Stock Code: 8045
The content of this annual report is related to the Company
For information, visit the following website
MOPS:
http://mops.twse.com.tw
Website of the Company:
http://www.twoway.com.tw

TWOWAY COMMUNICATIONS INC.

2025

Annual report

Printed on April 3, 2026

I. Name, position, contact number and e-mail address of the spokesperson and acting spokesperson:
- Name of Spokesperson: Kuo-Yuan Tai
- Title of Spokesperson: General Manager
- Email: address:[email protected]
- Telephone number: (02)2290-1593
- Name of Acting Spokesperson: Mei-Pei Tsai
- Title of Acting Spokesperson: Director, Finance and Accounting Department
- Email: [email protected]
- TEL: (02) 2299-0666 ext. 103

II. Address and Telephone Number of Headquarter, Branches and Plants:
- Headquarters and Plant Address: No. 41, Wugong 6th Rd., New Taipei Industrial Park, New Taipei City
- Telephone number: (02)2299-0666

III. Name, Address, Website and Telephone Number of Stock Transfer Agent:
- Name: Stock Agency Department, Fubon Securities Co., Ltd.
- Address: 11th Floor, No. 17, Xuchang Street, Zhongzheng District, Taipei City
- Website: https://www.fubon.com/securities/home/index.htm
- Telephone number: (02)2361-1300

IV. Attesting CPA of the annual financial statements for the most recent year, CPA firm, address, website and TEL:
- CPA: Cheng-Fu Yu, Tsui-Miao Yeh
- Name of CPA firm: PwC Taiwan
- Address: 27F., No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City
- Website: http://www.pwc.com.tw
- Telephone number: (02)2729-6666

V. The name of the exchanges where the Company's marketable securities are listed offshore, and the method by which to access information on the offshore securities: None.

VI. Company website: http://www.twoway.com.tw

One. Report to Shareholders 1

Two. Corporate Governance Report 2

I. Directors, President, Vice Presidents, Assistant Vice-Presidents and Heads of Departments and Branches 2
II. Remuneration for Directors, General Manager, and Deputy General Managers in the Most Recent Year 10
III. Operations of Corporate Governance 16
IV. Information on CPA Audit Fees 44
V. Information on Change of CPAs 45
VI. Anyone among the Company's Chairman, General manager, or any managerial officers in charge of finance or accounting affairs who have in the most recent year held a position at the counting firm of the CPAs or an affiliate of the accounting firm 46
VII. Any equity transfer or change in equity pledge by a director, supervisor, managerial officer, or shareholder with 10% stake or more during the most recent year or during the current year up to the date of publication of the annual report 46
VIII. Relationship information, if among the top ten shareholders any one is a related party or a relative within the second degree of kinship of another 48
IX. The total number of shares and the consolidated equity stake percentage held in any single reinvested enterprise by the Company, its directors, supervisors, managerial officers, or any companies controlled either directly or indirectly by the Company 49

Three. Capital Overview 50

I. Capital and shares 50
II. Handling of corporate bonds 53
III. Issue of preferred stocks 53
IV. Issue of depository receipt 53
V. Issuance of employee stock options 53
VI. Handling of new shares with restricted employee rights 53
VII. Handling of new shares for M&A or transfer of other companies' shares 53
VIII. Implementation of Capital Utilization Plan 53

Four. Operational Overview 54

I. Business contents 54
II. Overview of the market, production, and sales 72
III. Employee information 78
IV. Environmental protection expenditure 78
V. Labor Relations 78
VI. Information communication security management 79
VII. Major contracts: 80

Five. Review and analysis of the financial position and business achievements and evaluation of risk management 81

I. Financial status 81
II. Financial performance 83
III. Cash flow 85
IV. Impact of major capital expenditures in the most recent year on financial operations 85
V. The most recent investment policy, the main reason for profit or loss thereof, improvement plan, and investment plan for the coming year 86
VI. Analysis and assessment of risk matters in the most recent year and up to the publication date of this annual report 86
VII. Other important matters 90

Six. Special Items to Be Included 91

I. Information on the Company's affiliates 91

II. Private placement of securities in the most recent year up till the publication date of this annual report--- 94
III. Other matters requiring supplemental explanations --- 94
IV. If any of the situations listed in Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act, which might materially affect shareholder equity or the price of the Company's securities, has occurred during the most recent year or during the current year up to the date of publication of the annual report --- 94

One. Report to Shareholders

Dear Shareholders:

Thank you for your support and love for the Company.

The Company's consolidated operating revenue was NTD1.196 billion in 2025, a decrease of 31.12% compared to the previous year. The consolidated gross margin was 38.94%, and the consolidated net profit after tax attributable to the parent company was NTD 60,958 thousand, equivalent to an earnings per share of NTD 0.64. Looking at the overall performance of the Company in 2024, the Company's overall operations are stable and even, and the Company actively adjusts its product portfolio and improves its sales ratio, and the financial structure is optimized continuously. For more than 30 years, the Company has been focusing on the R&D and manufacturing of HFC fiber-optic coaxial hybrid bandwidth transmission equipment, which is the only manufacturer certified by the major MSOs in North America. The products have been widely used by customers in North America. In the past decade, the Company has invested more effort in the development of IoT and smart monitoring management integrated solutions, and has already won the long-term use of domestic customers, with outstanding sales growth, contributing nearly 70% to the overall revenue of the Company.

The Company invested NTD 124 million in R&D in 2025, accounting for 10.36% of operating revenue. The main products developed include 1.8GHz high-frequency band cross-platform wide-frequency amplifier for split transmission, digital fiber optical transmission node, advanced network equipment remote management software system, and AIoT command center management. It is expected that it will contribute a huge amount to the operating revenue in the next few years.

Looking ahead, the Company fully grasps the core technology of wideband communication and the complete product distribution of the self-owned brand ACI, and continues to build a new generation of 1.8GHz smart ultra-wideband network technology, and to improve the application of cross-system platform. As the public has become dependent on the Internet, and the application of emerging artificial intelligence technologies is booming, the demand for the bandwidth of the global wired network has increased significantly. The upgrade and addition of infrastructure in various countries is inevitable. Particularly, an AI computing data transmission will be greatly accelerated, in North America, the Company is fully committed to the long-term plan of promoting the Cable 10G symmetrical transmission network vision, expanding the application market of high-frequency products and the overall industrial scale. According to the network construction planning of the main customer groups, the product market is quite optimistic, and the sales performance is expected to grow in the next three years. The Company keeps abreast of the changes in the industry, business trends, market supply and demand, and regulatory environment, in order to formulate the best business and production and sales plans.

We would like to thank all shareholders for their support and encouragement. The management team and all colleagues of the Company will continue to work hard to create greater sales and profits for shareholders.

Sincerely,

Chairman

Sincerely, Pi-Shuang Chen

Chairman:
General Manager:
Head of Accounting Department:

Two. Corporate Governance Report

I. Directors, President, Vice Presidents, Assistant Vice-Presidents and Heads of Departments and Branches:
(I) Director
1. Director information (I)

April 03, 2026

Title	Nationality or place of registration	Name	Gender/ age	Date of election	Term of office	Date first elected	Shareholding at the time of election		Current shareholding		Shareholding of spouse and minor children now		Shareholding in the name of others		Main experience (academic)	Concurrent positions in the Company and other companies now	Spouse or relatives within second degree of kinehip who are officers, directors or supervisors			Remarks
							Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage			Title	Name	Relationship
Chairman	R.O.C.	Pi-Shuang Chen	Female 61~70 year old	2025/06/12	3	1996/11/13	4,439,925	5.45%	4,439,925	4.67%	5,192,934	5.46%	-	-	Department of Business Administration, Soochow University	Chairperson and CEO of the Company
Please refer to page 93 of the annual report for details of the concurrent position as an affiliate	General Manager	Kuo-Yuan Tai	Spouse	None
Director	R.O.C.	Kuo-Yuan Tai	Male 61~70 year old	2025/06/12	3	1996/11/13	5,112,934	6.27%	5,192,934	5.46%	4,439,925	4.67%	-	-	Department of Industrial Management, National Cheng Kung University	General Manager of the Company
Please refer to page 93 of the annual report for details of the concurrent position as an affiliate	Chairman	Pi-Hsiang Chen	Spouse	None
Director	R.O.C.	Ming-Yuan Cheng	Male 61~70 year old	2025/06/12	3	2004/6/18	39,948	0.05%	39,948	0.04%	-	-	-	-	Master of Business, National Taiwan University
Chairperson, Yuanta Securities Investment Consulting Co., Ltd.
General Manager, Kwanghua Securities Investment & Trust Co., Ltd.	Director of the Company
Chairperson of COSMACTIVE BROADBAND NETWORKS CO., LTD.,
Chairperson of Yuanting Investment Co., Ltd., and Representative Director of Sunny Friend Environmental Technology Co., Ltd.	None	None	None	None
Director	R.O.C.	Wen-Yan Chang	Male 61~70 year old	2025/06/12	3	2025/06/12	189,269	0.052%	189,269	0.2%					Ph.D in Oregon State University Research and Development Director in TAI CHIN Technology Co., Ltd.
Deputy General Manager, R&D Center and Product Planning & Management Division of the Company.	Deputy General Manager, R&D Center and Product Planning & Management Division of the Company	None	None	None	None
Director	R.O.C.	Chang Sytun Investment Co.,Ltd.	-	2022/6/21	3	2022/6/21	5,648,251	6.93%	5,648,251	5.94%	-	-	-	-	-	None	None	None	None	Note 1
	R.O.C.	Former Representative: Hang-Ru Lin (Retired)	Male 61~70 year old	2022/6/21	-	2022/6/21	573,570	0.7%	573,570	0.6%	-	-	-	-	Department of Business, National Taiwan University
Former Supervisor Corporate Representative of the Company	None	None	None	None	Note 1
	R.O.C.	Current Representative: Hua-Chi Wang	Female 51~60 year old	2025/06/12	-	2025/06/12	-	-	-	-	-	-	-	-	LL.M of Boston University
LL.D of Peking University
Full-time Professor in School of Law, Soochow University
Member of Labor Dispute Arbitration Commission, Taipei City Government
External member of Securities Listing Review Committee.
External member of Review Committee in TPEs.
Consultant of Taxation and Financial Policy Committee	None	None	None	None	Note 1

Title	Nationality or place of registration	Name	Gender/ age	Date of election	Term of office	Date first elected	Shareholding at the time of election		Current shareholding		Shareholding of spouse and minor children now		Shareholding in the name of others		Main experience (academic)	Spouse or relatives within second degree of kinship who are officers, directors or supervisors
							Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage		Title	Name	Relationship
Independent director	R.O.C.	Yung-Chih Lim	Male 51–60 years old	2025/06/12	3	2023/6/13	-	-	-	-	-	-	-	-	Ph.D., King’s College London, University of London, UK
Chairperson, Professor, Associate Professor, and Assistant Professor, Department of International Business, National Taiwan University	Independent Director and Member of the Audit Committee of the Company,
Independent Director, Sychat Information Co., Ltd., Independent Director, Mega Financial Holding Company Ltd.,
Independent Director, InA Energy Corp.	None	None	None	None
Independent director	R.O.C.	Shien-Kuei Liaw	Male 51–60 years old	2025/06/12	3	2025/06/12	-	-	-	-	-	-	-	-	Ph.D of mechanical, National Taiwan University
Master
Ph.D of Photonics, National Chiao Tung University.
Professor, Full-time Professor, National Taiwan University of Science and Technology.
Supervisor, Secretary-General, Standing Director, Taiwan Photonics Society
Member of the Cable TV Review Committee, Taipei City Government.
Green Energy & Environment Research Consultant, Laboratorios (GEL), and Electronic and Optoelectronic System Research Laboratories (EOSL)
Member and Convener, National Standards Review Committee
Vice Convener, Information and Communication Committee, Consumers' Foundation.
Convener, Media Committee, Consumers' Foundation	Independent Director and Member of the Audit and Remuneration Committees of the Company
Director, TAJYEN BIOTECH CO., LTD.	None	None	None	None
Independent director	R.O.C.	Yi-Yun Chen	Female 41–50 years old	2025/06/12	3	2025/06/12	-	-	-	-	-	-	-	-	M.B.A., The University of Queensland B.S. in Applied and Bachelor of Business Administration Mathematics, Queensland University of Technology.
Chief Investment Officer, Songzuo Investment Co., Ltd.
Director, Global Sales & Marketing Center in Hanethar Display Corporation
Vice President, Huacheng Capital Co., Ltd.
Executive Vice President, Zhenmao Technology Co., Ltd.	Independent Director and Member of the Audit and Remuneration Committees of the Company	None	None	None	None
Independent director	R.O.C.	Ching-Sung Wu	Male 71–80 years old	2025/06/12	3	2025/06/12	-	-	-	-	-	-	-	-	DBA, University of California, Los Angeles.
M.B.A., National Taiwan University.
B.F., Department of Management Science, National Chiao Tung University.
Professor and Dean, College of Business Chinese Culture University.
Professor and Emeritus Professor, Department of International Business, National Taiwan University (graduate school).	Independent Director and Member of the Audit and Remuneration Committees of the Company
Independent director, ANDERSON INDUSTRIAL CORP.
Independent director, J & V Energy Technology Co., Ltd.
Representative, Zhengqi Film Production Co., Ltd.	None	None	None	None

Title	Nationality or place of registration	Name	Gender/age	Date of election	Term of office	Date first elected	Shareholding at the time of election		Current shareholding		Shareholding of spouse and minor children now		Shareholding in the name of others		Main experience (academic)	Concurrent positions in the Company and other companies now	Spouse or relatives within second degree of kinship who are officers, directors or supervisors			Remarks
							Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage			Title	Name	Relationship
Director (Retired)	R.O.C.	Chin-Ming Huang	Male 71-80 years old	2022/6/21	3	2004/6/18	-	-	-	-	-	-	-	-	Department of Electronic Engineering, National Chiao Tung University General Manager, Excelsior Biopharma Inc.	Director of the Company Chairperson and General Manager of Chroma ATE Inc., Director of I-SHENG ELECTRIC WIRE & CABLE CO., LTD., Chairperson of DynaScan Technology Corp., Independent Director of Ichia Technologies Inc., and Director of Tian Zheng International Precision Machinery	None	None	None	Note 2 (Retired)
Independent Director (Retired)	R.O.C.	Jaw-Chyuan Chu	Male 81-90 year old	2022/6/21	3	2019/6/20	-	-	-	-	-	-	-	-	Master of Public Administration, National Chengchi University Consultant, Taiwan Securities Association Deputy General Manager, Taiwan Stock Exchange Chairperson, Securities and Futures Commission, Ministry of Finance	Independent Director and Member of the Audit and Remuneration Committees of the Company	None	None	None	Note 2 (Retired)
Independent director (Retired)	R.O.C.	Tsang-Sheau Lee	Male 71-80 year old	2022/6/21	3	2016/6/16	-	-	-	-	-	-	-	-	Ph.D. in Materials Science and Engineering, Massachusetts Institute of Technology Chairperson, AOCi Technology Co., Ltd.	Independent Director and Member of the Audit and Remuneration Committees of the Company Independent Director and Member of the Audit and Remuneration Committees, DURATEK, INC.	None	None	None	Note 2 (Retired)
Independent director (Retired)	R.O.C.	Jiu-Ming Lin	Male 61-70 year old	2022/6/21	3	2016/6/16	-	-	-	-	-	-	-	-	Master of Business, National Taiwan University Senior Deputy General Manager of Underwriting Department, IBT Securities Co.,Ltd.	Independent Director and Member of the Audit and Remuneration Committees of the Company	None	None	None	Note 2 (Retired)

Note 1: Chang Hsuan Investment Co., Ltd. was re-elected as the director at the shareholders' meeting of the Company on June 12, 2025, and appointed Hsu-Chi Wang as its representative on the same day to exercise the powers of the director. The former representative, Hung-Ru Lin, Retired on the same day; therefore, the shareholding information provided is as of that date.
Note 2: Former Director Chin-Ming Huang and former Independent Directors Jaw-Chyuan Chu, Tsang-Sheau Lee, and Jiu-Ming Lin, stepped down following the election of new directors at the Company's Annual General Meeting of Shareholders held on June 12, 2025, as their terms had expired. Therefore, the shareholding information provided is as of that date.

2. Major shareholders of the corporate shareholder:

April 03, 2026

Name of corporate shareholder	Major shareholders of the corporate shareholder:
Chang Syuan Investment Co.,Ltd.	Chia-Wei Tai (12.17%), Chia-Hsin Tai (12.17%), Kuo-Yuan Tai (24.34%), Pi-Shuang Chen (24.34%), Yung-Sen Chen (26.98%)

Note 1: If the director or supervisor is a representative of a corporate shareholder, the name of the corporate shareholder should be filled in.
Note 2: Indicate the names of this corporate shareholder's main shareholder (whose shareholding ratio are in the TOP 10) and the shareholding ratio.

3. Major shareholders of the juristic-person shareholder, if the major shareholder is a legal entity: None.

4. Director information (II):

(1) Disclosure of professional qualification of Directors and independence of supervisors:

| Name
Criteria | Professional qualifications and experience | Independence | Number of other public companies in which the individual is concurrently serving as an independent director |
| --- | --- | --- | --- |
| Director: Pi-Shuang Chen | 1. For the professional qualifications and experience of the Directors, please refer to pages 2 to 4 this annual report the audit report on record.
2. None of the Directors has any matters specified in Article 30 of the Company Act. | N/A | 0 |
| Director: Kuo-Yuan Tai | | | 0 |
| Director: Ming-Yuan Cheng | | | 0 |
| Director: Wen-Yan Chang | | | 0 |
| Director Chang Syuan Investment Co.,Ltd.
Representative: Hsu-Chi Wang | | | 0 |
| Independent Director: Yung-Chih Lien | | 1. The person, spouse, second degree relatives or closer does not serve as a director, supervisor, or employee of the Company or its affiliated companies.
2. The person (or in the name of others), spouse, minor children do not hold the Company's shares, and do not serve as directors, supervisors, or employees of any companies that have specific relationship with the Company (see Paragraph 5-8, Article 3 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies)
3. The amount of remuneration received by providing the Company or its affiliates with business, legal, financial, accounting and No remuneration received from providing the Company or its affiliates with business, legal, financial, accounting and other services in the last 2 years: None. | 3 |
| Independent Director: Shien-Kuei Liaw | | | 0 |
| Independent Director: Yi-Yun Chen | | | 0 |
| Independent Director Ching-Sung Wu | | | 2 |

(2) Board diversity and independence:

Board diversity:

In the selection of Board members, the Company not only evaluates the management ability and decision-making ability of the Board members, but also carefully considers the professional abilities of each Director, in order to implement the diversity of the Board of Directors; in addition, the Company has formulated appropriate diversified policies for its own operations, business patterns and development needs, in order to ensure that the Board members can have different basic conditions and professional knowledge.

A. The Company's "Corporate Governance Best Practice Principles" has established the policy of diversity of the Board of Directors:

a. Regarding the Board structure of the Company, an appropriate number of five or more Directors has been determined based on the scale of the Company’s business development and the shareholding of major shareholders, taking into account practical operational needs.

b. The composition of the Board of Directors shall be determined by taking diversity into account, and a policy on diversity shall be established based on the Company's business activities, business model, and development needs, including but not limited to the following two criteria:

I. Basic criteria and values: gender, age, nationality and culture, etc.

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

c. The members of the Board of Directors shall have the knowledge, skills and literacy required to perform their duties. The Board of Directors as a whole must have the following abilities in order to achieve the ideal goal of corporate governance: business determination, accounting and financial analysis ability, business management ability, crisis management ability, industry knowledge, international market perspective, leadership ability, and decision-making ability.

B. The specific goals of the Board of Directors diversity:

The age distribution is equal, and the number of directors who also serve as the Company's managers is less than one-third of the number of directors, and the professional skills cover different fields.

C. Achievement of diversity:

After the re-election of directors at the 114th annual shareholders' meeting, The Company currently has nine seats of directors (including four independent directors), of which eight are natural persons and one is a juristic person. All-natural person directors and the representative of the juristic-person director are of ROC nationality. Their age distribution is as follows: one director is aged 41–50 (11.1%), three directors are aged 51–60 (33.3%), four directors are aged 61–70 (44.4%), and one director is aged 71–80 (11.1%). Currently, male directors hold six seats (66.7%), while female directors hold only three seats (33.3%), account one-third of the total number of directors, reflecting the trend toward gender diversity on the board.

Among the existing Board members, three of them are employees or managers (33.3%), and they do not account for more than one-third of the total number of directors.

In terms of professional competence, the current members of the Board of Directors possess the necessary knowledge, skills, and capabilities required for their duties, and each brings extensive experience across business, securities, finance, accounting, law or industrial technology. The professional expertise of Board members spans various domains including commerce, financial accounting, law and industrial technology, representing considerable diversity.

Going forward, the Company will continue to enhance Board diversity based on the Board’s operation, business model, and development needs—focusing on both basic qualifications and the diversification of professional expertise—to ensure that the Board as a whole maintains comprehensive professionalism and competence.

Independence of the Board of Directors:

The Company currently has a total of nine directors, consisting of four independent directors (44.4%) and five non-independent directors (55.6%). Among the current members of the Board, three directors (33.3%) concurrently serve as employees or managerial officers, which does not exceed one-third of the total number of Board seats. In addition, there are two directors (22.2%) who are spouses or relatives within the second

degree of kinship, which does not exceed half of the total seats. There are no such kinship relationships among independent directors or between independent and non-independent directors. The composition complies with Paragraphs 3 and 4 of Article 26-3 of the Securities and Exchange Act.

The Company's Board of Directors places strong emphasis on independent operation and transparency. All directors, including independent directors, act as independent individuals and exercise their authority independently. Independent directors perform their duties in accordance with relevant laws and regulations, and work in coordination with the Audit Committee to assess the control of existing or potential risks within the Company. They also oversee the effective implementation of internal controls, the appointment and dismissal of certified public accountants, their independence, and the proper preparation of financial statements. Additionally, the Company's "Regulations Governing the Election of Directors" stipulate that both directors and independent directors shall be elected using the cumulative voting system and the candidate nomination system. Shareholders holding a specified number of shares are encouraged to nominate candidates. All related procedures are handled and publicly disclosed in accordance with applicable laws, thereby safeguarding shareholder rights, preventing monopolization or excessive proliferation of nomination rights, and preserving independence.

The policy of the diversity of the Board of Directors and the implementation are as follows:

Diversify core items Name of director	Basic composition										Competent ability						Professional ability
	Nationality	Gender	Holding concurrent position as an employee of the Company	Age				Years of service of independent directors			Operational judgment	Accounting and financial analysis	Business management	Crisis management	Industry knowledge	Leadership	Likelihood	Risk management
				41 to 50	51 to 60	61 to 70	71 to 80	Less than 3 years	3 to 6 years	6 to 9 years
Pi-Shuang Chen	R.O.C.	Female	V			V					Among the current members of the Board, each director possesses not only the necessary knowledge, skills, and competencies required to perform their duties, but also brings extensive experience across various domains such as business, securities, finance, accounting, and industrial technology. The professional expertise of the directors spans multiple disciplines—business, financial accounting, and industrial technology—demonstrating a high degree of diversity in the Board's overall composition.
Kuo-Yuan Tai	R.O.C.	Male	V			V
Ming-Yuan Cheng	R.O.C.	Male				V
Wen-Yan Chang	R.O.C.	Male	V			V
Hsu-Chi Wang Representative of Corporate Director of Chang Syuan Investment Co.,Ltd.	R.O.C.	Female			V
Yung-Chih Lien	R.O.C.	Male			V				V
Shien-Kuei Liaw	R.O.C.	Male			V			V
Yi-Yun Chen	R.O.C.	Female	V	V				V
Ching-Sung Wu	R.O.C.	Male					V	V

(II) Profile of General Managers, Deputy General Managers, Associates, and heads of departments and branches:
April 03, 2026 Unit: Share; %

Title	Nationality	Name	Gender	Date of Election (Inauguration)	Shareholding		Spouse, minor children Shareholding		Shareholding in the name of others		Main experience (academic)	Concurrent positions in other companies	Managerial officers with spouses or relatives with second degree of kinship			Remarks
					Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage			Title	Name	Relationship
Chief executive officer	R.O.C.	Pi-Shuang Chen	Female	1992/10/15	4,439,925	4.67%	5,192,934	5.46%	-	-	Department of Business Administration, Soochow University CEO, TWOWAY Communications Inc.	Please refer to page 93 of the annual report for details of the job duties of the affiliated companies.	General Manager Chief Operating Officer	Kuo-Yuan Tai Chia-Hsin Tai	Spouse Mother	None
General Manager	R.O.C.	Kuo-Yuan Tai	Male	1992/10/15	5,192,934	5.46%	4,439,925	4.67%	-	-	Department of Industrial Management, National Cheng Kung University General Manager, TWOWAY Communications Inc.	Please refer to page 93 of the annual report for details of the job duties of the affiliated companies	Chairman Chief Operating Officer	Pi-Shuang Chen Chia-Hsin Tai	Spouse Father	None
Technical Director	R.O.C.	Chia-Hsiang Huang	Male	1992/10/15	902,610	0.95%	390,000	0.41%	-	-	Department of Electrical Engineering, Kuang Wu Industry Junior College Manager, Integrated Application Services Division, TWOWAY Communications Inc. Director, Integrated Application Services Division, TWOWAY Communications Inc.	None	None	None	None	None
Director, Manufacturing Division	R.O.C.	Yung-Hua Mou	Male	1993/4/15	753,796	0.79%	57,750	0.06%	-	-	Department of Electronic Engineering, National United University Design Engineer, Ever Prosperity Electronics Corp. TV Development Engineer, CHUNG-HSIN ELECTRIC & MACHINERY MFG. CORP. Manager, Manufacturing Department, TWOWAY Communications Inc. Deputy Director, Manufacturing Division, TWOWAY Communications Inc.	None	None	None	None	Note 1
Chief Operating Officer	R.O.C.	Chia-Hsin Tai	Male	2016/4/1	1,787,024	1.88%	56,000	0.06%	-	-	Department of Economics, University of Washington, USA Special Assistant, ACI Communications, Inc.	None	Chairman General Manager	Pi-Shuang Chen Kuo-Yuan Tai	Mother Father	None
Deputy General Manager, R&D Center and Product Planning & Management Division	R.O.C.	Wen-Yan Chang	Male	2016/3/1	189,269	0.20%	-	-	-	-	PhD, Experimental Optoelectronics, Oregon State University, USA Director, R&D, UCONN TECHNOLOGY INC. Director, Product Planning and Management Division, TWOWAY Communications Inc.	None	None	None	None	None
Director, Finance and Accounting Department	R.O.C.	Mei-Pei Tsai	Female	2001/5/2	378,026	0.40%	396,292	0.42%	-	-	Department of Accounting, Soochow University Finance Manager, JIA LU TECHNOLOGY CO., LTD. Manager, Accounting Division, TWOWAY Communications Inc. Head of Audit Office, TWOWAY Communications Inc.	None	None	None	None	None
Corporate Governance Officer (resigned)	R.O.C.	Siao-De Lee	Male	2024/4/10	-	-	-	-	-	-	Graduate Institute of Finance, Tamkang University Assistant Manager, Capital Markets Department, KGI Securities Special Assistant, Jinli Group	None	None	None	None	Note 2
Corporate Governance Officer (Current)	R.O.C.	Chang-Ti Chen	Male	2025/2/19	-	-	-	-	-	-	Department of Law, Soochow University Legal Section Chief, C.C.P. CONTACT PROBES CO., LTD. Senior Legal Specialist, Yageo Corporation Legal Manager, TWOWAY Communications Inc.	None	None	None	None	Note 2

Note 1: Yung-Hua Mou retired on June 30, 2025; therefore, the changes in shareholdings are provided as of that date.

Note 2: The former corporate governance officer, Hsiao-Te Lee, resigned on January 24, 2025; therefore, the changes in shareholdings are provided as of that date.

The current corporate governance officer, Chang-Ti Chen, was approved by the Board of Directors on February 19, 2025.

(III) If the Chairperson and the General manager or person of an equivalent post (the highest-level manager) of a company are the same person, spouses, or relatives of first degree of kinship, an explanation shall be given of the reason, reasonableness, necessity thereof, and the countermeasures adopted in response thereto:

The Chairperson and the General Manager of the Company are spouses, in response to the needs of corporate management and considering the professionalism of the managers. However, more than half of the directors of the Company are not employees and managers, and the Company has appointed independent directors. Each independent director has professional knowledge in finance and accounting, and can perform the function of professional supervision. The Company has also established an Audit Committee and a Remuneration Committee, to clearly define the responsibilities of the committees.

