Common Stock Code: 1313
MOPS:
https://mops.twse.com.tw
UPC:
https://www.upc.com.tw

UPC TECHNOLOGY CORPORATION

2024 ANNUAL REPROT

Published on March 31, 2025

Spokesperson and Deputy Spokesperson

Spokesperson: Chen, Yi-Jen/Manager

Deputy Spokesperson: Hsu, Kuei-Mei / Manager

Tel: +886-2-2651-7889 Ext.6003

E-mail: [email protected]

Headquarter and Plants

Headquarter:	9th Fl., Building A, No.209 Nangang Rd., Sec.1, Nangang Dist., Taipei, 115, Taiwan, R.O.C.	+886-2-2651-7889
Plants:
Taiwan Linyuan:	No.3, Kung-Yeh 2nd Rd., Linyuan Dist., Kaohsiung 832, Taiwan, R.O.C.	+886-7-641-3501
Mainland China	No.1, Yanjiang East 2nd Rd., Zhongshan Torch Hi-tech Industrial Development Zone, Zhongshan City, Guangdong Province 528437, China	+86-760-2338-2456
	No. 251, Shi-Hua 9th Rd., Gaolan Port Economic Zone, Zhuhai City, Guangdong Province 519050, China	+86-756-726-5670
	No.57 Linjiang West Rd., Dagang, Zhenjiang New District, Jiangsu Province 212006, China	+86-511-8336-2688
	No.9, Xinmu Rd., Binjiang Town, Taixing City, Jiangsu Province 225442, China	+86-523-8751-3999
	Liaobin Coastal Economic and Technological Development Zone of Panjin, Panjin City, Liaoning Province 124221, China	+86-427-677-1888
	No.150, Hexi Ave., Sec.1, Hexi Town, Jialing Dist., Nanchong City, Sichuan Province 637000, China	+86-817-226-9456
Malaysia	Lot 140, Jalan Gebeng 2/1, Kawasan Perindustrian Gebeng, 26080 Kuantan, Pahang, Malaysia	+60-9-580-6100

Stock Transfer Agent

Agency: Transfer Agency Department, CTBC Bank Co., Ltd.

Add.: 5F., No.83, Sec. 1, Chongqing S. Rd., Zhongzheng Dist., Taipei City 100, Taiwan

Website: https://www.ctbcbank.com

Tel.: +886-2-6636-5566

Auditors

Accounting Firm: Deloitte & Touche

Auditors: Liu, Chien-Liang, Lin, Wen-Chin

Add.: 20F, Taipei Nan Shan Plaza, No. 100, Songren Rd., Taipei 11073, Taiwan

Website: www.deloitte.com.tw

Tel: +886-2-2725-9988

Overseas Securities Exchange: None

Website: www.upc.com.tw

Notice to Readers

This English version annual report is a translation of the Chinese version and is not an official document of the shareholders' meeting. If there is any discrepancy between the English version and Chinese version, the Chinese version shall prevail.

Contents

Letter to Shareholders ... 1

Corporate Governance Report ... 3
I. Information of Directors, President, Vice Presidents, Assistant Presidents, and Managers of Each Department and Branch ... 3
II. Remuneration of Directors, President, and Vice Presidents ... 18
III. Implementation of Corporate Governance ... 22
IV. Information Regarding the Audit Fee ... 62
V. Information on Replacement of CPA ... 63
VI. Where the company's chairman, president, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting firm ... 63
VII. The most recent year and as of the publish date of annual report, information of any equity transfer and pledge of equity interests by directors, managereial officers, and shareholders with over 10% Shareholdings ... 63
VIII. Relationship among the company's top 10 shareholders its any one is a related party or a relative within the second degree of kinship ... 64
IX. The number of shares held by the company, the company's directors, managers and the business of the same investment company directly or indirectly controlled by the company, and the consolidated shareholding ratio ... 65

Capital Information ... 66
I. Capital and Shares ... 66
II. Implementation status of Corporate Bonds ... 69
III. Implementation status of Preferred Shares ... 69
IV. Implementation status of Issuance of Global Depository Receipts ... 69
V. Implementation status of Issuance of Employee Stock Warrants ... 70
VI. Implementation status of Issuance of New Restricted Employee Shares ... 72
VII. Implementation status of Issuance of new shares in connection with a merger or acquisition or with acquisition of shares of any other company ... 72
VIII. Financing Plans and Implementation ... 72

Operational Highlights ... 73
I. Business Overview ... 73
II. Market and Sales Overview ... 76

III. Employee demographic data for last two years as of the publication date of this annual report...80
IV. The expense of environmental protection ...81
V. Labor Relations...83
VI. Cyber security Management...85
VII. Important agreements...86

Financial status, operating results, and risk management review...88

I. Financial Status Analysis...88
II. The comparison and analysis of financial performance...89
III. Cash flow analysis...90
IV. The effect upon financial operations of any major capital expenditures during the latest fiscal year...90
V. The Company's reinvestment policy for the most recent year...90
VI. Analysis of Risk Management...90
VII. Other important matters...97

Important Notice...98

I. The consolidated business report of affiliates...98
II. The most recent year and as of publish the date of annual report, the private placement of securities information...98
III. Other matters that require additional description...98
IV. The most recent year and as of publish the date of annual report, any situations of listed in Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act, which significant impact on shareholders' equity and the Company securities price...98

Letter to Shareholders

Greetings to all of our valued shareholders,

The global economic environment over the past year was marked by uncertainties, and the market faced many challenges. Although inflationary pressure eased and interest rates showed a downward trend in the second half of the year, the global conflict continued to intensify, bringing more uncertainties to the economic recovery. The Chinese economy is under multiple pressures, including the real estate market's downturn, the intensification of debt problems, the weakening of domestic demand, and the continued impact of the US-China trade war. At the same time, the overcapacity of the industry caused an imbalance between supply and demand, the market competition intensified, and even instances where product prices fell below raw material costs. In such a challenging environment, the Company has always maintained a prudent attitude, and the management team has been committed to responding to the challenges, but losses were still difficult to avoid.

In the future, the Company will face market changes with more stable and flexible strategies. We will further strengthen cost control and operational efficiency, promote organizational optimization and digital transformation, and accelerate the research and development and deployment of high value-added products to improve corporate resilience and market competitiveness. We believe that these strategies will help to break through the current difficulties and lay the foundation for the Company's future growth and development.

I. 2024 Business Results

In 2024, the consolidated operating revenue of the Company reached NT$73.32 billion, with a slight growth of 0.2% compared to the previous year. However, due to market competition and raw material costs, the net loss after tax was NT$2.384 billion and NT$1.79 per share. In terms of production and sales, even though the external challenges are severe, the Company still maintains stable production and sales, produced 2.35 million tons and sold 1.99 million tons, representing a 2% annual increase.

II. The 2025 Business Plan and the Company's Future Development Strategy

Looking ahead to 2025, the global market will still be challenged by geopolitical risks, the potential escalation of the US-China trade war following the outcome of the US presidential election, and the impact of China's economic adjustment, presenting both challenges and opportunities. The Company will maintain a steady growth strategy, ensuring its competitive advantage through digital transformation, operational efficiency improvement and high-value product development. The specific measures are as follows:

Organization upgrade and business model enhancement

Strengthening strategic planning functions, strengthening market response and forward-looking decision-making; continuing to promote digitalization and information security, and introducing BI and AI to improve decision accuracy and operational efficiency.

Supply chain integration and flexible dispatching

Strengthening global supplier cooperation, adjusting the raw material contract and the proportion of inventory, and ensuring stable and competitive raw material supply. Enhancing the capacity of the supply chain, strengthening regional resource integration, and responding to market changes in a timely manner to reduce operational risks.

Market development and sales model innovation

The Company will make good use of regional market advantages and the diversified channels to promote smart marketing and precise customer management, and increase market penetration rate. Through digital logistics management and supply chain optimization, the Company improves delivery efficiency and strengthens export market deployment.

High value and sustainable product development

Development of special-purpose plasticizers, recycling products, and expansion of the application of special-purpose esters to different industries. Investment in the R&D of environmental protection materials and carbon reduction technology, promotion of the circular economy, and implementation of ESG responsibility.

Industrial Safety, Environmental Protection, and Corporate Sustainability

Strengthening process safety management, introducing AI monitoring and smart identification, ensuring a workplace free of injuries and accidents. Promotion of waste heat recovery, energy optimization and carbon emission management to achieve the international carbon reduction standards.

III. The External Competitive Environment, Regulatory Environment and Overall Business Environment Impact

In the face of global economic uncertainty and intensified competition in the industry, the Company will adopt digital transformation, operational efficiency improvement, enhanced supply chain and product innovation as its core strategies to respond to market changes and continue to create long-term value. Through a forward-looking business strategy, we work with our partners and shareholders to create sustainable growth in the future.

The Company wishes all shareholders good health and continued prosperity.

