employees
(2) Distribute personal protective equipment to ensure that employees work safely
(3) Arrange for all employees to have general health examinations to ensure employee personal safety
(4) Regularly inspect the quality of drinking water every three month to ensure the health of employees by drinking clean water
(5) Establish the self-defense firefighting groups and organize fire safety workshops and escape drills regularly twice a year to ensure the safety of the workplace and employees
(II) List any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to labor disputes, and disclosing an estimate of possible expenses that could be incurred currently and in the future and measures being or to be taken. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided: Not applicable to the Company and its subsidiary Taifo.

VI. Cyber security management

(I) Describe the cyber security risk management framework, cyber security policies, concrete management programs, and investments in resources for cyber security management.

The information security risk management framework

⚫ The Company set up an information security team in October 2018, which consists of the Information Technology Office, the Audit Office, and the supervisors of operating units.
⚫ The Company's unit of authority and responsibility for information security is Information Technology Office, which is responsible for formulating information security policies, implementing and promoting information security management matters, establishing a secure information environment, and advocating information security awareness.
⚫ With the Information Technology Office supervisor acting the convenor and two information technology specialists, in addition to constantly reviewing and assessing the trend of changes in the information technology environment and irregularly reporting to the President, it reports to the Board of Directors at least once a year to assess information security risks and protections to ensure the continuously effective operation of the internal information security management mechanism.

⚫ The Audit Office is the supervisory unit of information security supervision, which is responsible for supervising the implementation of internal information security. If there is any defect found in the inspection, it will ask the inspected unit to put forward relevant improvement plans and concrete measures, and regularly and continuously tracks the effectiveness of the improvement to reduce internal information security risks.
⚫ The unit supervisors in compliance the company's information security policies and regulations assists system operators in identifying the risks of important business. When an internal or external security threat is detected, they should immediately report the case to ensure the implementation of information security work.

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The operation mode of the information security team

⚫ The group adopts a circular operation mode to ensure implementation and continuous improvement.
Risk assessment → Risks are graded according to the value of an information asset to the Company, the probability of occurrence of an accident, and the degree of impact.
Security policy development → Management policies are developed according to the degree of risk and in compliance with the ISO/IEC 27001 international information security standard.
Safe environment establishment→ For personnel, devices, applications, data, network security, enhancing accounts and permissions management, and strengthening data security protection technology, information security monitoring and maintenance.
Personnel education and training → Information security education and training and advocacy of information security threats and case studies are conducted every year on an irregular basis.
Security audit → Inspecting confidential data protection, system compliance, and information security continuous monitoring

Security effectiveness evaluation → Evaluating information security indicators
Return → Information security weakness and risk collection, adjustment to the management strategy, and review and improvement of information security measures

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

1. Risk assessment
7. Return
2. Security policy
development
Information
6. Security asset 3. Safe
effectiveness
environment
evaluation
establishment
4. Personnel education and
5. Security audit training
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Information security management policy

In order to ensure confidentiality, integrity, and availability of the company's information assets (software, hardware, computer data, information environment, and personnel) and avoid suffering the threats and damage from inside and outside so that the company's information system can be continuously work, the information security policy is formulated, and the content is as follows:

System regulations: To formulate the Company information security management regulations in accordance with the laws and regulations to regulate the operations of personnel and adopt appropriate protection measures for information assets.
Risk assessment: To assess the impact of various man-made and natural disasters on the Company's information assets and formulate disaster prevention strategies and disaster recovery plans for significant information assets and key business to ensure the continuous operation of the Company's business.

Employee education: To supervise the Company's employees to implement information security protection task, establish the idea of "Information Security, Everyone's Duty" and raise staff awareness of information security.
Implementation: To require internal employees and external customers and vendors to strictly abide by the Company's information security regulations when it is necessary to use the Company's information assets; if there is a violation of the regulations, the Company's regulations or the penalty clause in a contract should be followed or imposed depending on the situation, and legal action will be taken in serious case

Information security management program


Item	Description	Measures

Examination of information framework	Examining the appropriateness of measures taken for continuing operations, the maximum Impact of a single point of failure, and the capability of risk assumption	 Examining whether there is a risk of any single point of failure in the framework and maintenance mechanism of relevant measures, conducting risk analysis on the appropriateness of business continuity, and putting forward the results and recommendations of the information framework security assessment.
Examination of	Management measures for user accounts	 User accounts and permissions management and verification
permission	and permissions management and	 Regular inventory count on user accounts
management	system operation

Examination of security settings	Server security policy settings	 Examining whether the "principles of password settings" and "principle of account lockouts" of servers are set in compliance with the internal control regulations
Testing for system	System availability status and handling	 System/network availability monitoring and notification mechanism
availability	measures when services are interrupted	 Data backup measures, local/remote backup mechanism
		 Regular disaster recovery and drills

Examination of access control	Control measures for user access to internal and external systems and data transmission channel	 Internal/external access control measures  Track records of user operation
Examination of	Vulnerability scanning and patching	 Performing regular or timely vulnerability scans of networks, servers, and
network equipment,	operation	terminals and improving and repairing the weaknesses found
servers, and other
equipment
Examination of network activities	Examining access records and account permissions to use equipment	 Examining whether the access records, the account permissions granted, and the monitoring mechanisms to use network equipment, information security equipment, and servers comply with the operational regulations for internal control, and checking over the account permissions and access records of such equipment according to the principle of least privilege, identifying abnormal records and recognizingwarningmechanisms
Examination of	Performing penetration tests on websites	 Using security detection tools to conduct penetration tests on websites open to
website security		external connections, so as to detect and repair the vulnerabilities in the websites
		exposed to the public as early as possible

Email social engineering drill	For system operators, within the scope of internal security monitoring, sending drill emails to test, promote, and strengthen cyber security education	 The main purpose of the exercise is for colleagues to understand the risks of using emails and raise their risk awareness to protect against social engineering attacks. The drills are continuously conducted to reduce the risk of social attacks and further achieve the purpose of protecting customer data and important operational information and services.

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Concrete measures

The Company has established the information security team in 2018, with the Information Technology Office supervisor acting the convenor, and reported to the Board of Directors at least once a year the implementation status of information security.

An external accounting firm's risk consulting services unit is commissioned to examine and audit the overall user environment for the Company's significant ERP operation information system once a year.

A backup and recovery drill for the ERP significant information system is performed once a month, and the user unit should verify whether the recovered data is correct or not.

The IT personnel are constantly monitoring and examining the firewall filters setting status and network activity records.

The rented Intrusion Prevention System (IPS) is added for the telecommunications end of the company's external broadband network, which blocks most cyberattacks from hackers from the front-end network telecommunications facilities, including network viruses/worms, Trojan horse programs, Distributed Denial of Service (DDos), buffer overflow, and other attack types. The Service provider updates and adjusts attack characteristics and protection rules whenever possible to cope with new types of cyberattacks, reduce attack packets to occupy the bandwidth, improve network application performance, and enhance the effect of defense. The system is able to produce statistical reports for IT personnel to continuously examine the status of external activities.

In 2025, the following information security governance series courses have been completed

November 11: AI Applications, Legal Considerations, and Auditing Practices

November 28: ' Website Information Security, Cybersecurity Incident Detection, and AI Audit Framework

The Company established the "Regulations for Information Assets Inventory and Risk Assessment Management" on September 26, 2022, prioritizing the core information systems for phased evaluation. Following the annual cybersecurity meeting held on August 29, 2025, the information assets evaluation form was submitted for the President's approval. Subsequently, on November 10, 2025, an annual "Cybersecurity Risk and Protection Report" was presented to the Board of Directors.

(II) List of the losses, possible impacts and responses to major information and communication security incidents incurred in the recent year and up to the date of printing of the annual report, and, if not reasonably estimable, the facts that are not reasonably estimable.