Remuneration for Directors, General Manager, and Deputy General Managers in the Most Recent Year

(I) Remuneration paid to Directors, General Manager, and Deputy General Managers in the most recent year:
1. Remuneration to regular and independent directors: (Disclosure of names and compensation details)

Unit: NTD thousand

Title	Name	Remuneration to directors							Sum of A, B, C and D and as a % of the net profits after tax	Remuneration for employees with concurrent positions									Sum of A, B, C, D, E, F and G and as a % of the net profits after tax	Remuneration received from subsidiaries, re-invested business
		Base remuneration (A)		Severance and pension (B)		Remuneration for directors (C)		Business execution expenses (D)			Salary, bonus, special allowance (E)		Severance and pension (F)		Remuneration for employees (G)
		The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	All companies in the financial statements	All companies in the financial statements	The Company	All companies in the financial statements	All companies in the financial statements	Cash	Amount in stock	Cash	Amount in stock	The Company	All companies in the financial statements		The Company	All companies in the financial statements
Director	Pi-Shuang Chen	0	0	0	0	360	360	120	120	480 0.79%	480 0.79%	3,584	3,584	0	0	49	0	49	0	4,113 6.75%	4,113 6.75%	None
	Kuo-Yuan Tai	0	0	0	0	180	180	120	120	300 0.49%	300 0.49%	2,955	3,496	108	108	41	0	41	0	3,404 5.58%	3,945 6.47%	None
	Wen-Yan Chang	0	0	0	0	90	90	70	70	160 0.26%	160 0.26%	2,237	2,237	106	106	69	0	69	0	2,572 4.22%	2,572 4.22%	None
	Chin-Ming Huang	0	0	0	0	90	90	60	60	150 0.25%	150 0.25%	0	0	0	0	0	0	0	0	150 0.25%	150 0.25%	None
	Ming-Yuan Cheng	0	0	0	0	180	180	120	120	300 0.49%	300 0.49%	0	0	0	0	0	0	0	0	300 0.49%	300 0.49%	None
	Chang Syuan Investment Co., Ltd.	0	0	0	0	180	180	120	120	300 0.49%	300 0.49%	0	0	0	0	0	0	0	0	300 0.49%	300 0.49%	None
Independent Director	Jaw-Chyuan Chu	0	0	0	0	0	0	300	300	300 0.49%	300 0.49%	0	0	0	0	0	0	0	0	300 0.49%	300 0.49%	None
	Tsang-Sheau Lee	0	0	0	0	0	0	300	300	300 0.49%	300 0.49%	0	0	0	0	0	0	0	0	300 0.49%	300 0.49%	None
	Jiu-Ming Lin	0	0	0	0	0	0	300	300	300 0.49%	300 0.49%	0	0	0	0	0	0	0	0	300 0.49%	300 0.49%	None
	Yi-Yun Chen	0	0	0	0	0	0	350	350	350 0.57%	350 0.57%	0	0	0	0	0	0	0	0	350 0.57%	350 0.57%	None
	Yung-Chih Lien	0	0	0	0	0	0	600	600	600 0.98%	600 0.98%	0	0	0	0	0	0	0	0	600 0.98%	600 0.98%	None
	Shien-Kuei Liaw	0	0	0	0	0	0	350	350	350 0.57%	350 0.57%	0	0	0	0	0	0	0	0	350 0.57%	350 0.57%	None

| | Ching-Sung Wu | 0 | 0 | 0 | 0 | 0 | 0 | 350 | 350 | 350
0.57% | 350
0.57% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 350
0.57% | 350
0.57% | None |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1. Please state the policy, system, standard and structure of the remuneration to independent directors, and the correlation to the amount of remuneration based on the responsibilities, risks, time invested and other factors:
The remuneration of the Company’s directors is determined by the Compensation Committee and the Board of Directors in accordance with the provisions of the Articles of Incorporation, based on the directors’ level of involvement in the Company’s operations and the value of their contributions.
In the event the Company generates a profit, the Board of Directors shall resolve on the amount of directors’ remuneration in accordance with the provisions of the Articles of Incorporation.
2. Other than the disclosure in the above table, remuneration to the Company’s directors for providing services (such as serving as a consultant to the non-employee of the parent company/all companies listed in the financial statements/invested enterprises) in the most recent year: None. | | | | | | | | | | | | | | | | | | | | | |

Remuneration Range Table

Range of remuneration paid to the Company's Directors	Name of director
	Sum of A+B+C+D		Total amount of the seven remunerations (A+B+C+D+E+F+G)
	The Company	All companies included in the financial report H	The Company	All companies included in the financial report I
Less than NT$1,000,000	Pi-Shuang Chen, Kuo-Yuan Tai, Wen-Yan,Chang,Chin-Ming Huang, Ming-Yuan Cheng, Chang Syuan Investment Co.,Ltd., Tsang-Sheau Lee, Jiu-Ming Lin, Jaw-Chyuan Chu, Yi-Yun Chen, Yung-Chih Lien, Shien-Kuei Liaw,Ching-Sung Wu	Pi-Shuang Chen, Kuo-Yuan Tai, Wen-Yan,Chang,Chin-Ming Huang, Ming-Yuan Cheng, Chang Syuan Investment Co.,Ltd., Tsang-Sheau Lee, Jiu-Ming Lin, Jaw-Chyuan Chu, Yi-Yun Chen, Yung-Chih Lien, Shien-Kuei Liaw,Ching-Sung Wu	Chin-Ming Huang, Ming-Yuan Cheng, Chang Syuan Investment Co.,Ltd., Tsang-Sheau Lee, Jiu-Ming Lin, Jaw-Chyuan Chu, Yi-Yun Chen, Yung-Chih Lien, Shien-Kuei Liaw,Ching-Sung Wu	Chin-Ming Huang, Ming-Yuan Cheng, Chang Syuan Investment Co.,Ltd., Tsang-Sheau Lee, Jiu-Ming Lin, Jaw-Chyuan Chu, Yi-Yun Chen, Yung-Chih Lien, Shien-Kuei Liaw,Ching-Sung Wu
NT$1,000,000 (inclusive) ~ NT$2,000,000 (exclusive)
NT$2,000,000 (inclusive) ~ NT$3,500,000 (exclusive)	-	-
NT$3,500,000 (inclusive) ~ NT$5,000,000 (exclusive)	-	-	Kuo-Yuan Tai + Wen-Yan,Chang	Wen-Yan,Chang
NT$5,000,000 (inclusive) ~ NT$10,000,000 (exclusive)	-	-	Pi-Shuang Chen	Pi-Shuang Chen + Kuo-Yuan Tai
NT$10,000,000 (inclusive) ~ NT$15,000,000 (exclusive)	-	-
NT$15,000,000 (inclusive) ~ NT$30,000,000 (exclusive)	-	-	-	-
NT$30,000,000 (inclusive) ~ NT$50,000,000 (exclusive)	-	-	-	-
NT$50,000,000 (inclusive) ~ NT$100,000,000 (exclusive)	-	-	-	-
More than NT$100,000,000	-	-	-	-
Total	13people	13 people	13 people	13 people

Note 1: The names of directors should be listed separately (the names of corporate shareholders and their representatives should be listed separately), and the regular directors and independent directors should be listed separately, and the amount of each payment should be disclosed in a summary manner.
Note 2: This refers to the remuneration for directors in the most recent year (including salaries, duty allowance, severance, various bonuses and incentive payments, etc.).
Note 3: This is the amount of the remuneration for directors approved by the Board of Directors in the most recent year.
Note 4: This refers to directors' business execution expenses in the most recent year (including transportation fee, special allowance, various stipends, dormitory, company car, etc.).
Note 5: This refers to the salary, duty allowance, severance, various bonuses, incentive payments, transportation fee, special allowance, various stipends, dormitory, company car and other provisions, etc., received by a director who is concurrently serving as an employee (including part-time president, vice president, other officers and employees) in the most recent year.
Note 6: The amount of employee remuneration (including stock and cash) received by a director who is concurrently an employee (including part-time president, vice president, other officers and employees) in the most recent year should be disclosed as approved by the Board of Directors in the most recent year, and if the amount cannot be estimated, the proposed payment amount for this year should be calculated in proportion to the actual payment amount last year.
Note 7: The total amount of remuneration paid to the directors of the Company by all companies in the consolidated statements (including the Company) should be disclosed.
Note 8: The net profits after tax refer to the net profits after tax of the most recent year for stand-alone or unconsolidated financial statements.
Note 9: Director Wen-Yan Chang, Independent Director Shien-Kuei Liaw, Yi-Yun Chen, and Ching-Sung Wu were elected as directors at the Company's Annual General Meeting held on June 12, 2025. Meanwhile, former Director ChinMing Huang and former Independent Directors Jaw-Chyuan Chu, Tsang-Sheau Lee, and Jiu-Ming Lin stepped down following the election of new directors at the Company's Annual General Meeting held on June 12, 2025, as their terms of office had expired.
*The remuneration disclosed here is different from the concept of income under the Income Tax Act; therefore, the purpose here is for information disclosure and not for tax return purposes.

Remuneration to General Manager and Deputy General Managers(Disclosure of names and compensation details):

Unit: NTD thousand

Title	Name	Base salary (A)		Severance and pension (B)		Bonus and allowance (C)		Remuneration for employees (D)				Sum of A, B, C and D and as a % of the net profits after tax (%)
		The Company	The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company		All companies in the financial statements		The Company
									Cash	Amount in stock	Cash	Amount in stock
General Manager	Kuo-Yuan Tai	2,581	3,122	108	108	374	374	41	0	41	0	3,104
5.09%	3,645
5.98%	None
Deputy General Manager, R&D Center and Product Planning & Management Division	Wen-Yan Chang	1,761	1,761	106	106	476	476	6
9	0	6
9	0	2,412
3.96%	2,412
3.96%	None
Remuneration range for each general manager and deputy manager of the Company	Name of president, or vice president,
---	---	---
	The Company	All companies in the financial statements
Less than NT$1,000,000	-	-
NT$1,000,000 (inclusive) ~ NT$2,000,000 (exclusive)	-	-
NT$2,000,000 (inclusive) ~ NT$3,500,000 (exclusive)	Kuo-Yuan Tai · Wen-Yan Chang	Wen-Yan Chang
NT$3,500,000 (inclusive) ~ NT$5,000,000 (exclusive)	-	Kuo-Yuan Tai
NT$5,000,000 (inclusive) ~ NT$10,000,000 (exclusive)	-	-
NT$10,000,000 (inclusive) ~ NT$15,000,000 (exclusive)	-	-
NT$15,000,000 (inclusive) ~ NT$30,000,000 (exclusive)	-	-
NT$30,000,000 (inclusive) ~ NT$50,000,000 (exclusive)	-	-
NT$50,000,000 (inclusive) ~ NT$100,000,000 (exclusive)	-	-
More than NT$100,000,000	-	-
Total	2 people	2 people

*The remuneration disclosed here is different from the concept of income under the Income Tax Act; therefore, the purpose here is for information disclosure and not for tax return purposes.

Compensation of the five highest-paid executives (Disclosure of names and compensation details)

Title	Name	Base salary (A)		Severance and pension (B)		Bonus and allowance (C)		Remuneration for employees (D)				Sum of A, B, C and D and as a % of the net profits after tax (%)
		The Company	The Company in the financial statements	All companies in the financial statements	The Company	All companies in the financial statements	The Company	The Company in stock	The Company		All companies in the financial statements		The Company
									Cash	Amount in stock	Cash	Amount in stock
Chairman & Chief executive officer	Pi-Shuang Chen	3,116	3,116	0	0	469	469	49	49	49	49	3,634
5.96%	3,634
5.96%	None
General Manager	Kuo-Yuan Tai	2,581	3,122	10	108	374	374	41	41	41	41	3,104
5.09%	3,645
5.98%	None
Deputy General Manager, R&D Center and Product Planning & Management Division	Wen-Yan Chang	1,761	1,761	10	106	476	476	69	69	69	69	2,412
3.96%	2,412
3.96%	None
Technical Director	Chia-Hsiang Huang	1,366	1,366	8	83	173	173	73	73	73	73	1,698
2.78%	1,698
2.78%	None
Director, Finance and Accounting Department	Mei-Pei Tsai	1,376	1,376	8	83	306	306	69	69	69	69	1,834
3.01%	1,834
3.01%	None

Names of managerial officers who are assigned employee remuneration and the status of assignment:
December 31, 2025; Unit: NTD thousand

	Title	Name	Amount in stock	Cash	Total	Total amount as a percentage of net profits after tax (%)
Managerial officer	Chairperson and CEO	Pi-Shuang Chen	-	421	421	0.69%
	General Manager	Kuo-Yuan Tai
	Technical Director	Chia-Hsiang Huang
	Deputy General Manager, R&D Center and Product Planning & Management Division	Wen-Yan Chang
	Director, Business Division	Chia-Hsin Tai
	Director, Finance and Accounting Department	Mei-Pei Tsai
	Corporate Governance Officer	Chang-Ti Chen

Note 1: Calculated based on the actual distribution amount last year proportionally.

(II) Analysis of the total remuneration paid to directors, general managers, and deputy general managers in the most recent 2 years by the Company and all companies in the consolidated financial statements as a % of the net profits after tax in the parent company only or individual financial statements, and explanation of the policies, criteria, combination, the procedures for determining remuneration and the correlation to operating performances and future risks.

Analysis of the total remuneration paid to directors, general managers, and deputy general managers in the most recent 2 years as a % of the net profits after tax:

The total remuneration to Directors, General Manager, and Deputy General Managers as a percentage of net income after tax in 2024		The total remuneration to Directors, General Manager, and Deputy General Managers as a percentage of net income after tax in 2025
The Company	All companies in the consolidated financial statements	The Company	All companies in the consolidated financial statements
7.95%	8.21%	8.71%	9.60%

Note: The Company's net income after tax for 2024 and 2025 were NTD 201,666 thousand and NTD 60,958 thousand, respectively.

The remuneration policy, standards and components, the procedure for determining remuneration and the correlation with operating performance and future risks:

(1) Directors: The Board of Directors is authorized to determine the remuneration of the Chairperson and directors based on the extent of their involvement in the Company's operations and the value of their contributions, with reference to common industry standards.

(2) General Manager and Deputy General Manager: The remuneration of the General Manager and Deputy General Manager includes salary, bonuses, and employee compensation. Salaries and bonuses are determined based on their positions, responsibilities, and contributions to the Company, with reference to industry standards. The distribution of employee compensation is in accordance with the Company's Articles of Incorporation and is subject to approval by the Board of Directors.

(3) Association with business performance and future risks: The remuneration of directors, the General Manager, and Deputy General Managers is determined with comprehensive consideration of the Company's operational performance, potential future industry fluctuations, and various risks the Company may face, including operational, transactional, and financial risks.

III. Operations of Corporate Governance:

(I) Information on the operations of the Board of Directors:

The Board of Directors held 7 meetings in 2024. The attendance of directors is as follows:

Title	Name		Attendance in person (times)	Number of attendances by proxy	Attendance Rate (%)	Remarks
Chairman	Pi-Shuang Chen		7	0	100%
Director	Kuo-Yuan Tai		7	0	100%
Director	Ming-Yuan Cheng		7	0	100%
Director	Wen-Yan Chang		4	0	100%	Note 1
Director	Chang Syuan Investment Co.,Ltd. Representative:	Hung-Ru Lin (Retired)	3	0	100%	Note 2
		Hsu-Chi Wang	3	1	75%
Independent Director	Yung-Chih Lien		7	0	100%
Independent Director	Shien-Kuei Liaw		4	0	100%	Note 1
Independent Director	Yi-Yun Chen		4	0	100%	Note 1
Independent Director	Ching-Sung Wu		4	0	100%	Note 1
Director (Retired)	Chin-Ming Huang		3	0	100%	Note 3
Independent Director (Retired)	Jaw-Chyuan Chu		3	0	100%	Note 3
Independent Director (Retired)	Tsang-Sheau Lee		3	0	100%	Note 3
Independent Director (Retired)	Jiu-Ming Lin		3	0	100%	Note 3
Note 1: Director Wen-Yan Chang and Independent Directors Shien-Kuei Liaw, Yi-Yun Chen, and Ching-Sung Wu were elected at the Company’s Annual General Meeting held on June 12, 2025.
Note 2: Chang Syuan Investment Co., Ltd. was re-elected as a director at the Company’s Annual General Meeting held on June 12, 2025. On the same day, Hsu-Chi Wang was appointed as the representative to exercise the duties of the director, while the former representative, Hung-Ru Lin, stepped down on the same day.
Note 3: Former Director Chin-Ming Huang and former Independent Directors Jaw-Chyuan Chu, Tsang-Sheau Lee, and Jiu-Ming Lin stepped down upon the expiration of their terms following the election of new directors at the Company’s Annual General Meeting held on June 12, 2025.
Other matters to be recorded:
I. If the operation of the Board of Directors falls into one of the circumstances, the date and duration of the meeting, details of proposals, the opinions of all independent directors and how the Company deals with such opinions.
(I) Matters listed in Article 14-3 of the Securities and Exchange Act:
The Company has established the Audit Committee, and Article 14-3 of the Securities and Exchange Act is not applicable. For the description of the matters listed in Article 14-5 of the Securities and Exchange Act, please refer to the operation of the Audit Committee.

(II) Other than the aforementioned matters, any other objections or qualified opinions from independent directors that are recorded or declared in writing: None.

II. For the recusal of a director from a proposal because of a conflict of interest, the name of the director, the content of the proposal, the reason for recusal, and the participation in voting should be stated:

Term of Board of Directors	Date	Name of director	Motion content	Reasons for recusal	Participation in voting
1st meeting of the 13th term	2025.08.06	Pi-Hsiang Chen Kuo-Yuan Tai Ming-Yuan Cheng Wen-Yan Chang Chang Hsuan Investment Co., Ltd. (Representative: Hung-Ru Lin)	Allocation of 2024 directors' remuneration.	There is a conflict of interest with the directors	The remuneration to directors of this case is reviewed separately, and the remuneration to directors is approved by the directors who do not involve themselves in the discussion.
1st meeting of the 13th term	2025.08.06	Pi-Hsiang Chen Kuo-Yuan Tai Wen-Yan Chang	Allocation of 2024 employee remuneration for managers.	There is a conflict of interest with the directors	The motion was passed without objection by the other directors present.
3rd meeting of the 13th term	2025.12.29	Pi-Hsiang Chen Kuo-Yuan Tai Wen-Yan Chang	Proposal of the distribution of managers' bonus.	There is a conflict of interest with the directors	The motion was passed without objection by the other directors' present.

III. Listed companies should disclose information on the periodicity and duration, scope, method and content of the self-evaluation (or peer evaluation) by the board of directors, and fill out Exhibit 2(2) on the implementation of the board evaluation:

Evaluation frequency	Evaluation period	Evaluation scope	Evaluation method	Evaluation content
Once a year	From January 1, 2025 to December 31, 2025	Board of Directors, individual directors, and functional committees	Board of Directors' internal self-assessment, directors' self-assessment	(1) Evaluation of the performance of the board of directors: the participation in the Company's operations, improvement of the quality of board decisions, the composition and structure of the board of directors, the selection and continuing education of directors, and internal control, etc. (2) Performance evaluation of individual board members: the alignment of the Company's objectives and tasks, the directors' awareness of their duties and responsibilities, their participation in the Company's operations, internal relationship management and communication, the directors' professionalism and continuing education, and internal control. (3) Performance evaluation of functional committees: participation in company operations, awareness of functional committee responsibilities, quality improvement of functional committee decisions, composition and selection of functional committee members, internal control, etc.

The average self-assessment scores for the performance of the Board of Directors, individual directors, and functional committees for Fiscal Year 2025 were 4.97, 4.95, and 4.96, respectively.

The results of the Company's 2025 Board of Directors performance evaluation fell between 5 points ("Strongly Agree") and 4 points ("Agree"). Directors largely "Strongly Agreed" with the operation of each evaluation indicator, and the evaluation concluded that the overall operation of the Board of Directors and its functional committees was sound and consistent with the Board's functions. IV. Evaluation of the current and most recent year's objectives for enhancing the functions of the Board of Directors (e.g., establishing an audit committee, enhancing information transparency, etc.) and their implementation.

IV. Evaluation of the current and most recent year's objectives for enhancing the functions of the Board of Directors (e.g., establishing an audit committee, enhancing information transparency, etc.) and their implementation.

(I) Strengthen the functionality of the Board of Directors: implement corporate governance, the Board of Directors' operating system, strengthen the structure of the Board of Directors, improve the functionality of the Board of Directors and enhance information transparency.

(II) Implementation evaluation:

The Company has established the "Rules of Procedure for Board of Directors Meetings" and "Regulations Governing the Election of Directors and Independent Directors" for compliance, and has also implemented the procedures in accordance with relevant laws and regulations and the instructions of the competent authorities.

(II) The operation of the Audit Committee:

The Company's Audit Committee is mainly responsible for the following:

(1) The fair presentation of the Company's financial statements.
(2) Selection (relief) of CPAs and their independence and performance.
(3) Effective implementation of the Company's internal control.
(4) The Company complies with relevant laws and regulations.
(5) Management and control of the Company's existing or potential risks.

The Company's Audit Committee is responsible for the following matters:

(1) Establish or amend the internal control system in accordance with Article 14-1 of the Securities and Exchange Act.
(2) Evaluation of the effectiveness of the internal control system.
(3) Adoption or amendment, pursuant to Article 36-1 of the Securities and Exchange Act, of handling procedures for financial or operational actions of material significance, such as acquisition or disposal of assets, derivatives trading, extension of monetary loans to others, and endorsements or guarantees for others.
(4) Matters involving the interests of directors themselves.
(5) Major asset or derivative transactions.
(6) Material loans, endorsements, or guarantees.
(7) The offering, issuance, or private placement of any equity-type securities.
(8) The appointment, dismissal or remuneration of CPAs.
(9) The appointment or dismissal of a financial, accounting, or internal auditing officer.
(10) Annual financial reports signed or sealed by the Chairperson, managers and the head of accounting, and Q2 financial reports certified by CPAs.
(11) Other important matters regulated by the Company or the competent authority.

The Audit Committee held 6 meetings in 2025, and the attendance of independent directors is as follows:

Title	Name	Number of attendances in person	Number of attendances by proxy	Percentage of attendance in person (%)	Remarks
Independent Director	Yung-Chih Lien	6	0	100%
Independent Director	Shien-Kuei Liaw	3	0	100%	Note 1
Independent Director	Yi-Yun Chen	3	0	100%
Independent Director	Ching-Sung Wu	3	0	100%
Independent Director	Jaw-Chyuan Chu	3	0	100%	(Retired) Note 2
Independent Director	Tsang-Sheau Lee	3	0	100%
Independent Director	Jiu-Ming Lin	3	0	100%
Note 1: Independent Directors Shien-Kuei Liaw, Yi-Yun Chen, and Ching-Sung Wu were elected at the Company's Annual General Meeting held on June 12, 2025.

Note 2: Former independent directors Jaw-Chyuan Chu, Tsang-Sheau Lee, Jiu-Ming Lin stepped down upon the expiration of their terms following the election of new directors at the Company's Annual General Meeting held on June 12, 2025.

Other matters to be recorded:

I. For operation of the Audit Committee under the following circumstances, meeting date of the Audit Committee, period, proposal content, independent directors' objections or contents of major proposals, resolution results of the Audit Committee and responses to the opinions of the Audit Committee shall be clearly indicated.

(I) Matters specified in Article 14-5 of the Securities and Exchange Act.

Date of Audit Committee Meeting	Term	Motion content	Objections, Reservations, or Major Suggestions from Independent Directors	Audit Committee's Resolution	Company's Response to the Audit Committee's Opinions
2025.02.19	16th meeting of the 2nd term	Amendment to the Company's “Audit Committee Bylaws.”	No opinion	No opinion	Approved as proposed
2025.03.05	17th meeting of the 2nd term	1. The Company's 2024 financial statements and consolidated financial statements.
2. The Company's 2024 earnings distribution proposal.
3. The Company's 2024 earnings distribution cash dividend proposal.
4. Assessment of the replacement of CPA and the independence of the CPA for the Company's financial statements.
5. Resolution on the 2024 “the Internal Control System Statement.	No opinion	No opinion	Approved as proposed
2025.04.28	18th meeting of the 2nd term	1. The Company's consolidated financial statements for 2025 Q1.
2. Amend to the Company's Internal Control System Documentation.	No opinion	No opinion	Approved as proposed
2025.08.06	1st meeting of the 3th term	1. The Company's consolidated financial statements for 2025 Q2.
2. A request for ratification is hereby submitted regarding the guarantee provided by the Company on behalf of its subsidiary,ASTER Technology Co., Ltd., in connection with its application for a credit from Hua Nan Bank.
3. Amend to the Company's Internal	No opinion	No opinion	Approved as proposed

		Control System Documentation.
2025.11.05	2nd meeting of the 3th term	1. The Company's consolidated financial statements for 2025 Q3.
2. The Company's 2026 audit plan.
3. Amend to the Company’s Internal Control System Documentation.
4. The Company intends to participate in a cash capital increase by its subsidiary, ASTER Technology Co., Ltd.	No opinion	No opinion	Approved as proposed
2025.12.29	3th meeting of the 3th term	1. Loaning of funds for 2026 by the Company's subsidiaries.
2. Amend to the Company’s Internal Control System Documentation.	No opinion	No opinion	Approved as proposed

(II) Except for the abovementioned matters, others which have not been passed by the Audit Committee but have been approved by more than two-thirds of all directors: No such situation.

II. For avoidance of conflict of interest by independent directors, the name of independent directors, details of proposals, reasons for avoidance and voting results shall be stated: None.

III. The status of communication between independent directors and internal auditing officers and CPAs: (Should include the material matters, methods and results of communication on the Company’s financial and business status, etc.):

(I) The Company has independent directors and an Audit Committee composed of independent directors. The audit officer reports the implementation of the audit plan to the independent directors for review. If there are any significant audit matters, they can be communicated by email or telephone. The overall communication is good.

(II) The communication between the independent directors and the internal audit officers is as follows:

Date and session of the Audit Committee Meeting	Communication matters	Communication results
2025.02.19
16th meeting of the 2nd term	Audit Business Report	The Audit Committee members have consulted with each other and reported to the Board of Directors.
2025.03.05
17th meeting of the 2nd term	Audit Business Report	The Audit Committee members have consulted with each other and reported to the Board of Directors.
	“Statement on Internal Control System” for 2024.	The proposal was approved by all members of the Audit Committee and submitted to the Board of Directors for resolution.
2025.04.28
18th meeting of the 2nd term	Audit Business Report	The Audit Committee members have consulted with each other and reported to the Board of Directors.
2025.08.06
1st meeting of the 3th term	Audit Business Report	The Audit Committee members have consulted with each other and reported to the Board of Directors.

| 2025.11.05
2nd meeting of the 3th term | Audit Business Report | The Audit Committee members have consulted with each other and reported to the Board of Directors. |
| --- | --- | --- |
| | 2026 Audit Plan of the Company. | The proposal was approved by all members of the Audit Committee and submitted to the Board of Directors for resolution. |

(III)The independent directors and the CPAs communicate at least once a year through the Audit Committee or the Board of Directors. The CPAs report to the independent directors on the audit results of the financial statements and other legal requirements. The Audit Committee also reviews the selection, independence and suitability of the CPAs.

The communication between the independent directors and the CPAs is as follows:

Date and session of the Audit Committee Meeting	Communication matters	Communication results
2025.03.05
17th meeting of the 2nd term	2024 Financial Statement Audit Results	The proposal was approved by all members of the Audit Committee and submitted to the Board of Directors for resolution.