Chairman: Miau, Matthew Feng Chiang

President: Bih, Ann

Corporate Governance Report

I. Information of Directors, President, Vice Presidents, Assistant Presidents, and Managers of Each Department and Branch

(I) Directors
March 31, 2025 Unit: Share, %

Title	Nationality/ Place of Registration	Name	Gender/Age	Dates Elected	Year	Date First Elected	Shareholding when Elected		Current Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Education and Experience	Concurrent duties in the Company and in other companies	Executives, or Directors Who are Spouses or within Two Degrees of Kinehin		Remark (Note 2)
							share	%	share	%	share	%	share	%			Title	Name
Chairman	Republic of China	Yu Shiu Educational Foundation	-	May 24, 2024	2024	May 24, 2024	5,185,212	0.38	5,185,212	0.38	-	-	-	-	-	-	-	-	-
	USA	Rep.: Miao, Matthew Feng Chiang	Male / 71-180	May 24, 2024	2024	April 25, 1976	4,919,004	0.36	4,919,004	0.36	-	-	-	-	Honorary Ph.D., National Chiao Tung University MBA, Santa Clara University BSEE, University of California, Berkeley Laureate of Industrial Technology Research Institute (ITRI) President, UPC Technology Corp. President, Linde Lienhwa Industrial Gases Co., Ltd. Chairman, SYNNEX Corporation Independent Director, Galileo International, Inc. Independent Director, The BOC Group Plc. Independent Director, Linde AG Delegate, APEC Business Advisory Council (ABAC) Convener, Civil Advisory Committee of National Information & Communications Initiatives (NICI) Director, TD SYNNEX Corporation Chairman, Chinese National Federation of Industries (CNFI)	CSO, UPC Technology Corp. Chairman, Lien Hwa Industrial Holdings Corp. Chairman, Synnex Technology International Corp. Chairman, MiTAC Holdings Corp. Chairman, MiTAC Incorporated Director, Getac Holdings Corp. Independent Director, Cathay Financial Holding Co. Ltd. Director, CTCI Foundation	Director	Miao, Feng-Sheng	Brothers

Title	Nationality/ Place of Registration	Name	Gender/Age	Dates Elected	Year of Eligibility	Date First Elected	Shareholding when Elected		Current Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Education and Experience	Concurrent duties in the Company and in other companies	Executives, or Directors Who are Spouses or within Two Degrees of Kinship		Remark (Note 2)
							share	%	share	%	share	%	share	%			Name	Name
Director	Republic of China	Tsu Fung Investment Corp.	-	May 24, 2024	2024	May 24, 2024	17,460,231	1.28	17,460,231	1.28	-	-	-	-	-	-	-	-	-
	Republic of China	Rep.: Chen, Chur	Male 7'11'-80	May 24, 2024		October 25, 2013	-	-	-	-	-	-	-	-	Master of Law, National Taiwan University
Vice President and President of the Executive Yuan, Taiwan, R.O.C.
Chairman, Financial Supervisory Commission
Chairman, Taiwan Stock Exchange;
Chairman, Taiwan Cooperative Bank	Chair Professor at School of Law and School of Business, Soochow University.
Independent Director USI Corp.
Chairman, The Appacus Fundation.
Chairman, The Vision Project Fundation.	-	-	-
Director	Republic of China	Bih, Ann	Female 6'11'-70	May 24, 2024	2024	January 4, 2024	634,000	0.05	634,000	0.05	-	-	-	-	Master of Chemistry, National Tsing Hua University
Executive Master of Business Administration, NSYSU
Vice President and Spokesperson of CPC Corporation, Taiwan.	President, UPC Technology Corp.
Chairman:
Wei Chen Investment Co.,
Taiwan Union Int'l Investment Corp.
Zhenjiang Union Chemical Industry Co., Ltd.
Zhongshan Unicizers Industrial Co., Ltd.
Zhuhai Unicizers Industrial Co., Ltd.
Taizhou Union Chemical Industry Co., Ltd.
Taizhou Union Logistics Co., Ltd.
Taizhou Union Plastics Industry Co., Ltd.
Jiangsu Union Logistics Co. Ltd.
Guangdong Union Logistics Co., Ltd.
Panjin Union Chemical Industrial Co., Ltd.
Panjin Union Logistics Co., Ltd.
Panjin Union Materials Industry Co., Ltd.
Nanchong Unicizers Industrial Co., Ltd.
Executive Director:
Zhenjiang Union Torch Estate Co., Ltd.
Director:
Union Venture Capital Corp.
Harbinger VII Venture Capital Corp.
LienHwa United LPG Co., Ltd.
Taita Chemical Company, Ltd
Asia Polymer Corp.
China General Terminal & Distribution Corp.
UPC Chemicals (Malaysia) SDN. BHD.
UPCM Trading (Thailand) Co., Ltd.
UPCM Trading (Vietnam) Co., Ltd.	-	-	-	-

Title	Nationality/ Place of Registration	Name	Gender/Age	Dates Elected	Year of Elig.	Date First Elected	Shareholding when Elected		Current Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Education and Experience	Concurrent duties in the Company and in other companies	Executives, or Directors Who are Spouses or within Two Degrees of Kinship		Remark (Note 2)
							share	%	share	%	share	%	share	%			Name	Name
Director	Republic of China	Lien Hwa Industrial Holdings Corp.	-	May 24, 2024	2024	April 25, 1976	424,880,973	31.10	424,880,973	31.05	-	-	-	-	-	-	-	-	-
	Republic of China	Rep.: Hsu, Tsao Hua	Male / 51~60	May 24, 2024	2024	January 29, 2024	-	-	-	-	-	-	-	-	Ph.D., Department of Civil Engineering, National Chung Hsing University Vice President, Taiwan Power Company	Senior Vice President, UPC Technology Corp. Chief of Staff, Lien Hwa Industrial Holdings Corp. Director, Asia Hydrogen Energy Corp.	-	-	-
Director	Republic of China	Hsueh, Chang-Wei	Male / 61~70	May 24, 2024	2024	June 9, 2006	4,853,520	0.36	4,853,520	0.35	-	-	-	-	MBA, Cornell University Master of Engineering, University of California, Irvine	Chairman, Huanwarp Enterprise Co., Ltd. Chairman, China Synthetic Fiber Corp. Director, Dah Chung Bills Finance Corp.	-	-	-
Director	Republic of China	Miao, Feng-Sheng	Male / 71~80	May 24, 2024	2024	May 17, 1991	991,241	0.07	991,241	0.07	-	-	-	-	Master of Science Electrical Engineering, Santa Clara University. General Manager, MiTAC (USA) Inc. Chairman, BOC Lien Hwa Industrial Gases Co., Ltd. HanTech Venture Capital Corporatioin	Vice Chairman, Lien Hwa Industrial Holdings Corp. Director, MiTAC Inc. Director, MiMAC InformationTechnology Corp. Director, Great Wall Enterprise Co., Ltd. Honorary Chairman, Linde Lienhwa Industrial Gases Co., Ltd. Director, Lienhwa Lox Cryogenic Equipment Corp. Director, Confederate Technology Co., Ltd. Director, Far Eastern Industrial Gases Co., Ltd. Director, Hua Cheng Investment Co., Ltd. Director, United Industrial Gases Co., Ltd. Supervisor, Harbinger VII Venture Capital Corp.	Chairman	Miau, Matthew Feng Chiang	Brothers
Independent Director	Republic of China	Pan, Wenent P.	Male / 71~80	May 24, 2024	2024	June 5, 2012	-	-	-	-	-	-	-	-	Master degree and P.h.D in Department of Chemical Engineering, University of Wyoming Chairman, CPC Chairman, Kuo Kuang Power Co. Ltd. Chairman, Gintech Corp. Independent director, China Petrochemical Development Corp.	Chairman, CTCI Foundation Director, CTCI Corp. Independent director, U-Ming Marine Transporhairmant Corp.	-	-	-

Title	Nationality/Place of Registration	Name	Gender/Age	Dates Elected	Year	Date First Elected	Shareholding when Elected		Current Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Education and Experience	Concurrent duties in the Company and in other companies	Executives, or Directors Who are Spouses or within Two Degrees of Kinship		Remark (Note 2)
							share	%	share	%	share	%	share	%			Title	Name
Independent Director	Republic of China	Hwang, Jung-Chiou	Male 771-888	May 24, 2024	2024	June 8, 2018	-	-	-	-	-	-	-	-	Ph. D., Computer Science of National Chiao Tung University Chairman, Taiwan Power Company Administrative Deputy Minister, Ministry of Economic Affair, R.O.C (MOEA) Executive Director and Vice-Chairman of the State-run Association of the Ministry of Economic Affairs (MOEA) Director General, Department of Industrial Technology, MOEA	Independent director, Century Wind Power Co., Ltd. Independent director, Waffer Technology Corp. Director, SunYunSuan Culture and Education Foundation Director, Sanlian Science and Technology Education Foundation Director, Chung Yuan Christian University	-	-	-
Independent Director	Republic of China	Chiang, Kuo Yu	Male 771-888	May 24, 2024	2024	May 24, 2024	-	-	-	-	-	-	-	-	Department of English, Tamkang University	Chairman, Dajiang International Co., Ltd. Chairman, Dajiang Textile Co., Ltd. Chairman, Singqiao Film Co., Ltd. Chairman, Chi Kuo Fu-Cai Co., Ltd. Chairman, Chi Kuo Construction Co., Ltd. Director, Taiwan Spinner's Association	-	-	-

Note 1: Please refer to Table 1 below for information on the main shareholders of institutional shareholders.
Note 2: Where the chairman and general manger or equivalent position (highest level executive manager) is the same person, the spouse or a first-degree relative, the reason, reasonable, necessity and response measures (such as increasing the number of independent director seats and more than half of all directors not concurrently serving as employees or executive managers) must be disclosed: Not applicable.

Table 1 : Major shareholders of the Institutional Shareholders
March 31, 2025

Name of Institutional Shareholders	Main Shareholders	Shareholding Percentage (%)
Lien Hwa Industrial Holdings Corp.	UPC Technology Corp.	9.68
	Yi Yuan Investment Co., Ltd.	9.14
	Yi Feng Investment Co., Ltd.	4.86
	Miau, Matthew Feng Chiang	3.19
	Miao, Feng-Chuan	3.02
	Yu Shiu Educational Foundation	3.00
	Lien Hwa Industrial Holdings Corp. Employee Welfare Committee	2.82
	MiTAC International Corp.	2.79
	Jason Chow	2.38
	Miao, Feng-Sheng	2.23
Tsu Fung Investment Corp.	MiTAC International Corp.	100.00
Yu Shiu Educational Foundation (Note2)	MiTAC International Corp.	10.00
	Getac Holdings Corp.	10.00
	Synnex Technology International Corp.	20.00
	Lien Hwa Industrial Holdings Corp.	20.00
	UPC Technology Corp.	20.00
	Mix System Holdings Ltd.	20.00

Note1: If the major shareholders is an institutional entity, its major shareholders please refer to Table 2.
Note2: The shareholding ratio is the donation ratio.