If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided.

Currently, the two information assets of the company's manufacturing and production equipment and the Enterprise Resource Planning (ERP) system necessary to maintain business continuity are the keys to affecting operational continuity. After analysis and evaluation, the risk factors that may arise are as follows:

Cyberattacks from any third party that paralyze the system. These cyberattacks intrude into

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the internal network system to sabotage the company's operations, cause damage to the company's goodwill, or involve other activities. In the event of a serious cyberattack, there may be significant data loss in the system, which affects the purchase-sales-inventory business transactions and accuracy in the preparation of financial reports, and the production equipment may also be shut down.

Measures taken: The Company continuously reviews and evaluates its information security regulations and procedures to ensure their suitability and effectiveness. However, in the ever-changing information security threats, no one can guarantee that the Company will not be affected by the emerging information security risks and hacker attacks. Therefore, the Company purchases anti-intrusion and anti-hacking products and other enterprise information security products from suppliers for the external network, which can immediately block the attacks at the front end of the circuit. The ERP network between the headquarters and the plant is not open to external connections, and the internal network is protected by firewalls and anti-virus at each terminal. By far, the computer equipment at the plant is still mainly stand-alone, so the emphasis should be put on the installation phase, endpoint virus, and access control of internal mobile storage media.

2.

Cyberattacks may also attempt to steal company trade secrets and other confidential information, such as the proprietary information of customers or other stakeholders and the personal data of internal employees. A malicious hacker can also attempt to introduce computer viruses, destructive software, or ransomware into a company's network systems in order to interfere with the operation of the Company, blackmail or extort the Company, gain control of the computer system, or spy on confidential information. These attacks may cause a company to compensate customers for losses due to delays or interruptions of orders or take remedial and improvement measures at huge expense to strengthen the Company's network security system, or they may cause a company to bear significant legal responsibility when it involves in the legal case or regulatory investigation due to the information of employees, customers, or third parties to whom the Company is obligated to keep confidential is disclosed.

Measures taken: In order to prevent and reduce the damage caused by such attacks, the company implements relevant improvement measures and continuously make updates. When purchasing production equipment including a computer, the company immediately performs the virus scanning mechanism to prevent the contained malicious software from entering the company with the equipment. It strengthens the network firewall and network control to prevent the spread of computer viruses, establishes endpoint anti-virus measures according to the type of computer, enhances the data backup and recovery mechanism, with backups in different cycles of day, month and year and a recovery drill is conducted at the beginning of each month, and also carries out advocacy and education and training for employees to increase anti-virus awareness on a regular basis and purchases corporate information security services (vulnerability scanning, social engineering email testing,

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information security health check, etc.) from external vendors on an irregular basis.

Material Information Security Incidents: (The losses and potential impact caused by material information security incidents in the most recent year and up to the publication date of the annual report shall be specified. If it cannot be reasonably estimated, the fact that it cannot be reasonably estimated shall be stated.)

As of the annual report publication date, the Company has no significant cyberattacks and virus threats. It has not had any material adverse impact from interruption of production, business, or operation caused by cyber security incidents, nor has it been involved in any legal cases or regulatory investigations related to the above.

VII. Important contracts

(I) The Company

Nature of contract	Parties	Beginning and end dates of contract	Major content	Restrictive clauses
Sale contract (Note 1)	Taiwan Intelligent Fiber Optic Network Co., Ltd.	From September 9, 2012 to the delivery time limit prescribed in this contract and the requirement s for inspection and acceptance being fully implemente d	Optical cable materials sales and purchases	1. Party B shall, within 14 days from the date of entering this contract, pledge a company's promissory note (with the chairperson of Party B acting as the joint guarantor) equivalent to 5% of the total contract price, a promissory note issued by a bank, a letter of guarantee issued by a bank, or an equivalent bank's certificate of deposit to Party A as the performance bond. The performance bond shall be returned as a percentage of the amount of delivery that has been completed in the current year to the total contract price if the supplied goods has passed by Party A's factory inspection test and, as per Party's instructions, Party B has delivered all the designated supplied goods to the place designated by Party A and to the person designated by Party A to sign for receipt. 2. The supplied goods is covered by Party B's warranty with this contract for one year from the date of completion of the factory inspection test. 3. The warranty bond for the supplied goods is calculated at 5% of the total amount of the purchase order, and shall be paid by Party B in cash, a company's promissory note (with the chairperson of Party B acting as the joint guarantor), financial institution's promissory note or check, certified check, postal money order, unregistered government bond, financial institution's certificate of deposit pledged to the procuring entity, and irrevocable standby letter of credit issued or confirmed by a bank, or paid with a bank's written joint and several guarantee or an insurer's insurance policy of joint and several guarantee, which should conform to the formats as required by the regulations for guarantee bond and other guarantees.

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Nature of contract	Parties	Beginning and end dates of contract	Major content	Restrictive clauses
Sale contract (Note 1)	Taiwan Intelligent Fiber Optic Network Co., Ltd.	From March 11, 2013 to an unspecified end date	Access Network (GPON) System Sale and Purchase Agreement	1. The system delivered by Party B in accordance with this contract shall be guaranteed by Party B for three years from the date of satisfactory inspection and acceptance. 2. Party B shall, before the date of signing of this contract, pledge a company's promissory note (with the chairperson of Party B acting as the joint guarantor) equivalent to 10% of the total contract price, a promissory note issued by a bank, a letter of guarantee issued by a bank, or equivalent bank's certificates of deposit to Party A as the performance bond. The performance bond shall be returned without interest by Party A when the equipment passes the inspection and acceptance and PartyB is not liabilityfor anydamage.
Sales Contract	Chunghwa Telecom Corporation	2024/12/17~ 2026/12/16	Micro bundle optical cable	None
Sales Contract	Network Technical Branch of Chunghwa Telecom Corporation	2021/05/21~ 2026/11/30	Digital cable	None
Sales Contract	Chunghwa Telecom Corporation	2025/05/22~ 2027/05/22	Self-supporting outdoor cable	None
Sales Contract	Chunghwa Telecom Corporation	2022/10/26~ 2026/10/25	Jump wire	None
Sales Contract	Chunghwa Telecom Corporation	2023/08/23~ 2026/08/23	Indoor cable	None
Sales Contract	Chunghwa Telecom Corporation	2024/06/26~ 2026/06/25	Groove Optical Cable	None
Sales Contract	Chunghwa Telecom Corporation	2025/11/11~ 2026/11/11	Full spectrum bundled single- mode fiber cable	None
Sales Contract	Sing Tung Technologies Pte. Ltd.	2025/04/18~ 2028/04/17	Optical communication product and equipment	None
Sales Contract	Chunghwa Telecom Corporation	2025/6/10~ 2026/6/10	Full spectrum bundled single- mode fiber cable	None
Sales Contract	Chunghwa Telecom Corporation	2025/6/10~ 2027/6/10	PE-PE Service Drop Cable	None
Sales Contract	Chunghwa Telecom Corporation	2025/7/11~ 2026/7/11	FS-JF-LAP Cable	None
Sales Contract	Chunghwa Telecom Corporation	2025/7/23~ 2027/7/22	Optical Splitter	None
Sales Contract	CTCI ASI	2024/12/10~ 2029/10/30	Copper Cable, Fiber Optic Cable	None
Sales Contract	Siemens Mobility Ltd. Taiwan Branch	2022/10/18~ 2027/12/01	Cable wires	None
Sales Contract	D.F. TECHNOLOGIES INC.	2025/12/15~ 2026/12/15	Cable wires	None