(III) Corporate Governance – Implementation Status and Deviations from the Corporate Social Responsibility Best-Practice Principles for TWSE/GTSM Listed Companies and the Reasons:

Evaluation items	Implementation Status			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEX Listed Companies and the reasons therefor.
	Yes	No	Summary
I. Has the Company formulated and disclosed its corporate governance practice best principles in accordance with the “Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies”?	V		The Company has formulated and disclosed its Corporate Governance Best Practice Principles in accordance with the “Corporate Governance Best Practice Principles for TWSE/TPEX Listed Companies.” The Company’s current practices align with the core principles of corporate governance, and there are no significant discrepancies between its operations and the established Best Practice Principles.	No significant difference.
II. Shareholding Structure of the Company and Shareholders’ equity
(I) Does the Company have internal operating procedures for handling shareholders’ suggestions, concerns, disputes and litigation matters. If yes, have these procedures been implemented accordingly?
(II) Does the Company possess a list of major shareholders and beneficial owners of these major shareholders?
(III) Has the Company built and executed a risk management system and “firewall” between the Company and its affiliates?
(IV) Has the Company established internal rules prohibiting insider trading on undisclosed information?	V		(I) The Company’s "Shareholder Service Management" is implemented, and the Company has appointed a professional shareholder service agency to handle related operations. The Company has also set up a spokesperson and deputy spokesperson to handle shareholders’ suggestions or disputes and other issues.
(II) The roster of shareholders provided by the stock affairs agency is used for control.
(III) The Company has established relevant management regulations with its subsidiaries.
(IV) The Company has established the "Procedure for Prevention of Insider Trading".	No significant difference.
III. Composition and responsibilities of the Board of Directors
(I) Does the board of directors have a diversity policy formulated and implemented?
(II) In addition to the Remuneration Committee and the Audit Committee established in accordance with law, has the Company voluntarily set up other functional committees?
(III) Has the Company established its Board Performance Appraisal Measures and the evaluation methods, conducted the performance appraisal regularly every year and provided the results to the board as the reference for directors’ remuneration and nomination and renewal?
(IV) Has the Company regularly evaluated the independence of CPAs?	V		(I) When setting the composition of the Board of Directors, the Company considers board diversity from multiple perspectives. All appointments are made based on the principle of selecting the most suitable candidates.
(II) The Company has established the Remuneration Committee and the Audit Committee but has not yet set up any other functional committees.
(III) On December 16, 2020, the Company’s Board of Directors approved the Board Performance Evaluation Measures and the relevant assessment methods, stipulating that the performance evaluations of the Board, its members, and functional committees shall be conducted at least once annually.
(IV) The Company conducts an annual assessment of the independence and suitability of its certifying CPAs, verifying whether they are shareholders of the Company or receive compensation from the Company, confirming they are not stakeholders, and checking for any involvement in litigation. The Company also obtains the CPAs’ Declaration of Independence and Audit Quality Indicators (AQIs). Please refer to Attachment 1 for the evaluation items.	No significant difference.
IV. Have the TWSE/GTSM listed companies had an appropriate number of competent corporate governance personnel and appointed corporate governance executives to take charge of the affairs related to corporate governance (including but not limited to providing the directors and supervisors with materials necessary for business execution; assisting the directors and supervisors in abiding by laws and regulations, lawfully handling matters regarding matters of the Board of Directors and the shareholders’ meetings)?	V		The Company has appointed a corporate governance officer to be in charge of corporate governance affairs (provision of information required for directors to perform their duties, handling matters related to Board of Directors and shareholders’ meetings, handling company registration changes, and preparing minutes of Board of Directors and shareholders’ meetings).	No significant difference.

Evaluation items	Implementation Status			The differences from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor.
	Yes	No	Summary
V. Has the Company created channels for communicating with the stakeholders (including but not limited to the shareholders, employees, customers and suppliers), set a special zone for the stakeholders on its website, and appropriately responded to important issues on corporate social responsibilities which arouse the stakeholders' concern?	V		The Company has set up a stakeholder section and appointed a spokesperson and deputy spokespersons as means of communication with investors.	No significant difference.
VI. Has the Company appointed a professional stock affairs agency to handle matters for shareholder meetings?	V		The Company has appointed the Stock Affairs Department of Fubon Securities Co., Ltd. as the stock affairs agency of the Company to assist the Company in various stock affairs.	No significant difference.
VII. Information Disclosure(I) Has the Company established a public website to disclose operational, financial, and corporate governance information?	V		(I) The Company has set up a website and updates financial and business and corporate governance information regularly.	No significant difference.
(II) Has the Company adopted other means of information disclosure (such as setting up an English website, appointing dedicated personnel responsible for the collection and disclosure of Company information, implementing a spokesperson system, posting the Company's earnings calls on its website, etc.)?	V		(II) The Company's website is in both Chinese and English, and the information is announced to the public through the Company's spokesperson system.	No significant difference.
(III) Has the Company published and reported its annual financial report within two months after the end of a fiscal year, and published and reported its financial reports for the first, second and third quarters as well as its operating status for each month before the specified deadline.	V		(III) The Company makes public announcements and reports its annual financial reports and monthly operating status reports as required by regulations.	No significant difference.
VIII. Does the Company have other important information that is helpful to understand its implementation of corporate governance (including but not limited to employee rights, employee care, investor relations, supplier relations, stakeholder rights, continuing education of directors and supervisors, Implementation of risk management policies and risk measurement standards, implementation of customer policies, the Company's purchase of liability insurance for directors and supervisors, etc.)?	V		The Company's directors select suitable workshops based on their personal time arrangement and professional backgrounds, and the Board of Directors carefully reviews each proposal, to ensure that it may not affect the Company's operational risks.The Company has purchased liability insurance for its directors.	No significant difference.
IX. Please describe the improvements that have been made in response to the corporate governance evaluation results issued by the Corporate Governance Center of the Taiwan Stock Exchange in the most recent year, and propose priorities and measures for those not yet improved: The Company has enhanced the disclosure of the Company's website and annual report, and increased the transparency of the Company's information to implement the spirit of the Corporate Governance Best Practice Principles.

Table 1: Assessment Chart for the Independence of CPAs

Item No.	Evaluation items	Whether the transaction meets the criteria of independence
1	There is no significant financial interest with the client.	Yes
2	There is no inappropriate relationship with the client.	Yes
3	The CPAs shall instruct their assistants to maintain honesty, justice and independence.	Yes
4	The financial statements of the service organization in the two years before the execution date shall not be audited and certified.	Yes
5	The name of the CPAs shall not be used by others.	Yes
6	No share of the principal is allowed.	Yes
7	No loaning of funds with the client is permitted, except for the normal transactions with the financial industry.	Yes
8	No joint investment or sharing of profits with the client is permitted.	Yes
9	Employees must not perform the duties of custodians and receive fixed salaries.	Yes
10	The Company shall not engage in the management function of the decision-making of the proxy form.	Yes
11	It is prohibited to engage in other business activities that may lose their independence.	Yes
12	No certificate shall be issued to anyone who is a spouse, direct kin, or relative within the fourth degree of kinship of another person who is a proxy or the management of that other person.	Yes
13	No commission related to business may be received.	Yes

Appendix II: Continuing Education Status of Directors and Managers for the fiscal year 2014 and up to the date of publication of the annual report :

job title	Name	Study Dates		Organizer	Course Name	Continuing education hours	Total study hours for the year	Remark
		rise	until
director	Pi-Shuang Chen	2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Legal Liabilities and Precautions for Insider Equity Transactions	3.0	6.0	none
		2025/07/31	2025/07/31	Taiwan Stock Exchange	2023 Taiwan Capital Market Development Summit	3.0
director	Kuo-Yuan Tai	2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Legal Liabilities and Precautions for Insider Equity Transactions	3.0	6.0	none
		2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Business Integrity Management and Fraud Prevention Practices	3.0

director	Ming-Yuan Cheng	2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Business Integrity Management and Fraud Prevention Practices	3.0	6.0	none
		2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Legal Liabilities and Precautions for Insider Equity Transactions	3.0
director	Wen-Yan Chang	2025/06/12	2025/06/12	Republic of China Securities and Futures Market Development Foundation	Legal Liabilities and Precautions for Insider Equity Transactions	3.0	6.0	none
		2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Business Integrity Management and Fraud Prevention Practices	3.0
Legal representative of directors	Hsu-Chi Wang	2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Legal Liabilities and Precautions for Insider Equity Transactions	3.0	9.0	none
		2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Business Integrity Management and Fraud Prevention Practices	3.0
		2025/10/16	2025/10/16	Financial Supervisory Commission	The 15th Taipei Corporate Governance Forum	3.0
job title	Name	Study Dates		Organizer	Course Name	Continuing education hours	Total study hours for the year	Remark
---	---	---	---	---	---	---	---	---
		rise	until
Independent Directors	Yung-Chih Lien	2025/10/16	2025/10/16	Financial Supervisory Commission	The 15th Taipei Corporate Governance Forum	3.0	6.0	none
		2025/11/06	2025/11/06	Chinese Corporate Governance Association	Financial security at the forefront of change: Risk governance thinking driven by trends	3.0
		2025/06/17	2025/06/17	Chinese Independent Directors Association	Corporate Governance and Securities Trading Regulations	3.0

Independent Directors	Shien-Kuei Liaw	2025/12/16	2025/12/16	Chinese Corporate Governance Association	Driving Change and Sustainability: Insights into the New Landscape of Corporate Risk Governance from Global Trends	3.0	6.0	none
		2025/11/04	2025/11/04	Taiwan Academy of Banking and Finance Foundation	Corporate Governance Lecture - Analysis of Important Practical Judgments in Corporate Governance	3.0
Independent Directors	Yi-Yun Chen	2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Legal Liabilities and Precautions for Insider Equity Transactions	3.0	9.0	none
		2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Business Integrity Management and Fraud Prevention Practices	3.0
		2025/10/23	2025/10/23	Association for the Management and Sustainable Development of Companies in the Republic of China	AI + ESG: A Must-Take Course for Enterprise Innovation and Sustainable Transformation	3.0
Independent Directors	Ching-Sung Wu	2025/11/18	2025/11/18	Chinese Corporate Governance Association	Sustainability Trends and Review of Sustainability Reports (Essential Knowledge for Directors)	3.0	9.0	none
		2025/11/18	2025/11/18	Chinese Corporate Governance Association	Trends and Risk Management of Digital Technology and Artificial Intelligence	3.0
		2025/10/31	2025/10/31	Republic of China Securities and Futures Market Development Foundation	114th Annual Insider Equity Transaction Legal Compliance Briefing	3.0

job title	Name	Study Dates		Organizer	Course Name	Continuing education hours	Remark
		rise	until
Accounting manager	Mei-Pei Tsai	2025/11/10	2025/11/1 1	Accounting Research and Development Foundation of the Republic of China	Professional training courses for accounting supervisors of issuers, securities firms, and securities exchanges.	12	none
Corporate Governance Manager	Chang-Ti Chen	2025/10/02	2025/10/02	Republic of China Securities and Futures Market Development Foundation	Series of Courses for Directors, Supervisors and Corporate Governance Executives - Corporate Governance Assessment Transformation and ESG Assessment Response Strategies	3.0	none
		2025/10/21	2025/10/21	Republic of China Securities and Futures Market Development Foundation	Series of Courses for Directors, Supervisors and Corporate Governance Executives - AI Development, Application and New Legal Issues	3.0
		2025/10/23	2025/10/23	Internal Audit Association of the Republic of China	Legal Liability Analysis of Greenwashing and False Sustainability Reports	6.0
		2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Business Integrity Management and Fraud Prevention Practices	3.0
		2025/11/28	2025/11/28	Republic of China Securities and Futures Market Development Foundation	Legal Liabilities and Precautions for Insider Equity Transactions	3.0

(IV) The Company's establishment of the Remuneration Committee:

Information on members of the Compensation Committee:

April 14, 2025

| Identity
(Note 1) | Name | Professional qualifications and experience
(Note 2) | Independence (Note 3) | Number of other public companies in which the individual is concurrently serving as a remuneration committee member |
| --- | --- | --- | --- | --- |
| Retired Independent Director | Tsang-Sheau Lee | Please refer to the information on directors on pages 2 to 4 of this annual report. | (1) The person, spouse, second degree relatives or closer does not serve as a director, supervisor, or employee of the Company or its affiliated companies.
(2) The person (or in the name of others), spouse, minor children do not hold the Company's shares.
(3) Not a director, supervisor, or employee of a corporate shareholder who directly holds five percent or more of the total number of issued shares of the company, or a director, supervisor, or employee of a corporate shareholder who ranks among the top five in shareholdings.
(4) Not a director, supervisor, manager, or shareholder holding more than 5% of the shares of a specific company or institution that has financial or business dealings with the Company.
(5) Not a professional, business owner, partner, director, supervisor, or manager of a sole proprietorship, partnership, company, or institution that provides commercial, legal, financial, accounting services or consultation to the company or any affiliate of the company, or a spouse thereof.
(6) The amount of remuneration received by providing the Company or its affiliates with business, legal, financial, accounting and No remuneration received from providing the Company or its affiliates with business, legal, financial, accounting and other services in the last 2 years: None.
(7) Not a person with any of the circumstances under Article 30 of the Company Act. | 1 |
| Retired Independent Director | Jaw-Chyuan Chu | | | 0 |
| Retired Independent Director | Jiu-Ming Lin | | | 0 |
| Incumbent Independent Director (Convener) | Yi-Yun Chen | | | 0 |
| Incumbent Independent Director | Yung-Chih Lien | | | 3 |
| Incumbent Independent Director | Shien-Kuei Liaw | | 0 | |
| Incumbent Independent Director | Ching-Sung Wu | | 2 | |

Note 1: Please clearly indicate seniority, professional qualification, experience and independence of the members of the Remuneration Committee in the table. If the person is an independent director, please specify the relevant information in Table 1 (I) of the appendix. The independent directors or others who are conveners shall fill in this position column.

Note 2: Professional qualifications and experience: Describe the professional qualifications and experience of individual Remuneration Committee members.

Note 3: Independence criteria: The independence criteria of the members of the Remuneration Committee shall include but not limited to whether the member himself/herself or his/her spouse or relative within the second degree of kinship serves as a director, supervisor or employee of the Company or its affiliates; number and percentage of shares held by spouse, relatives within the second degree of kinship (or in the name of a third party); whether or not the shareholder is a shareholder in a company that has a specific relationship with the Company (see Any director, supervisor, or employee of any of the titles listed in Article 6, Paragraph 1, Subparagraphs 5 to 8); and the amount of remuneration for having provided the Company or its affiliates with commercial, legal, financial, accounting services, etc., in the last 2 years.

Note 4: On June 12, 2025, Yi-Yun Chen, Yung-Chih Lien, Shien-Kuei Liaw, and Ching-Sung Wu were appointed as members of the Fifth Committee, and Yi-Yun Chen was elected by the members as the convener of the Fifth Committee. Meanwhile, Tsang-Sheau Lee, Jaw-Chyuan Chu, and Jiu-Ming Lin, who served on the Fourth Committee, stepped down on the same day.

2. Information on the operations of the Remuneration Committee:

(1) The Remuneration Committee of the Company: The fourth term consisted of 3 members; the fifth term consisted of 4 members.
(2) The term of office of the fourth: June 29, 2022 to June 12, 2025

The fourth Remuneration Committee held 1 meetings in 2025

The term of office of the fifth: June 12, 2025 to June 12, 2028.

The fifth Remuneration Committee held 3 meetings in 2025

The Remuneration Committee held 3 meetings in 2025 (A). The attendance of members is as follows:

Title	Name	Number of attendances in person (B)	Number of attendances by proxy	Percentage of attendance in person (%) (B/A) (Note)	Remarks
Convener (The fourth)	Tsang-Sheau Lee	1	-	100%	On June 12,2025, Yi-Yun Chen, Yung-Chih Lien, Shien-Kuei Liaw, Ching-Sung Wu were appointed as members of the Fifth Committee, and Yi-Yun Chen was elected by the members as the convener of the Fifth Committee. Meanwhile, Tsang-Sheau Lee, Jaw-Chyuan Chu, and Jiu-Ming Lin g, who served on the Fourth Committee, stepped down on the same day.
Committee Member	Jaw-Chyuan Chu	1	-	100%
Committee Member	Jiu-Ming Lin	1	-	100%
Convener (The fifth)	Yi-Yun Chen	2	-	100%
Committee Member	Yung-Chih Lien	2	-	100%
Committee Member	Shien-Kuei Liaw	2	-	100%
Committee Member	Ching-Sung Wu	2	-	100%
Other matters to be recorded: I. If the Board of Directors does not adopt or amend the recommendations of the Remuneration Committee, it should state the date, period, proposal content, resolution of the board, and its handling of the committee's opinions (if the remuneration approved by the board is better than the recommendation proposed by the committee, the difference and reasons should be stated): None. II. For the proposals by the Remuneration Committee. If any members have objections or reservations with records or written statements, the date, period, proposal content, the opinions of all members, its handling of the members' opinions should be stated:
Date of the Remuneration Committee Meeting	Term	Motion content	Remuneration Committee's opposing opinions, reservations or major suggestions	Remuneration Committee's resolution	The Company's handling of the Remuneration Committee's opinions
---	---	---	---	---	---
2025.03.06	11th meeting of the 4th term	1. The Company's 2024 remuneration distribution to employees and directors. 2. Proposal for a salary adjustment for the company's managers.	No opinion	No opinion	Approved as proposed
2025.08.06	1th meeting of the 5th term	1. Allocation of 2024 directors' remuneration. 2. Allocation of 2024 managers' remuneration.	No opinion	No opinion	Approved as proposed
2025.12.29	2nd meeting of the 5th term	1. Proposal of distributing the 2024 year-end bonus to managerial officers. 2. Proposal for a salary adjustment for the Chief Operating Officer	No opinion	No opinion	Approved as proposed

(V) Promotion of Sustainable Development – Implementation Status and Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and the Reasons:

Promotion item	Implementation			Deviation and causes of deviation from Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies
	Yes	No	Summary
I. Does the Company build the governance structure for promoting sustainable development and set full-time (part-time) positions for promoting sustainable development? Does the Board of Directors authorize the senior management to handle related matters and does the Board of Directors supervise the circumstances?	V		For the sound management of sustainable development, the Company has established the Sustainable Development Task Force chaired by the Chief Operating Officer, who convenes members from various departments to participate, and be in charge of proposing and implementing the policies, systems or related management guidelines and concrete promotion plans for sustainable development. If there is any major event, it will be submitted to the Board of Directors for resolution. The Board of Directors will review the promotion of the Company's sustainable development at any time and will propose to urge and improve when necessary.	No significant difference.
II. Does the company conduct risk assessments of ESG issues related to the company’s operations in accordance with the materiality principle, and formulate relevant risk management policies or strategies?		V	The Company has conducted a stakeholder survey in accordance with the materiality principle to preliminarily identify environmental, social, and corporate governance issues relevant to its operations, which will serve as a reference for subsequent risk assessments and management measures. However, as of the date of publication of this annual report, a formal ESG risk management policy or strategy has yet to be finalized.	The company has not yet formalized a formal ESG risk management policy or strategy. The Sustainability Task Force will compile a list of material issues, risk levels, mitigation measures, and responsible departments, and gradually integrate these into the overall risk management framework.
III. Environmental Issues
(I) Has the Company set up an appropriate environmental management system based on the characteristics of its industry?	V		The Company has established a suitable environmental management system based on industry characteristics and operational needs, and has obtained ISO 14001 (latest valid period: 2024.01.22 – 2027.01.05) and ISO 9001 (latest valid period: 2024.01.22 – 2027.01.05) certifications.	No significant difference.
(II) Does the Company endeavor to use energy more efficiently and to use renewable materials with low environmental impact?	V		The Company complies with domestic environmental protection regulations and and adheres to international green product standards. We continue to implement measures such as energy conservation in offices and computer rooms, water conservation, and waste sorting and recycling management. In the future, based on the results of our greenhouse gas inventory, we will gradually evaluate options for renewable energy, low-carbon materials, and energy-saving improvements in manufacturing processes.	No significant difference. ; The quantitative results of the adoption of renewable energy and low-carbon materials will be disclosed in greater detail in subsequent years.
(III) Has the Company evaluated the potential risks and opportunities posed by climate change for its business now and in the future and adopted relevant measures to address them?	V		The Company has conducted a preliminary identification of climate-related transition risks and physical risks in accordance with the TCFD framework, including carbon fees and carbon pricing, customer supply chain carbon disclosure requirements, demand for low-carbon materials, and extreme weather events such as typhoons, torrential rains, floods, and heatwaves. Based on the results of the 2025 greenhouse gas inventory, the Company has planned	No significant difference; ; Scenario analysis, quantification of financial impacts, and a comprehensive transformation plan will be

			the following mitigation measures: adjusting the ratio of sea and air freight, improving energy efficiency, collecting carbon footprint data from suppliers, and evaluating the adoption of renewable energy.	progressively enhanced based on data maturity and regulatory requirements.
(IV) Does the Company make statistics on greenhouse gas emissions, water consumption, and total waste weight in the past two years, and formulate policies for greenhouse gas reduction, water reduction, or other waste management?		V	In 2025, the Company conducted its first greenhouse gas inventory in accordance with ISO 14064-1:2018, covering the Wugu plant of Twoway.The Company is expected to disclose the 2025 Sustainability Report by the end of August 2026, including greenhouse gas emissions, water consumption and total weight of waste. The office and the factory area have implemented energy saving and carbon reduction, water reduction, waste recycling, and classification management, and have been in operation for a long time.	Complete statistics and disclosures for the past two fiscal years have not yet been finalized; the company will use the 2025 fiscal year as its internal management benchmark, continue to accumulate comparable data in subsequent years, and gradually refine its reduction, water conservation, and waste management targets.
IV. Social Issues
(I) Has the company formulated relevant management policies and procedures in accordance with relevant laws and regulations as well as the International Bill of Human Rights?	V		The Company has established work rules and related personnel management regulations in accordance with the relevant laws and regulations of the Labor Standards Act and international human rights conventions, covering prohibitions against child labor, gender equality, work rights and any other illegal discrimination, and other protection of human rights.	No significant difference.
(II) Whether the Company has formulated and implemented reasonable employee welfare measures (including remuneration, vacation and other benefits, etc.), and appropriately reflects operating performance or results in employee remuneration?	V		The Company has established work rules and personnel management regulations, which cover basic wages, working hours, vacations, pension payments, labor health insurance payments, and occupational hazard compensation for workers. All of the above comply with relevant regulations of the Labor Standards Act. The Company has also stipulated in its Articles of Incorporation that no less than 3% of the remaining profits, if any, should be appropriated as remuneration to employees. The Employee Welfare Committee has been established to handle various welfare matters. The Company's remuneration policy is based on individual capabilities, contribution to the Company, performance, and appropriately reflects operating performance and results in employee remuneration.	No significant difference.
(III) Does the Company provide employees with a safe and healthy working environment, and related education?	V		The Company provides employees with a safe and worry-free workplace. The Company duly observes applicable laws and regulations, and has established the " Occupational Safety and Health Act" and "Fire Safety Management Regulations" and work codes to prevent occupational hazards. In addition, the Company also organizes safety and health education for employees from time to time, and organizes health examination for employees regularly.	No significant difference.
(IV) Has the Company established an effective career development training program for employees?	V		Based on the needs of the department and the needs of the employees, the Company arranges internal and external training programs to update and improve the knowledge and skills of the employees, and establish effective career capacity development training for the employees.	No significant difference.
(V) Does the Company comply with relevant laws and regulations and international standards regarding customer health and safety, customer privacy, marketing and labeling of products and services,	V		The Company follows applicable laws and international standards for the marketing and labeling of products and services. For products sold, the Company issues a self-declaration based on customer needs, including compliance with RoHS environmental protection regulations. The Company also abides by	No significant difference.

and establish relevant policies and complaint procedures to protect consumers’ or customers’ rights and interests?			confidentiality agreements and personal data protection laws, and has a customer service unit to protect consumer rights and provide complaint channels.
(VI) Has the Company formulated supplier management policies that require suppliers to follow relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights, and monitor their implementation?	V		The Company has established the “TWOWAY Communications Inc. Supplier Code of Conduct,” requiring suppliers to comply with relevant regulations concerning environmental protection, occupational safety and health, and labor rights. Suppliers’ compliance with this Code is a key factor in the Company’s evaluation of business cooperation. Suppliers who fail to comply with the Code or refuse to cooperate may face termination of their business relationship with the Company.	No significant difference.
V. Has the Company referred to international reporting standards or guidelines in its preparation of sustainability reports and other reports which disclose the Company's non-financial information? Have the aforesaid reports been assured or certified by a third-party verification agency?		V	The Company has prepared a sustainability report in accordance with international standards, and the 2025 Sustainability Report will been disclosed by the end of August 2026. As of the date of publication of this annual report, the 2025 Sustainability Report has not yet been released, and no assurance or assurance opinion has been obtained from a third-party verification body.	As of the date of publication of this annual report, the release of the 2025 Sustainability Report and the acquisition of third-party assurance or certification have not yet been completed; in the future, we will gradually evaluate the implementation of third-party assurance in accordance with regulatory requirements, client requests, and the maturity of our internal data.
VI. If the Company enacts its own Principles for Code of Practice for Sustainable Development according to the “Code of Practice under the Best Practice Principles for Sustainable Development of TWSE/TPEx Listed Companie,” please describe the difference between actual operations and enactment: No difference.
VII. Important Information that helps to understand promotion of sustainable development: The Company actively participated in the related activities of social welfare or environmental protection from time to time, and will continue to enhance our disclosure of environmental, social, and corporate governance information in accordance with our operational characteristics and the needs of our stakeholders.

Implementation status of climate-related information

project	Implementation status
1. It outlines the board of directors' and management's oversight and governance of climate-related risks and opportunities.	The Company uses the Board of Directors as the highest governance body for managing climate-related risks and opportunities. The Sustainability Promotion Team, chaired by the Chief Operating Officer, is responsible for compiling climate-related issues, greenhouse gas inventory results, reduction measures, and cross-departmental implementation status; major climate-related matters are reported to senior management and, when necessary, submitted to the Board of Directors for discussion or decision. When reviewing the Company's operating strategies and major decisions, the Board of Directors will also consider issues such as carbon management, energy use, climate change, and supply chain management.
2. Describe how the identified climate risks and opportunities affect the company's business, strategy, and finances (short-term, medium-term, and long-term).	Based on the TCFD framework and the results of the 2014 greenhouse gas inventory, our company has preliminarily identified the following climate-related risks and opportunities:
• short term: Customer supply chain carbon disclosure requirements, greenhouse gas inventory and annual reporting disclosure requirements, and changes in electricity prices and energy costs may affect customer assessment, reporting costs, and operating expenses.
• Mid-term: Carbon fees, carbon pricing, demand for low-carbon materials, requirements for supplier product carbon footprint data, and adjustments to logistics models may affect raw material procurement costs, delivery time management, and supplier cooperation conditions.
• long: The increasing proportion of renewable energy, the substitution of low-carbon raw materials, investment in energy efficiency, and the need for climate resilience may affect capital expenditure, product

	competitiveness, and long-term supply chain cooperation opportunities. Relevant opportunities include improving energy efficiency, reducing reliance on air freight, adopting low-carbon procurement, and strengthening customer sustainable supply chain partnerships.
3. Explain the financial impact of extreme climate events and transitional actions.	The initial transformation risks identified by the Company include carbon fees and carbon pricing, increased environmental regulations and disclosure requirements, and higher customer requirements for product carbon footprint and supply chain carbon management, which may lead to increased costs for raw materials, logistics, energy management, inventory and verification. Physical risks include extreme weather events such as typhoons, torrential rains, floods, high temperatures and heat waves, which may cause operational disruptions, supply chain instability, transportation delays or reduced equipment efficiency. The company plans to continuously optimize its production lines, adopt energy-saving equipment, improve its natural disaster response and operational continuity management measures, and strengthen supply chain resilience in order to reduce potential financial impact.
4. Explain how the processes for identifying, assessing, and managing climate risks are integrated into the overall risk management system.	Our Sustainable Development Task Force has compiled information on climate change, corporate sustainability, and risk management. Through cross-departmental data collection, greenhouse gas inventory, energy usage data, and supply chain management information, we have preliminarily identified climate risks that may affect our operations. Going forward, in accordance with the company's overall operational policy, we will gradually incorporate climate risk identification, assessment, response measures, responsible units, and tracking mechanisms into our overall risk management system to prevent potential losses and protect the interests of employees, shareholders, partners, and customers.
34

5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analytical factors, and key financial impacts used should be described .	As of the date of this annual report, the Company has not yet used scenario analysis to assess its resilience to climate change risks; therefore, there are no quantitative results regarding scenarios, parameters, assumptions, analytical factors, and key financial impacts. In the future, the Company will assess and implement climate scenario analysis based on regulatory requirements, customer requirements, and the maturity of its internal data.
6. If there is a transition plan to address climate-related risks, describe the details of the plan and the indicators and objectives used to identify and manage entity risks and transition risks.	As of the date of publication of this annual report, the Company has not yet established a complete climate transition plan; however, based on the results of the 2025 greenhouse gas inventory, it has planned measures such as adjusting the proportion of sea and air transport, assessing green electricity certificates, assessing rooftop solar installations, replacing LED lighting, implementing energy monitoring systems, collecting carbon footprint data of supplier products, and substituting low-carbon raw materials.
The management indicators to be tracked include total greenhouse gas emissions, emission intensity, externally purchased electricity usage, air freight and sea freight ratios, availability of carbon footprint data for major suppliers' products, renewable energy usage or credential-based procurement, and the impact of major physical climate events on operations.
7. If internal carbon pricing is used as a planning tool, the basis for price setting should be explained.	Our company has not yet implemented internal carbon pricing , nor has it used internal carbon pricing as a formal planning tool for capital expenditures or operational decisions. In the future, we will assess whether to introduce an internal carbon pricing mechanism based on carbon fees, carbon pricing systems, customer requirements, and internal management needs .
35

| 8. If climate-related targets are set, the activities covered, the scope of greenhouse gas emissions, the planning timeline, and the annual progress should be described. If carbon offsets or renewable energy certificates (RECs) are used to achieve the targets, the source and quantity of the carbon reduction credits offset or the quantity of renewable energy certificates (RECs) should be described. | Our company uses the results of the 2015 inventory check of the Wugu plant, an individual company, as the benchmark for internal emission reduction management. The total emissions for the benchmark year were 9,573.04 tCO_{2e}, covering Category I, Category II, and Category III. The internal emission reduction targets are as follows:
- Short term (115 years): The estimated reduction is 350 to 500 tCO_{2e}, with key measures including adjusting the ratio of sea and air transport and assessing the procurement of green electricity certificates.
- Middle period (116-117 AD): The estimated reduction is 700 to 1,000 tCO_{2e}, with key measures including rooftop solar installations, LED lighting replacements, and the collection of carbon footprint data for supplier products.
- Long term (119 years): The estimated reduction is 1,500 to 2,000 tCO_{2e}, with key measures including increasing the share of renewable energy to over 30%, low-carbon feedstock substitution, and AIoT smart energy management. As of the date of publication of this annual report, the Company has not yet used carbon offsets or renewable energy certificates to offset its emissions for 2014. If the Company subsequently purchases T-RECs or other renewable energy certificates, it will disclose the source, quantity, and corresponding carbon reduction calculation method of the certificates. |
| --- | --- |
| 9. Greenhouse gas inventory and confidence status, reduction targets, strategies and specific action plans (to be filled in separately in 1-1 and 1-2). | See Tables 1-1 and 1-2 below for details. |

1-1 Company's Greenhouse Gas Inventory and Confirmation Status for the Most Recent Two Years

(1) Greenhouse gas inventory information

Specify the greenhouse gas emissions (metric tons of CO2e), concentration (metric tons of CO2e/million yuan) for the most recent two years, and the scope of the data.