Table2: Major Shareholders of the Company's Major Institutional Shareholders
March 31, 2025

Name of Institutional Shareholders	Main Shareholders	Shareholding Percentage (%)
UPC Technology Corp.	Lien Hwa Industrial Holdings Corp.	31.05
	Synnex Technology International Corp.	5.04
	Mei An Investment Co., Ltd.	1.80
	Yi Yuan Investment Co., Ltd.	1.57
	Liberty Stationery Corp.	1.51
	Tsu Fung Investment Corp.	1.28
	MiTAC International Corp.	1.18
	Tong Da Investment Corp.	1.06
	Yi Feng Investment Co., Ltd.	0.96
	JPMorgan in custody for Vanguard Total International Stock Index Fund, a series of Vanguard Star Funds.	0.66
Yi Yuan Investment Corp.	Overcome Holdings Limited (British Virgin Islands)	100.00
Yi Feng Investment Corp.	Rich Cycle Limited (British Virgin Islands)	100.00
Yu Shiu Educational Foundation (Note)	MiTAC International Corp.	10.00
	Getac Holdings Corp.	10.00
	Synnex Technology International Corp.	20.00
	Lien Hwa Industrial Holdings Corp.	20.00
	UPC Technology Corp.	20.00
	Mix System Holdings Ltd.	20.00

Name of Institutional Shareholders	Main Shareholders	Shareholding Percentage (%)
Lien Hwa Industrial Holdings Corp. Employee Welfare Committee	Not applicable	-
MiTAC International Corp.	MiTAC Holdings Corp.	100.00
Getac Holdings Corp.	MiTAC Holdings Corp.	30.70
	Yuanta Taiwan Dividend Plus ETF account	5.79
	Fuh Hwa Taiwan Technology Dividend Highlight ETF Securities Investment Trust Fund Account with Taipei Fubon Commercial Bank Co., Ltd. acting as custodian	3.60
	Mei An Investment Co., Ltd.	2.50
	Tsu Fung Investment Corp.	1.46
	Labor Pension Fund	1.35
	Taiwan Business Bank, Ltd.	1.23
	Lien Hwa Industrial Holdings Corp.	1.16
	Citibank (Taiwan) is entrusted with the custody of the Norwegian Central Bank's investment account	1.10
	Chunghwa Post Co., Ltd.	0.95
Synnex Technology International Corp.	Mitac Inc.	15.62
	Yuanta Taiwan Dividend Plus ETF account	5.12
	Fuh Hwa Taiwan Technology Dividend Highlight ETF Securities Investment Trust Fund Account with Taipei Fubon Commercial Bank Co., Ltd. acting as custodian	3.65
	Lien Hwa Industrial Holdings Corp.	3.57
	Morgan Stanley Capital International managed account with HSBC (Taiwan) acting as custodian bank	3.27
	Hua Nan Bank entrusted for custody to Yuanta Taiwan Value High Dividend ETF	2.17
	Tu, Shu-Wu	2.17
	Rong Syuan Investments Co., Ltd.	2.16
	Yuanta Taiwan High Dividend Low Volatility ETF Fund Account	1.95
	Miau, Matthew Feng Chiang	1.71
Lien Hwa Industrial Holdings Corp.	UPC Technology Corp.	9.68
	Yi Yuan Investment Co., Ltd.	9.14
	Yi Feng Investment Co., Ltd.	4.86
	Miau, Matthew Feng Chiang	3.19
	Miao, Feng-Chuan	3.02
	Yu Shiu Educational Foundation	3.00
	Lien Hwa Industrial Holdings Corp. Employee Welfare Committee	2.82
	MiTAC International Corp.	2.79
	Jason Chow	2.38
	Miao, Feng-Sheng	2.23
Mix System Holdings Ltd.	Mitac Inc.	100.00

Note: The shareholding ratio is the donation ratio.

Director Information

I. Disclosure of professional qualifications of directors and independence of independent directors:

Name	Criteria	Professional qualifications and experience
Yu Shiu Educational Foundation Representative: Miau, Matthew Feng Chiang		Has more than 5 years of work experience in the area of commerce, law, finance or accounting or otherwise necessary for the business of the Company.
Specialized in IT channel strategic planning, global production, enterprise operations, joint ventures and strategic alliance, venture capital and other fields of management capabilities.	Status of independence: (6), (8), (9), (11)
Status of non-independence:
(1) Managers of the Company and affiliates.
(2) Chairman and directors of the Company and affiliates.
(3) Top ten natural person shareholders.
(4) The abovementioned managers: a spouse, relative within the second degree of kinship or lineal relative within the third degree of kinship, of any of the above persons listed in Sub-paragraph (2) and (3) or of the managers listed in (1).
(5) Chairman of the corporate shareholder (Lien Hwa Industrial Holdings Corporation and Synnex Technology International) which directly holds 5% or more of the total number of issued shares or ranked among the top five shareholders of the Company or as a representative and employee of the corporate shareholder (Lien Hwa Industrial Holdings Corporation) appointed in accordance with Paragraph 2, Article 27 of the Company Act.
(7) A director or employee of another company (Lien Hwa Industrial Holdings Corporation, Synnex Technology International and MiTAC), who is also the chairman, president or an equivalent position or a spouse of these personnel of the Company.
(10) A relative within the second degree of kinship of Director Miao, Feng-Sheng
(12) Elected as a legal person representative in accordance with Article 27 of the Company Act.	1

Criteria Name	Professional qualifications and experience	Independence (Note 1)	Concurrently serving as an independent director in other publicly listed companies (Note 2)
Bih, Ann	Has more than 5 years of work experience in the area of petrochemical industry, commerce, finance or accounting, or otherwise necessary for the business of the Company. Proficient in corporate operations management, strategic alliances, petrochemical industry, financial accounting, and hedging operations in oil, petrochemicals, and derivative commodities.	Status of independence: (3) to (12) Status of non-independence: (1) Manager of the Company and affiliates. (2) Chairman and directors of the Company and affiliates.	0
Tsu Fung Investment Corp. Representative: Chen, Chun	Has more than 5 years of work experience in the area of law, commerce, finance or banking or knowledge and skills in the area of risk management. Specializes in financial supervision and management, financial laws and regulations, venture capital and management of the industry, government and academe collaboration.	Status of independence: (1), (3) to (11) Status of non-independence: (2) Directors of the Company. (12) Elected as a legal person representative in accordance with Article 27 of the Company Act.	1
Lien Hwa Industrial Holdings Corporation Representative: Hsu, Tsao Hua	Have more than 5 years of work experience in the area of electricity, energy and finance, or otherwise necessary for the business of the Company. Proficient in corporate operations management, electricity, and energy management.	Status of independence: (2), (3), and (6) to (11) Status of non-independence: (1) The Manager of the Company and affiliates. (4) The manager referred to in (1) above. (5) An employee of the corporate shareholder (Lien Hwa Industrial Holdings Corporation) that directly holds 5% percent or more of the total number of issued shares of the Company, or that ranks among the top five in shareholdings, or that designates its representative to serve as a director of the Company under Article 27, paragraph 2 of the Company Act. (12)Elected as a legal person representative in accordance with Article 27 of the Company Act.	0

Criteria Name	Professional qualifications and experience	Independence (Note 1)	Concurrently serving as an independent director in other publicly listed companies (Note 2)
Miao, Feng-Sheng	Has more than 5 years of work experience in the area of commerce, finance or accounting or otherwise necessary for the business of the Company. Specializes in the channel strategic planning, joint venture, strategic alliance, venture capital and other management capabilities in the electronic industry.	Status of independence: (1), (3), (6), (7), (8), (9), (11), (12) Status of non-independence: (2) Directors of the Company. (4) A spouse, relative within the second degree of kinship or lineal relative within the third degree of kinship of any of the above persons listed in Sub-paragraph (2). (5) Director of the corporate shareholder (Lien Hwa Industrial Holdings Corporation) which directly holds 5% or more of the total number of issued shares or ranked among the top five shareholders of the Company and as a director of the corporate shareholder (Lien Hwa Industrial Holdings Corporation) appointed in accordance with Paragraph 2, Article 27 of the Company Act. (10) A relative within the second degree of kinship of Director Miau, Matthew Feng Chiang.	0
Hsueh, Chang-Wei	Has more than 5 years of work experience in the area of commerce, finance or accounting or otherwise necessary for the business of the Company. Specialize in enterprise operation, venture capital and other fields of management capabilities.	Status of independence: (1), (4) to (12) Status of non-independence: (2) Directors of the Company. (3) Top ten natural person shareholders.	0
Pan, Wenent P.	Has more than 5 years of work experience in the area of petrochemical industry, power or engineering or otherwise necessary for the business of the Company. Specializes in energy enterprise operation, joint venture, strategic alliance and other fields of management capabilities.	Status of independence: (1) to (12) Status of non-independence: None.	1

Name\Criteria	Professional qualifications and experience	Independence (Note 1)	Concurrently serving as an independent director in other publicly listed companies (Note 2)
Hwang, Jung-Chiou	Have more than 5 years of work experience in the area of information, power and finance or otherwise necessary for the business of the Company. Leadership in industry, government and academic collaboration, and enterprise operation, venture capital and other fields of management capabilities.	Status of independence: (1) to (12) Status of non-independence: None.	2
Chiang, Ku Yu	Have more than 5 years of work experience in the area of information, power and finance or otherwise necessary for the business of the Company. Proficient in management capabilities in areas such as international trade, corporate operations, innovative research and development, and industrial transformation.	Status of independence: (1) to (12) Status of non-independence: None.	0

Note1: Please tick the corresponding boxes that apply to the directors during the two years prior to being elected or during the term of office.