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Nature of contract	Parties	Beginning and end dates of contract	Major content	Restrictive clauses
Sales Contract	D.F. TECHNOLOGIES INC.	2026/01/01~ 2026/12/31	Inspection Operations	None
Sales Contract	SHIHLIN ELECTRIC & ENGINEERING COR PORATION	2025/02/15~	Telephone Cable	None
Sales Contract	State-owned Taiwan Railway Corp oration LTD	2025/12/04~	Rail–Road Dual-Mode Rail Flaw Detection Vehicle	None
Purchase contract	PACIFIC Electric Wire and Cable Co., Ltd.	2026/06~ 2026/12	Copper wires	None
Purchase contract	Walsin Lihwa Co., Ltd.	2026/04~ 2026/12	Copper wires	None
Loan contract	Chang Hwa Bank	2022/07/08~ 2027/07/08	Long-term secured loan	Immovables guarantee
Loan contract	Chang Hwa Bank	2022/11/07~ 2027/07/08	Long-term secured loan	Immovables guarantee
Loan contract	Chang Hwa Bank	2024/05/29~ 2027/07/08	Long-term secured loan	Immovables guarantee
Loan contract	Chang Hwa Bank	2025/07/08~ 2027/07/08	Long-term secured loan	Immovables guarantee
Loan contract	Chang Hwa Bank	2025/11/03~ 2029/11/03	Long-term secured loan	Immovables guarantee
Loan contract	SUNNY BANK	2025/11/19~ 2030/11/19	Long-term secured loan	Immovables guarantee
Loan contract	Shin Kong Bank	2026/02/03~ 2026/05/03	Short-term secured loan	Immovables guarantee

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Nature of contract	Parties	Beginning and end dates of contract	Major content	Restrictive clauses
Engineering contract (Note 1)	Taiwan Intelligent Fiber Optic Network Co., Ltd.	2012/09/09~	OSP cables construction work	1. Party B shall, within 14 days from the date of signing of this contract, pledge a company's promissory note (with the chairperson of Party B acting as the joint guarantor) equivalent to 5% of the total contract price, a promissory note issued by a bank, a letter of guarantee issued by a bank, or equivalent bank's certificates of deposit to Party A as the performance bond. The performance bond shall be returned without interest by Party A when the equipment passes the inspection and acceptance and Party B is not liability for any damage. 2. The warranty bond for the construction work is calculated at 5% of the engineering settlement amount, and shall be paid by Party B in cash, a company's promissory note (with the chairperson of Party B acting as the joint guarantor), financial institution's promissory note or check, certified check, postal money order, unregistered government bond, financial institution's certificate of deposit pledged to the procuring entity, and irrevocable standby letter of credit issued or confirmed by a bank, or paid with a bank's written joint and several guarantee or an insurer's insurance policy of joint and several guarantee, which should conform to the formats as required by the regulations for guarantee bond and other guarantees.
Engineering contract (Note 1)	Taiwan Intelligent Fiber Optic Network Co., Ltd.	From March 11, 2013 to an unspecified end date	Access Network (GPON) System Construction Work Contract	1. The system delivered by Party B in accordance with this contract shall be guaranteed by Party B for three years from the date of satisfactory inspection and acceptance. 2. Party B shall, before the date of signing of this contract, pledge a company's promissory note (with the chairperson of Party B acting as the joint guarantor) equivalent to 10% of the total contract price, a promissory note issued by a bank, a letter of guarantee issued by a bank, or equivalent bank's certificates of deposit to Party A as the performance bond. The performance bond shall be returned without interest by Party A when the equipment passes the inspection and acceptance and Party B is not liabilityfor anydamage.
Construction contract	New Century InforCom Tech Co., Ltd.	2024/10/18~ 2026/10/17	Trench Cover Plate Engineering Procurement Contract	None
Construction contract	HENG YI CONSTRUCTOR CO., LTD	2024/05/09~ 2027/09/30	Taiwan Route 61, 94K+455 Xuanbao Bridge Partial Reinforcement and Reconstruction Project	None

Note 1: Party A represents Taiwan Intelligent Fiber Optic Network Co., Ltd. and Party B represents Tai Tung Communication Co., Ltd.

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(II) The subsidiary Taifo:

Nature of contract	Parties	Beginning and end dates of contract	Major content	Restrictive clauses
Taipei City Optical Fiber Network Outsourcing Construction and Operation Contract	Party A: Taipei City Government Party B: Tai Tung Communication Co., Ltd., Jen Yi Construction, Marketech International Corp., Glory Technology Service Inc., and Ring Line Corp.	From December 30, 2011 to December 29, 2036	Party A entrusts Party B to undertake the construction, maintenance, and operation of optical fiber network in the administrative area of Taipei City.	1. Restriction on transfer of this contract: Party B shall not transfer all or part of this contract to any party. However, this restriction will not apply with approval from Party A in event of that there is a need for assignment due to split-up of a company, the carrying out of joint guarantee by bank or insurance company, bank mortgage, or similar situation. 2. Restriction on commission and gift: Party B shall not, in order to facilitate contract signing or the performance of the contract, give bribe, commission, proportional payment, brokerage, or other improper benefits to Party A's personnel, or personnel of a supplier entrusted by Party A. The aforesaid shall also apply to PartyB's sub-contractors.
Taipei City Optical Fiber Network Outsourcing Construction and Operation Tripartite Agreement	Party A: Taipei City Government Party B: Tai Tung Communication Co., Ltd., Jen Yi Construction, Marketech International Corp., Glory Technology Service Inc., and Ring Line Corp. Party C: Taiwan Intelligent Fiber Optic Network Co.,Ltd.	From January 20, 2012 to December 29, 2036	Party C is the contracting party deriving the rights and obligations of Party B from the "Taipei City Optical Fiber Network Outsourcing Construction and Operation" Contract. Party B shall guarantee Party C's performance of all obligations regarding the contract after it stops being part of the contract parties.	None

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Nature of contract	Parties	Beginning and end dates of contract	Major content	Restrictive clauses
OSP Cables Construction Work Contract	Party A: Taiwan Intelligent Fiber Optic Network Co., Ltd. Party B: Tai Tung Communication Co., Ltd.	From September 09, 2012 to September 08, 2016, with a limited period of four years The Contract will be renewed for two years from September 9, 2016.After the expiration of the renewal, if Party A does not give notice to terminate the Contract, the Contract shall be automatically extended for one additional year.	Party B undertakes the OSP pipeline construction owned by Party A	1. Party B shall, within 14 days from the date of signing of this contract, pledge a company's promissory note (with the chairperson of Party B acting as the joint guarantor) equivalent to 5% of the total contract price, a promissory note issued by a bank, a letter of guarantee issued by a bank, or equivalent bank's certificates of deposit to Party A as the performance bond. The performance bond shall be returned without interest by Party A when the equipment passes the inspection and acceptance and Party B is not liability for any damage. 2. The warranty bond for the construction work is calculated at 5% of the engineering settlement amount, and shall be paid by Party B in cash, a company's promissory note (with the chairperson of Party B acting as the joint guarantor), financial institution's promissory note or check, certified check, postal money order, unregistered government bond, financial institution's certificate of deposit pledged to the procuring entity, and irrevocable standby letter of credit issued or confirmed by a bank, or paid with a bank's written joint and several guarantee or an insurer's insurance policy of joint and several guarantee, which should conform to the formats as required by the regulations for guarantee bond and other guarantees.
Optical Cable Materials Sale and Purchase Agreement	Party A: Taiwan Intelligent Fiber Optic Network Co., Ltd. Party B: Tai Tung Communication Co., Ltd.	From September 9, 2012 to the delivery time limit prescribed in this contract and the requirements for inspection and acceptance being fully implemented	Due to business needs, Party A purchases telecommunication engineering materials such as optical cables, various types of junction boxes and cabinets, optical splitter, and optical fiber patch cord from Party B.	1. Party B shall, within 14 days from the date of entering this contract, pledge a company's promissory note (with the chairperson of Party B acting as the joint guarantor) equivalent to 5% of the total contract price, a promissory note issued by a bank, a letter of guarantee issued by a bank, or an equivalent bank's certificate of deposit to Party A as the performance bond. The performance bond shall be returned as a percentage of the amount of delivery that has been completed in the current year to the total contract price if the supplied goods has passed by Party A's factory inspection test and, as per Party's instructions, Party B has delivered all the designated supplied goods to the place designated by Party A and to the person designated by Party A to sign for receipt. 2. The supplied goods is covered by Party B's warranty with this contract for one year from the date of completion of the factory inspection test. 3. The warranty bond for the supplied goods is calculated at 5% of the total amount of the purchase order, and shall be paid by Party B in cash, a company's promissory note (with the chairperson of Party B acting as the joint guarantor), financial