Our company conducted its first greenhouse gas inventory in accordance with ISO 14064-1:2018 in fiscal year 2015. The organizational boundaries were determined using the operational control method, and the data coverage area was the Wugu plant of DaYun Optoelectronics. An inventory in compliance with ISO 14064-1:2018 or the GHG Protocol was not completed in fiscal year 2014, therefore no comparable data is available.

year	Inspection Standards/Status	Scope of data	Category 1 direct emissions	Category Two Indirect energy emissions	Category 3 Other indirect emissions	Total emissions (tCO₂e)	Emissions intensity (tCO₂e/million yuan)	Remark
113th year	The inventory check has not yet been completed in accordance with ISO 14064-1:2018.	There is currently no comparable scope of investigation.	Undisclosed	Undisclosed	Undisclosed	Undisclosed	Undisclosed	No comparable data available.
114th year	ISO 14064-1:2018	DaYun Optoelectronics' five-plant area employs an operational control method, with a weighted inventory check of 100%.	139.4226	606.6252	8,826.9926	9,573.0404	9.74	Category 3 is a combination of Category 3 3,810.1087 tCO₂e and Category 4 5,016.8839 tCO₂e in ISO 14064-1:2018; Category 5 and Category 6 are 0.

*According to the 2015 individual financial statements audited and certified by the accountant, the Company’s revenue for 2015 was NT$982.4 million, and the greenhouse gas emission intensity calculated based on that year’s revenue was 9.74 (metric tons CO2e/NT$ million).

114th Anniversary ISO 14064-1:2018 Category Breakdown :

Category Items	Category 1 direct emission sources	Category Two Indirect energy emission sources	Category 3 Indirect emission sources from transportation	Category Four Indirect emission sources from raw materials/services	Category 5 The product uses indirect emission sources	Category Six Other indirect emission sources	total
Emissions equivalent (tCO₂e / year)	139.4226	606.6252	3,810.1087	5,016.8839	0	0	9,573.0404
Percentage (%)	1.4564	6.3368	39.8004	52.4064	0	0	100

(2) Greenhouse gas information

The statement shall describe the confidence status for the two most recent years up to the date of publication of the annual report, including the scope of confidence, the confidence body, the confidence criteria and the confidence opinion.

As of the date of publication of this annual report, the Company has not obtained any third-party assurance or guarantee regarding its greenhouse gas inventory information for the year 2014.

year	Scope of Confirmation	Confirmation Agency	Assurance Criteria	Confirmation of opinion	illustrate
113th year	none	none	none	none	The greenhouse gas inventory for fiscal year 2014 has not yet been completed, therefore no reliable information is available.
114th year	Third-party confirmation has not yet been obtained.	Not yet appointed	Not yet applicable	Not yet obtained	Our company's paid-in capital is less than NT$5 billion. According to the sustainable development roadmap for listed companies, individual companies have been disclosing investigation information since 2026 and have completed the confirmation of information since 2028; consolidated subsidiaries have been disclosing investigation information since 2027 and have completed the confirmation of information since 2029.

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

It should describe the base year for greenhouse gas reduction and its data, reduction targets, strategies and specific action plans, and the status of achieving the reduction targets.

Baseline year for reduction and its data

Our company uses the results of the inventory check of the Wugu plant, an individual company, in 2025 as the benchmark for internal reduction management. The benchmark year for the reduction at the statutory consolidated financial reporting boundary will be determined after the consolidated financial reporting boundary inventory check is completed, in accordance with the regulations of the competent authority and the company's internal management needs.

Base year	Reference range	Annual total emissions equivalent	Emissions intensity	illustrate
114th year	Da Yun Optoelectronics' Wugu plant adopts an operational control approach, covering Category I, Category II, and Category III.	9,573.0404 tCO_{2}e	9.74 tCO_{2}e / million yuan	According to the 2015 individual financial statements audited and certified by the accountant, the Company’s revenue for 2015 was NT$982.4 million, and the greenhouse gas emission intensity calculated based on that year’s revenue was 9.74 (metric tons CO2e/NT$ million).

Reduction targets, strategies and specific action plans

Timeline	Key points of reduction measures	Estimated reduction (tCO_{2}e)	Responsible unit	Progress and Explanation
Short term (115 years)	Adjustments to the sea-air freight ratio (increasing the share of sea freight by approximately 10%),	350 to 500	Purchasing, Marketing and Business Department, Sustainability Group	Priority will be given to improving air freight and purchased electricity; if T-REC is purchased, the source and quantity of the voucher and the corresponding carbon

		assessment of green electricity certificate procurement, and continued promotion of energy conservation and carbon reduction measures.			reduction calculation method will be disclosed.
	Mid-term (116-117 AD)	Rooftop solar installation assessment, LED lighting replacement, energy monitoring system, and collection of supplier product carbon footprint data.	700 to 1,000	Sustainable Environment Group, Manufacturing Department, Procurement	Prioritize obtaining product carbon footprint data from suppliers of high-emission materials such as copper foil substrates, GPON, and electronic components to improve the quality of Category IV emission data.
	Long-term (119 years)	Increase the share of renewable energy to over 30%, replace low-carbon raw materials, implement AIoT smart energy management, and promote low-carbon collaboration in the supply chain.	1,500 to 2,000	The whole company	Based on the annual inventory results, the reduction strategy will be reviewed on a rolling basis, and the goals and action plans will be adjusted according to regulations, customer requirements and investment returns.

Status of achieving reduction targets

2015 is the baseline year for internal reduction management, and there is no comparable year for reduction achievement. Starting from 2016, the company will track the progress of reduction based on the annual inventory results and explain the implementation status in subsequent sustainability reports, annual reports and related disclosure documents.

(VI) Implementation of ethical corporate management and the differences from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx- Listed Companies and the reasons therefor:

Evaluation items	Implementation Status			Difference and Reason between Ethical Management of the Company and the "Ethical Management Best Practice Principles for TWSE/TPEx Listed Companies"
	Yes	No	Summary
I. Formulate ethical corporate management policy and plan(I) Does the company establish ethical management policies approved by the board and have bylaws and publicly available documents addressing its corporate conduct and ethics policy and measures and the commitment regarding the implementation of such policy from the board and the executive management team?	V		(I) The Company has established the "Ethical Corporate Management Best Practice Principles" and the "Code of Ethical Conduct," both of which have been approved by the Board of Directors. These documents clearly stipulate that directors, managers, and employees must strictly adhere to the principles of honesty and integrity and must not engage in unethical conduct. In addition to declaring the Board of Directors' and management's commitment to actively implementing ethical corporate management policies, these principles are also diligently followed in both internal management and external business activities.	No significant difference.
(II) Has the Company established a risk assessment mechanism against unethical conduct, analyzed and assessed on a regular basis business activity within their business scope which are at a higher risk of being involved in unethical conduct, and established prevention programs accordingly which at least cover the prevention measures against the conducts listed in Paragraph 2, Article 7 of the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies?	V		(II) The Company has established the "Ethical Corporate Management Best Practice Principles," which include a risk assessment mechanism for unethical behavior and cover preventive measures for the types of conduct listed in Paragraph 2, Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies."	No significant difference.
(III) Whether the Company has specified operating procedures, conduct guidelines, and disciplinary and complaint systems for violations in the plan to prevent unethical conduct and implemented the plan as well as regularly reviews and amends it?	V		(III) The Company has formulated the "Guidelines for Ethical Corporate Management Practices and Conduct," which clearly define operating procedures, codes of conduct, disciplinary measures for violations, and a complaint mechanism.	No significant difference.
II. The implementation of ethical corporate management(I) Does the company assess the ethics records of whom it has business relationship with and include business conduct and ethics related clauses in the business contracts?	V		(I) When engaging in business transactions with counterparties, the Company evaluates whether they have any record of dishonest conduct. If a contract is to be signed, the Company includes contractual terms based on the principle of integrity as required by law.	No significant difference.
(II) Does the Company have a dedicated unit under the Board of Directors to promote ethical corporate management and report regularly (at least once a year) to the Board of Directors on its ethical management policy and plan to prevent unethical conduct and monitor their implementation?	V		(II) The Company's dedicated unit for promoting ethical corporate management is the Corporate Governance Unit under the Board of Directors. This unit is responsible for formulating and overseeing the implementation of ethical management policies and prevention programs, and it reports regularly to the Board of Directors.	No significant difference.
(III) Does the Company establish policies to prevent conflict of interests, provide appropriate communication and complaint channels and implement such policies properly?	V		(III) The Company's "Code of Ethical Conduct" and "Employee Work Rules" clearly stipulate that directors, managers, and employees must not abuse their positions to gain improper benefits for themselves or their relatives. A well-defined disciplinary and grievance system	No significant difference.

Evaluation items	Implementation Status			Difference and Reason between Ethical Management of the Company and the “Ethical Management Best Practice Principles for TWSE/TPEx Listed Companies”
	Yes	No	Summary
(IV) Does the Company establish an effective accounting system and internal control system to implement ethical management and draft relevant audit plans by the internal audit unit based on the risk assessment results of the unethical conduct? Does the compliance of prevention program for the unethical conduct audited accordingly by the internal audit unit or CPAs appointed?	V		is in place. Additionally, if any proposals discussed by the Board of Directors or functional committees involve a conflict of interest with a director or the legal entity they represent, that director must abstain from voting.
(IV) To ensure the effective implementation of ethical management, the Company has established a robust accounting system and internal control mechanisms. Internal auditors regularly review compliance with these systems.	No significant difference.
(V) Does the Company regularly organize internal and external education and training on ethical corporate management?	V		(V) The Company promotes its ethical management philosophy and standards to employees through management meetings and monthly meetings, ensuring clear understanding and alignment.	No significant difference.
III. The operation of the Company's whistleblower reporting system
(I) Does the Company establish specific complaint and reward procedures, set up conveniently accessible complaint channels and designate responsible individuals to handle the complaint received?	V		(I) The Company has established and publicly announced a clear whistle-blowing channel and related procedures. Whistleblowers may report to the designated contact point.	No significant difference.
(II) Does the Company establish standard operating procedures for investigating the complaints received, follow-up measures to be adopted and the related confidentiality measures after investigation?	V		(II) If the Company discovers or receives reports of unethical conduct by its personnel, and such conduct is confirmed to violate relevant laws, regulations, or the Company’s ethical corporate management policies, the Company will immediately require the individual to cease the misconduct and will take appropriate action. If necessary, the Company will seek compensation through legal proceedings to protect its reputation, rights, and interests.	No significant difference.
(III) Does the Company adopt proper measures to shield a complainant from retaliation for filing complaints?	V		(III) The Company is committed to maintaining confidentiality and protecting whistleblowers, ensuring they do not suffer any adverse treatment as a result of their reports.	No significant difference.
IV. Enhance Information Disclosure
(I) Does the Company disclose the content and effectiveness of its Ethical Corporate Management Principles on its website and the Market Observation Post System?	V		(I) The Company has disclosed the information related to ethical management on its website.	No significant difference.
V. If the Company has related practice principles of its own in accordance with the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies", please state the differences between the two and the state of implementation: No significant difference.
VI. Other important information that is helpful to understand the implementation of ethical corporate management: (For example, if the Company reviews and amends its ethical corporate management best practice principles): None.

(VII) Other important information that helps to understand the corporate governance operation of the Company: Please refer to the Company's website (https://www.twoway.com.tw/) and the MOPS (https://mops.twse.com.tw/mops/web/index).

(VIII) Regarding the implementation of the internal control system:

Internal control statement:

Statement of Internal Control System of Public Companies

Design and execution are both effective

(This statement is applicable to all compliance requirements when all compliance requirements are declared)

TWOWAY Communications Inc.

Statement on the Internal Control System

Date: March 11, 2026

Based on the results of a self-assessment, the Company states the following with regard to its internal control system during the year 2024:

I. The Company knows that establishing, implementing and maintaining an internal control system is the responsibility of the Company's Board of Directors and managerial officers, and the Company has established this system. Its purpose is to provide reasonable assurance of the achievement of objectives such as the effectiveness and efficiency of operations (including profitability, performance and asset security, etc.), the reliability, timeliness, and transparency of reporting, as well as compliance with relevant rulings, laws and regulations, etc.

II. Internal control system has its inherent limitations. No matter how perfect the design is, an effective internal control system can only provide a reasonable assurance of the achievement of the above three objectives; moreover, due to changes in the environment and circumstances, the effectiveness of the internal control system may change accordingly. However, the Company's internal control system has a self-monitoring mechanism. Once a defect is identified, the Company will take corrective actions.

III. The Company determines the effectiveness of the design and implementation of its internal control system in accordance with the criteria of the effectiveness of the internal control system stipulated in the "Regulations Governing Establishment of Internal Control Systems by Public Companies" (hereinafter referred to as the "Regulations"). The criteria of internal control system adopted in the "Regulations" are based on the process of managerial control and divide internal control system into five components: 1. control environment, 2. risk evaluation, 3. control operations, 4. Information and communication, and 5. Monitoring operations. Each component consists of a number of items. Please refer to the "Regulations" for these items.

IV. The Company has adopted the aforementioned criteria of internal control system to evaluate the effectiveness of the design and implementation of its internal control system.

V. Based on the results of the assessment, the Company believes that, as of December 31, 2024, its internal control system (including the supervision and management of its subsidiaries) was effective in providing reasonable assurance that the control objectives were achieved, including the effectiveness and efficiency of operations; reliability, timeliness, transparency, and regulatory compliance of reporting; and compliance with applicable laws, regulations, and bylaws.

VI. This statement will become the main content of the Company's annual report and prospectus, and will be made public. If the above-mentioned disclosures have falsehood or concealment, legal liability under Articles 20, 32, 171 and 174 of the Securities and Exchange Act will be incurred.

VII. This Statement was approved by the Board of Directors' meeting held on March 11, 2026, with none of the 9 directors present expressing dissenting opinions, and the remainder all affirming the content of this Statement.

TWOWAY Communications Inc.

Chairman: Signature and seal

General Manager: Signature and seal

CPAs' audit report on the audit of the internal control system: None.

(IX) Material resolutions of shareholders' meetings or Board meetings during the most recent year and up to the publication date of the annual report:

Date	Meeting	Important resolution
2025.06.12	Shareholders' Meeting	1. Approved the recognition of the Company's 2024 financial statements and business report.
2. Approved the motion for the Company's 2024 earnings distribution.
3. Approved the amendments to the Company's “Articles of Incorporation.”
4. To complete the re-election of the Company's directors..

Date	Meeting	Important resolution
2025.02.19	Board of directors	1. Approved the appointment of the Company's corporate governance officer.2. Approved the record date for capital increase of the Company's employee stock option certificate for issuance of common stock.3. Amendments to the Company's "Rules of Procedure for Board of Directors Meetings."4. Resolved to approve the amendment to "Audit Committee Charter".1. Approved the motion to amend the Company's "Corporate Governance Best Practice Principles."
2025.03.05	Board of directors	1. Approved the 2024 remuneration distribution to employees and directors.2. Approved the 2024 financial statements and consolidated financial statements.3. Approved the Company's 2024 earnings appropriation.4. Approved the distribution of cash dividends from the Company's 2024 earnings.5. Approved the motion for the Company to change the CPA and the independence evaluation of the CPA for the financial statements.6. Approved the 2024 Statement of Internal Control System.7. Approved the amendment to the Company's Articles of Incorporation.8. Approved the salary adjustment for the Company's managers.9. Approved the re-election of the Company's directors.10. Approved the discussion about the convening of the 2025 general shareholders' meeting.2. Approved the motion for the Company to apply for a transaction limit with a financial institution.
2025.04.28	Board of directors	1. Approved the Company's consolidated financial statements for 2025 Q1.2. Approval of the record date for the distribution of cash dividends and ex-dividend date.3. Approved the record date for capital increase of the Company's employee stock option certificate for issuance of common stock.4. Approved the motion for amendments to the Company's internal control system.3. Approved the candidate list of the nominated directors (including independent directors).
2025.06.12	Extraordinary Board Meeting	1. After the election of new directors at the Annual General Meeting, a chairman shall be elected.2. The proposed members of the Company's Fifth Remuneration Committee shall be approved.
2025.08.06	Board of directors	1. Approved the Company's consolidated financial statements for 2025 Q2.2. Approve the request for ratification is hereby submitted regarding the guarantee provided by the Company on behalf of its subsidiary,ASTER Technology Co., Ltd., in connection with its application for a credit from Hua Nan Bank.3. Approved the motion for the Company to apply for a transaction limit with a financial institution.4. Approved the Amend to the Company's Internal Control System Documentation.5. Approved the distribution of directors' remuneration for 2024.6. Approved the proposed allocation of employee remuneration for managers in 2024.7. Approved the record date for capital increase of the Company's employee stock option certificate for issuance of common stock.
2025.11.05	Board of directors	1. Approved the Company's consolidated financial statements for 2025 Q3.2. Approved the Company's 2025 audit plan.3. Approved the Amend to the Company's Internal Control System Documentation.4. Approved the defining the scope of the Company's entry-level employees.5. Approved the record date for capital increase of the Company's employee stock option certificate for issuance of common stock.6. Approved that the Company intends to participate in a cash capital increase by its subsidiary, ASTER Technology Co., Ltd.7. Approval of the appointment of the company's Chief Operating Officer.
2025.12.29	Board of directors	1. Approved the Company's 2026 business plan.2. Approved the motion for the Company to apply for a transaction limit with a financial institution.3. Approved the motion for the Company's subsidiary to apply for the loaning of funds in 2026.4. Approved the Amend to the Company's Internal Control System Documentation.5. Approved the distribution of managers' bonus.6. Approve the salary adjustment proposal for the company's Chief Operating Officer.
2026.03.11	Board of directors	1. Approved the 2025 remuneration distribution to employees and directors.2. Approved the 2025 financial statements and consolidated financial statements.3. Approved the Company's 2025 earnings appropriation.4. Approved the distribution of cash dividends from the Company's 2025 earnings.5. Approved the 2025 Statement of Internal Control System.6. Approved the motion for the Company to apply for a transaction limit with a financial institution.7. Approved the proposal for the Company to act as guarantor for its subsidiary, Aster IoT Technology Co., Ltd., as required for applying for a credit facility from a bank.8. Approved the proposal for the subsidiary, Aster IoT Technology Co., Ltd., to act as guarantor for the Company as required for applying for a credit facility from a bank.9. Approved the evaluation of the independence of the CPA.10. Approved the Amend to the Company's Internal Control System Documentation.11. Approved the record date for capital increase of the Company's employee stock option certificate for issuance of common stock.12. Approved the discussion about the convening of the 2026 general shareholders' meeting.

Date	Meeting	Important resolution
2026.05.06	Board of directors	1. Approved the Company's consolidated financial statements for 2026 Q1.
2. Approval of the record date for the distribution of cash dividends and ex-dividend date.
3. Approved the proposal to adjust the scope of the Company’s entry-level employees.

(X) If the directors have different opinions on the resolutions reached by the Board of Directors with a record or written statement made in the most recent year and up to the date of publication of the annual report, please state the content of the opinion: None.

IV. Information on CPA Audit Fees:

Amount unit: NTD thousand

CPA firm	Name of CPAs	Audit period	Audit fees	Non-audit fees	Total	Remarks
PwC Taiwan	Cheng-Fu Yu	2025.01.01 - 2025.12.31	4,290	0	4,290	None
	Tsui-Miao Yeh	2025.01.01 - 2025.12.31

(I) If the amount of non-audit fee paid to the attesting CPA, its firm and affiliates is more than one-fourth of the audit fee, the amount of audit and non-audit fee and the content of non-audit service should be disclosed: None.

(II) Where the audit fee paid in the year of the replacement of CPA firm is less than the audit fee in the year before the change, the amount of audit fees before and after replacement should be disclosed and the reasons: None.

(III) Where the audit fee has decreased by 15% or more from the previous year, the amount, percentage and reason for the decrease in the audit fee should be disclosed: None.

V. Information on Change of CPAs:

(I) Regarding the predecessor CPA

Date of Change	The Board of Directors approved the proposal on March 5, 2025.
Reasons for replacement and description	In line with internal job rotation within the CPA firm, starting from the first quarter of 2025, the original CPAs, Shih-Chun Huang and Tsui-Miao Yeh, have been replaced by Cheng-Fu Yu and Tsui-Miao Yeh.
Explain whether it was due to the appointer's or accountant's termination or the accountant's declination of the appointment	Party Status		CPA	Principal of the Company
	The appointment was terminated voluntarily		N/A	N/A
	No longer accepted (continued) the appointment		N/A	N/A
Opinions and reasons for the audit report issued in the last two years that are not unqualified opinions	None
If there is any disagreement with the issuer	Yes		Accounting principles or practices
			Disclosure of financial reports
			Scope or steps of audit
			Others

	None	V
	Description
Other disclosures: (Disclosures required by Article 10, Paragraph 6, Item 1-4 to 1-7 of the Guidelines)	None

(II) Information about the succeeding CPA

Name of CPA firm	PwC Taiwan
Name of CPAs	Cheng-Fu Yu, Tsui-MiaoYeh
Date of appointment	The Board of Directors approved the proposal on March 5, 2025.
The results of the audit on the accounting treatment or accounting principles of specific transactions before the appointment, and the possible opinions to be issued on the financial statements.	None
The written opinion of the succeeding CPA to the matters disagreed by the former CPA	None

(III) The reply of the former CPA to the sub-paragraphs 1 and 2-3, Paragraph 6, Article 10 of the Principles: None.

VI. Anyone among the Company's Chairman, general managers, or any managerial officers in charge of finance or accounting affairs who have in the most recent year held a position at the counting firm of the CPAs or an affiliate of the accounting firm: None.

VII. Any equity transfer or change in equity pledge by a director, supervisor, managerial officer, or shareholder with 10% stake or more during the most recent year or during the current year up to the date of publication of the annual report

(I) Changes in shareholding of Directors, managers, and major shareholders

Unit: shares

Title	Name	2025		As of March 31, 2026
		Change in shares held	Change in shares pledged	Change in shares held	Change in shares pledged
Director/Chairperson	Pi-Shuang Chen	-	-	-	-
Director/General Manager	Kuo-Yuan Tai	80,000	-	-	-
Director	Chin-Ming Huang (Note2)	-	-	-	-
Director	Ming-Yuan Cheng	-	-	-	-
Director	Chang Syuan Investment Co.,Ltd.	-	-	-	-
Director /Deputy General Manager, R&D Center and Product Planning & Management Division	Wen-Yan Chang	50,000	130,000
Independent Director	Yung-Chih Lien
Independent Director	Shien-Kuei Liaw (Note1)
Independent Director	Yi-Yun Chen (Note1)
Independent Director	Ching-Sung Wu (Note1)
Independent Director	Tsang-Sheau Lee (Note2)	-	-	-	-
Independent Director	Jiu-Ming Lin (Note2)	-	-	-	-
Independent Director	Jaw-Chyuan Chu (Note2)	-	-	-	-
Technical Director	Chia-Hsiang Huang	(172,000)	-	(17,000)	-
Chief Operating Officer	Chia-Hsin Tai	45,000	-	-	-
Director, Finance and Accounting Department	Mei-Pei Tsai	45,000	-	-	-
Corporate Governance Officer	Chang-Ti Chen	-	-	-	-
Director, Manufacturing Division	Yung-Hua Mou (Note 3)	-	-	-	-
Corporate	Siao-De Lee	10,000	-	-	-

Title	Name	2025		As of March 31, 2026
		Change in shares held	Change in shares pledged	Change in shares held	Change in shares pledged
Governance Officer	(Note 3)
Major Shareholder	Yuanting Investment Co., Ltd.	-	4,200,000	-	-

Note 1: New directors were elected at the Annual General Meeting held on June 12, 2025; therefore, changes in shareholdings are provided starting from that date.
Note 2: Directors stepped down following their re-election at the Annual General Meeting held on June 12, 2025; therefore, changes in shareholdings are provided up to and including that date.
Note 3: Siao-De Lee resigned on January 24, 2025 due to personal career planning, and Yung-Hua Mou retired on June 30, 2025. The change in shareholding is as of the date of resignation and retire.

(II) Information on the counterparty of the transfer of equity as a related party: None.

Name	Reasons for equity transfer	Transaction date	counterparty in the transaction	The relationship between the counterparty and the company, its directors, supervisors, managers, and shareholders holding more than 10% of the shares.	Number of shares	Transaction price
Chia-Hsiang Huang	Gift	2025.12.08	Zi-Vi Lu	spouse	200,000	not applicable

(III) Information on the counterparty of the equity pledge as a related party: None.