(1) Not an employee of the company or any of its affiliates.
(2) Not a director or supervisor of the company or any of its affiliates. (This restriction does not apply to independent directors appointed in accordance with this Act or the laws and regulations of the local country by, and concurrently serving as such at, the company and its parent or subsidiary or a subsidiary of the same parent.)
(3) Not a natural-person shareholder who holds shares, together with those held by the person's spouse, minor children or held by the person under others' names, in an aggregate of one percent or more of the total number of issued shares of the company or ranking in the top 10 in holdings.
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of a manger under (1) or any of the persons in (2) or (3).
(5) Not a director, supervisor or employee of a corporate shareholder that directly holds five percent or more of the total number of issued shares of the company, or that ranks among the top five in shareholdings, or that designates its representative to serve as a director or supervisor of the company under Article 27, paragraph 1 or 2 of the Company Act.(this restriction does not apply to independent directors appointed in accordance with this Act or the laws and regulations of the local country by and concurrently serving as such at, the company and its parent or subsidiary or a subsidiary of the same parent.)
(6) Not a director or supervisor of the company or any of its affiliates. (This restriction does not apply to independent directors appointed in accordance with this Act or the laws and regulations of the local country by and concurrently serving as such at, the company and its parent or subsidiary or a subsidiary of the same parent.)
(7) Not a chairman, general manager or person holding an equivalent position of the company and a person in any of those positions at another company or institution are the same person or are spouses: a director (or

governor), supervisor, or employee of that other company or institution. (This restriction does not apply to independent directors appointed in accordance with this Act or the laws and regulations of the local country by, and concurrently serving as such at, the company and its parent or subsidiary or a subsidiary of the same parent.)

(8) Not a director, supervisor, manager or shareholder holding five percent or more of the shares, of a specified company or institution that has a financial or business relationship with the Company. (this restriction does not apply if specified company or institution holds 20 percent or more and no more than 50 percent of the total number of issued shares of the Company and independent directors appointed in accordance with this Act or the laws and regulations of the local country by, and concurrently serving as such at, the company and its parent or subsidiary or a subsidiary of the same parent.)

(9) Not a professional individual who, or an owner, partner, director, supervisor, or manager of a sole proprietorship, partnership, company, or institution that, provides auditing services to the company or any affiliate of the company, or that provides commercial, legal, financial, accounting or related services to the company or any affiliate of the company for which the provider in the past 2 years has received cumulative compensation exceeding NT$500,000, or a spouse thereof; this restriction does not apply to a member of the remuneration committee, public tender offer review committee, or special committee for merger/consolidation and acquisition, who exercises powers pursuant to the Security and Exchange Act or to the Business Mergers and Acquisitions Act or related laws or regulations.

(10) Not a spouse or relative within the second degree of kinship of other directors.

(11) Not have any of the circumstances in the subparagraphs of Article 30 of the Company Act.

(12) Not elected in the capacity of the government, a juristic person, or a representative thereof, as provided in Article 27 of the Company Act.

Note 2. Calculation in accordance with Article 4 of Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies.

II. Board Diversity and Independence:

(I) Diversity of the Board:

The Paragraph 3, Article 20 of the Company's Corporate Governance Best Practice Principles has defined that the composition of the board should be diverse. In addition to limiting those who hold concurrent positions to no more than one-third of the total board seats, the diversity policy should be formulated based on the Company's operations, business activities and growth, and should include, but is not limited to, the standard of the following two aspects:

Background and value: Gender, age, nationality, culture etc. At least one-third of the number of directors should be female.
Knowledge and skills: Career background (e.g., law, accounting, industry, finance, marketing or technology), professional skill and industry experience.

In addition to the abovementioned ideal goal of the ratio of female directors, Paragraph 4, Article 20 of the Corporate Governance Best Practice Principles specifies the knowledge, skills, and characters needed for directors to perform their duties. In order to achieve the goals of corporate governance, the board as a whole should have the following capabilities: Ability to make operational judgments, Accounting and financial analysis, Business administration, Crisis management, Industry Knowledge, Vision of the global market, Leadership skills and Decision making ability.

Directors such as Miau, Matthew Feng Chiang, Miao, Feng-Sheng, Hsueh, Chang-Wei and Hsu, Tsao Hua specialize in leadership, decision-making in operation, business management and risk management; independent director Pan, Wenent P. and director Bih, Ann have professional background in chemical engineering and provide strategic recommendations for the Company's business and factory construction; and independent director Chiang, Kuo Yu has extensive corporate management experience and international market perspectives. Director Chen, Chun and independent director Hwang, Jung-Chiou have years of experience in the industry, government and academic collaboration and offer great assistance to the Company's business operations. The achievement of the company's diversification policy objectives as follows:

At least one-third of all directors have experience in the petrochemical industry and expertise in information technology: Achieved.

At least one-third of the independent directors have petrochemical industry experience, information technology or accounting expertise: Achieved.

At least one different gender director of all members: Achieved.

As the number of directors of any single gender did not reach one-third of the Board seats, the Company has provided an explanation and formulated measures to promote gender diversity on the Board.

The Company has established nine seats of directors in accordance with the Articles of Incorporation. The current directors were elected during the shareholders' meeting on May 24, 2024. However, there is only one female director. Although the Company has complied with the relevant laws and regulations, the female directors are still less than one-third of the total number of directors. The plastic industry is unique in that the majority of the professionals and directors are men. It is not easy to recruit female professional directors in a short time.

Before the end of the current term of directors, the Company plans to actively seek talent from the production, government, and academic channels to improve its corporate governance performance, and to implement the policy of diversification of the Board of Directors.

The implementation is as follows:

Position	Name	Basic component						Industry experience and professional competence
		Gender	Nationality	Non-current Position as Employee of the Company	Age		Service term of independent directors	Industry experience				International market view	Leadership	Decision-making capacity	Operational judgment	Financial accounting skills	Management ability	Crisis management ability
					Under 65 years old	Over 65 years old	Under 6 years	Over 6 years	Petrochemical	Information technology	Law	Electricity	Business	Business	Business	Business	Business	Business
Chairman	Miau, Matthew Feng Chiang	Male	US	V	V				V	V			V	V	V	V	V	V
Director	Chen, Chun	Male	Republic of China		V				V		V		V	V	V	V	V	V
Director	Hsu, Tsao Hua	Male	Republic of China	V		V			V			V		V	V	V	V	V
Director	Bih, Ann	Female	Republic of China	V		V			V					V	V	V	V	V
Director	Hsueh, Chang-Wei	Male	Republic of China		V								V	V	V	V	V	V
Director	Miao, Feng-Sheng	Male	Republic of China		V					V			V	V	V	V	V	V
Independent Director	Pan, Wenent P.	Male	Republic of China		V			V	V			V		V	V	V	V	V
Independent Director	Hwang, Jung-Chiou	Male	Republic of China		V			V		V		V		V	V	V	V	V
Independent Director	Chiang, Kuo Yu	Male	Republic of China		V		V						V	V	V	V	V	V

(II) Independence of the Board:

The Company's board guides the Company's strategy and supervises the management, and is responsible to the Company and shareholders. In terms of the operations and arrangements of the corporate governance system, the board exercises its powers in accordance with the laws and regulations, the Articles of Incorporation or the resolutions of the shareholders' meetings. The board of the Company emphasizes the functioning of independent operations and transparency. Directors and independent directors are independent individuals and exercise their powers independently. The 3 independent directors also abide by the relevant laws and regulations and combined with the functions and powers of the audit committee review the control of the Company's existing or potential risks to supervise the effective implementation of the Company's internal control, the selection (dismissal) of independence of certified accountants and the adequate preparation of financial statements.

In addition, the selection and appointment of directors and independent director adopt the cumulative voting method and the candidate nomination approach according to the "Procedures for Election of Directors", and shareholders are encouraged to participate in the voting. Shareholders who have a certain number of shares may propose their list of candidates. The review of candidates' qualifications and whether or not they have violated the clauses listed in Article 30 of the Company Act are subject to the laws and regulations in order to protect the rights and interests of shareholders and maintain their independence.

Until the publish date of annual report, the Company has 9 directors (including 3 independent directors), one-third of the Board members concurrently serve as employees of the Company, and the independent director take 33% of the members of Company's board. Except for 2 of the directors (Chairman Miau, Matthew Feng Chiang and Director Miao, Feng-Sheng), who are relatives within the second degree of kinship to each other, there is no marital relationship nor a relative within the second degree of kinship to any other directors of the Company. Therefore, there is no violation of the provisions of Paragraph 3 and 4 of Article 26-3 of the Securities and Exchange Act.