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Nature of contract	Parties	Beginning and end dates of contract	Major content	Restrictive clauses
				institution's promissory note or check, certified check, postal money order, unregistered government bond, financial institution's certificate of deposit pledged to the procuring entity, and irrevocable standby letter of credit issued or confirmed by a bank, or paid with a bank's written joint and several guarantee or an insurer's insurance policy of joint and several guarantee, which should conform to the formats as required by the regulations for guarantee bond and other guarantees.
"Access Network (GPON) System" Construction Work Contract	Party A: Taiwan Intelligent Fiber Optic Network Co., Ltd. Party B: Tai Tung Communication Co., Ltd.	From March 11, 2013 to an unspecified end date	Due to Business needs, Party A entrusts Party B to undertake the "Access Network (GPON) System" Construction Work for Party A.	1. The system delivered by Party B in accordance with this contract shall be guaranteed by Party B for three years from the date of satisfactory inspection and acceptance. 2. Party B shall, before the date of signing of this contract, pledge a company's promissory note (with the chairperson of Party B acting as the joint guarantor) equivalent to 10% of the total contract price, a promissory note issued by a bank, a letter of guarantee issued by a bank, or equivalent bank's certificates of deposit to Party A as the performance bond. The performance bond shall be returned without interest by Party A when the equipment passes the inspection and acceptance and Party B is not liability for any damage.
"Access Network (GPON) System" Sale and Purchase Agreement	Party A: Taiwan Intelligent Fiber Optic Network Co., Ltd. Party B: Tai Tung Communication Co., Ltd.	From March 11, 2013 to an unspecified end date	Due to Business needs, Party A entrusts Party B to purchase the "Access Network (GPON) System" from Party B.	1. The system delivered by Party B in accordance with this contract shall be guaranteed by Party B for three years from the date of satisfactory inspection and acceptance. 2. Party B shall, before the date of signing of this contract, pledge a company's promissory note (with the chairperson of Party B acting as the joint guarantor) equivalent to 10% of the total contract price, a promissory note issued by a bank, a letter of guarantee issued by a bank, or equivalent bank's certificates of deposit to Party A as the performance bond. The performance bond shall be returned without interest by Party A when the equipment passes the inspection and acceptance and Party B is not liability for any damage.
Taipei City Police Department Dedicated Network Communicati on Service for Video	Party A: Taipei City Police Department Party B: Taiwan Intelligent Fiber Optic Network Co., Ltd.	From the date of contract signing until the expiration date of the "Commissioned Construction and Operation Project	Including trunk transmission network and regional transmission network	None

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Nature of contract	Parties	Beginning and end dates of contract	Major content	Restrictive clauses
Surveillance System Agreement		Contract for Optic Fiber Network in Taipei City" contract. The contract is automatically renewed in the following year after the supplier completing the inspection and acceptance for the current year and meeting the relevant conditions.
Real Estate Pre-Purchase Agreement	Buyer; Taiwan Intelligent Fiber Optic Network Co., Ltd. Seller: Ching Tong Investment Co. Ltd.	From October 18, 2024 to an unspecified end date.	The buyer shall acquire from the seller 1FA1 and 1FA2 units, as well as 15 underground parking spaces, located on land parcels No. 45, 46, 47, and 49 in Section 1 of the Xincun District, New Taipei City, upon the completion of construction.	After signing the contract, the buyer shall not assign or resell this agreement to any third party.
Loan contract (Syndicated credit loan case)	Taichung Bank, Mega Bank, Kaohsiung Bank, Cathay Bank, Land Bank, Chang Hwa Bank, Hua Nan Bank, Cooperative Bank, First Bank	From October 27, 2023 to October 27, 2028	Middle-term loan	None
Loan contract	SUNNY BANK	From September 13, 2024 to September 13, 2029	Middle-term loan	None

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Chapter 5. A review and analysis of the company's financial position and financial performance, and a listing of risks

I. Financial position

Unit: thousands of NTD

year Item	2024	2025	Variance	Variance	Analysis of Variance
			Amount	%
Current assets	$1,895,335	$ 2,152,531	$ 257,196	13.57
Property, Plant and Equipment	2,331,494	2,340,072	8,578	0.37
Other intangible assets	1,872,815	1,808,105	(64,710)	(3.46)
Other assets	1,146,046	1,088,841	(57,205)	(4.99)
Total assets	7,245,690	7,389,549	143,859	1.99
Current liabilities	729,991	1,695,239	965,248	132.23	1
Non-current liabilities	2,591,293	1,744,759	(846,534)	(32.67)	1
Total liabilities	3,321,284	3,439,998	118,714	3.57
Share Capital	1,659,219	1,659,219	-	-
Capital surplus	1,219,892	1,216,219	(3,673)	(0.30)
Retained earnings	387,243	372,134	(15,109)	(3.90)
Other equity	10,615	9,918	(697)	(6.57)
Equity attributable to owners of the parent company	3,276,969	3,257,490	(19,479)	(0.59)
Non-controlling interests	647,437	692,061	44,624	6.89
Total equity	3,924,406	3,949,551	25,145	0.64
Provided below are major change items: 1. In 2025, current liabilities increased by NT$965,248,000, while non-current liabilities decreased by NT$846,534,000. The primary reason was the reclassification of long-term borrowings (previously recognized as non-current liabilities) to the current portion of long-term borrowings due within one year. 2. Impact on the Companyand CorrespondingResponse Measures: No material impact.

In 2025, current liabilities increased by NT$965,248,000, while non-current liabilities decreased by NT$846,534,000. The primary reason was the reclassification of long-term borrowings (previously recognized as non-current liabilities) to the current portion of long-term borrowings due within one year.