VIII. Relationship information, if among the top ten shareholders any one is a related party or a relative within the second degree of kinship of another:

April 03, 2026 Unit: Share; %

Name	Shareholding		Shareholdings by spouse and minor child		Total shareholding by nominee arrangement		The names and relationships among the top 10 shareholders who are related parties, spouses, or relatives within the scope defined under Statement of Financial Accounting Standards No. 6.		Remarks
	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Name	Relationship
Yuanting Investment Co., Ltd. Representative: Ming-Yuan Cheng	8,954,417	9.42%	-	-	1,500,000	1.58%	-	-	None
Chang Syuan Investment Co., Ltd. Representative: Chia-Wei Tai	5,648,251	5.94%	-	-	-	-	Chia-Wei Tai	Same person	None
							Kuo-Yuan Tai	Father
							Pi-Shuang Chen	Mother
							Representative of Yu Hua Investments	Mother
							Chia-Hsin Tai	Brothers
							Representative of Da Sen Investment Co., Ltd.	Brothers
Kuo-Yuan Tai	5,192,934	5.46%	4,439,925	4.67%	-	-	Pi-Shuang Chen	Spouse	None
							Representative of Yu Hua Investments	Spouse
							Chia-Wei Tai	Father
							Representative of Chang Syuan Investment	Father
							Chia-Hsin Tai	Father
							Representative of Da Sen Investment Co., Ltd.	Father
Da Sen Investment Co., Ltd. Representative: Chia-Hsin Tai	4,980,911	5.24%	-	-	-	-	Chia-Hsin Tai	Same person	None
							Kuo-Yuan Tai	Father
							Pi-Shuang Chen	Mother
							Representative of Yu Hua Investments	Mother
							Chia-Wei Tai	Brothers
							Representative of Chang Syuan Investment	Brothers
Yu Hua Investment Co., Ltd. Representative: Pi-Shuang Chen	4,721,264	4.97%	-	-	-	-	Pi-Shuang Chen	Same person	None
							Kuo-Yuan Tai	Spouse
							Chia-Wei Tai	Mother
							Representative of Chang Syuan Investment	Mother
							Chia-Hsin Tai	Mother
							Representative of Da Sen Investment Co., Ltd.	Mother
Pi-Shuang Chen	4,439,925	4.67%	5,192,934	5.46%	-	-	Representative of Yu Hua Investments	Same person	None
							Kuo-Yuan Tai	Spouse
							Chia-Wei Tai	Mother
							Representative of Chang Syuan Investment	Mother
							Chia-Hsin Tai	Mother
							Representative of Da Sen Investment Co., Ltd.	Mother

Name	Shareholding		Shareholdings by spouse and minor child		Total shareholding by nominee arrangement		The names and relationships among the top 10 shareholders who are related parties, spouses, or relatives within the scope defined under Statement of Financial Accounting Standards No. 6.		Remarks
	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Number of shares	Shareholding Percentage	Name	Relationship
Chroma ATE Inc. Representative: Chin-Ming Huang	3,555,593	3.74%	-	-	-	-	-	-	None
Qing-zhong Hong	3,047,000	3.21%	-	-	-	-	-	-	None
Chia-Wei Tai	2,472,283	2.60%	-	-	-	-	Representative of Chang Syuan Investment	Same person	None
							Kuo-Yuan Tai	Father
							Pi-Shuang Chen	Mother
							Representative of Yu Hua Investments	Mother
							Chia-Hsin Tai	Brothers
							Representative of Da Sen Investment Co., Ltd.	Brothers
Yu-fang Liang	1,810,000	1.90%	-	-	-	-	-	-	None

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

December 31, 2025 Unit: Share; %

Investee enterprise (Note 1)	Investment by the Company		Directors, supervisors, managerial officers, and investments controlled either directly or indirectly		Total investments
	Number of shares	Shareholding Ratio	Number of shares	Shareholding Ratio	Number of shares	Shareholding Ratio
ACI HOLDINGS, LLC	-	100%	-	-	-	100%
ACI COMMUNICATIONS, INC. (USA)	2,000,000	100%	-	-	2,000,000	100%
TWOWAY COMMUNICATIONS, INC. (Samoa)	2,328,000	100%	-	-	2,328,000	100%
ACI COMMUNICATIONS VIETNAM CO., LTD	-	100%	-	-	-	100%
ACI COMMUNICATIONS(THAILAND) CO., LTD	160,000	100%	-	-	160,000	100%
PT. GLOBAL TWOWAY	-	100%	-	-	-	100%
WECO COMMUNICATIONS, INC.	92,800	91.97%	2,000	1.98%	94,800	93.95%
ASTER Technology Co., Ltd.	10,000,000	100%	-	-	10,000,000	100%
Sin Fong Agricultural Technology Co., Ltd.	-	100%	-	-	-	100%
ACI SOLUTION PHILIPPINES INC.	16,672,497	95%	3	-	16,672,500	95%

Note 1: It is the long-term investment of the Company under the equity method.

Three. Capital Overview

I. Capital and shares:

(I) Source of share capital:

Unit: shares/NTD

Year/Month	Issuance price	Authorized capital stock		Paid-in capital		Remarks
		Number of shares	Amount	Number of shares	Amount	Source of share capital	Investment by property other than cash	Others
1992/10	-	-	-	-	5,000,000	Cash capital stock	None	Note 1
1996/11	10	4,000,000	40,000,000	4,000,000	40,000,000	Capital increase in cash 3,500,000 shares	None	Note 2
1997/08	10	7,000,000	70,000,000	7,000,000	70,000,000	Capital increase in cash 3,000,000 shares	None	Note 3
1998/08	10	16,000,000	160,000,000	13,900,000	139,000,000	Capital increase in cash 6,900,000 shares	None	Note 4
1998/08	10	16,000,000	160,000,000	16,000,000	160,000,000	2,100,000 shares transferred from earnings	None	Note 4
1999/08	10	26,000,000	260,000,000	20,000,000	200,000,000	Capital increase in cash 4,000,000 shares	None	Note 5
1999/08	10	26,000,000	260,000,000	22,813,058	228,130,580	2,813,058 shares transferred from earnings	None	Note 5
2000/07	55	40,000,000	400,000,000	28,813,058	288,130,580	Capital increase in cash 6,000,000 shares	None	Note 6
2000/08	10	40,000,000	400,000,000	37,933,938	379,339,380	9,120,880 shares transferred from earnings	None	Note 6
2001/08	10	70,000,000	700,000,000	43,842,039	438,420,390	5,908,101 shares transferred from earnings	None	Note 7
2001/08	10	70,000,000	700,000,000	47,635,433	476,354,330	3,793,394 shares transferred from capital	None	Note 7
2002/08	10	70,000,000	700,000,000	52,398,976	523,989,760	4,763,543 shares transferred from capital	None	Note 8
2003/09	10	70,000,000	700,000,000	55,018,924	550,189,240	2,619,948 shares transferred from earnings	None	Note 9
2003/09	10	70,000,000	700,000,000	57,638,872	576,388,720	2,619,948 shares transferred from capital	None	Note 9
2004/11	10	76,000,000	760,000,000	60,520,815	605,208,150	2,881,943 shares transferred from capital	None	Note 10
2014/1	10	76,000,000	760,000,000	66,520,815	665,208,150	Capital increase in cash 6,000,000 shares	None	Note 11
2015/3	15	100,000,000	1,000,000,000	76,520,815	765,208,150	Capital increase in cash 10,000,000 shares	None	Note 12
2016/4	23.95	100,000,000	1,000,000,000	81,520,815	815,208,150	Capital increase in cash 5,000,000 shares	None	Note 13
2025/1	68.80	150,000,000	1,500,000,000	92,729,815	927,298,150	Capital increase in cash 11,209,000 shares	None	Note 14
2025/1	11.30	150,000,000	1,500,000,000	93,295,815	932,958,150	566,000 shares converted from stock options	None	Note 15
2025/3	11.30	150,000,000	1,500,000,000	93,418,815	934,188,150	123,000 shares converted from stock options	None	Note 16
2025/5	11.	150,000,000	150,000,000	93,935,815	939,358,150	517,000 shares converted from stock options	None	Note 17
2025/10	10.8.	150,000,000	150,000,000	94,996,815	949,968,150	1,061,000 shares converted from stock options	None	Note 18
2025/12	10.8	150,000,000	150,000,000	95,024,815	950,248,150	28,000 shares converted from stock options	None	Note 19
2026/4	10.	150,000,000	150,000,000	95,041,815	950,418,150	17,000 shares converted from stock options	None	Note 20

Note 1: The Company was established on October 15, 1992, with an initial capital of NTD 5,000 thousand. It was incorporated as a limited liability company without issuing shares. Following a capital increase on November 13, 1996, the Company was reorganized into a company limited by shares.
Note 2: Approved by Letter No. Jing-85-Shang-365159 dated December 17, 1996.
Note 3: Approved by Letter No. Jing-86-Shang-3347311 dated September 10, 1997.
Note 4: Approved by Letter No. Jing-87-Shang-126167 dated August 31, 1998.

Note 5: Approved by the Securities and Futures Commission under Letter No. (88) Tai-Cui-Zheng-(1)-63490 dated July 16, 1999; Approved by the Ministry of Economic Affairs under Letter No. Jing-88-Shang-139912 dated November 4, 1999.
Note 6: Approved by the Securities and Futures Commission under Letter No. (89) Tai-Cui-Zheng-(1)-53548 dated June 21, 2000; Approved by the Ministry of Economic Affairs under Letter No. Jing-89-Shang-127975 dated August 7, 2000.
Note 7: Approved by the Securities and Futures Commission under Letter No. (90) Tai-Cui-Zheng-(1)-147063 dated July 19, 2001; Approved by the Ministry of Economic Affairs under Letter No. Jing-90-Shang-09001338400 dated August 29, 2001.
Note 8: Approved by the Securities and Futures Commission under Letter No. (91) Tai-Cui-Zheng-(1)-0910140497 dated July 19, 2002; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-09101386680 dated September 23, 2002.
Note 9: Approved by the Securities and Futures Commission under Letter No. (92) Tai-Cui-Zheng-(1)-0920133054 dated July 23, 2003; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-09201276590 dated September 23, 2003.
Note 10: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-(1)-0930138618 dated September 3, 2004; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-09301206240 dated November 19, 2004.
Note 11: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-Zi-1020042664 dated October 22, 2013; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-10301006400 dated January 20, 2014.
Note 12: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-1030048004 dated November 26, 2014; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-10401037290 dated March 4, 2015.
Note 13: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-1040053990 dated January 7, 2016; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-10501081330 dated April 26, 2016.
Note 14: Approved by the Financial Supervisory Commission under Letter No. Tai-Zheng-Shang-(1)-1131804608 dated October 16, 2024; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-11330222730 dated January 14, 2025.
Note 15: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-1070337129 dated October 12, 2018; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-11330222730 dated January 14, 2025.
Note 16: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-1070337129 dated October 12, 2018; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-11430028770 dated March 14, 2025.
Note 17: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-1070337129 dated October 12, 2018; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-11430065630 dated May 19, 2025.
Note 18: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-1070337129 dated October 12, 2018; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-11430138090 dated October 01, 2025.
Note 19: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-1070337129 dated October 12, 2018; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-11430185620 dated December 11, 2025.
Note 20: Approved by the Financial Supervisory Commission under Letter No. Jin-Guan-Zheng-Fa-1070337129 dated October 12, 2018; Approved by the Ministry of Economic Affairs under Letter No. Jing-Shou-Shang-Zi-11530042320 dated April 10, 2026.

April 03, 2026

Share type	Authorized capital stock			Remarks
	Outstanding shares	Unissued shares	Total
Ordinary shares	95,041,815	54,958,185	150,000,000	-

Note: As of April 14, 2025, the Company's outstanding shares totaled 94,996,815. Of these, 1,578,000 shares resulting from the exercise of employee stock options had not yet been registered for capital increase.

(II) List of major shareholders:

Name of major shareholder	Number of shares held	Shareholding Ratio
Yuanting Investment Co., Ltd.	8,954,417	9.42%
Chang Hsuan Investment Co., Ltd.	5,648,251	5.94%
Kuo-Yuan Tai	5,192,934	5.46%
Da Sen Investment Co., Ltd.	4,980,911	5.24%
Yu Hua Investment Co., Ltd.	4,721,264	4.97%
Pi-Hsiang Chen	4,439,925	4.67%
Chroma ATE Inc.	3,555,593	3.74%
Qing-zhong Hong	3,074,000	3.21%
Chia-Wei Tai	2,472,283	2.60%
Yu-fang Liang	1,810,000	1.90%

(III) Dividend policy and implementation status:

Dividend policy:

According to Article 30-1 of the Company's Articles of Incorporation, the Company will consider the economic environment and growth stage of the Company in response to the future investment environment, capital needs, long-term financial planning, and the impact of capital expansion on profit dilution, and will satisfy the needs of shareholders for cash inflow, and distribute dividends to shareholders from the distributable earnings of Article 29.

If the Company has earnings in the year, the Company shall first pay taxes and make up for the losses of previous years according to the law, and then set aside $10\%$ of the remaining earnings as a legal reserve. However, this is not applicable if the legal reserve has reached the statutory amount. If necessary, the Company may set aside

or reverse a special reserve according to the operational needs or the law. If there is still a balance, it will be combined with the undistributed earnings of previous years, and the Board of Directors will propose an earnings distribution or loss make-up proposal according to the Company's dividend policy and submit it to the shareholders' meeting for ratification.

When the Company has no deficit, the legal reserve and the capital reserve in compliance with the Company Act may be used to issue new shares or cash in part or in all. When the legal reserve is used to issue new shares or cash, the amount of such reserve shall exceed 25% of the paid-in capital.

If the Company has a balance after deducting the accumulated losses, the Company shall allocate no less than 3% as remuneration to the employees and no more than 3% as remuneration to the Directors. The remuneration to employees shall be distributed in the form of shares or in cash as resolved by the Board of Directors. The remuneration to employees of the subsidiaries of the Company meeting certain specific requirements shall be distributed. The remuneration to directors shall be distributed in cash only.

The Company's dividends to shareholders may be paid in cash or shares. The Company shall set aside no less than 25% of the distributable earnings of the net income for the year as dividends to shareholders. However, the distribution may not be made if the accumulated distributable earnings are less than 25% of the paid-in capital. The cash dividends to shareholders shall not be less than 20% of the total dividends to shareholders.

2. Dividend distribution proposed at the shareholders' meeting:

According to Article 29 of the Company's Articles of Incorporation, the distribution of earnings for the year or the distribution of new shares from the legal reserve or capital reserve shall be submitted to the shareholders' meeting for resolution. If the distribution is in cash, the Board of Directors is authorized to distribute it by special resolution and report to the shareholders' meeting. The Company's 2025 earnings distribution was approved by the Board of Directors on March 11, 2026. The proposed distribution of cash dividends is NTD 95,024,815 with NTD1 per share. However, if the number of outstanding shares is affected due to changes in the Company's capital, which leads to changes in the dividend rate, the Chairperson is authorized to adjust and handle other related matters of this case.

This distribution will be reported to the shareholders' meeting on June 1, 2026, and distributed in accordance with the dividend base date set by the Board of Directors.

(IV) Impacts of Proposed Stock Dividends on the Company's Business Performance and Earnings per share (EPS): None.

(V) Remuneration to employees and directors:

Percentage or scope of remuneration of employees, Directors, and supervisors stipulated in the Articles of Incorporation:

Please refer to (III) for the Company's dividend policy and implementation status.

The basis for estimating the amount of employee and director remuneration, 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:

If there is a significant change in the amount of distribution resolved by the Board of Directors in the 2025 financial statements before the date of release, the change is adjusted to the originally appropriated annual expenses. If there is still a change in the amount after the 2025 financial statements are approved by the Board of Directors, it is handled as a change in accounting estimates and will be adjusted and accounted for in the next year.

The Board of Directors approved the remuneration distribution proposal.

(1) The amount of remuneration distributed to employees, directors, and supervisors in cash or shares. If the amount of expenses recognized is different from the amount estimated for the year, the difference, the cause and treatment of the difference shall be disclosed:

The Board of Directors on March 11, 2026 approved the proposed distribution of NTD 3,400,000 as remuneration to employees and NTD 1,080,000 as remuneration to directors, which is no different from the amount recognized in 2025.

(2) The amount of employee remuneration distributed in stock and the ratio to the net income after tax and total employee remuneration in the parent company only or individual financial statements of the current term: Not applicable.

The actual distribution of employees' and directors' remuneration in the previous year (including the number of shares, the amount of shares, and the price of shares issued), and any discrepancy from the recognized employees' and directors' remuneration, the amount of discrepancy, the cause, and the treatment of the discrepancy shall be stated:

The Company's 2024 earnings distribution proposal has been approved by the Board of Directors in 2025 and submitted to the shareholders' meeting. The remuneration to employees and directors is NTD 12,000,000 and NTD 2,460,000, respectively, and are paid in cash. The actual distribution is consistent with the resolution of the Board of Directors.

(VI) Buyback of shares by the company: None.

II. Handling of corporate bonds: None.

III. Issue of preferred stocks: None.

IV. Issue of depository receipt: None.

V. Issuance of employee stock options: None.

VI. Handling of new shares with restricted employee rights: None.

VII. Handling of new shares for M&A or transfer of other companies' shares: None.

VIII. Implementation of Capital Utilization Plan: None.

Four. Operational Overview

I. Business contents:

(I) Scope of Business (All subsidiaries of the Group operate within the same industry):

Main Business Activities:
(1) HFC (Hybrid Fiber-Coaxial) network transmission equipment.
(2) FTTX (Fiber to the X) network transmission equipment.
(3) Head-end optical transmission transceivers.
(4) RF amplifiers for fiber-coaxial networks.
(5) Optical node workstations for fiber-coaxial networks.
(6) Audio/video transceivers for fiber-to-the-home (FTTH) applications.
(7) High-power optical signal amplifiers for FTTX.
(8) Optical Line Terminals (OLT) and Optical Network Units (ONU) for FTTX PON (Passive Optical Network) systems.
(9) Design and construction of broadband network infrastructure.
(10) IoT and smart home software and hardware application systems.
(11) IoT-based vehicle license plate recognition system platform.
(12) IoT-based information management systems for long-term care institutions.
(13) AIoT command center management for situational awareness.
(14) Tendering and bidding services for broadband network products.
(15) Coastal radar and port security monitoring solutions and services.
(16) OEM/ODM services for related broadband network products.
Sales percentage:

Unit: NTD thousand

Year Major product items	2024		2025
	Operating revenue	Weight (%)	Operating revenue	Weight (%)
Broadband network equipment	1,209,761	69.68	336,640	28.15
AIoT (Artificial Intelligence of Things)	517,229	29.79	825,364	69.02
Others	9,212	0.53	33,845	2.83
Total	1,736,202	100	1,195,849	100

3. Current product and service items:

The Company has long focused on the research and development, manufacturing, and sales of broadband network transmission equipment. Its main products and services are broadly categorized into two major product lines: broadband network equipment and smart connectivity (AIoT), including: Hybrid Fiber-Coaxial (HFC) network equipment, Fiber-optic communication network equipment (FTTX), IoT (Internet of Things) smart monitoring service platforms and Complex system integration and deployment. The various products are listed as follows:

Product chain	Product category	Product type	Product items
Broadband network equipment	Mixed fiber optical coaxial network equipment (HFC)	Head-end optical communication equipment	ACION 8000 head-end optical transmission platform
High-density full-spectrum downstream optical transmitter
Upstream optical receiver
Optical amplifier module
Optical transceiver for central office use
Head-end RF amplifier
Head-end RF routing switch
Network equipment management software system
Fiber optical node workstation	1.8GHz segmented RF upgrade module for optical node
4x4 segmented optical node workstation: N5022, N5069
2x2 segmented optical node workstation: A3422, A3522
1x4 optical node workstation: A3410, A3405, A3415, A1002
User-End Small Node: A210, A230
RF Amplifiers	Trunk/Bridging RF Amplifier Series: SDAT, SDAB, SDAF, SDAM
Cross-Platform Amplifier Upgrade Modules: ASEM-Moto / Ccor / Cisc series modules
Digital Smart Amplifier Gain Information Management Module: DSIM series modules
Extension Amplifier Series: SDLE, LEA
Building Amplifier Series: MFTJ, LEAM
User Amplifier Series: SSNT
Special Products and Others	Cable Monitoring and Wi-Fi Wireless Hotspot Transmission Equipment
Outdoor Cable Monitoring Modem: OLM302 series
Digital Set-Top Boxes
RF Signal Cable Connectors – Outdoor Series, Indoor Series
RF Signal Matching Modules: User taps, indoor splitters, filters, equalizers
Fiber Optical Communication Network Equipment (FTTX)	Optical Amplifiers	High-Power Optical Amplifiers
FTTX Triple-Wavelength Optical Signal Integrated Transmission Engine
FTTX PON Network Transmission Equipment	GPON Optical Line Terminal (OLT) and Optical Network Terminal (ONT) Deployment
Comprehensive FTTH and Cable TV RF Hybrid Network Solutions

Product chain	Product category	Product type	Product items
		Passive Fiber Optical Components	Passive Optical Network Module Products: Optical splitters, Wavelength Division Multiplexers (WDMs)
			Fiber Optical Connectors and Patch Cords: SC, LC, FC
AIoT (Artificial Intelligence of Things)	Internet of Things (IoT)	Smart Monitoring Service Solutions	IoT Smart Monitoring Network Deployment
			Smart Long-Term Healthcare Network Deployment
			Infrared Image Recognition Port Security Monitoring Solutions
			Remote Dynamic Image Monitoring Solutions for Forest Protection
			AI-Based Automatic License Plate Recognition (ALPR) System
			Cloud-Based Video Surveillance Service Platform
			AI-Enabled Law Enforcement Management Platform
			Data Analytics Platform
	Complex System Integration	System Design and Implementation Solutions	Turnkey Project and Maintenance Services for CATV, Fixed-Line, and Wireless Communication Networks
			Turnkey Design and Implementation Services for Coastal Radar Systems
			Radar Network Operation and Maintenance Services
			Mobile Surveillance Projects
			Smart Security Platform

New Products (Services) Planned for Development:

(1) 1.8GHz Smart Ultra-Broadband INFINITY Series Cross-Platform RF Amplifier
(2) Next-Generation RF Amplifiers and Conversion Modules for Upstream/Downstream High-Frequency Band Splitting
(3) Smart Automatic Output and Gain Control Management Technology for 1.8GHz RF Amplifiers
(4) NEXUS Real-Time Monitoring and Management System for Remote Network Equipment.
(5) 1.8GHz / 1.2GHz Remote PHY Distributed Digital Fiber High-Speed Transmission Optical Node
(6) 2GHz ASEM Series Cross-Platform High-Frequency Band-Splitting RF Amplifier.
(7) RICOMS Multi-Function Network Transmission Equipment Management Software System
(8) High-Power Optical Signal Transmission Engine for FTTX XGPON / CATV
(9) IoT Smart Monitoring Solutions
(10) AI License Plate Recognition and Parking Management System
(11) Smart Long-Term Care Management Platform
(12) Cloud-Based Facial Recognition Management System
(13) Large-Scale AI Vehicle Dynamic Image Recognition System
(14) AIoT Central Command and Management Platform

(II) Industry overview:

Product status and development:

(1) Overview of Global Broadband Network:

After more than a decade of evolution, broadband internet has become a necessity in most people’s lives. It has brought about significant changes in the way how people interact socially and engage in economic activities, the reliance on broadband communication has become the norm. Many newly adopted communication habits have become normalized—remote network services are now a part of daily life, with virtual social interaction and remote e-commerce emerging as mainstream options. This shift has driven steady year-over-year growth in broadband bandwidth demand. Network transmission capacity has become the key to supporting various applications, with North America showing the most pronounced demand. In the coming years, high-end network traffic and bandwidth requirements are expected to grow in line with Nielsen’s Law, which predicts approximately 50% annual growth in internet bandwidth.

USER BANDWIDTH GROWS BY 50% PER YEAR.

Nielsen's Law of Internet Bandwidth
Source: Nielsen Norman Group

Looking at the long-term development of the broadband industry, communication networks have increasingly permeated households through daily applications. The growing use of high-bandwidth services—such as IPTV, HDTV, 4K/8K television, VOD, MOD, OTT TV, Distance learning, online gaming, virtual reality (VR), and augmented reality (AR)—is intensifying demand for faster, higher-capacity networks. Popular platforms like Google, Meta (Facebook), X (formerly Twitter), Instagram, as well as video streaming services such as YouTube, TikTok, Hulu, and Netflix, have given users a powerful stage for entertainment, social engagement, live streaming, and content creation. This virtual internet realm has become an indispensable part of life for younger generations and is now deeply integrated into everyday life for most people. In recent years, the rise of the Internet of Things (IoT)—alongside the already widespread use of the Internet—has opened new frontiers. When combined with 5G mobile networks and Wi-Fi 6 wireless access, Combined with the AI industrial revolution that has recently emerged, these technologies create vast new opportunities for connectivity and smart applications. The emergence of these new applications is driving demand for even greater broadband capacity, especially for upload bandwidth, which is increasingly critical. As a result, broadband platforms are being pushed to evolve and upgrade at an accelerated pace, indicating that the construction and advancement of broadband infrastructure will continue moving forward rapidly.

Network providers require sufficient bandwidth to support the increasing number of emerging applications. In developed countries, cable TV broadband operators (Cable TV) typically deliver stable, high-bandwidth services via Hybrid Fiber-Coaxial (HFC) networks, while traditional telecom companies mostly provide broadband services through fiber-optic transmission networks. Both face intense competition and significant challenges. According to Nielsen's statistics, global network traffic has doubled approximately every two years, following a growth curve similar to Moore's Law in the semiconductor industry. This trend has prompted cable and telecom operators to actively invest in expanding broadband infrastructure to meet surging bandwidth demand.

According to Statista's market research, the number of Internet users with high-bandwidth requirements grew at an average annual rate of about $6\%$ from 2020 to 2025. The global number of Internet users is expected to reach 6 billion in 2025 and is projected to grow to 7.6 billion by 2030, accounting for approximately $90\%$ of the world's population. In North America, the compound annual growth rate (CAGR) of Internet users is estimated at approximately $1.1\%$ , the number of users is expected to increase from 480 million to 510 million from 2025 to 2029. From a transmission technology perspective, Point Topic's market analysis shows that global broadband market growth is on the rise, with the number of fixed-line broadband subscribers expected to reach nearly 1.5 billion in 2025 and exceed 1.74 billion by 2030. Among them, FTTH/B (Fiber to the Home/Building) users account for around $73\%$ , while cable broadband (HFC) users account for nearly $14\%$ .

Number of internet users worldwide from 2005 to 2025 (in millions)

Source: Statista
Number of internet users in North America 2020-2029
(in millions)

Source: Statista

Forecast of fixed broadband subscribers from year 2024 to 2030

POINT: $\mathbb{Z}^2$ topic

Source: Point Topic

Source: Twoway Tech-Center( with Data from Point Topic)

In terms of regional technology market share, HFC networks have the highest penetration in North America, with a share of around $55\%$ , while FTTH networks dominate in Asia, accounting for up to $80\%$ . (Reference: Point Topic Market Analysis Charts)

Source: Point Topic

(2) Current Status and Development of the Hybrid Fiber-Coaxial (HFC) Cable Broadband Communication Industry:

Modern cable television networks (Cable TV) represent one of the world's two most advanced broadband transmission infrastructures for wired communication. They deliver diverse communication services and integrated four-in-one media solutions to meet the needs of both consumers and enterprises.

The Cable TV or CATV (Community Antenna Television) network originated in the 1950s, evolving from community-shared antenna systems and coaxial cable networks. With the rapid advancement of the communications industry, fiber-optic transmission technologies have matured, accelerating the convergence of traditional cable networks and modern fiber infrastructure. After the 1990s, CATV cable networks began widely adopting Hybrid Fiber-Coaxial (HFC) technology, overcoming the limitations of copper wire transmission and enabling a two-way transmission network architecture that supports basic broadband services. Since the 2000s, with the advancement of digital video compression and the promotion of high-definition television (HDTV), CATV network development entered a new phase—evolving into a comprehensive broadband platform capable of delivering video, high-speed internet, and voice services.

Modern cable TV broadband systems are built on HFC infrastructure. These systems feature head-end signal transceiver equipment in central facilities and essential RF transmission components. Signals are distributed to end users through a combination of fiber optic and coaxial cable networks. The cable TV head-end receives various content sources via both wired and wireless means, including international satellite signals, programming from television and radio stations, locally produced content, and high-speed internet data streams. These signals are integrated and modulated at the head-end, then transmitted to end users via fiber and coaxial cables. During transmission, processes such as signal modulation adjustment, filtering, amplification, audio/video carrier tuning, and signal multiplexing are performed. These modulated signals are converted by semiconductor lasers into optical carriers using Frequency Division Multiplexing (FDM) or Amplitude Modulation (AM), and then delivered through optical and broadband coaxial cables to end users—providing high-quality services including video, voice, multi-channel media, and high-speed internet.

As cable signals became fully digitized, digital transmission technologies such as HDTV, interactive TV, and multi-screen digital TV became mainstream. Over the past decade, Cable VoIP (digital voice) services have seen rapid adoption. In North America alone, cable phone users have surpassed 30 million. Today, the distinction between cable TV and communication networks has become increasingly blurred. In developed countries, HFC networks are highly advanced and reliable, while many developing countries are actively expanding their cable broadband infrastructure—making cable TV broadband services an integral part of daily life.

From a network evolution perspective, the HFC networks traditionally used by cable operators are transitioning due to the declining cost of fiber deployment and the limited capacity of copper. This has driven fiber deeper into the network and closer to the user. Modern designs have evolved into HFPC (Hybrid Fiber and Passive Coaxial) and FTTH (Fiber to the Home) architectures. Standardized solutions such as FTTH with RF Overlay, RFOG (RF over Glass), and Remote PHY enable higher bandwidth, better service quality, and more cost-effective delivery to users. The Company is also aligning with this trend, developing a comprehensive product portfolio to meet diverse customer needs. According to Kagan Research, in the United States, from 2020 to 2030, cable broadband will maintain a market share exceeding $60\%$ in the high-speed internet segment—far surpassing other transmission technologies. This demonstrates that HFC remains the mainstream broadband technology for delivering high-speed internet and video services in North America, presenting substantial opportunities for related transmission equipment. The North American broadband equipment market is expected to continue steady growth over the next decade.