(II) Information of Presidents, Vice Presidents, Assistant Vice Presidents, and Managers of Each Department and Division
March 31, 2025 Unit: share, %

Title	Nationality	Name	Gender	Effective Date	Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Experience (Education)	Other Position	Managers who are Spouses or Within Two Degrees of Kinehin			Remark (Note 1)
					Shares	%	Shares	%	Shares	%			Title	Name	Relation
President	Republic of China	Bih, Ann	Female	August 3, 2023	634,000	0.05	-	-	-	-	Master of Chemistry, National Tsing Hua University Executive Master of Business Administration, NSYSU Vice President and Spokesperson of CPC Corporation, Taiwan.	Chairman: Wei Chen Investment Co., Taiwan Union Int'l Investment Corp. Zhenjiang Union Chemical Industry Co., Ltd. Zhongshan Unicizers Industrial Co., Ltd. Zhuhai Unicizers Industrial Co., Ltd. Taizhou Union Chemical Industry Co., Ltd. Taizhou Union Logistics Co., Ltd. Taizhou Union Plastics Industry Co., Ltd. Jiangsu Union Logistics Co. Ltd. Guangdong Union Logistics Co., Ltd. Panjin Union Chemical Industrial Co., Ltd. Panjin Union Logistics Co., Ltd. Panjin Union Materials Industry Co., Ltd. Nanchong Unicizers Industrial Co., Ltd. Executive Director: Zhenjiang Union Torch Estate Co., Ltd. Director: Union Venture Capital Corp. Harbinger VII Venture Capital Corp. LienHwa United LPG Co., Ltd. Taita Chemical Company, Ltd Asia Polymer Corp. China General Terminal & Distribution Corp. UPC Chemicals (Malaysia) SDN. BHD. UPCM Trading (Thailand) Co., Ltd. UPCM Trading (Vietnam) Co., Ltd.	-	-	-	-
Senior Vice President	Republic of China	Hsu, Tsao Hua	Male	January, 16, 2025	-	-	-	-	-	-	Ph.D., Department of Civil Engineering, National Chung Hsing University Vice President, Taiwan Power Company	Chief of Staff, Lien Hwa Industrial Holdings Corp. Director, Asia Hydrogen Energy Corp.	-	-	-
Vice President	Republic of China	Wu, Cheng-Chien Simon	Male	Feb, 1, 2012	2,759,342	0.20	-	-	-	-	The University of Dallas, MBA Controller, Acer affiliated Co. Executive Finance Vice President, Best Power Technology Co. Chairman, Wei Chen Investment Co.	None	-	-	-	-

Title	Nationality	Name	Gender	Effective Date	Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Experience (Education)	Other Position	Managers who are Spouses or Within Two Degrees of Kinship			Remark (Note 1)
					Shares	%	Shares	%	Shares	%			Title	Name	Relation
Chief Strategy Officer	USA	Miau, Matthew Feng Chiang	Male	May 7, 2020	4,919,004	0.36	-	-	-	-	Honorary Ph.D., National Chiao Tung University MBA, Santa Clara University BSEE, University of California, Berkeley Laureate of Industrial Technology Research Institute (ITRI) President, UPC Technology Corp. President, Linde Lienhwa Industrial Gases Co., Ltd. Chairman, SYNNEX Corporation Independent Director, Galileo International, Inc. Independent Director, The BOC Group Plc. Independent Director, Linde AG Delegate, APEC Business Advisory Council (ABAC) Convener, Civil Advisory Committee of National Information & Communications Initiatives (NICI) Director, TD SYNNEX Corporation Chairman, Chinese National Federation of Industries (CNFI)	Chairman, Lien Hwa Industrial Holdings Corp. Chairman, Synnex Technology International Corp. Chairman, MiTAC Holdings Corp. Chairman, MiTAC Incorporated Director, Getac Technology Corp. Independent Director, Cathay Financial Holding Co. Ltd. Director, CTCI Foundation	-	-	-	-
Plant Manager	Republic of China	Fang, Hung-Ching	Male	July 1, 2021	4,337	0.00	238	0.00	-	-	National Cheng Kung University	None	-	-	-	-

Note 1 : Where the general manager or equivalent position (highest level managerial) and chairman is the same person, or the spouse or a first-degree relative, the reason, rationale, necessity, and response measures (such as increasing the number of independent director seats and there should be more than half of the directors who are not concurrently employees or managers): Not applicable.

II. Remuneration of Directors, President, and Vice Presidents

(1) Remuneration of Directors and Independent Directors

Unit: NT$ thousands, %

Title	Name	Remuneration of Director							Total of A, B, C and D in proportion of Net Income (Note 3)	Remuneration from holding employee positions									Total of A, B, C, D, E, F and G in proportion to earnings after taxation	Compensation received from invested companies other than subsidiaries or the parent company (Note 4)
		Compensation (A)		Pension (B)		Directors Remuneration (C) (Note 2)		Allowances (D)			Salaries, bonus, and Allowances (E)		Pension (F) (Note 1)		Employee Compensation (G) (Note 2)
		The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	All companies in the consolidated financial statements		Cash	Stock	Cash	Stock	Cash	Stock
														Cash	Stock
Chairman	Yu Shiu Educational Foundation. Rep.: Miau, Matthew Feng Chiang	300	300	-	-	-	-	144	144	-	-	5,339	5,339	93	93	-	-	-	-	-	-	-
Director	Tsu Fung Investment Corp. Rep.: Chen, Chun	650	650	-	-	-	-	96	96	-	-	-	-	-	-	-	-	-	-	-	-	-
Director	Lien Hwa Industrial Holdings Corp. Rep.: Hsu, Tsao Hua	300	300	-	-	-	-	86	86	-	-	310	310	18	18	-	-	-	-	-	-	-
Director	Lien Hwa Industrial Holdings Corp. Rep.: Jiang, Hui Jong (Note 5)	-	-	-	-	-	-	1	1	-	-	-	-	-	-	-	-	-	-	-	-	-
Director	Lien Hwa Industrial Holdings Corp. Rep.: Lin, Hsin Hung (Note 5)	-	-	-	-	-	-	10	10	-	-	-	-	-	-	-	-	-	-	-	-	-
Director	Bih, Ann	300	300	-	-	-	-	95	95	-	-	5,499	5,499	54	54	-	-	-	-	-	-	-
Director	Ko, Yi-Shaw (Note 5)	100	100	-	-	-	-	21	21	-	-	1,133	1,306	23	23	-	-	-	-	-	-	-
Director	Miao, Feng-Sheng	300	300	-	-	-	-	96	96	-	-	-	-	-	-	-	-	-	-	-	-	-
Director	Hsueh, Chang-Wei	300	300	-	-	-	-	96	96	-	-	-	-	-	-	-	-	-	-	-	-	-
Independent Director	Pan, Wenent P.	1,050	1,050	-	-	-	-	96	96	-	-	-	-	-	-	-	-	-	-	-	-	-

Independent Director	Hwang, Jung-Chiou	1,050	1,050	-	-	-	-	96	96	-	-	-	-	-	-	-	-	-	-	-
Independent Director	Chiang, Kuo Yu (Note 5)	620	620	-	-	-	-	54	54	-	-	-	-	-	-	-	-	-	-	-
Independent Director	Wang, Paul P. (Note 5)	550	550	-	-	-	-	38	38	-	-	-	-	-	-	-	-	-	-	-
1. Please explain the remuneration policy for independent directors and its criteria of payment in terms of responsibilities, risks taking and time involvement: The Company's Articles of Incorporation and the "Regulations Governing the Remuneration of Directors and Managers" approved by the Board of Directors have relevant regulations. According to the operating conditions and relevant laws and regulations, the Company regularly evaluates the performance of directors and the reasonableness of the overall remuneration, and makes recommendations based on their participation in the Company's operations and contribution value. The remuneration system or the weights of the remuneration are submitted to the Remuneration Committee and the Board of Directors for review.2. Except disclosure on the above, the remuneration received by the directors in the most recent fiscal year for providing services to all of the companies in the financial report (Such as parent company, All companies in the consolidated financial statements and invested companies, etc. serving as a Consultants who are not employees): None.

Note 1: It is appropriated to the pension fund by monthly basis.
Note 2: There was no remuneration distribution of directors' and employee in 2024.
Note 3: There is no after-tax net profit in 2024.
Note 4: The invested entity means the entity which the Company uses equity method to invest.
Note 5: Mr. Jiang Hui-Chung resigned on January 4, 2024, Mr. Lin Hsin-Hung resigned on January 29, 2024, Mr. Ko, Yi-Shaw resigned on March 7, 2024; and Mr. Wang, Paul P. resigned on May 24, 2024; Mr. Chiang, Kuo Yu newly-elected on May 24, 2024.

(II) Remuneration of the President and Vice Presidents
Unit: NT$ thousands

Title	Name	Salary(A)		Pension(B) (Note 1)		Allowances (C) (Note 2)		Employee Compensation (D) (Note 3)				Total of A, B, C, and D in proportion to earnings after taxation (%) (Note 4)			Compensation received from invested companies other than subsidiaries or the parent company (Note 5)
		The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company		All companies in the consolidated financial statements		The company	All companies in the consolidated financial statements	All companies in the consolidated financial statements
								Cash	Stock	Cash	Stock
President	Bih, Ann	13,677	13,795	237	237	2,153	2,207	-	-	-	-	-	-	-	-
Vice President	Wu, Cheng-Chien Simon
Chief Strategy Officer	Miau, Matthew Feng Chiang
Overseas Chief Strategy Officer	Ko, Yi-Shaw (註 6)

Note 1: It is appropriated to the pension fund by monthly basis.
Note 2: The relevant compensation to drivers is NT$ 955,000.
Note 3: There was no remuneration distribution of employee in 2024.
Note 4: There is no after-tax net profit in 2024.
Note 5: The invested entity means the entity which the Company uses equity method to invest.
Note 6: Retired on March 6, 2024.