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II. Financial performance

Unit: thousands of NTD

year Item	2024	2025	Increase (decrease) amount	Percentage of change (%)	Analysis of Variance
Net operating revenue	$2,487,299	$ 2,075,427	$ (411,872)	(16.56)
Operating costs	2,011,452	1,537,968	(473,484)	(23.54)	1
Gross Profit	475,847	537,459	61,612	12.95
Operating expenses	307,732	256,256	(51,476)	(16.73)
Net operating profit	168,115	281,203	113,088	67.27	2
Non-operating income and expenses	311,444	3,406	(308,038)	(98.91)	3
Profit Before Income Tax	479,559	284,609	(194,950)	(40.65)	3
Income taxexpense	38,122	22,150	(15,972)	(41.90)	3
Net income (loss) for the period	441,437	262,459	(178,978)	(40.54)	3
Other comprehensive income (loss)forthe period	17,973	361	(17,612)	(97.99)	4
Total comprehensive income forthe period	459,410	262,820	(196,590)	(42.79)	3
I. Operating results variance analysis(an increase or decrease exceeding 20%) is as follows: 1. The change was primarily attributable to reduced demand from telecommunications operators in 2025 and cost recognition based on project progress. 2. The change was mainly due to variations in product sales mix in 2025 and the impact of allowance for doubtful accounts recognized by the subsidiary, Taiwan Intelligent Network, in 2024. 3. The change was primarily attributable to the gain on disposal of investments accounted for using the equity method (Zhitong Network) recognized in 2024. 4. The change was mainly due to a decrease in unrealized valuation gains on financial assets measured at fair value through other comprehensive income (FVOCI) in 2025. II. The expected sales volume and its basis, the possible impact on the Company's future finance and business matters and the countermeasures: Driven by AI development, demand for 5G and data center infrastructure in Taiwan continues to grow. To meet the high computing power requirements of AI, next-generation data centers require not only large quantities of optical and copper cables but also well-established telecommunications duct systems and transmission networks, thereby driving continuous expansion of the optical cable market. The Company has actively secured orders from domestic telecommunications operators and major national infrastructure projects, and has successfully supplied cables for metro systems, public infrastructure, and private sector projects. Overseas, the Company participates in Smart City-related developments in Singapore and consistently delivers high-quality products. In Malaysia, it engages in public infrastructure projects through local agents, leveraging its quality advantages to secure favorable contracts while avoiding price competition. With increasing demand for cloud computing, AI, and 5G, sales volume is expected to grow steadily. The subsidiary Taiwan Intelligent Network has expanded its service scope and developed circuit and IDC collaboration models with data center colocation and cloud service providers. It also plans to participate in government information service and network leasing tenders, which is expected to create additional revenue streams in the future. Overall, supported by growing market demand and increasing orders, the Company’s revenue scale is expected to expand steadily. The Company will continue to enhance product quality, deepen customer relationships, and expand into diversified markets to strengthen competitiveness and mitigate operational risks.

The change was primarily attributable to the gain on disposal of investments accounted for using the equity method (Zhitong Network) recognized in 2024.

Driven by AI development, demand for 5G and data center infrastructure in Taiwan continues to grow. To meet the high computing power requirements of AI, next-generation data centers require not only large quantities of optical and copper cables but also well-established telecommunications duct systems and transmission networks, thereby driving continuous expansion of the optical cable market.

The Company has actively secured orders from domestic telecommunications operators and major national infrastructure projects, and has successfully supplied cables for metro systems, public infrastructure, and private sector projects. Overseas, the Company participates in Smart City-related developments in Singapore and consistently delivers high-quality products. In Malaysia, it engages in public infrastructure projects through local agents, leveraging its quality advantages to secure favorable contracts while avoiding price competition. With increasing demand for cloud computing, AI, and 5G, sales volume is expected to grow steadily. The subsidiary Taiwan Intelligent Network has expanded its service scope and developed circuit and IDC collaboration models with data center colocation and cloud service providers. It also plans to participate in government information service and network leasing tenders, which is expected to create additional revenue streams in the future.

Overall, supported by growing market demand and increasing orders, the Company’s revenue scale is expected to expand steadily. The Company will continue to enhance product quality, deepen customer relationships, and expand into diversified markets to strengthen competitiveness and mitigate operational risks.

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III. Cash flow

(I) Analysis of change in cash flow for the most recent fiscal year

year Item	2024	2025	Increase (decrease) ratio %
Net cash flow from operating activities	614,674	711,386	15.73
Net cash flow from investment activities	222,222	(94,686)	(142.61)
Net cash flow from financing activities	1,293,040	(131,570)	89.82
Analysis of ratio increase (decrease)( more than 20%): 1. Net cash outflows from investing activities increased by NT$316,908,000, primarily due to the impact of the disposal of investments accounted for using the equity method (Zhitong Network) in 2024. 2. Net cash outflows from financing activities decreased by NT$1,161,470,000, mainly attributable to lower repayments of short-term and long-term borrowings in 2025 compared to 2024.

(II) A liquidity analysis for the coming year (2026):

Unit: thousands of NTD

				Unit: thousands of NTD	Unit: thousands of NTD
Cash balance at the beginning of the period(1)	Net cash flow from operating activities for the full year(2)	Cash outflows for the full year(3)	Cash surplus (deficit) amount(1)+(2)-(3)	Remedies for cash deficit
				Investment plans	Financing plans
745,239	348,049	(445,142)	648,146	-	-
1. Cash flow changes for the coming year (2026): (1) Operating activities: By estimate, the operating income will grow steadily. (2) Investing activities: The company's prepayments for land purchases that will be reclassified as property, plant,and equipment.

IV. The effect upon financial operations of any major capital expenditures during the most recent fiscal year: None.

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V. The annual report shall describe the company's reinvestment policy for the most recent fiscal year, the main reasons for the profits/losses generated thereby, the plan for improving reinvestment profitability, and investment plans for the coming year:

	Expressed in thousands of NTD unless otherwise specified	Expressed in thousands of NTD unless otherwise specified	Expressed in thousands of NTD unless otherwise specified	Expressed in thousands of NTD unless otherwise specified
Name of affiliates	Reinvestment policy	Profit and loss recognized in 2025	Main reason for profit or loss	The plan for improving re- investment profitability and investment plans for the coming year
Qionglian Co., Ltd.	Expanding orders	14	None	None
AgrandTech Limited (Samoa)	Investment business	(3,285)	Primarily due to the recognition of investment losses from Anhui Tung Hua Optic Electronics Co.,Ltd.	Note1
Anhui Tung Hua Optic Electronics Co., Ltd.	Expanding orders from telecommunications operators in Mainland China	(RMB 742 thousand)	None	Note 2
Taiwan Intelligent Fiber Optic Network Co.,Ltd.	Expanding telecommunications business in Taiwan	108,322	It is mainly because of the profit earned from the business operation.	None
King Tung Resources Co.,Ltd.	International trade	8,390	None	None
SING TUNG TECHNOLOGIES PTE. LTD.	Communication network related equipment and communication engineering	(4,059)	Primarily due to the order intake being below expectations	Note 3
Datong Construction Co., Ltd.	Construction industry	188	None	Note 4
Chien Tung Harbour Service Co., Ltd.	Warehousing industry	32,835	It is mainly because of the profit earned from the business operation.	None
Dong Fong Technologies Inc.	Telecommunications business	176	It is mainly because of the profit earned from the business operation.	Note5

Note:

On November 10, 2025, the Board of Directors of the parent company resolved that, upon completion of the dissolution and liquidation procedures of its subsidiary, Anhui Tonghua, the Company will initiate the dissolution and liquidation process of Chiantong.
On January 14, 2022, it has been resolved by the Parent Company that dissolution and liquidation should be executed for Anhui Tonghua Optoelectronics Co. On February 2, 2026, the Company obtained the official approval for deregistration from the Chuzhou Municipal Administration for Market Regulation.
The Company will continue to actively pursue orders and enhance product competitiveness
On August 11, 2023, the Company obtained the letter numbered 1128057404 from the New Taipei City Government, Department of Economic Development, granting permission for dissolution registration.
In September 2025, the subsidiary TAIFO disposed of its entire shareholding of 1,500 thousand shares in D.F. TECHNOLOGIES INC.

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VI. Risk management and assessment during the most recent fiscal year and as they stood on the date of publication of the annual report

(I) The effect upon the company's profits (losses) of interest and exchange rate fluctuations and changes in the inflation rate, and response measures to be taken in the future:
The effect upon the company's profits (losses):

	Expressed in thousands of NTD`；`%	Expressed in thousands of NTD`；`%
Item	2025	2024
Net interest income/lost	(58,512)	(71,055)
Net exchange gain/loss	(1,904)	874
Ratio of net interest income/lost to net operatingrevenue	(2.82%)	(2.86%)
Ratio of net interest income/lost to income before tax	(20.56%)	(14.82%)
Ratio of net exchange gain/loss to net operatingrevenue	(0.09%)	0.04%
Ratio of net exchange gain/loss to income before tax	(0.67%)	0.18%

(1) Interest rate risk:

The Company and its subsidiary Taifo pay close attention to changes in the market interest rate. When the market interest rate rises, it will repay debts with higher loan rates first, and at times when market interest rates are low, negotiate with banks to acquire more favorable loan rates to reduce interest expense.