Projected US residential broadband market share, 2020-2030 (%)

Data as of April 2022.
* Includes DSL and fiber-to-the-home broadband access.
* Includes fixed and mobile wireless broadband connections used for primary Internet access.
Sources: Industry data; Kagan estimates
Kagan, a media research group within the TMT offering of S&P Global Market Intelligence.
© 2022 S&P Global Market Intelligence. All rights reserved.

Source: Kagan

Notably, in the U.S., the cable TV broadband network is highly developed and reliable, with customer

satisfaction exceeding $90\%$ . The combined broadband subscriber base of the two largest cable operators far exceeds that of the two leading telecom providers. In 2025, cable broadband providers held a $71.2\%$ market share of high-speed fixed broadband users in the U.S. Furthermore, in the pay-TV (Pay Television) segment, based on transmission technology, cable broadband networks hold a market share of over $42.4\%$ , far ahead of telecom or satellite broadcasting networks. It is also worth noting that paid video-on-demand services provided by internet applications (vMPVD) now account for $30\%$ of the market share. With user numbers growing rapidly in just a few short years, traditional cable and broadband providers need to consider how to capitalize on the business opportunities presented by using network bandwidth for video streaming. (Reference: the Company's internal market analysis data)

Source: Twoway Tech-center

US Pay TV Market Share by Technology 4Q 2025, (Source: Twoway Tech-Center)

Source: Twoway Tech-center

(3) Overview of the Global FTTX Fiber-Optic Communication Network:

As fiber-optic prices have dropped significantly and optical components have matured, fiber-optic communication has become the mainstream transmission medium for wired communication networks. Fiber deployment is also becoming deeper and more widespread. Governments in advanced countries are actively investing in fiber infrastructure—for example, Japan, South Korea, Taiwan, and China—which together account for $70\%$ of global FTTX users. The European Union is one of the most active regions for FTTH/B (Fiber to the Home/Building) deployment, with rapid user growth in countries including France, Spain, Portugal, Italy, Denmark, the Netherlands, Sweden, Germany, the United Kingdom, Romania, Russia, and Lithuania. In the United States, major private telecom and network operators such as AT&T and Verizon have continued expanding their FTTX fiber-optic networks in recent years to offer a wider range of digital services. In Southeast Asia, countries like Thailand, the Philippines, Vietnam, Indonesia, and Malaysia have not only been actively constructing HFC networks, but also placing great emphasis on FTTX deployment. In particular, the three-wavelength overlay network architecture (FTTX with RF Overlay)—which integrates FTTH and HFC RF signal transmission—has already been implemented by multiple cable and telecom operators, enabling both digital and RF-based optical transmission networks.

Data Source: Twoway Tech Center

As of December 2025, the number of FTTH (Fiber to the Home) subscriptions in Japan had reached 39 million households. In Taiwan, Chunghwa Telecom has in recent years promoted the "Fiber-Optic Generation" initiative, aligning with the government's "Smart Nation Program" and the national broadband convergence policy. The goal has been to extend fiber deployment to nearly every household. By 2025, the fiber coverage rate had reached nearly $100\%$ , with 2Gbps ultra-high-speed broadband coverage at $90\%$ . Currently, the total number of fiber subscribers nationwide stands at approximately 4.50 million. Over the past decade, China has also aggressively invested in optical communications infrastructure, initially setting a clear "Three-Network Convergence" strategy aimed at integrating broadcasting, telecom, and internet services. More recently, under policies such as "Dual Gigabit" and "Smart Home", China has promoted the Broadband China initiative. By 2025, there were 691 million fixed-line broadband users, among which 583 million were FTTH users, accounting for $84\%$ of all internet broadband users in the country. In Southeast Asia, countries including Thailand, the Philippines, Vietnam, and Indonesia have also been actively deploying three-wavelength FTTH + RF Video Overlay networks, integrating fiber-to-the-home with cable TV RF video overlay to enhance broadband speeds and deliver high-quality digital television services. In particular, Thailand and the

Philippines, supported by regulatory liberalization, have seen annual optical fiber subscriber growth rates of 20–30%, leading the region in deployment and adoption. According to global statistics, the number of FTTH/B users worldwide continues to grow. As of Q4 2025, global FTTH subscribers had reached more than 1 billion, representing approximately 73% of all fixed broadband users globally, and It is estimated that the number of users will reach 1.2 billion by 2030.

In summary, the following chart (not shown here) illustrates the global FTTH user growth curve and future projections.

Source : Twoway Tech Center(data from Point Topic)

(4) Overview of the global IoT market

The Internet of Things (IoT) represents the most significant transformation in broadband networks since the emergence of the Internet, and is poised to become the largest application market for broadband in the future. IoT refers to the interconnection of hardware devices, where data generated by various devices is transmitted via the Internet to a service center for processing or to the cloud for storage and cross-device interaction. These interconnected devices may include mobile phones, automobiles, switches, sensors, wearable devices, household appliances, electric meters, traffic signals, and medical equipment, among others. Essentially, everything around us can be connected via IP networks, becoming part of the global digital ecosystem. The rise of IoT is driving the development of numerous smart service platforms and applications, which are expected to significantly transform modern lifestyles. The market potential is vast. According to IoT Analytics, the number of connected devices worldwide has reached 18.5 billion in 2024 and 21.1 billion in 2025, and xpected grow from 39 billion in 2025 to over 55 billion by 2035, with an annual growth rate of $10\% \sim 14\%$ . Additionally, Marketsand Markets reports that the global IoT market value reached USD 547 billion in 2025, and is projected to soar to USD 865 billion by 2030. Indicated below is the overall growth

trend of the IoT industry:

Source: IoT Analytics Research

The correlation among the upstream, midstream and downstream industries:

The Company's main products and services can be roughly divided into two major product chains, namely: broadband network equipment and smart connectivity (AIoT). Broadband network equipment includes: Head-end optical transmission equipment, RF broadband amplifiers, optical node transceivers. FTTX fiber broadband network products include: FTTX fiber-optic audio-video receiver (VONU), fiber head-end 1310/1550nm audio-video transmitter, high-power optical amplifier, GPON/XGPON and HFC RF three-wavelength optical signal transmission engine, GPON/XGPON Optical Line Terminals (OLT) and Optical Network Terminals (ONT), fiber-optic transmission modules, and RF network accessories. Smart connectivity (AIoT) products and services include: Sensors, surveillance equipment, image capture devices, monitoring servers, license plate recognition systems, AI facial recognition systems, smart security platforms, smart healthcare platforms, unified management platform for IoT edge devices, and AIoT command center management.

Based on the upstream, midstream, and downstream industry connections (as shown below), the Company is a midstream transmission equipment manufacturer in the communications network equipment industry and provides integrated management platforms for network hardware and firmware systems. Upstream suppliers mainly include manufacturers of printed circuit boards (PCBs), ICs, optoelectronic semiconductor components, fiber-optic module components, mechanical parts, and other electronic components. Downstream clients include multi-channel cable TV operators, broadband service providers, fixed-line network operators, telecom network operators, wireless mobile network operators, smart home service providers, security and surveillance companies, and network system integrators.

Upstream	Midstream	Downstream
Component Parts and Components Industry
• Printed Circuit Board (PCB)
• Semiconductor IC
• Passive Components
• Optoelectronic Semiconductor Components
• Fiber Optic Components
• Transformers
• Filter Components
• Diodes	Telecommunications Network Equipment Manufacturing Industry
• Switching Equipment Data Switches, ATM Switches, Internet Switches / Servers / Routers
• Transmission Equipment Fiber Optic Cables, Optical Transmitters, Optical Receivers, Amplifiers, Microwave Equipment, Network Monitoring Devices, xDSL
• Monitoring Equipment Sensors, Surveillance Equipment, Image Capture Devices, Monitoring Servers	• Audiovisual Application Industry
• Cable TV Industry
• Telecommunications / Network Communications Industry
• Wireless Communications Industry
• Security Services Industry
• System Integration Industry
• Defense Industry
• Multimedia Entertainment Industry
• Smart Home Services Industry
• Automotive Industry
• Medical Care Services Industry
• Traffic Safety Management Services Industry

3. Development trends and competition of products

(1) Product development trends:

A. HFC product development trend:

The role of the cable TV broadband communication industry has been dramatically and rapidly evolving due to the high degree of integration across the entertainment, data, and telecommunications markets, as well as shifting patterns of consumer demand. Public expectations for a high-speed information society have accelerated the development of digital and signal transmission technologies, positioning the HFC (Hybrid Fiber-Coaxial) network—thanks to its inherent broadband advantages—as the most cost-effective solution for high-speed communications. This four-in-one network, combining audio, video, data, and mobile communication, can flexibly adapt to regional needs, allowing consumers easy access to diverse types of content across entertainment, culture, education, healthcare, industry, religion, social networking, and more—enriching and enhancing daily life.

This is a drastic change in the industry of cable TV and video streaming, and there are infinite business opportunities. For example, there are 4K/8K HDTV digital TV with high-frequency bandwidth, wired TV network services (Internet over Cable), interactive multimedia dual-sided services such as VOD or MOD, Online HD game, virtual reality (VR) and even the VoIP, Real-time video, telecommunication service, wireless mobile communication, even the pplications such as the emerging AI industrial revolution etc. The standardization of technologies such as MPEG-4 digital compression and high-speed data transmission standards DOCSIS 3.1 and DOCSIS 4.0 has further popularized digital fiber transmission. This allows the HFC industry to adopt an open architecture, promoting mass production and widespread application of broadband communication equipment.

The hybrid fiber-coaxial (HFC) network is now entering a new era of 10G symmetrical, ultra-high-bandwidth communication. In 2019, the National Cable and Telecommunications Association (NCTA), CableLabs, and Cable Europe jointly launched a revolutionary initiative to envision the next 10 years of HFC, aiming to build 10Gigabi cable networks, with transmission speeds 10 times faster than current levels. The Company has developed a number of new technologies, including: 1.8GHz RF transmission platform, new generation of digital cable network transmission standard for DOCSIS 4.0, dual-way full-frequency RF transmission technology (FDX) and coordinated optical transmission (COT). These new technologies are gradually being realized from 2024 and it is expected that in 5 to 8 years, the double-way 10G transmission speed will be achieved. This program can help to replace the traditional coaxial fiber-optic grid with a hybrid fiber-optic grid, which is competitive and creates opportunities for the next decade of the vibrant development of the cable TV and cable network with bandwidth.

B. FTTX product development trend:

The current fiber-to-the-home/fiber-to-the-home access network structure is mainly based on a three-wavelength PON passive optical fiber network, which uses an optical terminal (OLT) at the front end of the optical fiber and a terminal (ONT) at the end of the network to perform optical signal access network transmission, and is equipped with a wavelength multiplexer and a multi-port high-power optical amplifier, and a passive optical fiber component optical fiber splitter to distribute the optical fiber signal to the user end, providing high-speed Internet access, TV and audio, and voice and telephone three-in-one (Triple Play) services. Currently, the transmission speed is mainly 1Gbps GPON, and the positive direction is 10Gbps 10 GPON development. The goal is to develop the dual-way 10G XGPON.

C. IoT product development trends:

The application of IoT is expanding rapidly, and the application of AIoT is expanding to all aspects of people's daily life. The expansion of the cable radio and video industry and the change of characteristics have been a breakthrough in the past. The 5G wireless mobile network has driven the cable radio and video industry to enter the stage of diverse services of cable radio and video and high-speed network. It is evident that the cable TV and the Internet of Things applications are full of business opportunities with high growth. AIoT is expanding its scope of smart detection and monitoring applications, including health care, large-scale field image identification management, border security detection and collection management, traffic lane human safety detection management, technology enforcement, biomed testing auxiliary identification analysis, defense and coastal defense applications, Unmanned Vehicle Reconnaissance and Defense Systems. In the future, it will be even more combined with AI, high-speed and low latency broadband network, and smart applications that can respond to the needs of the real-time market, such as autonomous driving, unmanned vehicles, online e-sports games, and AR, etc. The application market in various new domains will be full of surprises.

(2) Competition of products:

In recent years, hardware equipment for broadband network transmission has become one of the most promising industries with the most powerful market growth. The technical attributes of its products mainly cover RF, digital, wireless and optical fiber communication.

As for RF products, the Company is one of the few qualified manufacturers of industrial grade products capable of producing two-way communication products, and is one of the few qualified manufacturers of RF amplifiers and passive components such as distributors and demodemators. Although there are more than ten manufacturers in Taiwan engaged in the production and sales of RF amplifiers and passive components, the Company is one of the few qualified manufacturers of industrial grade products capable of producing two-way communication products, and is one of the few qualified manufacturers of ODM products of international communication firms. There are three manufacturers certified for MSO 1.2GHz in North America, of which two are large US companies and only one is the Company. The new generation 1.8GHz ultra-wideband cable 10G transmission smart RF amplifier platform series has been successfully developed, and the Company will enter the MSO long-term and rigorous certification test process of large-scale operators in North America, and the product certification will be completed, which will certainly bring the Company's competitiveness to new heights.

For the products of RF and fiber-optic communication integration technology, the main products are light transmitter, light transceiver, and surface emitting fiber-optic fiber optical amplifier. In addition to the products of the Company's own brands, the Company also accepts the ODM business of the US, Japan, and European communication giants. In addition, under the trend of fiber-optic home, the Company is a leading partner in Japan and Europe to provide Triple Play products, and is also a famous European communication manufacturer to supply fiber-optic home and RF video/audio 3-wave photoelectricity transmission equipment products.

While the Taiwan market is actively building a standard double-way communication network, and Asian countries are building or upgrading wired broadband network, the Company is the first to propose a complete turnkey (turnkey) and operation management service solution provider, regardless of the mixed fiber optical coaxial network or fiber optical home network turnkey construction plan, which has completed many successful projects and has won the customer's praise. This means that the Company has great confidence and advantage in terms of product functions and quality, network engineering technology experience and overall management and monitoring capabilities.

With the rapid development of IoT applications for wideband network, the Company's new IoT business department can integrate related network products and equipment, and expand the IoT application market, which has achieved excellent results. The Company has successfully implemented the IoT service system projects commissioned by tens of customers for the related products and systems, including smart home, smart image recognition, remote medical care in smart cities and towns, public field safety monitoring, cloud smart monitoring, domestic and offshore safety monitoring protection, forest protection remote monitoring, cloud monitoring of air quality, vehicle parking space identification and parking area management, traffic safety technology implementation, etc.

The Company is even more committed to developing a high integration platform for the war room management, with the self-owned brand, Aster Plus, as the unified platform for managing the domestic and overseas end IoT equipment. The development direction of the IoT business division is as the following four:

Smart security platform: Smart Harbor Patrol Platform, Traffic Safety Technology Implementation, and Large Vehicle Identification Service Platform.
Smart medical care platform: Social and joint care platform, VR long-term care technology verification for the mentally challenged, and VR immersed experience.
Data analysis platform: Analysis of social and political joint care, design and development of the large-scale data centers for county and city governments.
National Defense Patrols and Detection Platform: Integration of thermal image detection and analysis, unmanned vehicle detection and defense system, and low-frequency narrowband smart logistics monitoring system development for low-frequency satellite.

The four main development directions above are all for the development of software management platforms. In response to the industry's development trends and to meet the needs of the general public and the military and industrial systems in the future, the Company will improve the added value of the network of the system operators and the revenue, which can increase the overall competitiveness of the Company significantly.

(III) Technology and R&D Overview.

R&D expenses in the most recent year and up to the publication date of this annual report
Unit: NTD thousand

Year	2025	As of March 31, 2026
R&D expenses	123,905	29,038

Technology or product successfully developed

(1) Infinity Series 1.8GHz Cross-Platform Smart Ultra-Wideband RF Amplifier
(2) 1.8GHz Ultra-High Frequency Band Segmentation Smart RF Amplifier Upgrade Module
(3) 1.8GHz Optical Node Ultra-Wideband RF Upgrade Module
(4) Nexus Next-Generation Remote Smart Network Device Monitoring and Management System.
(5) ACI+ 1.8GHz Smart RF Amplifier Wireless Control App System
(6) RICOMS Graphical Network Transmission Equipment Monitoring and Analysis Management Software System
(7) N5069/N5022 4x4 1.2GHz Remote PHY Digital Optical Transmission Physical Segmentation Optical Node
(8) ASEM Series 1.2GHz Cross-Platform Multi-Model High-Frequency Band Segmentation RF Amplifier Upgrade Module
(9) ED5229GTE-32 XGPON 32-Port Ultra-High-Power Outdoor Cabinet-Type Optical Amplifier Transmission Engine
(10) ED5219LXGT 10GPON 16-Port Outdoor Cabinet-Type Optical Amplifier Transmission Engine
(11) A8KFT3UD-15 High-Density Modular 1.2GHz DWDM Head-End Downstream Dual Optical Transmitter
(12) A8KFT3UD-13 1.2GHz 1310nm High-Density Modular Head-End Downstream Dual Optical Transmitter
(13) Large-Scale Smart Security Platform
(14) Smart City and Rural Social Welfare Joint Care Platform
(15) Smart Medical Care Solution
(16) Dynamic Vehicle Recognition System
(17) Port Smart Monitoring Solution
(18) Mobile Coast Guard Surveillance System
(19) Infrared Thermal Imaging Monitoring System
(20) Smart Home Cloud-Based Monitoring System
(21) AI Vehicle Recognition System for Tax Authorities
(22) Information Management System Development for Police and Government Agencies
(23) AI-Based Vehicle Recognition and Management Platform for Large-Scale Parking Facilities
(24) Information Management System for Long-Term Care Institutions
(25) AI Technology Law Enforcement Management Platform
(26) AIoT Command Center Management

(IV) Long-term and short-term business development plans:

The Company's long-term and short-term business development plans are aimed at: Using Taiwan as the R&D base and a hub for developing and expanding application-based business models. Over the next five years, the Company’s market expansion targets will focus on the Americas, Latin America, and ASEAN, with gradual expansion into the European and Middle Eastern markets. Building on its self-owned North American brand, the Company leverages Taiwan-based manufacturing known for high reliability and quality, while offering localized, in-depth technical services. This strategy aims to establish long-term partnerships with customers and build an industrial value chain and marketing channel rooted in cooperation.

Short-term plan:

(1) Marketing strategy:

A. Based on its self-owned brand, the Company positions its North American subsidiary, ACI, as the regional business development hub. It aims to strengthen information exchange with major operators, stay ahead of mainstream technologies and product trends, and engage early in customers’ product specification and certification processes—raising the entry barrier for competitors. At the same time, the Company actively expands its business among smaller-scale operator customers.

B. Actively develop the Southeast Asian market. With Taiwan as the marketing center, the Company continues to explore markets in Thailand, Vietnam, Indonesia, Malaysia, the Philippines, South Korea, Cambodia, and other regions, while strengthening brand marketing efforts.

C. Establish a complete demonstration network to showcase the performance of network turnkey services, and pursue bids for large-scale network infrastructure projects.

(2) Production policy:

A. Development of raw material sources: Through efficient supply chain management and procurement strategies, the Company diversifies new material sourcing to reduce procurement risks and lower costs.

B. Effective enhancement of process capabilities: Strengthen employee education and training to positively drive continuous process improvement and increase equipment utilization and reliability.

C. Establishment of a high-performance quality system: Enhance the ISO quality system to ensure achievement of quality targets and value performance under cost-effective conditions.

D. Improving equipment efficiency: Accelerate process digitization and automation to minimize human error and further boost production capacity and overall productivity.

E. Research and implementation of automated testing and production technologies: Reduce dependency on manual labor and decrease labor costs.

(3) Development direction:

A. Develop a unified platform and technologies/products that are energy-efficient, compact, and intelligent.

B. HFC Transmission Equipment: In addition to continually reducing production costs and enhancing existing product features, actively invest in the development of fiber-optic head-end equipment, physically segmented optical nodes, digital optical transmission modules, and broadband amplifiers. This aims to establish a complete product line and fully leverage the 1.2GHz platform's benefits. Accelerate the mass production deployment of the 1.8GHz and DOCSIS 4.0 product lines, and develop related products for future 10G cable transmission platforms.

C. Network Monitoring Equipment: Continue developing the next generation of network monitoring hardware, and invest in the development of an HFC intelligent graphical network management software platform to enhance product application integrity and added value.

D. Combine HFC network technology with new last-mile access technologies, and integrate the advantages of cable and wireless transmission to develop new broadband network products for internet applications.

E. Complete the development of both indoor and outdoor high-power optical amplifiers to expand 10GB FTTX passive fiber-to-the-home (FTTH) networks and RF audio/video triple-wavelength integrated transmission products.

F. IoT (Internet of Things): Continue the development and integration of broadband networks with IoT devices and hardware/software platforms. Expand application solutions including: smart cities, smart homes, intelligent energy management, remote home care, port and homeland security surveillance, AI-assisted biomedical test result analysis, smart security platforms, smart healthcare platforms, data analytics platforms, and dynamic border detection and defense systems, Unmanned Vehicle Detection and Defense Systems, 3D Printing Rapid Prototyping Technology—creating new business opportunities and future growth momentum for the Company.

(4) Scale of Operation:

Actively deploy global sales channels:

A. Deployment in the Americas: In addition to establishing strong partnerships with the top ten multi-system operators (MSOs) in North America, the U.S.-based subsidiary ACI is also actively expanding sales channels across Central and South America. The goal is to offer customized products and build long-term trust-based relationships with customers.

B. Deployment in the Asian Market: Business development across Asian countries is coordinated by the Taiwan headquarters to better serve local customers and accelerate participation in regional industry activities. The Company is actively pursuing large-scale network infrastructure projects. Target markets include Taiwan, Japan, South Korea, Mainland China, India, Indonesia, Malaysia, the Philippines, Vietnam, Thailand, and Cambodia.

C. Deployment in the European Market: Business development across Europe is also managed by the Taiwan headquarters. Adopting a steady and strategic approach, the Company first enters the market through leading FTTX network clients, quickly supplying fiber-optic amplifiers, optical transmitters, and fiber-optic audio/video transmission products. Partnerships and product reputation have been established in Romania, Sweden, the Netherlands, Germany, the United Kingdom, and Russia. At the same time, the Company is developing relationships with qualified distributors to broaden its sales scope and build a regional service network.

(5) Financial coordination:

A. Apply for the Company's stock to be listed on the TWSE to establish a sound and comprehensive financing channel and enhance working capital.

B. Utilize the capital market to obtain low-cost, long-term funding in order to strengthen the financial structure and reduce operational risk.

C. Enhance the use of government incentive programs by securing subsidies for innovative R&D investments and access to low-interest funding support.

Long-term plan

(1) Marketing strategy:

A. The telecommunication network and the cable TV network are accelerating the trend of integration under the promotion of digital technology and the deregulation of telecommunication services by governments of various countries. Based on the HFC RF transmission technology and FTTX fiber-optic transmission technology, the Company continues to develop horizontally, and significantly integrates fiber-optic data transmission and telecommunication engineering business.

B. The Company will focus on selling existing cable-related equipment and actively contact international bandwidth operators to establish long-term strategic alliances and cooperation relationships to effectively utilize resources from both parties and improve overall competitiveness and establish a stable brand channel.

C. Digital fiber-optic transmission products and value-added services are becoming popular: The development and application of IP broadband network technology is expanding, and the demand for products that are multi-function digital fiber-optic transmission is also growing. The Company has two key technologies, optical communication and wideband RF, which can quickly enter the demand market and achieve the leading position.

D. Integration of network applications: Continue to develop IoT and smart network applications, develop integrated network equipment and IoT monitoring devices, and expand network system services such as smart cities, energy, safety, transportation, medical care, defense, and 5G wireless mobile network.

(2) Production policy:

A. Strengthen customized production processes and high-efficiency and flexible production schedules to shorten the production period, meet the diverse needs of customers, and reduce the inventory obsolescence inventory simultaneously.

B. Continue to introduce electronic information systems and automated auxiliary production equipment to improve production efficiency, maintain product quality, and continue to reduce manufacturing costs. In line with the strengthening of operational quality, the Company will adjust the manpower demand in a timely manner to achieve the goal of human resource refinement.

(3) Development direction:

A. Continue to develop smart high-frequency and high-quality light-saving equipment, high-frequency and high-frequency RF bandwidth amplifiers, digital fiber optical transmission modules, fiber optical signal amplifier integrators, and user-end fiber optical audio-video receiver products.

B. Actively develop more comprehensive and diversified front-end equipment to make product lines more comprehensive. Actively developing products for 10G high-speed transmission platform.
C. Develop and optimize network monitoring hardware and software equipment to meet the requirements of network stability and communication quality reliability.
D. Strengthen fiber-optic data transmission technology and product cooperation, and combine the most appropriate last mile network solution to provide customers with complete bandwidth services.
E. Expand the business of the urban area safety monitoring network system, and grasp the opportunities of network system integration application services.
F. Develop IoT smart monitoring solutions, integrate fiber optical and cable transmission technology, and explore new business opportunities for smart homes and safety care services
E. Development of new AIoT smart control technology and services: including unmanned vehicle detection and defense technology, high-level coastal thermal image detection and security control system, and low-frequency regional narrowband satellite logistics safety monitoring system.

(4) Scale of Operation:

The Company will accelerate the establishment of a complete HFC and FTTX network transmission equipment, IoT smart integrated service platform, production and full system engineering service capabilities, and gradually establish a global sales channel to build the foundation for the HFC/FTX R&D and manufacturing center, and to further promote the vision of the one-level system integration service channel operators.

(5) Financial coordination:

A. The Company will utilize financial leverage through capital market financial instruments to meet the needs of business growth.
B. In response to the risk management of international business, the Bank evaluates the credit rating of financial institutions and provides collateral services as means to expand sales and ensure profits and hedge instruments.
C. The Company's listing advantages allows it to obtain abundant funds in the market, accelerate the product development and production and sales cycles, expand the scale of revenue and economy, and improve profitability.

II. Overview of the market, production, and sales:

(I) Market analysis:

Main products sold (services) area:
Unit: NTD thousand; %

Year Sales area	2024		2025
		Sales amount	Percentage	Sales amount	Percentage
Domestic sales		644,577	37.13%	898,672	75.15%
Foreign sales	America	1,005,138	57.89%	22.57%	22.57%
	Asia	79,801	4.60%	1.90%	1.90%
	Others	6,686	0.38%	0.38%	0.38%
	Subtotal	1,091,625	62.87%	24.85%	24.85%
Total		1,736,202	100.00%	1,195,849	100.00%

2. Market share and future market supply and demand, growth, and competitive advantage:

In advanced nations or densely populated areas, the fiber-optic cable with the TV network of the coaxial cable is densely deployed. The video and audio and the broadband data signal are effectively transmitted to remote users. The network construction is based on the fiber-optic and coaxial cable hybrid (HFC) double-sided network construction method. HFC networks in Taiwan, North America, Japan and Korea are such networks. The main market demand is the network upgrade and the basic construction of the broadband network of new communities. In the past few years, the network bandwidth upgrade plan of major MSOs in North America has continued to be promoted, and the establishment of the new generation of bandwidth transmission technology standards has been relatively driven by the Company's strong growth in the North American market. The North American market is now on the way to the next generation of 10G cable symmetrical transmission. With the guidance of the US government's infrastructure policy, the postpandemic era will see faster development and explosive growth of broadband network construction.

In recent years, the Southeast Asian and Central and South American markets have also been a region of high growth. Due to the relaxed regulations of various countries, the telecommunications and cable TV operators have crossed the industry to operate. The new FTX fiber-optic network and the HFC network have been updated to become the main construction goal of the dual-way transmission network, which is the main force of market growth in the next few years. The Company has actively deployed its sales in Latin America, the Philippines, Vietnam, Thailand, Indonesia, Malaysia, Thailand, and India, and established branches and service bases in Indonesia, Thailand, Vietnam, and the Philippines to cultivate the Southeast Asian market. The market demand has slowed down as the previous generation of network technology has been improved. The new generation of transmission technology has been successfully certified. The companies in various countries are actively evaluating the most suitable network technology to perform the next generation of network upgrade cycle, which should gradually restore the network construction steps, and the growth momentum of the market in the East should very quickly recovered. The wideband network in the eastern area of Europe is still a relatively low development market. The demand for FTTX network is still promising. The years of effort of the Company have made it successfully penetrate the supply chain of large-scale telecommunication network systems. It is expected that this effort can expand the customer base in the surrounding countries of this region and create greater sales growth.

The Company's market share in the following major revenue regions is as follows:

Taiwan: about 75.15%

Americas: about 22.57%

Asia: about 1.90%

Other regions: about 0.38%

In the future, in addition to the fiber-optic-to-home RF overlapping transmission products, the new generation of 1.8GHz DOCSIS4.0 HFC transmission technology is also a new choice for high-performance products. Seek cooperation with business operators in multiple channels to provide solutions for wired network such as outdoor light-emitting devices, high-frequency high power fiber-optic fiber-optic amplifiers, multi-channel fiber-optic dividers, and user audio-video transceiver, as well as complete 1.8GHz wireless transmission products. In response to the policy of digitalization of all TV channels, the Company's products are leading the local customers to use, to establish a sense of trust and brand recognition, and it is expected to create a huge business opportunity for the next wave of network upgrades in the future.