Remuneration Range

Remuneration Range for paid to the President and Vice Presidents of the Company	Name of President and Vice Presidents
	The company	All companies in the consolidated financial statements
Under NT$1,000,000
NT$ 1,000,000 (Inclusive) ~ NT$ 2,000,000 (Exclusive)	Ko, Yi-Shaw	Ko, Yi-Shaw
NT$ 2,000,000 (Inclusive) ~ NT$ 3,500,000 (Exclusive)
NT$ 3,500,000 (Inclusive) ~ NT$ 5,000,000 (Exclusive)	Wu, Cheng-Chien Simon	Wu, Cheng-Chien Simon
NT$ 5,000,000 (Inclusive) ~ NT$ 10,000,000 (Exclusive)	Bih, Ann /Miau, Matthew Feng Chiang	Bih, Ann /Miau, Matthew Feng Chiang
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)
Over NT$ 100,000,000
Total	4	4

(III) Managerial officers with the top five highest remuneration

Title	Name	Salary(A)		Pension(B) (Note 1)		Allowances (C) (Note 2)		Employee Compensation (D) (Note 3)				Total of A, B, C, and D in proportion to earnings after taxation (%) (Note 4)		Compensation received from invested companies other than subsidiaries or the parent company (Note 5)
		The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company	All companies in the consolidated financial statements	The company		All companies in the consolidated financial statements		The company	All companies in the consolidated financial statements
								Cash	Stock	Cash	Stock
President	Bih, Ann	4,819	4,819	54	54	680	680	-	-	-	-	-	-	-
Vice President	Wu, Cheng-Chien Simon	3,373	3,373	67	67	484	484	-	-	-	-	-	-	-
Chief Strategy Officer	Miau, Matthew Feng Chiang	4,672	4,672	93	93	667	667	-	-	-	-	-	-	-
Plant Manager	Fang, Hung-Ching	2,537	2,537	158	158	344	344	-	-	-	-	-	-	-

December 31, 2024

(IV) Names of managers entitled to Employee Compensation and amount entitled

	Title	Name	Employee Compensation - in Stock	Employee Compensation - in Cash	Total	Ratio of Total Amount to Net Income (%)
Managers	President	Bih, Ann	0	0	0	0
	Vice president	Wu, Cheng-Chien Simon
	Chief Strategy Officer	Miau, Matthew Feng Chiang
	Plant Manager	Fang, Hung-Ching

(V) Compare and analyze the total compensation as a percentage of the net income stated in the parent company's financial reports or individual financial reports, paid by this company and by all consolidated entities (including this company) for the most recent 2 fiscal years to each of this company's directors, president and vice presidents, and describe the policies, standards and packages for payment of compensation, the procedures for determining compensation, and its linkage to business performance and future risk exposure.

| Year
Identity | Ratio of total remuneration to the net income in 2023 (%) | | Ratio of total remuneration to the net income in 2024(%) (Note) | |
| --- | --- | --- | --- | --- |
| | The company | Companies in the consolidated financial statements | The company | Companies in the consolidated financial statements |
| Director | - | - | - | - |
| President and Vice President | - | - | - | - |

Note: There is no after-tax net profit in 2023 & 2024.

The remuneration policies, standards and packages, the procedures for determining remuneration and their relationship to the Company's operating performance

Directors: (1) Pursuant to Article 28 of the Company's article of incorporation and the relevant laws and regulations, if the Company has earnings after offsetting the prior years' accumulated losses, if any, the Company should allocate no less than 1% of the earnings as employees' compensation and no more than 1% of the earnings as directors' compensation which should be reviewed by the Compensation Committee in consideration of the director's contribution against business results, and then resolved by the board of directors.

(2) In accordance with Article 18 of the Company's Articles of Incorporation, the Company shall pay directors' remuneration based on their participation in the operations and contribution to the Company and the remuneration is reported to the salary and remuneration committee for deliberation before payment.

(3) Directors' performance and the rationality of the overall rewards shall be reviewed regularly in connection with the Company's current status and the relevant laws and regulations. The remuneration scheme is reviewed by the compensation committee and resolved by Board of Directors. Performance assessment items are divided into: A. Objectives and mission control; B. Awareness of duties; C. Participation in operations; D. Internal relationship management and communication; E. Professionalism and continuing education; F. Internal control.

Managers: (1) The company abides by the "Compensation Policy for Directors and Managerial Officers," "Compensation Management Policy for Managerial Officers" to determine the manager's salary, bonuses and incentives.

(2) Manager bonuses are issued based on individual performance to comprehensively calculate the performance results and remuneration distribution links, and remuneration methods are revised at any time based on operating conditions and relevant laws and regulations. Performance evaluation items are divided into:

A. Financial indicators: Achievement of revenue and margin rate;
B. Individual performance indicators: Achievement of KPIs and management competencees demonstrated on practicing the company's core values.
C. Sustainable development performance indicators: annual key target (KPI) achievement rate; execution of key projects:

President : uphold practice occupational safety and health, promotion of low-carbon manufacturing, policy of human and employee rights, risk management and control, etc.;
Senior managers and heads of business units: implement the company's sustainable development performance indicator projects listed above and annual KPIs based on different functional units.

III. Implementation of Corporate Governance

(I) Board of Directors

The Board of Directors convened 6 (A) meetings in 2024. The attendance of director were as follows:

Title	Name	Attendance in Person (B)	By Proxy	Attendance Rate (%) [B/A]	Remarks
Chairman	Yu Shiu Educational Foundation Representative: Miau, Matthew Feng Chiang	3	0	100.0	Newly-elected on May 24, 2024
Director	Tsu Fung Investment Corp. Representative: Chen, Chun	3	0	100.0
Director	Bih, Ann	3	0	100.0
Director	Lien Hwa Industrial Holdings Corp. Rep.: Hsu, Tsao Hua	5	0	100.0	Re-elected on May 24, 2024
Director	Hsueh, Chang-Wei	6	0	100.0
Director	Miao, Feng-Sheng	6	0	100.0
Independent Director	Pan, Wenent P	6	0	100.0
Independent Director	Hwang, Jung-Chiou	6	0	100.0
Independent Director	Chiang, Kuo Yu	3	0	100.0	Newly-elected on May 24, 2024
Director	Lien Hwa Industrial Holdings Corp. Rep.: Lin, Hsin Hung	1	0	100.0	Dismissal on January 29, 2024
Vice Chairman	Ko, Yi-Shaw	2	0	100.0	Dismissal on March 7, 2024
Chairman	Lien Hwa Industrial Holdings Corp. Rep.: Miau, Matthew Feng Chiang	3	0	100.0	Re-election and dismissal on May 24, 2024
Director	Lien Hwa Industrial Holdings Corp. Rep.: Chen, Chun	3	0	100.0
Director	Lien Hwa Industrial Holdings Corp. Rep.: Bih, Ann	3	0	100.0
Independent Director	Wang, Paul P.	2	1	66.67

Any other matters that require reporting:

I. In any one of following circumstances occurred in the meeting of board of directors, the date, term, content of the item, opinion of all independent directors and the Company's response to independent directors' opinion should be recorded.

(I) The items listed in Article 14-3 of Securities and Exchange Law: None.
(II) Except above, others resolutions of board of directors with recordation or written attestation that independent director objected to or expressed reservations: None.

II. As for the implementation of the recusal of director due to conflict of interest, it should record the name of directors, the content of the item, the reason of recusal of director due to conflict of interest and the resolution result.

The date of Board of directors	Name of recusing director	Content of the Item	The reason of recusal due to conflict of interest	Resolution results
The 10th meeting of the 16th session January 18, 2024	Miau, Matthew Feng Chiang Ko, Yi-Shaw Bih, Ann	Discussion of 2023 distribution of remuneration of the managers.	With manager status	Passed by the rest of the attending directors
The 13th meeting of the 16th session August 6, 2024	Miau, Matthew Feng Chiang Bih, Ann	Discussion of 2024 remuneration increase for managerial officers.	With manager status	Passed by the rest of the attending directors

III. The state of implementation of the board of directors' evaluation

The 2024 Board of Directors Performance Evaluation Result is "Excellent", indicating that the overall operation of the Board of Directors was sound and in compliance with corporate governance standards. The Board of Directors reported its evaluation results on March 7, 2025.

Evaluation cycles	Evaluation periods	Scope of evaluation	Method of evaluation	Content of evaluation
Conduct once an year	Between January 1, 2024 and December 31, 2024	Board of directors	The Scope of Company's board self-evaluation	1. Participation in the operation of the Company
2. Improvement of the quality of the board of directors' decision making
3. Composition and structure of the board of directors
4. Election and continuing education of the directors
5. Internal control
		Each member in board of directors	Self-evaluation of board members.	1. Alignment of the goals and missions of the Company
2. Awareness of the duties of a director
3. Participation in the operation of the Company
4. Management of internal relationship and communication
5. The director's professionalism and continuing education
6. Internal control
		Functional committee (including Audit Committee, Compensation Committee and Risk	Peer Self-Assessment	1. Participation in the operation of the Company
2. Awareness of the duties of the functional committee
3. Improvement of quality of

IV. The goal of improving the performance of board of directors in this year and latest fiscal year (including the establishment of audit committee and improvement of the information transparency, etc.) and the analysis of implementation.

The Company holds the board of directors' meeting in compliance with rules of procedure for meetings of its board of directors and purchased director's liability insurance for all directors and reported it in the meeting of board of directors dated November 6, 2024 disclosed in MOPS.
The Company resolved to establish the "Sustainability Information Management Operation Guidelines" to assist the Board of Directors in improving the integrity, accuracy and reliability of sustainability information, so as to promote the Company's continuous improvement and growth in the areas of environment, society and governance at the 3rd meeting of the 17th Board of Directors on November 6, 2024.
The functional committee of the Company, compensation committee, audit committee and risk management committee, are composed of all independent directors and operate in accordance with the organizational rules of each committee. For the responsibilities and operation of each committee, please refer to page 24~28 and page 38~39 of this annual report and the Corporate Governance section of the Investor Relations area on the Company's official website.
The Company has prescribed Evaluation of the Board of Directors and board of directors will conduct at least one performance evaluation to each member and functional committee. Relevant information please refer to Company's website.
To achieve in-time disclosure and transparency, the Company regularly and occasionally make disclosure to the investment public in MOPS or Company's website.