The interest risks are created due to the change of the market that will result in the change of the fair value of financial means and the cash flow.

The financial assets of this company and TAIFO, one of our subsidiaries, that will be exposed to the interest risks are mainly from the time deposit savings using the floating interest rate. After being assessed by this company and TAIFO, one of our subsidiaries, it is concluded that the change of interest rate will not pose too much impact on our after-tax net profit.

In addition, the carrying amounts of the Company's financial liabilities exposed to interest rate risk at the balance sheet date were listed as follows:

Unit: thousands of NTD

Financial liabilities with the cash flows interest rate risk `－`Short-term borrowings `－`Long-term borrowings	December 31,2025 $ 390,000 $2,250,510	December	31,2024 $150,000 $2,290,510

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Sensitivity analysis

The Company's floating rate liabilities were analyzed on the assumption that the outstanding liabilities at the balance sheet date were outstanding during the reporting period.

If the interest rate increases/decreases by 0.5%, and all other variables remain unchanged, the Company's net profit after tax in 2025 and 2024 will decrease/increase by NTD11,534 thousand and NTD10,310 thousand, respectively.

(2) Exchange rate risk

The Company is engaged in purchases and sales in foreign currency, which makes the Company exposed to the risk of exchange rate fluctuations. The Company utilizes foreign exchange forward contracts to manage the exposure to exchange rate risks to the extent permitted by the policy. Currently, TAIFO is mainly engaging in the domestic businesses and there isn't the trading calculated in foreign currency. If required, TAIFO will evade the foreign exchange risks through the long-term foreign exchange method. Because the main purpose is to evade the risks, major foreign exchange income or loss should not happen.

Regarding the summarized foreign currency report of this company other than the corporate functional currency, the disclosed foreign exchange is that being translated

from such foreign currency to the functional currency. Listed below is the information about the foreign currency financial assets and liabilities that will pose significant impact:

December 31, 2025

December 31, 2025
financial liabilities Monetary items RMB December 31, 2024 financial liabilities Monetaryitems RMB	Foreigncurrency $ 1,167 Foreign currency 1,416		Exchangerate 4.48 Exchange rate 4.462	Carrying amount
				$ 5,230 Carrying amount 6,318

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Sensitivity analysis

The Company is mainly affected by fluctuations in RMB exchange rates.

In the Company's assessment, the profits and losses arising from foreign currency assets and liabilities due to changes in market exchange rates will be offset, and the market risk is expected to bring a limited impact to financial assets and financial liabilities.

The following table details the sensitivity analysis of the Company when the exchange rate of New Taiwan dollars (functional currency) increases and decreases by 1% against each relevant foreign currency. The positive numbers in the table below represent the amount of increase (decrease) in net profit after tax when the associated foreign currency appreciates by 1%. When the associated foreign currency depreciates by 1%, the effect thereof on net profit after tax will be a negative number of the same amount.

Unit: thousands of NTD

Balance	Effect of	the RMB
	2025 ($ 42)	2024
		($ 51)

(3) Inflation

The inflation does not pose significant impact to the company's income/loss of this company and TAIFO in 2025 and until the Annual Report printing date. Until now, there isn't the event that has posed significant impact to the income/loss as will be caused by the inflation

Response measures to be taken in the future:
(1) Response measures for changes in interest rates

The Company and its subsidiary Taifo pay close attention to changes in the market interest rate.When the market interest rate rises, it will repay debts with higher loan rates first, and at times when market interest rates are low, negotiate with banks to acquire more favorable loan rates to reduce interest expense.

(2) Response measures for changes in exchange rates

(3) Response measures for inflation

The Company and its subsidiary Taifo will continue to pay close attention to changes in inflation and overall consumption trends, maintain good interaction with suppliers and customers to adequately adjust product prices and raw material inventory, and stay on top of the changes in the prices of upstream raw materials and key components to reduce the impact of inflation and changes in overall consumption trends on the Company's profit and loss.

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(II) The company's policy regarding high-risk investments, highly leveraged investments, loans to other parties, endorsements, guarantees, and derivatives transactions; the main reasons for the profits/losses generated thereby; and response measures to be taken in the future:
Neither the Company nor its subsidiary Taifo engages in high-risk and highly leveraged investments.
The policy regarding loans to other parties, the main reasons, and response measures to be taken in the future: The Company and its subsidiaries will loan funds to other parties in accordance with the "Operational Procedures for Loaning Funds to Others" and announce and report such event in accordance with relevant regulations.
The policy regarding endorsements/guarantees for other parties, the main reasons, and response measures to be taken in the future: The Company and its subsidiaries will make endorsements or guarantees for other parties in accordance with the "Operational Procedures for Endorsements/Guarantees" and announce and report such event in accordance with relevant regulations. As of the date of publication of the annual report, the Company makes endorsements/guarantees for its subsidiaries Taifo and King Tung Resources. The Company charges handling fees and performs responsibilities of a guarantor in accordance with the contract. The subsidiary Taifo has not made any endorsement/guarantee for other parties.
Neither the Company nor its subsidiary Taifo engages in derivative trading.
(III) Research and development work to be carried out in the future, and further expenditures expected for research and development work:
The Company:

Unit: NTD

				Unit: NTD
R&D Plan	R&D progress	Estimated R&D budget	Estimated mass production time	Influencing factors
Ribbon-Type Optical Cable (Improved)	R&D Stage	Approximately NT$600,000	2026	Optical fiber ribbons offer both flexibility and ease of splicing. In high fiber-count optical cables, they enhance fiber density, effectivelyreducingcable diameter and space requirements.
SS23 (Improved Version)	Production Stage	Approximately NT$100,000	2026	In response to customer requirements, additional expansion space for optical splitters is provided above FDF cabinets (1.8 m and 2.2 m).
Electrical Lightbox	Production Stage	Approximately NT$50,000	2026	To meet the demands of outdoor and diverse installation environments, the Company has developed fiber optic terminal boxes with high protection ratings, impact resistance, and corrosion resistance, ensuring the safety of fiber connections and long-term operational stability.
Roadside waterproof box (including bracket)	Production Stage	Approximately NT$100,000	2026	The enclosure is designed with a robust structure, high configuration flexibility, and ease of installation and maintenance, enhancing the efficiency of communication equipment deployment and extending the overall service life of the equipment.
Estimated R&D budget: About NT$850,000 in total.

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The subsidiary Taifo:

With the rapid advancement of artificial intelligence (AI) technologies, global demand for network transmission performance continues to increase, with reducing transmission loss becoming a key priority. The all-photonic network, represented by Innovative Optical and Wireless Network (IOWN) technologies, has emerged as a major development trend. To meet market demand, Taifo aligns with evolving network trends by actively engaging in product research and development to maintain its market competitiveness. The key initiatives include the following:

(1) Taifo has initiated research on IOWN all-photonic network technologies and is actively collaborating with industry partners to conduct high-bandwidth testing (e.g., 100G and 400G) and develop corresponding business strategies and deployment plans.
(2) In response to the growing demand for AI-driven data services, the Taifo is deploying DWDM systems between telecommunications IDC facilities. It is currently continuing to build high-bandwidth dedicated transmission lines of 100G/400G to meet customer requirements.
(3) Taifo is upgrading the functionality of its project-developed smart wireless network management system and offering it through a cloud-based subscription model to help large enterprises and smart city wireless networks achieve simplified and efficient network management.
(4) Taifo actively develops enterprise value-added services, including ICT outsourcing, security surveillance, cloud services, and digital learning. It continues to invest in network R&D for IoT-related applications and participates in the deployment and operation of such services, including campus safety electronic fencing, AI-based image recognition services, and fiber optic sensing applications.