With the widespread adoption of the Internet, users have also become multimedia content providers. This has given rise to a variety of innovative multimedia and social platform applications, such as YouTube, Meta (Facebook), X (Twitter), Hulu, Netflix, and other OTT streaming platforms. These new forms of media continue to drive exponential growth in bandwidth demand, and network capacity is constantly under pressure. Compared to other broadband technologies—apart from Fiber to the Home (FTTH)—hybrid fiber-coaxial (HFC) cable broadband networks currently offer the highest data transmission capacity and the best performance for real-time audio and video streaming. Overall, the industry is still at a booming development stage, and the overall trend is a stable growth trend. Based on years of experience in system integration and equipment R&D and production, the Company is the only system integrator that can provide self-made products and engineering turnkey operation in Taiwan. The Company provides turnkey services for system operators' engineering construction and equipment, which enables system operators to obtain fast and complete solutions, and also establishes an integrated marketing platform. Most products are customized to meet the needs of customers, and thereby increase the reliability and satisfaction of existing customers. The mass production model of the general consumer electronics industry is very different from that of the consumer electronics industry, and it can prevent the competition of oversupply.

High-speed integration of image transmission of cable TV, data transmission of Internet of Things, voice transmission service of traditional telecommunication and 5G wireless mobile communication network services, and the rapid development of new IoT applications. The emergence of new applications requires higher transmission signal quality, giving rise to a new trend in cable network development—toward distributed network architecture and digital fiber-optic transmission. Many traditional indoor headend devices—such as network splitters, amplifiers, fiber integration modules, signal modulators, and transmission converters—are now progressively shifting toward outdoor deployment. Leveraging multiple core technical strengths—including robust outdoor equipment housing design, high reliability, weather-resistant product engineering, and stable, long-lifespan power supply systems—the Company integrates RF, digital, and optoelectronic technologies. These advantages allow the Company to rapidly respond to customer needs. Guided by the industry-wide objective of achieving symmetrical 10G bidirectional broadband transmission, this wave of integrated network application development is expected to present growth opportunities for the next five to eight years.

Favorable and unfavorable factors of development prospects and countermeasures:

(1) Favorable factors:
A. Team with Rich Experience and Knowledge: The Company/ACI’s team has accumulated over 30 years of experience in the HFC wired communication market, both in Taiwan and internationally. The team demonstrates top-tier expertise in technology, management, and marketing.
B. Strong and Strategic Global Presence: The Company has established sales and service centers in Taiwan, the United States, Indonesia, Vietnam, the Philippines, and Thailand. These regional hubs enable the Company to engage directly with customers who place a premium on strategic partnerships, thereby deepening customer trust.
C. Bilateral R&D Teams in the U.S. and Taiwan: The U.S.-based R&D team is market-facing and closely aligned with customer demands, while the Taiwan team offers fast, high-efficiency development. This synergy creates a distinct competitive edge within the industry.
D. Taiwan-Based Manufacturing Excellence: Leveraging the U.S. team’s experience in high-end product design, the Company consistently delivers high-quality, cost-effective solutions, greatly enhancing its global competitiveness.
E. Major MSO operators across North America and Canada are actively upgrading to 1.2GHz and 1.8GHz-compatible cable transmission specifications. This transition marks a new network upgrade cycle. As one of the few companies to have passed stringent MSO certifications, the Company is well-positioned to capture significant market demand in the coming years.
F. The Company’s success in Turn Key projects across these regions showcases its unique capabilities and business model. This approach remains a scalable path for future growth, allowing the Company to fully leverage its core system integration strengths to drive higher profitability.

(2) Unfavorable factors:
A. The Company's primary competitors are Comscope (which has consolidated Arris, C-Cor, GI, and Motorola) and ATX/Cisco (formerly Scientific Atlanta). The consolidation of Comscope's broadband divisions has effectively resulted in a market dominated by two major players. The Company (ACI), positioned as a "small but agile" player, faces relative limitations in resource allocation when compared to these large-scale competitors.
B. In recent years, a wave of mergers among equipment vendors has given rise to several mid-sized emerging competitors, reshaping the industry structure. This evolving landscape opens the door for new entrants to compete for market share, posing potential threats to existing customer relationships.
C. Meanwhile, mainland Chinese manufacturers have aggressively targeted developing markets by offering low-cost solutions, aiming to secure orders through price competition.
D. In the domestic market, cable TV network operators tend to prioritize price in their procurement decisions. This has led to a price war environment, undermining the traditional distinction between product quality/reliability and pricing tiers.

(3) Response measures:
A. The Company's products and services have been trusted by large customers. Through strengthening cooperation with existing large customers, the Company will strive for more opportunities and actively participate in the specification development and technology development of customer's new product demand. In addition, the Company will expand its sales to other multi-system operators.
B. The Company will make good use of the blueprint of tens of thousands of transmission equipment that have been built on the network in the early products of ACI in North America, and provide customers with convenient and appropriate functional upgrade modules based on the concept of the common platform of the original product designers of the Company, to provide customers with the potential business opportunities of upgrading network transmission performance, or replacing old network or equipment, or restructuring equipment.
C. Increase the market share in Central and Southern America and Southeast Asia. In Southern America and Asia Pacific, the cable width and frequency network products with better cost-effectiveness can drive the increase in overall sales and profits. Expand the global potential market and diversify the operational risks.
D. Enhance customized product capabilities of network upgrades, so that ACI has a greater chance to increase its market share of network upgrades.
E. Continue to upgrade the existing product specifications, and continue to extend the competitive advantage of the original 1.2GHz platform, and complete the new generation of 1.8GHz ESD smart flexible bandwidth upgrade product line, in order to better meet the needs of customers for development of Triple Play or even QUAD Play services. The Company will invest in the development of products related to the FFD (FDX) network platform in a timely manner, increase the diversified application options of products, and provide more customers with future needs to create new market niches.

F. R&D and manufacturing of hardware equipment are not sufficient. Further R&D of network monitoring management software is required to make the system integration more powerful. Under the network architecture of HFC, the integration capability of the broadband network is developed to achieve the total solution service to customers, and meet the true requirements of Triple/Quad Play.

G. Plan the capacity actively, negotiate with suppliers to ensure the stable supply of raw materials.

(II) Important applications and production process of main products: 1. Key purposes of main products:

Product chain	Product category	Description of functions
Broadband network equipment	Head-end optical communication equipment	1. Signal integration: The head end of the broadband network must be able to integrate signals from satellites, microwave and OFF-AIR, including digital and analog data. 2. Electronic signal modulation: The processed base frequency signal must be modulated again (digital or analog) to form a mixed frequency signal. 3. Downstream optical conversion and optical signal transmission: The downstream optical signal is converted into optical signal by photoelectric conversion, and then transmitted to the customer via the optical fiber optical network. 4. Optical signal receiving and optical conversion: The optical signal receiving and optical conversion of the self-use user end are detected by the head-end optical receiver and the optical signal is converted into RF electronic signal. The RF signal is then transmitted to the back-end network management system for coding and integration processing after amplifying. 5. Downstream or upstream RF signal amplifier 6. Fiber optical signal amplifier
	Light node workshop	The mixed network composed of the fiber-optic network and the coaxial cable network is one of the main networks used to realize the broadband services. The optical node worksite is a key equipment for the conversion of optical signals between the fiber-optic network and the coaxial cable network. It is mainly designed for outdoor equipment, equipped with downward light-receiving modules, upward light signal transmitter modules and RF signal amplifiers. It mainly has the following three functions: 1. Down signal light conversion function 2. The function of the RF signal transmitter and light signal transmitter. 3. Amplifying electronic RF signal.
	RF Amplifiers	In the wired optical service, the signal is transmitted from the server room to the customer or transmitted back to the server room through the fiber-optic network and the coaxial network. When the signal is transmitted on the coaxial network, the strength will gradually weaken due to the characteristics of copper wire degradation. To continue the signal transmission, a high output and high-quality RF transmitter must be used to compensate for the signal strength. High quality RF transmitter, the main functions are: 1. Adjustment of network RF electronic signal classification. 2. Amplifying the RF signal and matching the frequency intensity. 3. The relay transmission of the main signal is longer. 4. Distribution of multiple signal paths for high intensity signals.
AIoT (Artificial Intelligence of Things)	Smart Monitoring Service Solutions	1. IoT smart monitoring IoT network construction 2. Construction of smart health care network for long-term care 3. IR image identification port safety monitoring 4. Image cloud monitoring system service platform 5. AI Dynamic Parking Identification System Solution
		6. AI IoT system for long-term care 7. Information security and security protection 8. Information security and security protection for real-time 9. Information security and security protection for real-time

Product chain	Product category	Description of functions
		6. AI technology execution management platform
	Broadband network engineering services	The Company provides professional and comprehensive network engineering turnkey services to the system operators and users, including:
1. Planning of broadband network survey and network architecture design.
2. Simulation and budget of signal transmission quality.
3. Best network equipment selection and passive component matching.
4. Network construction and equipment installation of standard construction methods.
5. Complete chain verification and testing.
6. Consulting services for network monitoring system and maintenance plans.
The cable bandwidth network is used to enable customers to manage TV, video, telephone, and Internet services. The quality of the network is good and stable and reliable over the long term.

2. Production process:

Production Flow of TWOWAY Communications Products

(III) Supply of main raw materials:

Major raw materials	Major suppliers	Supply condition
IC	P10205、P10173、P30015	Good
Aluminum extrusion components	P30225、P10595	Good
PCB	P10045、P11001	Good
Couplers	P10097、P10460	Good
Stamping	P10153、P11003	Good

(IV) Major suppliers and customers in the last two years

The names of suppliers and customers who accounted for more than 10% of the total purchases (sales) in any of the most recent 2 years, their purchase (sales) amount and proportion and the reasons for the increase or decrease:

Unit: NTD thousand; %

Items	2024				2025
	Name	Amount	As a percentage of net purchases for the year (%)	Relationship with the issuer	Name	Amount	As a percentage of net purchases for the year (%)	Relationship with the issuer
1	P10205	256,725	30.13	None	P30245	167,337	32.16	None
2	P30245	174,947	20.53	None	P10205	31,183	5.99	None
3	P11007	131,498	15.43	None	P10683	26,329	5.06	None
4	Others	288,991	33.91	None	Others	295,525	56.79	None
	Net purchase	852,161	100.00		Net purchase	520,374	100.00

The reason for the increase or decrease: The Company is engaged in single-handed production, and the purchase amount is affected by the sales order.

The names of suppliers and customers who accounted for more than 10% of the total purchases (sales) in any of the most recent 2 years, their purchase (sales) amount and proportion and the reasons for the increase or decrease

Unit: NTD thousand; %

	2024				2025
Items	Name	Amount	As a percentage of net sales for the year [%]	Relationship with the issuer	Name	Amount	As a percentage of net sales for the year [%]	Relationship with the issuer
1	Customer A	670,782	38.64	None	Customer A	53,443	4.47	None
2	Customer C	289,625	16.68	None	Customer B	510,793	42.71	None
3	Customer C	215,919	12.44	None	Customer C	112,319	9.39	None
4	Customer E	191,194	11.01	None	Customer E	194,798	16.29	None
5	Others	368,682	21.23	None	Others	324,496	27.14	None
	Net sales	1,736,202	100.00		Net sales	1,195,849	100.00

The reason for the increase or decreases: The increase or decrease is due to the demand for the network of the local market operators and the progress of construction.

III. Employee information:

Year		2024	2025	As of March 31, 2026
Number of employees	Management trainees	54	46	48
	Staff	120	106	108
	Operator	64	33	31
	Total	238	185	187
Average age		42.76	42.76	47.23
Average years of service		8.96	8.96	10.73
Education profile	Doctoral Degree	0.84%	1.62%	1.61%
	Master’s degree	10.92%	11.35%	11.23%
	University or college	69.33%	74.06%	74.34%
	High school	17.65%	12.43%	12.30%
	Below high school	1.26%	0.54%	0.52%

IV. Environmental protection expenditure

(I) Total losses (including compensation) and penalties for environmental pollution in the most recent year and up to the date of publication of the annual report: None.

(II) Future countermeasures and possible expenses: The Company is not in a high-pollution industry and does not have industrial pollution concerns.

V. Labor Relations:

(I) List the Company's employee welfare measures, training, education and retirement systems and their implementation, as well as the agreements between management and employees and measures to protect the rights and interests of employees:

Employee welfare measures: In addition to following relevant labor laws and regulations, the Company has established an Employee Welfare Committee to coordinate and plan various welfare measures and operations for employees to improve employee welfare.

(1) Labor insurance, national health insurance, group insurance.
(2) Bonuses for three major holidays.
(3) Employee travel.
(4) Subsidies for marriage, childbirth, birthdays, and funerals.
(5) Regular health checkups.

Education, training and continuing education: Based on the Company's development and personal training needs, the Company combines internal and external training resources to plan diversified training courses, and encourages employees to self-study. The Company also organizes various internal and external education and training from time to time every month, and provides employees with on-the-job training subsidies.
Retirement system: The Company has established the Supervisory Committee of the Labor Retirement Reserve Fund in accordance with the Labor Standards Act and related laws and regulations. The Company has also appropriated the pension fund to the Bank of Taiwan special account in accordance with the regulations. Since July 2005, the Company has cooperated with the new retirement system and selected the new system. If the employee chooses the new system, the Company will appropriate 6% of the fund to the personal special account of the Bureau of Labor Insurance.
Status of agreements between labor and management and the protection of employees' rights and interests:

(1) All operations of the Company are conducted in accordance with the relevant government regulations.
(2) The rights and obligations of both the Company and its employees shall be handled in accordance with the work rules.
(3) Employees may reflect to the Company's formal and non-official communication channels at any time about various problems they encounter in their work and life, so that both parties can better understand each other, and a win-win situation can be created.

(II) If the Company suffered losses due to employment disputes in the most recent year and up to the date of publication of the annual report, the amount of possible losses at present and in the future and the countermeasures shall be disclosed. If it is impossible to reasonably estimate the facts, the reasons for the inability shall be stated: None.

VI. Information communication security management:

(I) The information security risk management framework, information security policy, specific management plans, and resources invested in information security management:

Information security risk management framework

(1) The Company's information security responsibilities are assigned to the Information Security Promotion Team / Information Security Implementation Team, which includes a dedicated supervisor and several professional IT engineers. They are responsible for promoting, coordinating, supervising, and reviewing various information security management matters, and for carrying out related security operations.

(2) The Information Security Promotion Team / Information Security Audit Team also serves as the internal audit unit for information security governance. In the event that deficiencies are identified during audits, the audited unit is promptly required to submit a corrective action plan. The effectiveness of these improvements is then periodically tracked to minimize internal information security risks.

Cybersecurity Security Policy and Management Plan

(1) In order to strengthen information security management, ensure the availability, integrity and confidentiality of information, and avoid deliberate or accidental threats from internal and external sources, the Company's information security facilities and management methods are divided into six categories as follows:

a. Computer equipment safety management

The Company's computer servers and various application servers are installed in a dedicated machine room. The access to the machine room is controlled by a dedicated access control and professional security management.
The computer room is equipped with an independent air conditioner to maintain computer equipment at an appropriate temperature environment. The room is also equipped with chemical extinguishers, which can be used for general or electrical appliances caused fire.
The room is fitted with uninterruptible power supply (UPS) and voltage regulation equipment, and is connected to the building's backup generator system. This setup prevents system crashes caused by sudden power outages from the utility provider and ensures that computer systems continue to operate during temporary power interruptions.

b. Cyber security management

Strengthen network control, set up a corporate firewall at the entrance of the network, and block hackers from illegal access.
The connection between the subsidiary in the US and the headquarter in Taipei is encrypted with the use of VPN. The connection is made according to the account number and group permissions, to avoid illegal access to the data transmission process.
The colleagues may access the system in the Company's intranet from a remote login, and must apply for a VPN account before using it. The safety of the VPN method is the only way to access the system.
Configure Internet behavior management and filtering equipment to control Internet access. Block access to network addresses and content that are harmful or not allowed by our policy. Strengthen network security and prevent bandwidth from being improperly occupied.

c. Virus protection and management

Endpoint protection software is installed in the server and employees' terminal computer equipment. The virus code is automatically updated to ensure that the system can block out the latest virus, and at the same time detect and prevent the installation of system execution files with potential threats.
The email server is equipped with mail anti-virus and spam filtering measures to prevent viruses or spam from entering users' PC.
In addition to isolating or deleting the detected or intercepted virus, the anti-virus system also actively issues a computer risk report on the infected or at-risk computer so that management can take countermeasures.

d. System access control

For the use of each application system, the colleagues may apply for the system right approval procedure according to the internal regulations of the Company. Once approved by the responsible supervisor, the information department will establish a system account, and the system administrator will authorize the user to access the system according to the functional rights applied for.
The password number is encrypted with the minimum password length, complexity, and validity, and the login failure locking mechanism.
Regularly promote the importance of employees' right to use, adjust permissions in a timely manner, and stop using accounts that are not used anymore to strengthen access control.
When employees are leaving (on leave), they must complete the resignation (leaves) procedures and delete the account numbers of each system.

e. Ensure continuous operation of the system

Data backup: The Company adopts a daily backup mechanism and back up to the cloud space after the data is uploaded to the NAS, achieving the principle of 321 backup.
Disaster recovery drill: Each system is drilled once a year. After a recovery date and reference point is selected, the backup media will be restored to the system mainframe. The user will then confirm the accuracy of the restored data in written to ensure the accuracy and effectiveness of the backup media.
Two data cables from different telecommunications companies are rented. The two cables are connected through the bandwidth management equipment, and the backup system is maintained to ensure that the network communication is not interrupted.
The Company's important systems are equipped with an off-site backup mechanism to strengthen operational continuity and emergency response.

f. Information security promotion and education and training

Regular promotion: Promote to all employees through email announcements or internal meetings every year.
Education and training: Information security-related education and training courses are conducted for internal colleagues from time to time every year.
The information security officer and personnel must complete a certain number of information security professional courses every year.

3. Resources invested in Information Security Management

The resources invested in order to implement the six information security policies are as follows:

Introduce ISO27001 to strengthen the information security management of the Company
Network hardware equipment such as firewalls, mail anti-virus, and spam mail filtering.
Software systems such as the terminal protection system, backup management software, and VPN certification.
Internet resources: Rent the multi-cable network from different telecom companies, and cloud space from Google.
Invest manpower in the following areas: daily system state inspection, weekly regular backup and implementation of storage media off-site storage, information security advocacy at least twice a year, and system disaster recovery exercise at least once a year.
The Company conducts information security testing for its core information and communication system.

(II) The losses and possible impacts suffered from major cybersecurity incidents and the countermeasures in the most recent year to the date of publication of the annual report: (If losses can not be reasonably estimated, the facts that make it impossible to reasonably estimate the losses must be stated): None.

VII. Major contracts:

Contract nature	Party	Dates of commencement and expiration of the contracts	Principal contents	Restrictive clauses
Loan	Chang Hwa Commercial Bank	2019/05/02-2026/05/02 2019/05/02-2034/11/02	Plant mortgage loans	None
Contract	Chang Hwa Commercial Bank	2019/05/02-2026/05/02 2019/05/02-2034/11/02	Plant mortgage loans	None
Contract	Chang Hwa Commercial Bank	2019/05/02-2026/05/02 2019/05/02-2034/11/02	Plant mortgage loans	None

Five. Review and analysis of the financial position and business achievements and evaluation of risk management

I. Financial status:

(I) Main reasons for the material changes in assets, liabilities, and shareholders' equity in the last two years and their impacts:

IFRS - Consolidated:

Unit: NTD thousand

Item\Year	2025	2024	Deviation
			Amount	%
Current assets	1,677,434	2,219,816	(542,382)	(24.43)
Property, plant and equipment	431,556	467,608	(36,052)	(7.71)
Intangible assets	6,290	3,979	2,311	58.08
Other assets	438,428	118,704	319,724	269.35
Total assets	2,553,708	2,810,107	(256,399)	(9.12)
Current liabilities	284,208	391,894	(107,686)	(27.48)
Non-current liabilities	256,466	281,667	(25,201)	(8.95)
Total liabilities	540,674	673,561	(132,887)	(19.73)
Share capital	950,432	934,348	16,084	1.72
Capital reserve	809,804	808,044	1,760	0.22
Retained earnings	263,910	386,893	(122,983)	(31.79)
Other equity	(11,619)	6,403	(18,022)	(281.46)
Non-controlling interests	507	858	(351)	(40.91)
Total equity	2,013,034	2,136,546	(123,512)	(5.78)
Main reasons for the material changes in the assets, liabilities and shareholders' equity in the last two years (with a change of 20% or more and the amount of change reaching NTD 10 million), the impact and future countermeasures: 1. The decrease in current assets was primarily due to a decline in cash and cash equivalents resulting from operational needs. 2. The increase in other assets was primarily due to an increase in contract assets—non-current. 3. The decrease in non-current liabilities was mainly due to the repayment of long-term borrowings and repayment of loans 4. The decrease in retained earnings was due to the distribution of dividends. 5. The decrease in other equities is mainly due to the decrease in other comprehensive income.

IFRS - Parent Company Only:
Unit: NTD thousand

Item\Year	2025	2024	Deviation
			Amount	%
Current assets	1,223,224	1,873,120	(649,896)	(34.70)
Investment under Equity Method	471,046	421,651	49,395	11.71
Property, plant and equipment	395,407	426,833	(31,426)	(7.36)
Intangible assets	1,695	3,979	(2,284)	(57.40)
Other assets	387,162	75,346	311,816	413.85
Total assets	2,478,534	2,800,929	(322,395)	(11.51)
Current liabilities	274,952	407,074	(132,122)	(32.46)
Long-term loan	151,379	200,616	(49,237)	(24.54)
Other liabilities	39,676	57,551	(17,875)	(31.06)
Total liabilities	466,007	665,241	(199,234)	(29.95)
Share capital	950,432	934,348	16,084	1.72
Capital reserve	809,804	808,044	1,760	0.22
Retained earnings	263,910	386,893	(122,983)	(31.79)
Other equity	(11,619)	6,403	(18,022)	(281.46)
Total equities	2,012,527	2,135,688	(123,161)	(5.77)
Main reasons for the material changes in the assets, liabilities and shareholders' equity in the last two years (with a change of 20% or more and the amount of change reaching NTD 10 million), the impact and future countermeasures: 1. The decrease in current assets was primarily due to a decline in cash and cash equivalents resulting from operational needs. 2. The increase in other assets was primarily due to an increase in contract assets—non-current. 3. The decrease in current liabilities was primarily due to the payment of accounts payable and the repayment of loans. 4. .The decrease in long-term loans was primarily due to the repayment of long-term loans. 5. The decrease in other liabilities was primarily due to a decrease in provisions—non-current. 6. Retained earnings decreased due to the payment of dividends. 7. Other equity decreased primarily due to a decrease in other comprehensive income for the current period.

(II) If the impact is material, the future countermeasures shall be stated: None.

II. Financial performance:

(I) Main reasons for the material changes in the operating revenue, operating net profit and net profit before tax in the last two years:

IFRS - Consolidated:

Unit: NTD thousand; %

Item	2025	2024	Increase (decrease) amount	Change Percentage (%)
Operating revenues	1,195,849	1,736,202	(540,353)	(31.12)
Operating cost	(730,191)	(1,148,672)	(418,481)	(36.43)
Operating gross profit	465,658	587,530	(121,872)	(20.74)
Operating expenses	(391,323)	(402,437)	(11,114)	(2.76)
Operating Profits	74,335	185,093	(110,758)	(59.84)
Non-operating income and expenses	5,362	54,771	(49,409)	(90.21)
Net profit (loss) before tax	79,697	239,864	(160,167)	(66.77)
Income tax expense	(19,519)	(36,971)	(17,452)	(47.20)
Net profit (loss) for the period	60,178	202,893	(142,715)	(70.34)
Other comprehensive income, net	(14,596)	27,246	(41,842)	(153.57)
Total comprehensive income for the period	45,582	230,139	(184,557)	(80.19)
Analysis of change in percentage of increase or decrease: (For changes of 20% or more in the preceding and following periods, and changes amounting to $10 million)
1. The decrease in operating revenue was primarily due to delays in the certification process for new products.
2. The decrease in cost of sales was primarily due to lower operating revenue compared to fiscal year 2024.
3. The decrease in gross profit was primarily due to lower operating revenue compared to fiscal year 2024.
4. The decrease in operating income was primarily due to lower gross profit compared to fiscal year 2024.
5. The decrease in non-operating income and expenses was primarily due to a decrease in net foreign exchange gains.
6. The decrease in pre-tax net profit, income tax expense, and net profit for the period was primarily due to a decrease in operating profit compared to fiscal year 2024.
7. The increase in net other comprehensive income was primarily due to an increase in translation differences arising from the translation of financial statements of foreign operations.
8. The decrease in total comprehensive income for the period was primarily due to a decrease in operating profit compared to fiscal year 2024.

IFRS - Parent Company Only:
Unit: NTD thousand; %

Items	2025	2024	Increase (decrease) amount	Change Percentage (%)
Operating revenues	982,438	1,402,675	(420,237)	(29.96)
Operating cost	(752,756)	(1,052,689)	(299,933)	(28.49)
(Unrealized) deferred sales gains	42,155	45,028	(2,873)	(6.38)
Operating gross profit	271,837	395,014	(123,177)	(31.18)
Operating expenses	(233,425)	(259,956)	(26,531)	(10.21)
Operating Profits	38,412	135,058	(96,646)	(71.56)
Non-operating income and expenses	32,413	93,423	(61,010)	(65.31)
Net profits before tax	70,825	228,481	(157,656)	(69.00)
Income tax expense	(9,867)	(26,815)	(16,948)	(63.20)
Net income for the period	60,958	201,666	(140,708)	(69.77)
Other comprehensive income, net	(15,025)	27,241	(42,266)	(155.16)
Total comprehensive income for the period	45,933	228,907	(182,974)	(79.93)
Analysis of change in percentage of increase or decrease: (For changes of 20% or more in the preceding and following periods, and changes amounting to $10 million)
1. The decrease in operating revenue was primarily due to delays in the certification process for new products.
2. The decrease in cost of sales was primarily due to lower operating revenue compared to fiscal year 2024.
3. The decrease in gross profit was primarily due to lower operating revenue compared to fiscal year 2024.
4. The decrease in operating income was primarily due to lower gross profit compared to fiscal year 2024.
5. The decrease in non-operating income and expenses was primarily due to a decrease in net foreign exchange gains.
6. The decrease in pre-tax net profit, income tax expense, and net profit for the period was primarily due to a decrease in operating profit compared to fiscal year 2024.
7. The decrease in net other comprehensive income was primarily due to a decrease in translation differences arising from the conversion of financial statements of foreign operations.
8. The decrease in total comprehensive income for the period was primarily due to a decrease in operating profit compared to fiscal year 2024.

(II) Sales forecast and basis, and the possible impact on the Company's future financial operations and the countermeasures:
The Company expects higher sales volume in the coming year as compared to 2024, mainly due to changes in the industrial environment, business trends, market supply and demand, sales policies, and the Company's future development direction, and the operating goals set by the Company based on the Company's recent operating performance.

(III) The possible impact on the Company's future financial operations: None.

(IV) Future plans: Not applicable.

III. Cash flow

(I) Analysis of cash flow changes in the most recent two years:

IFRS - Consolidated:

Items	2025	2024	Increase/decrease ratio (%)
Cash inflow (outflow) from operations	(207,678)	(90,482)	(129.52)
Cash inflow (outflow) from investing activities	(21,242)	17,369	(222.30)
Cash inflow (outflow) from financing activities	(273,300)	327,740	(183.39)
The main reasons for the changes in cash flow in the most recent year are as follows:
1. Increase in cash outflows from operating activities: This was primarily due to a decrease in net income for the 2025 fiscal year and a reduction in collections of accounts receivable.
2. Increase in cash outflows from investing activities: Primarily due to an increase in prepayments for equipment.
3. Increase in cash outflows from financing activities: Primarily due to the cash capital increase associated with the company’s initial public offering in 2024.