(II) Audit Committee

The Audit Committee convened 4 (A) meetings in 2024. The attendance of independent director were as follows:

| Title | Name | Attendance in Person (B) | By Proxy | Attendance Rate (%)
[B/A] | Remarks |
| --- | --- | --- | --- | --- | --- |
| Independent Director | Pan, Wenent P | 4 | 0 | 100 | Re-elected on May 24, 2024 |
| Independent Director | Hwang, Jung-Chiou | 4 | 0 | 100 | |
| Independent Director | Chiang, Kuo Yu | 2 | 0 | 100 | Newly-elected on May 24, 2024 |
| Independent Director | Wang, Paul P. | 2 | 0 | 100 | Re-election and dismissal on May 24, 2024 |

Any other matters that require reporting

I. In any one of following circumstances occurred in operation of audit committee, should be record the term, content, independent directors's objection, qualified opinions and significant recommendations, the Audit Committee's resolutions and the Company's handling of their comments, the resolution of audit committee and the Company's response to such resolution.

(I) The items listed in Article 14-5 of Securities and Exchange Law

The date of the meeting of audit committee	Content of Motions	Any objection, expression of reservations or significant recommendations or content by independent directors	Resolution
The 11th meeting of the 3rd term March 6, 2024	1. Resolved to pass the 2023 financial statements.
2. The resolution passed the issuance of Statement of the internal control system of 2023.
3. Resolved to approve the evaluation of the independence of CPAs.	None	Unanimous vote of approval by all committee members in presence.	None
The 12th meeting of the 3rd term May 8, 2024	1. Resolved to pass the Q1 2024 financial statements.
2. Resolved to indirectly invest in subsidiary, Panjin UPC.
The 1st meeting of the 4th term August 6, 2024	1. Resolved to pass the Q2 2024 financial statements.
The 2nd meeting of the 4th term November 6, 2024	1. Resolved to pass the Q3 2024 financial statements.
2. Resolved to amend the internal control system provisions to include “Management of Sustainable Information Operations”.
3. Resolved to pass the 2025 internal audit plan.

(II) Except above, others resolutions has not be passed by audit committee but passed by two-thirds of directors: None.

II. As for the item that independent director has conflict of interest, the name of independent director with conflict of interest, content of the item, the reason of recusal due to conflict of interest and the voting participation situation: None.

III. The communication between independent directors and chief internal auditor and the CPA (the communication about the significant matters, method and result related to corporate financial and business should be included).

(I) Descriptions of the Communication Between Independent Directors and Chief Internal Auditor and CPA

Convene a separate meeting between the chief internal auditor and the accountant at least once a year, to discuss the completed internal audit items and accountant's external audit opinions. Communicate based on the annual audit deficiencies. The communication opinions are recorded and submitted to the board of directors' report.
The chief internal auditor attends the company's regular meeting of audit committee and the board of directors and reports the audit operation to the independent directors, and communicates the results of the audit report and the implementation of the follow-up report with independent directors. In addition, an audit report submitted to independent directors in the month following the completion of the audit project.
The independent directors and CPA should regularly convene at least twice a year. The CPA reported the Company financial position, the financial and overall operation of the subsidiaries at home and abroad, and the audit result of internal control to the independent directors. The CPA should be fully communicate whether there were any major adjustment entries or whether the amendments affect the accounting situation.
If there is any major abnormality, or independent directors, chief internal auditor, or accountants consider the independent communication is necessary, may convert a meeting to communicate at any time.

(II) The communication summary between the Independent Directors and the Internal Auditors and CPA

Meeting Date	The important item of communication with Chief Internal Auditor	The important item of communication with CPA
March 6, 2024 (Separate Meeting)	● Report the important audit items and audit deficiencies tracking items of 2023.
● Report annual plan of 2024.	● The CPA and attendees discussed and communicated the internal audits found deficiencies and improvement measures for the current year.
	The implementation result: All attendant independent directors had no objection opinion.
March 6, 2024 (Audit Committee)	● Report on the summary of auditing operations execution for Jan.-Feb., 2024.
● 2023 annual internal control self-assessment report.
● TWBU Occupational Safety and Environmental Protection Project Audit.	● CPA’s recommendation for impairment indicator assessment.
● Aafter evaluation, partial deferred tax assets (DTA) which is of due in the current year could not be achievable.
● The CPA and attendees discussed and communicated the proposed items.
	The implementation result: All attendant independent directors had no objection opinion.
May 8, 2024 (Audit Committee)	● Report on the summary of auditing operations execution for Mar.-Apr., 2024.
● RSBU routine Internal Audit.
● RSBU Occupational Safety and Environmental Protection Project Audit.	● Explanation of the Draft Carbon Fee Charging Regulations and its Impact on Q1 Financial Report.
● The CPA and attendees discussed and communicated the proposed items.
	The implementation result: All attendant independent directors had no objection opinion.
August 6, 2024 (Audit Committee)	● Report on the summary of auditing operations execution for May-Jul., 2024.
● REBU Occupational Safety and Environmental Protection Project Audit.
● SVET/ STHT Project Audit.	● CPA’s recommendation on whether to assess and test for impairment indicators.
● The CPA and attendees discussed and communicated the proposed items.
	The implementation result: All attendant independent directors had no objection opinion.
November 8 6, 2024 (Audit Committee)	● Report on the summary of auditing operations execution for Aug.-Oct., 2024.
● RWBU/RNBU internal audit.
● MABU internal audit.
● Report on the 2025 annual audit plan	● The CPA and attendees discussed and communicated the proposed items.
	The implementation result: All attendant independent directors had no objection opinion.

IV. Annual work focus and state of operation

The audit committee of the Company is composed of all independent directors and operates in accordance with the organizational rules of the committee. The committee holds at least one meeting per quarter, and a total of 4 meetings were held in 2024. The main responsibility of the audit committee is to assist the board of directors to prescribe or amend the company's internal control and important operation procedures, matters involving the director's conflict of interests, substantial asset transactions or fund lending, or endorsement guaranty, the offering, issuance, or private placement of any equity-type securities, the appointment or compensation of an attesting certified public accountant, the appointment and dismissal of a financial, accounting, or internal auditing officer and the annual and semi-annual financial reports. The aforementioned matters shall be submitted to the Board of Directors for resolution upon the consent of more than half of all members of the Audit Committee.
Review and approve the independence and suitability of the certifying accountants. The evaluation content is based on the 13 audit quality indicators (AQI) issued by the Financial Supervisory Commission, Article 47 of the Accounting Act and the Public Notice No. 10 of the Accounting Professional Ethics Code. The evaluation is based on important indicators such as the accountants and the company or related companies have no other financial interests, business relationships, decision-making or monetary loans other than the fees for the certification and financial and tax cases, the accountants' family members do not violate the independence

requirements, the accountants and the firm have better audit experience and training hours than the industry average, and ensure that there is sufficient manpower and time to devote to the audit work.

The company's Finance and Administration Department had evaluated that Mr. Liu, Chien Liang and Mr. Lin, Wen Chin of Deloitte & Touche met the requirements of the company's independence assessment standards and are qualified to serve as our company's certifying accountants. The obtaining the accountants "Statement of Independence", which had reviewed and approved by Audit Committee and the Board of Directors on March 6, 2024.
The 2023 annual financial statements and the Q1, Q2 and Q3 financial statements of 2024 have been passed by the audit committee, reviewed and audited by Deloitte, and issued an audit report. Relevant content has been disclosed in MOPS.

(III) Profiles of Risk Management Committee members and the information on the operation of the committee

Qualifications and responsibilities of the members of the committee members.

The Risk Management Committee is composed of all independent directors and operates according to its own organizational charter. The duties of the committee members are as follows:

(1) Establish appropriate measuring methods for the reference of risk management according to the policy of risk management.
(2) Review and audit the applicability and performance of the policy, procedures, structure of risk management.
(3) Formulate the priority and risk level of risk control.
(4) Review report and status of the risk management, and regularly report the implementation status and improvement suggestions to the board of directors.
(5) Other issues of Risk management.

Professional qualifications and experience of the committee members and the information on the operation of the committee:

(1) The Company's Risk Management Committee has 3 members.
(2) Term of office for this session: May 24, 2024 to May 23, 2027. The Committee has held 2 meetings in the most recent year, and the qualifications and attendance of the members and the discussion items are shown as follows:

Title	Name	Professional qualifications and experience	Attendance in Person (B)	Attendance Rate (%) [B/A]	Remarks
Convener	Hwang, Jung-Chiou	Please refer to the directors' information on page 11~12 of this annual report.	2	100	Re-elected on May 24, 2024
Member	Pan, Wenent P		2	100
Member	Chiang, Kuo Yu		1	100	Newly-elected on May 24, 2024
Member	Wang, Paul P.		1	100	Re-election and dismissal on May 24, 2024

Other matters to be recorded:

State the meeting date, session, and content of the main motions of the Risk Management Committee, the content of the recommendations or objections of the committee members, the results of resolutions, and the Company's handling of the opinions of the Committee.