The amount that will be invested in the aforesaid R&D Plan will be approximately NT$8.5 million.

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

The management team of the Company and its subsidiary Taifo pays close attention to any domestic and foreign policies and laws and regulations that may affect the company's financial operations and formulate the risk management procedures.

During 2024 or during 2025 up to the date of publication of the annual report, the Company has no significant event with the effect on the Company's financial operations of important policies adopted and changes in the legal environment at home and abroad.

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

There isn't any major technological change and industrial change that will pose major impact to the financial operations of this company. In the future, we will keep watching the technological and industrial change so as to take necessary countermeasures according to actual situation. Impact of technological and industrial change to company's financial operation of TAIFO and measures to be taken:

The integrated development of cloud services, high-performance computing, and digital sustainability.

As the global digital economy enters an accelerated development phase, the telecommunications industry will focus on high-performance computing, cloudification, and carbon reduction and sustainable development. Core technologies such as cloud computing, Internet of Things (IoT), 5G/6G, artificial intelligence (AI), big data analytics, blockchain, and quantum communication will jointly drive the upgrade of digital infrastructure, forming a strong support for smart cities and industry transformation.

Digital-native industries will expand beyond e-commerce, finance, and cultural creativity into areas such as smart manufacturing, smart healthcare, smart energy, and smart transportation, prompting all sectors to fully embrace digital transformation. The widespread application of edge computing and cloud-to-edge architecture will enable enterprises to not only rely on traditional data centers but also emphasize real-time processing capabilities and flexibility in network resource allocation.

The digital strategy of enterprises will evolve from 'Cloud-First' to 'Cloud-Smart,' choosing the best hybrid or multi-cloud architecture based on business needs to achieve flexible deployment and efficient operations.

Furthermore, in the face of the explosive growth of global data traffic, telecom operators will further optimize network infrastructure and promote the 'Cloud-Network Convergence' model. Technologies such as private networks (Private Network), SD-WAN, cloud exchange, cloud direct access, and SASE (Secure Access Service Edge) will accelerate development, ensuring low-latency and high-security data transmission for enterprises. TaiZhiNet will be more closely integrated with various applications in its foundational service role.

Driven by the global 'carbon-neutral' policy, telecom operators will strengthen the construction of 'green infrastructure,' including the use of AI-powered smart networks to save energy, utilizing AI to predict traffic and adjust network resource allocation, reducing energy consumption. Establishing low-carbon data centers to reduce carbon emissions. Green supply chain management: Requiring equipment suppliers to meet ESG standards, enhancing energy efficiency and circular economy benefits.

The telecommunications industry will further transform from 'connectivity providers' to 'smart service drivers,' using deeper data analysis and AI technologies to offer personalized and scenario-based network services. For example, providing AI network management for enterprises to automatically detect and repair network anomalies, improving operational efficiency; deepening 5G applications (5G-Advanced) to enhance uplink bandwidth and support enterprise-level IoT and smart factory applications; telecom managed services, offering real-time, secure, and flexible network resource allocation through the 'Network as a Service (NaaS)' model.

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In the future, the telecommunications industry will focus on cloud-network convergence, intelligent operations, and digital sustainability as key development axes. Enterprises will no longer rely solely on traditional IT infrastructure but will leverage cloud computing, AI network optimization, and green data technologies to enhance operational efficiency and market competitiveness.

2. Cybersecurity risks

The company has established the network and computer related information security protection measures to avoid the network attacking from any other third party. These network attacks include the illegal intrusion into the company's internal network system that will lead to the delay, interruption or even paralysis of the company's network. As a result, we need to compensate the losses suffered by the customer. Through the network attacking, hackers may steal the company's business secrets and other confidential information; for example, the exclusive information of the customer or other stakeholder and the personal information of employees. As a result, the company will be involved in legal cases or regulatory investigation due to leaking the information of the customer, stakeholder or employee for which the company is liable for the confidential obligations. As a result, the company will need to assume material legal responsibilities. Besides this, a third party may hack into the company's network system by means of computer virus, destructive software or ransomware in order to learn about the confidential information or acquire the computer system control right for interfering with the company's operation. Even worse, involving blackmail or extortion of the company. The aforesaid cybersecurity risks may impair company's operating result and financial status. Further, these risks may also pose adverse impact to the company's goodwill and future development.

To prevent and minimize the damage incurred by such type of malicious software and hacker's attacking, Taifo has made a revolutionary change of the hacking prevention mechanism in order to prevent the computer distortion virus or the malicious software. By doing so, we have implemented the Endpoint Detection Response and the Managed Detection Response services. These services are designed with 24/7 endpoint monitoring, real-time response, periodic overall analysis report and event investigation response. Through the aforesaid service systems, Taifo’s overall cybersecurity level has been substantially upgraded.

(VI) Effect on the company's crisis management of changes in the company's corporate image, and measures to be taken in response:

The Company and its subsidiary, Taifo, adhere to a consistent principle of maintaining a positive corporate image, strictly comply with applicable laws and regulations, fulfill their social responsibilities, and uphold high standards of business ethics. To date, there have been no incidents in which the Company’s corporate image has resulted in any corporate crisis.

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(VII) Expected benefits and possible risks associated with any mergers and acquisitions, and mitigation measures being or to be taken:

The Company and its subsidiary Taifo still have not had any plans for a merger or acquisition during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report. However, if such plans is brought up in the future, with the concept of prudent evaluation, the Company and its subsidiary Taifo will consider whether the merger and acquisition can contribute concrete benefits to the company, so as to ensure the interests of the company and shareholders.

(VIII) Expected benefits and possible risks associated with any plant expansion, and mitigation measures being or to be taken:

The Company and its subsidiary Taifo have not had any plan for plant expansion during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report.

(IX) Risks of concentrated purchases and sales, and corresponding measures:
Risks caused by the concentrated purchase and measures to be taken:

In the most recent fiscal year (2025), total purchases from the supplier Walsin Lihwa accounted for 16.14% of the Company’s total procurement, including 9.57% from cable products held as inventory and 6.57% from copper wire raw materials. In addition, total purchases from the supplier PEWC accounted for 14.61%, including 6.88% from cable products held as inventory and 7.73% from copper wire raw materials. Based on the above analysis, there is no significant risk of procurement concentration.

Risks caused by the concentrated sales and measures to be taken:

In last fiscal year (2025), the customers receiving over 10% of total sales are - B-customer , C-customer and D-customer. In that year, the ratio of the sales amount achieved for the aforesaid customers in that of the net sales revenue is 19.11%, 16.75% and 10.12% respectively. In the future, apart from integrating the communication products for our sales, we will establish deeper cooperation relationship with the customers in the respective field and the subsidiaries. In this way, we may expand the product sales scope and engage in professional system integration services. In the meantime, we will also establish the strategic alliance with local and foreign vendors in order to develop new market and more customers.

Our subsidiary, Taifo, operates in the telecommunications industry, and its material procurement is driven by the group's synergies, thus sourcing primarily from Tai Tung Communication Co., Ltd. As Taifo is also in the telecommunications sector, with its main operations focused on data center circuit maintenance, there is no significant risk associated with the concentration of fiber optic material procurement.

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

No major quantity of shares belonging to a director, supervisor, or shareholder holding greater than a 10 percent stake in the Company or its subsidiary Taifo has been transferred or has otherwise changed hands.