IFRS - Parent Company Only:

Items	2024	2023	Increase/decrease ratio (%)
Cash inflow (outflow) from operations	(72,552)	366,916	(119.77)
Cash inflow (outflow) from investing activities	43,106	(5,012)	(960.06)
Cash inflow (outflow) from financing activities	337,060	(169,293)	(299.10)
The main reasons for the changes in cash flow in the most recent year are as follows:
1. The decrease in cash inflow from operating activities: This is mainly due to the increase in accounts receivable - related parties in 2024.
2. Increase in cash inflow from investing activities: This is mainly due to the decrease in financial assets at amortized cost in 2024.
3. The decrease in cash inflow from financing activities: This is mainly due to the increase in cash capital in 2024.

(II) Improvement plan for insufficient liquidity: Not applicable.

(III) Cash flow analysis for the following year
Unit: NTD thousand

Cash balance, beginning of period (1)	Expected net cash flow from operating activities for the year (2)	Net cash flow from investing activities for the year (3)	Net cash flow from financing activities for the year (4)	Projected amount of the remaining (deficit) (1)+(2)+(3)+(4)	Remedies for estimated cash shortage
					Investment plan	Financing plan
344,685	384,929	(86,311)	56,336	699,639	-	-
1. Analysis of changes in projected cash flows for the coming year:
(1) Operating activities: Mainly due to good operation, and increased operating profits.
(2) Investment activities: Mainly due to increased capital expenditure.
(3) Financing activities: Mainly due to the borrowing of long- and short-term loans.
2. Improvement plan for insufficient liquidity: Not applicable.

IV. Impact of major capital expenditures in the most recent year on financial operations: None.

V. The most recent investment policy, the main reason for profit or loss thereof, improvement plan, and investment plan for the coming year:

(I) Reinvestment policy for the most recent year:

The Company's management team reinvests for operational needs or future growth. Items such as the organizational type of the reinvested business, purpose of investment, location of investment, market condition, business development, shareholding ratio, reference price and financial condition are assessed. In addition, the Company keeps abreast of the business operation of the invested business at all times, analyzes the investment performance, and facilitates the management team to track and evaluate.

(II) Main reasons for profit or loss in the most recent year and improvement plan:

The Company's long-term equity investment recognized NTD 25,849 thousand of investment gains in 2025 mainly due to the increase in profits of the subsidiary in the Taiwan.

(III) Investment plan for the next year: None.

VI. Analysis and assessment of risk matters in the most recent year and up to the publication date of this annual report

(I) The impact of changes in interest rates, exchange rates, and inflation on the Company's profit and loss, and future countermeasures:

Change in interest rate

(1) Impact of interest rate changes on the Company's revenue and profit:

The Company and its subsidiaries' interest 2025 and 2024 expenses for were 5,031 NTD thousand and NTD 6,807 thousand, respectively, accounting for 0.42% and 0.39% of the net operating revenue for each year, respectively, and there was no significant change.

(2) Concrete countermeasures:

The Company keeps abreast of the changes in the market interest rate and establishes good relationships with financial institutions to obtain funds at lower cost. As the Company's operating scale and profitability grow, the Company's own capital will be increasing. Therefore, the impact of interest rate changes on the Company's revenue and profitability is still limited.

Changes in foreign exchange rates:

(1) Impact of exchange rate changes on the Company's revenue and profit:

The Company's and its subsidiaries' 2025 and 2024 exchange gains (losses) were NTD (2,316) thousand and NTD 43,160 thousand, respectively, accounting for (0.19)% and 2.49% of the net operating revenues for each year. The Company's and its subsidiaries' main sales revenues are denominated in USD, and some of the raw material purchases are denominated in USD. However, most of the raw material purchases and operating expenses are denominated in NTD. Although the Company's net position is exposed to the risk of exchange rate fluctuations, it does not have a material impact on the Company's revenue and profits.

(2) Concrete countermeasures:

A. When a business unit quotes to a customer, the quotation decision is included in the exchange rate trend, and the quotation is dynamically adjusted to avoid significant impact on the company's profit from exchange rate fluctuations.

B. In the future, the main strategy for exchange rate risk control will still be the natural hedging of foreign currency positions, and the positions of foreign currency assets and liabilities will be adjusted in a timely manner to reduce the risk of exchange rate changes.

C. The Treasury Division has maintained a close relationship with financial institutions to monitor changes in exchange rates and adjust foreign currency positions in the spot market. In the forward market, the Company will undertake foreign exchange hedging products based on changes in the Company's foreign exchange income and expenditure and foreign exchange markets to reduce exchange rate risk. The Company has implemented the procedures for acquisition or disposal of assets in the "Procedures for Acquisition or Disposal of Assets" established by the Company, and disclosed the financial statements in full.

3. Inflation:

(1) Analysis of the impact of inflation on the Company

In recent years, the global relevant resources and materials have been rising, and the overall economic environment has been showing a slight trend of inflation. However, the Company and its subsidiaries have not yet been significantly affected by inflation.

(2) Concrete countermeasures:

A. The Company and its subsidiaries also keep a good relationship with suppliers and customers, and keep an eye on the fluctuation of the raw material market price, and determine the trend of the raw material market price in advance, and set the purchase amount and change the purchase price in the weak currency, in order to reduce the impact of price increase.

B. In accordance with the changes in the cost of raw materials, the Company will dynamically adjust the selling price to the customer when the tolerance limit is exceeded to avoid significant impact on the Company due to inflation.

C. The Company and its subsidiaries will continue to develop high value-added products to maintain profitability.

(II) Policies on high-risk, highly-leverage investments, lending funds others, endorsement and guarantee, and derivatives transactions, main reasons for gain or loss, and future countermeasures:

The Company and its subsidiaries do not engage in high-risk investments, and all investments are carefully evaluated and executed.
The Company and its subsidiaries have implemented the loaning of funds to others in accordance with the "Procedures for Loaning of Funds and Making of Endorsements/Guarantees" of the Company. The recipients of loans and endorsements/guarantees are only affiliated companies.
The Company and its subsidiaries are engaged in derivative transactions for hedging only, and proceed to the procedures specified in the "Procedures for Derivatives Transactions" of the Company.

(III) R&D plans and expected investment in R&D expenses in the future:

R&D plans in the future:

The Internet has expanded from the Internet of People to the link applications between the emerging Internet of Things and smart devices. In the future, the broadband network will tend to be more symmetrical and bidirectional high-frequency bandwidth transmission to achieve greater network transmission capacity, higher speed and lower latency to meet the increasing new applications. Given the pursuit of large-scale information transmission and energy conservation and carbon reduction, these are the two main issues that the world is facing. The speed of network communication is also a key indicator of a country's competitiveness.

The application of the new generation of network not only needs the unobstructed downward transmission bandwidth, but also sufficient upward transmission capacity and speed. The emerging interactive social network platform, online live stream, online video/audio service, and online game popularity allow users to freely create and upload their works or information of various audio and video media to the cloud virtual park and the world. The new functions of 4K/8K high-definition digital TV, network applications, and multi-screen, such as smartphones and tablet PCs, combined with the audio-video multimedia application platform of various network APPs, have promoted the increase in the demand for the Internet's two-way bandwidth, especially in the past few years, the pandemic has become the best solution for people to maintain work and learning from home or in class, which shows that the expansion of network bandwidth is an urgent task. The downward frequency band of the HFC wired network needs to be upgraded accordingly. The network transmission frequency band has gradually increased from 1.2 GHz to 1.8 GHz, and the upward frequency band has expanded from 85 MHz to a wider band of 204 MHz, or even to 396 MHz in the future, which significantly increases the capacity and speed of the upward transmission.

In addition to the 1.2GHz series products, the down-stream transmission platform of 1.8GHz ultra-high frequency band developed by Darwin Opto Electronics, and the up-stream transmission technology with ultra-high capacity of 396MHz or more, and the up-stream slicing frequency band of 85MHz/204MHz/396MHz conversion module, the cable 10G transmission series products will enter mass production, which is a niche product that will be upgraded rapidly to the wired TV network transmission capacity. The Company can realize the 4.0 forward-looking goal of 10 GBPS of up-stream and down-stream speed by using the cable transmission standard of DOCSIS 4.0.

The advanced RF device, the high output low distortion GaN RF device, which is based on the high output low distortion Nitrogenated GaN (GAN) advanced material technology, has been certified by the large-scale MSO system operators in North America and is widely used. The products of the smart digital channel automatic profit management module of the DSIM series, which are applicable to different platforms, have a total of more than 15 application models in the main three competitors' platforms. It has been proven that the products are excellent in terms of product functions, which not only can significantly improve the stability of customer network transmission and signal quality, but also improve the performance of equipment management, equipment maintenance efficiency and user satisfaction. This unique patented product has been widely used in the construction of HFC network in North America. In addition, the Company launched the 1.2GHz ASEM series of multi-platform RF amplifiers, which is fully compatible with the functions of the three major competitors in the industry, and has passed the large-scale MSO customer certification, which is applicable to the direct upgrade of the MSO network equipment and one-stop shopping. By this way, the Company can penetrate into the product application field of competitors, expand customer base and product application, and expand the demand for network upgrades and new markets, which in turn create growth for the overall performance of the Company.

In the future, the cable backbone network will gradually move towards digital fiber optical IP transmission technology, and the network structure of the dispersed head-end network, i.e. the transmission network structure of the Remote PHY fiber optical node, can reduce the hardware equipment of the head-end computer room, save space and energy consumption, and improve the overall transmission signal quality, regulate the scale and speed. These are the directions of the current product development. Driven by the industry's new Cable 10G standards and broad prospects, the Company has actively invested in developing products that comply with DOCSIS 4.0 standards. It has successfully completed the core technology for 1.8GHz ESD products and is fully engaged in the development of extended bandwidth 1.8GHz smart RF amplifiers and cross-platform application products, offering optimal ultra-high-speed bidirectional symmetrical cable network solutions. In addition, the full-duplex and double-sided technology is also a possible focus of future product development to meet the needs of the new generation of dual-sided 10GBBS high-speed transmission network equipment, which is expected to be a key contribution to the Company's future performance growth. This is expected to be a key contribution to the Company's future performance growth.

In addition to hardware equipment products, the Company has successively developed the new-generation monitoring and management system "RECCOMS NMS" for head-end and remote devices, and the mobile app "ACI+" for equipment control via mobile devices. These are practically deployed in operators' networks to enhance product value, management efficiency, and strengthen long-term customer partnerships.

FTTH and RF triple-wavelength composite fiber transmission networks require multi-output, high-power optical signal amplifiers and integrated GPON/XGPON signal multiplexing transmission engines. The Company, with long-term expertise in related technologies, offers customized products for specific applications and a variety of models with different features and bandwidth options. The fiber-optic transformation of broadband networks is rapidly advancing. Using single-fiber and WDM (Wavelength Division Multiplexing) technology, a triple-play network integrating digital TV, multimedia data, and voice is being realized, with further development into quad-play networks by integrating mobile broadband services—these represent fast-growing trends.

IoT applications are expanding rapidly, with user-end broadband access and in-home network demands emphasizing simplicity and convenience. This includes FTTX passive optical transmission equipment, wireless networks, in-home multimedia, automated video surveillance, infrared imaging for monitoring and identification, which all support crime prevention, criminal investigation, homeland security, AI-assisted enforcement, and smart urban-rural care systems. In addition, smart home devices utilizing IoT to monitor and control appliances and safety systems offer a comfortable and secure living environment, laying the foundation for digital homes in future smart buildings. Besides improving the functionality and speed of network equipment, the Company actively incorporates smart energy management concepts into product design, enhancing power efficiency and reducing energy consumption in alignment with global carbon reduction goals. In these emerging fields, the Company closely monitors market trends and application directions, actively planning to capture future potential opportunities.

Complex system services is a specialized niche. Opportunities are emerging in defense-related military communication maintenance, border port surveillance systems, and dynamic vessel identification and monitoring platforms. To stay resilient amid fast-changing markets, we focus on mastering core technologies and maintaining our competitive edge in mainstream products. Our pursuit of excellence drives us to seize strong broadband and IoT demand, stay aligned with evolving application markets, and flexibly adjust our R&D direction and pace to grasp the main growth pulse and key to future success.

R&D expenses expected to be invested:

The Company's expected investment in R&D expenses is gradually recognized based on the progress of new product and new technology development. In previous years, R&D expenses accounted for 6% - 14% of operating revenues. In the future, the Company will continue to maintain a reasonable proportion depending on the operating situation to ensure the Company's competitive advantages.

(IV) The impact of significant domestic and foreign policy and legal changes on the Company's finance and business matters and the countermeasures

The Company and its subsidiaries always pay attention to important domestic and foreign policies and legal changes, and take the initiative to propose countermeasures in a timely manner. In recent years and as of the date of publication of the annual report, the Company has not been affected by important domestic and foreign policies and legal changes that have affected its financial operations.

(V) Impacts of technological changes (including cyber security risks) and industry changes on the Company's financial operations, and countermeasures

Cybersecurity risk:

The Company and its subsidiaries will review and introduce the ISO27001 information security regulations at any time to adjust the information security regulations based on the system hardware innovation, network software security and virus protection technology improvement.

Changes in technology and industry:

The Company and its subsidiaries always pay attention to the changes in related technologies in the industry and, depending on the situation, assign dedicated personnel or a project team to evaluate and research the impact of the Company's future development and financial operations and countermeasures. There is no material technological change in the most recent year and up to the date of publication of the annual report that has had a significant impact on the Company and its subsidiaries' financial operations.

(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 subsidiaries have been committed to maintaining its corporate image for many years and complying with laws and regulations. In the event of any event that affects the corporate image or violates the laws and regulations, the Company will initiate the contingency mechanism and formulate a response strategy. The Company and its subsidiaries also have a spokesperson responsible for maintaining relations with the public and investors, and the establishment of the corporate image. In recent years and as of the date of publication of the annual report, there have been no events that have affected the corporate image of the Company. In the future, while pursuing operational growth and maximizing shareholders' equity, the Company and its subsidiaries will also comply with government laws and regulations and fulfill corporate social responsibility to continue to maintain good corporate image.

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

In the most recent year and as of the date of publication of the annual report, there is no plan for merger or acquisition. In case of any merger or acquisition plan in the future, the Company and its subsidiaries will adhere to the procedures for acquisition or disposal of assets, maintain a prudent attitude, and take into account whether the merger or acquisition can bring about specific performance for the Company, in order to protect the Company's interests and shareholders' equity.

(VIII) Expected benefits of plant expansion, possible risks and countermeasures

In the most recent year and as of the date of publication of the annual report, the Company and its subsidiaries have not had any plans for plant expansions. However, if there is any plan for plant expansions in the future, the Company will adhere to a prudent evaluation attitude, and consider whether the plant expansions can bring specific benefits to the Company, in order to protect the Company's interests and shareholders' equity. The Company has established procedures for the acquisition or disposal of assets. In the future, if there is any plan for plant expansion, it will be implemented in accordance with these procedures.

(IX) Risks associated with the concentration of purchases and sales and countermeasures:

To ensure sufficient supply sources and gain bargaining leverage, the Company adopts a diversified procurement strategy. Sources of procurement cover multiple channels and brands, and new suppliers are continuously developed. No single supplier accounts for a high proportion, thereby mitigating the risk of raw material dependency.

In external sales, the Company possesses strong capabilities in R&D and brand differentiation integration, allowing it to swiftly launch corresponding products in response to market dynamics and customer demands, thereby securing leading supply opportunities and expanding market share. Due to the characteristics of the industry, the Company's customers are among the leading pay-TV operators and telecommunications companies in various countries. The Company maintains strong cooperative relationships with its customers and has long collaborated on product development. Going forward, the Company will continue to expand its customer base and strive to enhance overall competitiveness.

In conclusion, there is no risk of over-concentration in the Company's procurement or sales activities.

(X) Effects and risks of mass transfer or change in the equity held by Directors or major shareholders with a shareholding over 10% of the Company and countermeasures: None.

There was no significant transfer or change of shares by directors or major shareholders with more than 10% ownership interest in the most recent year and as of the date of publication of the annual report.

(XI) The impact of the change in management rights on the Company, the risks and countermeasures:

The Chairperson of the Board of Directors and other directors are all long-term participants in the Company's decision-making discussions, and are committed to the Company's operations. There is no significant change in the management, so there is no significant risk of change in the Company's operations.

(XII) Litigious and non-litigious matters:

In the event that the Company has been convicted by final and binding judgments or is still bound by significant litigation, non-litigation or administrative disputes in the last two years and up to the date of publication of the annual report, the results of which may have a significant impact on shareholders' equity or securities prices, the facts of the dispute, the amount of the subject matter, the date of commencement of the litigation, the main parties concerned, and the current status shall be disclosed: None.
Any litigation, non-litigation or administrative litigation with a judgment made or pending on the Company's directors, supervisors, General Manager, de facto person in charge, major shareholders holding more than 10% of the shares, and subsidiaries, in the last 2 years and up to the date of publication of the annual report, and the result of which may have a significant impact on the Company's shareholders' equity or securities price: None.

(XIII) Other important risks and countermeasures: None.

VII. Other important matters: none.

Six. Special Items to Be Included

I. Information on the Company's affiliates:

(I) Consolidated business report of affiliates:

Organizational chart of affiliates:

Basic information on affiliates:
December 31, 2025 Unit: NTD thousand

Enterprise name	Establishment Date	Address	Paid-in Capital	Main business or production items
ACI HOLDINGS, LLC	1999.10.01	23370 66^{th} Avenue South Kent, Washington 98032	US$8,692	Holding company
ACI COMMUNICATIONS, INC. (USA)	1999.09.24	23370 66^{th} Avenue South Kent, Washington 98032	US$6,692	Sales of broadband equipment
TWOWAY COMMUNICATIONS, INC. (Samoa)	2007.05.29	VISTRA CORPORATE SERVICES CENTRE, GROUND FLOOR NPF BUILDING, BEACH ROAD, APIA, SAMOA	US$2,328	Holding company
ACI COMMUNICATIONS VIETNAM CO., LTD.	2009.06.02	No.24, Street 1B, Binh Tri Dong B Ward, Binh Tan District., Ho Chi Minh City, Viet Nam	US$850	Sales of broadband equipment
PT. GLOBAL TWOWAY	2009.03.02	Rukan Avenue Unit. D No.8-191 Perum Jakarta Garden City Cakung ,Jakarta Timur 13910	US$685	Sales of broadband equipment
ACI COMMUNICATIONS (THAILAND) CO., LTD.	2009.11.13	383/1 Pracharat Bamphen Road SamSen Nok, Huai Khwang, Bangkok 10310, Thailand	THB16,000	Sales of broadband equipment
ASTER Technology Co., Ltd.	2012.09.04	No. 19, Aly. 16, Ln. 225, Yongji Rd., Xinyi Dist., Taipei City	NT100,000	Sales of broadband equipment
WECO COMMUNICATIONS, INC.	2016.06.22	Unit 7A-1 7/F ALPAP 1 Bldg., 140 L.P. Leviste St., Salcedo Village Bel-Air, Makati City	PHP10,090	Sales of broadband equipment
Sin Fong Agricultural Technology Co., Ltd.	2021.05.25	No. 39, Yuanshan, Xinfeng Township, Hsinchu County	NT2,000	Leisure Stadium
ACI SOLUTION PHILIPPINES INC.	2025.10.1	27TH FLOOR IBM PLAZA BUILDING E. RODRIGUEZ JR. AVENUE EAGUMBAYAN,EASTWOOD CITY, QUEZON CITY,SECOND DISTRICT,NATIONAL CAPITAL,REGION(NCR),1110 PHILIPPINES	PHP17,550	Sales of broadband equipment

The information of the same shareholder presumed to have control and subordinate relation: None.
Industries covered by the overall business of the affiliated companies: refer to Paragraph 2.

Information on directors, supervisors and presidents of affiliated companies:
December 31, 2025

Enterprise name	Title	Name or Representative	Shareholding
			Number of Shares	Shareholding Ratio
ACI HOLDINGS, LLC	Investor	TWOWAY Communications Inc.	US$8,692,283 (Note 1)	100%
	Sole member	Tai, Kuo-Yuan	-	-
ACI COMMUNICATIONS, INC. (USA)	Shareholder	ACI HOLDINGS, LLC.	2,000,000 shares	100%
	Director/President	Tai, Kuo-Yuan	-	-
	Director	Chen,Pi-Shuang	-	-
	Director	Tai, Chia-Hsin	-	-
TWOWAY COMMUNICATIONS, INC. (Samoa)	Investor	TWOWAY Communications Inc.	2,328,000 shares	100%
	Director	Tai, Kuo-Yuan	-	-
ACI COMMUNICATIONS VIETNAM CO., LTD.	Investor	TWOWAY Communications Inc.	US$850,000 (Note 1)	100%
	Director	Tai,Chia-Hsin	-	-
PT. GLOBAL TWOWAY	Investor	TWOWAY COMMUNICATIONS, INC. (Samoa)	US$685,000 (Note 1)	100%
	Managing Director	Tai, Kuo-Yuan	-	-
	Director	Tai, Chia-Wei	-	-
	Director	TONY	-	-
	Commissioner	Chen,Pi-Shuang	-	-
ACI COMMUNICATIONS (THAILAND) CO., LTD.	Investor	TWOWAY COMMUNICATIONS, INC. (Samoa)	160,000 shares	100%
	Director	Tai, Kuo-Yuan	-	-
	Director	Chen,Pi-Shuang	-	-
	Director	Supida Sae Kow	-	-
ASTER Technology Co., Ltd.	Investor	TWOWAY Communications Inc.	10,000,000 shares	100%
	Chairman	Tai-Chia Wei	-	-
WECO COMMUNICATIONS, INC.	Investor	TWOWAY COMMUNICATIONS, INC. (Samoa)	92,800 shares	91.97%
	Director	Tai, Kuo-Yuan	1,000 shares	0.99%
	Director	Chen,Pi-Shuang	1,000 shares	0.99%
	Director	Mary Rose M. Carlos	-	-
	Director	Rebecca H. Vallejos	-	-
	Director/President	Michelle M. Dela Cruz	-	-
Sin Fong Agricultural Technology Co., Ltd.	Investor	TWOWAY Communications Inc.	NTD 2,000,000 (Note 1)	100%
	Chairman	Chen,Pi-Shuang	-	-
ACI SOLUTION PHILIPPINES INC.	Investor	ACI COMMUNICATIONS, INC.	16,672,497 shares	95%
	Director	Chen Pi-Shuang	1 shares
	Director	Tai-Chia Wei	1 shares
	Director/President	Tai-Chia Hsin	1 shares

Note 1: The company is a limited liability company, so the original investment amount is used instead of the shareholding.

Overview of individual associated enterprises:
December 31, 2025 Unit: NTD thousand

Enterprise name	Capital	Total Value of Assets	Total Liabilities	Net Value	Operating revenues	Operating Profits (loss)	Current profit or loss (after tax)	Earnings per share
ACI HOLDINGS, LLC	USD 8,692	USD 9,527	-	USD 9,527	-	-	(USD 2,029)	-
ACI COMMUNICATIONS, INC. (USA)	USD 6,692	USD 13,080	USD 3,553	USD 9,527	USD 8,508	(USD 2,490)	(USD 2,029)	-
TWOWAY COMMUNICATIONS, INC. (Samoa)	USD 2,328	USD 905	-	USD 905	-	-	(USD 480)	-
PT. GLOBAL TWOWAY	USD 685	IDR 17,097,195	IDR 6,312,326	IDR 10,784,869	IDR 4,081,140	(IDR 2,542,530)	(IDR 2,550,513)	-
ACI COMMUNICATIONS VIETNAM CO., LTD.	USD 850	VND 4,616,782	VND 1,286,268	VND 3,330,514	VND 2,290,801	VND 467,096	VND 471,381	-
ACI COMMUNICATIONS (THAILAND) CO., LTD.	THB 16,000	THB 41,489	THB 34,907	THB 6,582	THB 15,330	(THB 2,958)	(THB 2,099)	-
WECO COMMUNICATIONS, INC	PHP 10,090	PHP 12,707	PHP 10,148	PHP 2,559	PHP 69	(PHP 9,125)	(PHP 16,281)	-
ASTER Technology Co., Ltd.	NTD100,000	NTD 304,904	NTD 115,153	NTD 189,751	NTD 447,030	NTD 126,624	NTD 103,226	-
Sin Fong Agricultural Technology Co., Ltd.	NTD 2,000	NTD 1,083	-	NTD 1,083	-	(NTD 40)	(NTD 33)	-
ACI SOLUTION PHILIPPINES INC.	PHP17,550	PHP 17,268	PHP 2,382	PHP 14,886	-	(PHP 2,732)	(PHP 2,664)

(II) Consolidated financial statements of affiliated companies: Please refer to page 95 of this annual report.
(III) Affiliation Report: The Company is a non-public company and hence is not required to prepare a relationship report.

II. Private placement of securities in the most recent year up till the publication date of this annual report: None.
III. Other matters requiring supplemental explanations: None.
IV. If any of the situations listed in Article 36, Paragraph 3, Subparagraph 2 of the Securities and Exchange Act, which might materially affect shareholder equity or the price of the Company's securities, has occurred during the most recent year or during the current year up to the date of publication of the annual report: None.

Declaration of Consolidated Financial Statements of Affiliated Enterprises

For the year ended December 31, 2025, pursuant to “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises,” the entity that is required to be included in the consolidated financial statements of affiliates, is the same as the entity required to be included in the consolidated financial statements of parent and subsidiary companies under International Financial Reporting Standards 10. Additionally, if relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies, it shall not be required to prepare separate consolidated financial statements of affiliates.

Hereby declare,

Company: Twoway Communications, Inc.
Chairman: Chen, Pi Shuang

March 11, 2026

Twoway Communications, Inc.
Chen, Pi Shuang

AI assistant

TWOWAY Annual Report 2025

52711_rns_2026-05-14_748ea4eb-a48f-4d0b-9de9-1160ff6e90ff.pdf

TWOWAY COMMUNICATIONS INC.

Table of Contents

2. Major shareholders of the corporate shareholder:

3. Major shareholders of the juristic-person shareholder, if the major shareholder is a legal entity: None.

4. Director information (II):

(1) Disclosure of professional qualification of Directors and independence of supervisors:

Remuneration for Directors, General Manager, and Deputy General Managers in the Most Recent Year

2. Information on the operations of the Remuneration Committee:

1-1 Company's Greenhouse Gas Inventory and Confirmation Status for the Most Recent Two Years

(1) Greenhouse gas inventory information

114th Anniversary ISO 14064-1:2018 Category Breakdown :

IV. Information on CPA Audit Fees:

V. Information on Change of CPAs:

2. Dividend distribution proposed at the shareholders' meeting:

(IV) Impacts of Proposed Stock Dividends on the Company's Business Performance and Earnings per share (EPS): None.

(V) Remuneration to employees and directors:

3. Current product and service items:

Forecast of fixed broadband subscribers from year 2024 to 2030

Source: Kagan

(4) Overview of the global IoT market

3. Development trends and competition of products

(4) Scale of Operation:

(5) Financial coordination:

II. Overview of the market, production, and sales:

(I) Market analysis:

2. Market share and future market supply and demand, growth, and competitive advantage:

2. Production process:

3. Resources invested in Information Security Management

II. Financial performance:

3. Inflation:

Six. Special Items to Be Included

AI assistant

TWOWAY — Annual Report 2025

52711_rns_2026-05-14_748ea4eb-a48f-4d0b-9de9-1160ff6e90ff.pdf

TWOWAY COMMUNICATIONS INC.

Table of Contents

2. Major shareholders of the corporate shareholder:

3. Major shareholders of the juristic-person shareholder, if the major shareholder is a legal entity: None.

4. Director information (II):

(1) Disclosure of professional qualification of Directors and independence of supervisors:

Remuneration for Directors, General Manager, and Deputy General Managers in the Most Recent Year

2. Information on the operations of the Remuneration Committee:

1-1 Company's Greenhouse Gas Inventory and Confirmation Status for the Most Recent Two Years

(1) Greenhouse gas inventory information

114th Anniversary ISO 14064-1:2018 Category Breakdown :

IV. Information on CPA Audit Fees:

V. Information on Change of CPAs:

2. Dividend distribution proposed at the shareholders' meeting:

(IV) Impacts of Proposed Stock Dividends on the Company's Business Performance and Earnings per share (EPS): None.

(V) Remuneration to employees and directors:

3. Current product and service items:

Forecast of fixed broadband subscribers from year 2024 to 2030

Source: Kagan

(4) Overview of the global IoT market

3. Development trends and competition of products

(4) Scale of Operation:

(5) Financial coordination:

II. Overview of the market, production, and sales:

(I) Market analysis:

2. Market share and future market supply and demand, growth, and competitive advantage:

2. Production process:

3. Resources invested in Information Security Management

II. Financial performance:

3. Inflation:

Six. Special Items to Be Included

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TWOWAY Annual Report 2025