(XI) Effect upon and risk to company associated with any change in governance personnel or top management, and mitigation measures being or to be taken:

The Company and its subsidiary Taifo have not had any change in governance personnel or top management during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report.

(XII) Litigious and non-litigious matters:

List major litigious, non-litigious or administrative disputes that: (1) involve the company and/or any company director, any company supervisor, the general manager, any person with actual responsibility for the firm, any major shareholder holding a stake of greater than 10 percent, and/or any company or companies controlled by the company; and (2) have been concluded by means of a final and unappealable judgment, or are still under litigation. Where such a dispute could materially affect shareholders' equity or the prices of the company's securities, the annual report shall disclose the facts of the dispute, amount of money at stake in the dispute, the date of litigation commencement, the main parties to the dispute, and the status of the dispute as of the date of publication of the annual report:

(1) The subsidiary Taifo .

On April 8, 2024, the subsidiary Taifo received a letter from the City Police Department, claiming termination of the contract under Clause 15, Item 1, Subsection 9 of the agreement. The City Police Department also requested that Taifo, either independently or through other vendors, complete the tasks outlined in the terminated agreement, and that Taifo handle related matters with due diligence and not interrupt the operations of the project. The City Police Department further claimed that starting from April 9, 2024, the relevant services should be billed and paid based on the standard administrative network TGSN FTTH VPN (enterprise-type) circuit rates.

However, Taifo believes that, in accordance with the presumption of innocence principle under Article 154, Item 1 of the Criminal Procedure Law, the City Police Department's claim to terminate the contract is without merit and should not have any effect on the termination. Both parties should continue to perform the contract as agreed. The circuits provided under this case are for a dedicated network specially set up for the Taipei City Police Department’s video surveillance system. Its purpose, nature, use benefits, and security level differ significantly from those of a general administrative network. Furthermore, the Taipei City Government approved the project rate on March 8, 2024. Taifo has continued to provide the relevant services in accordance with the agreement, charging and invoicing based on the agreed project rate.

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As of December 31, 2025, the difference in service fees claimed by both Taifo and the City Police Department amounts to NT$53,121,000 Taifo has continued to request the City Police Department to promptly correct the circuit rate and make payments as per the agreement To claim the outstanding amount for the contract services, Taifo has legally filed a civil lawsuit on February 3, 2025, to request payment of the difference in amount along with interest.

The Taipei District Court of Taiwan ruled in November 2025 in favor of Taifo in the first instance, ordering the City Police Department to pay the service fee difference for 2024 in the amount of NT$53,121,000 plus interest. In early December 2025, Taifo further filed a civil complaint seeking payment of the 2025 service fee difference in the amount of NT$64,797,000 plus interest.

(2) The subsidiary KING TUNG RESOURCES

The subsidiary KING TUNG RESOURCES entered into procurement contracts with Taiwan Railway Corporation on July 17, 2015 and December 13, 2017 for the purchase of one rail inspection vehicle and five railway maintenance vehicles, respectively. In May and June 2022, Taiwan Railway Corporation notified that one rail inspection vehicle and four railway maintenance vehicles failed to pass acceptance testing, and accordingly terminated the contracts as of the date of notification, with the performance bonds being forfeited in accordance with the contract terms. In November 2022, Taiwan Railway Corporation further issued a notice requiring payment of liquidated damages for delay in the amount of NT$35,600,000 in relation to the rail inspection vehicle. KING TUNG RESOURCES has engaged legal counsel to initiate litigation in order to safeguard its rights and interests. First-instance judgments for the rail inspection vehicle and the four railway maintenance vehicles were received on October 13, 2025 and December 11, 2025, respectively, with the claims of KING TUNG RESOURCES dismissed. Appeals have been filed through legal counsel. As of December 31, 2025, both civil cases remain pending. KING TUNG RESOURCES has recognized cumulative losses of NT$324,296,000 including manufacturing costs, performance bonds, and liquidated damages associated with the rail inspection vehicle and the four railway maintenance vehicles..

(XIII) Other important risks, and mitigation measures being or to be taken: None.

VII. Other important matters: None.

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Chapter 6.Special items to be included

I. Information related to the company's affiliates: https://doc.twse.com.tw/server-
java/t57sb01?step=1&colorchg=1&co_id=8011&year=&mtype=K&isnew=true
II. State of private placement of securities during the most recent fiscal year or during the current fiscal year up to the date of publication of the annual report: None.
III. Other supplementary information: None.

Chapter 7.Nine. Event that will pose significant impact to the

shareholder's equity or the stock prices as specified in Clause 2 under Article 36-3 of Securities and Exchange Act in previous year and until the annual report printing date: None.

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Tai Tung Communication Co., Ltd.

LEE CHING-HUNG, Chairman

126

AI assistant

TTCC — Annual Report 2025

52705_rns_2026-05-04_1411bd23-f3e2-472e-a2cd-79e240dd0b19.pdf

2025 ANNUAL REPORT

Table of Contents

Chapter 1.Report to Shareholders

I. 2025 Business Report

(I) Implementation result of business plan for 2025

(II) Financial income/expenditure

(III) Analysis of profit-earning ability

(IV) Budget execution

(V) Research and development

II. 2026 Business Plan Overview

(I) Operation approaches and future development strategies

(II) Estimated sales quantity and basis

1. FTTH related fiber-optic cable, copper cable and fiber optics and infrastructure project

2. Transportation System

3. Operation of telecommunication services

(III) Important production and sales policy

(I) Foreign exchange fluctuation

(II) Telecommunication operation environment

(III) ESG Promotion

Chapter 2. Corporate Governance Report

A. Strengthen the Gender Diversity Policy

C.

Integrate ESG strategies

D. Strengthen shareholder support.

E. Regular reviews and adjustment

(II) Information on the company's directors, supervisors, president, vice presidents, assistant vice presidents, and the supervisors of all the company's divisions and branch units

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

(I) Remuneration to Ordinary Directors and Independent Directors

(II) Remuneration to President and Vice Presidents

(III) Remuneration to the Five Highest Remunerated Management Personnel

(IV) Names and Distributions of Employee Profit-Sharing Compensation to Managerial Officers

III. The state of the company's implementation of corporate governance

(II) Operation of the Audit Committee

Other information required to be disclosed:

(IV) If the company has a compensation committee or nomination committee in place, the

(VI) Status of Climate-related Implementation:

IV. Information on the professional fees of the attesting CPAs (external auditors):

(I) About the predecessor CPA

Chapter 3.Information on Capital Raising Activities

I. Capital and Shares

2. Source of capital stock

1. Dividend policy:

Chapter 4. Overview of Business Operations

3.

(1) The Company's products:

① Technological Innovation and ESG-Oriented Business Model

② The Wi-Fi-based hot spot

References:https://aigc.cmoney.tw/answer/%E5%85%89%E7%BA%96%E9%80%9A%E8%A8%8A%E7%94%A2%E6%A5%AD-18-11746560

References:https://money.udn.com/money/story/11799/9222917

--The subsidiary Taifo

(2) Networking services

(3)

Optic fiber circuits

(4) Cloud service and content application:

② Analysis of broadband networking competition

(III) Technology and research

II. Market and Sales Overview

--The Company

--The subsidiary Taifo

--The subsidiary Taifo

(2) Customized product design capabilities

(3) Comprehensive product portfolio and rich production experiences

(4) Strategic alliances and resource integration

(5) Steady quality and technique-oriented after-service

(6) Professional construction team and turnkey services

(7) Testing Laboratory

(8) Sustainable Operation and Environmental Responsibility

--The subsidiary Taifo

(2) Negative factors:

(3) Countermeasures:

③

2. Manufacturing processes

2. Manufacturing processes

--The subsidiary Taifo

--The Company

--The subsidiary Taifo

--The Company

TTCC Annual Report 2025