Committee meeting date	Content of Motions	Recommendations or objections from the committee members	Results of the committee resolution	The Company's response to the committee's opinions
The 5th meeting of the 1st term 2024/05/08	Compile implementation status of risk control and correct and report risk items	None	Unanimous vote of approval by all committee	The risk management business report was approved by
			commissioner	assessment
1st term 2024/05/10	Describe the proposed implementation plan and its implementation status	None	Unanimous vote of approval by all committee	the committee's decision was finalized

			members in presence.	the board of directors
The 1st meeting of the 2nd term 2024/11/06	Compile implementation status of risk control and correct and report risk items	None	Unanimous vote of approval by all committee members in presence.	The risk management business report was approved by the board of directors

Annual work focus and state of operation

(1) The Risk Management Committee was established by the resolution of the 4th meeting of the 16th session of the board held on January 18, 2022. The Risk Management Committee is composed of all independent directors and operates according to its own organizational charter, and it holds at least two meetings a year. 2 meetings were held in 2024. The Risk Management Committee is to assist the board in formulating risk management policies, control procedures and supervision of implementation effectiveness.

(2) Control the risk items and levels in four major aspects, operating performance, environment, society and governance, listed by the risk management team, which regularly compiles the status of control and dynamically reviews risk assessment results and countermeasures. The risk management team meetings were held on April 18 and October 15, 2024, respectively, at which the relevant risk items were proposed and reported to the Risk Management Committee for management.

(3) According to the risk items assessed by the risk management team in 2024 and dynamically reviewed to and adjust the risk hierarchy for classification, the risks faced were reported, including the risk of price volatility, raw material supply risk, loan risk, industrial safety risk, professional inheritance risk, human resource competitiveness risk, hackers and attack programs intrusion risks, as well as virus intrusion and data leakage risks. The above-mentioned risk items have been reported to the Risk Management Committee. Subsequently, the control implementation will be reviewed on a quarterly basis to dynamically adjust the level of each risk item and the corresponding measures.

(4) Completed audit of high-risk projects in 2024 and reported the implementation status to the Risk Management Committee and The Board.

(IV) Corporate governance implementation status and deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons

Evaluation item	The state of implementation situation			Any discrepancies of such implementation from the Corporate Governance Best-Practice for TWSE/TPEx Listed Companies, and the reason for such discrepancy.
	Yes	No	Summary and explanation
I. Does the Company prescribe rule of corporate governance in accordance with Corporate Governance Best-Practice Principles for the TWSE/TPEx listed companies and disclose it?	V		The Company's "Rule of Corporate Governance" has been passed by board of directors and disclosed in the Company's website and MOPS.	Compliant with the rationale and practices of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies."
II. The shareholding structure and shareholder's equity(I) Whether the Company has prescribed internal procedures to deal with shareholder's suggestions, doubts, disputes and litigation matters, and implemented them according to procedures	V		The Company has established spokesperson and acting spokesperson positions to handle shareholders' suggestions, concerns, and disputes.	Compliant with the rationale and practices of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies."
(II) Does the Company possess a list of the actual control major shareholders and the major shareholders' ultimate controllers?	V		The Company has the lists of actually control major shareholders and its ultimate controllers. Meanwhile, the Company declare shareholding of directors and major shareholders each month in accordance with the Securities and Exchange Law.	Compliant with the rationale and practices of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies."
(III) Does the Company establish and implement the risk management and firewall mechanisms between affiliates?	V		The Company has established relevant mechanism in our internal control system in according to relevant laws and implemented it. To reduce business risk, the Company prescribed relevant operation rules and enforced required control mechanism in compliance with relevant regulations of the competent authorities. The transaction between the Company and its affiliates is based on principal of fairness and reasonableness and the management authority and responsibility of finance, business, accounting department, etc in subsidiaries is very clear.	Compliant with the rationale and practices of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies."
(IV) Does the Company prescribe internal rules to prohibit company insiders using undisclosed information from trading securities in the market?	V		The Company has prescribed Ethical Corporate Management Best Practice Principles, Procedures for Handling Material inside Information and Article 10 of the Corporate Governance Best Practice Principles, which regulate insiders during the stock lock-up period before the announcement of the financial report, and disclosed in Company website.	Compliant with the rationale and practices of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies."

Evaluation item	The state of implementation situation			Any discrepancies of such implementation from the Corporate Governance Best-Practice for TWSE/TPEx Listed Companies, and the reason for such discrepancy.
	Yes	No	Summary and explanation
III. The Composition and authority and responsibility of board of directors
(I) Does the board established a diversification policy and specific management objectives for the composition of the board and have they been implemented accordingly?	V		The Company’s “Corporate Governance Best Practice Principles”. Article 20 has policies on diversity. The “Articles of Incorporation stipulates that the election of directors adopts the candidate nomination approach. In addition to evaluating the education and work experience qualifications of candidates, the Company complies with the “Corporate Governance Best Practice Principles” and the “Procedures for Election of Directors” to ensure the diversity and independence of directors. The details are disclosed in the Company’s website.
The Board of Directors has disclosed the composition of the Board and the policy of diversity on the Company’s website and the MOPS.
For the policy of the Board of Directors diversity, specific management goals, and implementation, please refer to page 13 of the annual report.	Compliant with the rationale and practices of “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies.”
(II) Except the establishment of compensation committee and audit committee, does the Company voluntarily establish other functional committee?	V		The Company established an audit committee and a remuneration committee in accordance with the law. Meanwhile, the Board has approved the establishment of a Risk Management Committee composed of all independent directors. For implementation details, please refer to page 27 of the annual report or the investor section of the Company’s website.	Compliant with the rationale and practices of “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies.”
(III) Whether the Company prescribe the “Evaluation of the Board of Directors” and its evaluation method, regular conduct evaluation each year and submit the evaluation result to board of directors and use it as reference to decide remuneration and successive nomination of each director?	V		The Company has established the “Board of Directors Performance Evaluation Guidelines”. The Company’s board performance evaluation shall be conducted by an external independent professional institution or a panel of external experts and scholars at least once every three years. Internal and external board performance evaluations shall be completed before the end of the first quarter of the following year.
The 2024 performance appraisal results of the board, audit committee, compensation committee and risk management committee have been submitted to the board meeting on March 7, 2025 and relevant evaluation result has disclosed in the “Company Governance” in the Company’s website or page 23 of the annual report.
In according to Article 28 of the Company’s articles of association, with respect to the remuneration of director of the Company, if the Company has earnings after offset prior years’ accumulated losses, if any, the Company	Compliant with the rationale and practices of “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies.”

Evaluation item	The state of implementation situation			Any discrepancies of such implementation from the Corporate Governance Best-Practice for TWSE/TPEx Listed Companies, and the reason for such discrepancy.
	Yes	No	Summary and explanation
			should distribute no more than 1% of the earnings as directors’ remuneration. The Company’s “Regulations Governing the Board Performance Evaluation” are used as the basis for evaluation. The performance of the Board of Directors is regularly evaluated based on their participation in the Company’s operations and their contribution to the Company. The Company’s operating results and their contribution to the Company’s performance are also considered to evaluate reasonable remuneration.
(IV) Does the Company evaluate the independence of the attesting CPA regularly?	V		The Audit Committee evaluates the independence and suitability of CPA every year. In addition to requiring the CPA to provide their independence statement and audit quality indicators report, the assessment is conducted based on the audit quality indicators (AQI) announced by the Financial Supervisory Commission, Article 47 of the CPA and the No. 10 Bulletin of the Code of Professional Ethics for Accountants. It has been confirmed that the CPA have no other financial interests, business relationships, decision-making or money lending with the Company or affiliates except for certification and financial and taxation-related fees, and that the CPA’s family members do not violate the independence requirements. The CPA and the accounting firm have auditing experience and training hours better than the industry average and maintain sufficient manpower and time committed to the auditing works. In the last three years, digital audit tools will also be incorporated into the works to improve audit quality. After the assessment results of the latest year were discussed and approved by the Audit Committee on March 7, 2024, it was submitted to the board of directors for approval of the independence and suitability of accountants on the same day.	Compliant with the rationale and practices of “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies.”
IV. Whether the TWSE/TPEx listed companies place qualified corporate governance persons in an appropriate number and appoint one chief corporate governance officer to responsible for corporate governance matters (including but not limited to provide information needed by directors and	V		The Company has appointed company secretary via BOD, responsible for in according with relevant regulations convene the meetings of board of directors and shareholders’ meeting and its’ minutes, director assume and training arrangement, provide necessary information to fulfill duties of directors and supervisors, assistance to understand legal compliance, and other matters set out in the articles or corporation or agreements follow up to protect shareholders’ rights and strengthen the functions of the board of	Compliant with the rationale and practices of “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies.”

Evaluation item	The state of implementation situation	Any discrepancies of such implementation from the Corporate Governance Best-Practice for TWSE/TPEx Listed Companies, and the reason for such discrepancy.
Yes	No	Summary and explanation
supervisors to execute their business, assist directors and supervisors to comply with laws and regulations, handle matters related to meetings of the board of directors and shareholders 'meeting in accordance with the law, and prepare minutes of board and shareholders' meetings, etc)?
All relevant operations have been completed in accordance with the law in the year of 2024. Annual Refresher Courses:
Date	Course	Hours
2024/06/07	New Energy Era	3
2024/07/11	Digital Reinvention Creates a New Future for AI - Sharing of Generative AI Application Cases	3
2024/09/20	2024 Annual Insider Trading Prevention Promotion Conference	3
2024/10/07	2024 Taishin Net Zero Summit Forum	3
V. Does the Company establish the communication channel with interested person (including but not limited to shareholders, employees, customers, and suppliers, etc.) and is there an interested person section in Company's website to properly response to the inquiry from interested person about important CSR issues they cared?	V
"stakeholder engagement section":
https://www.upc.com.tw/en/Html/stakeholder_engagement
Download theESG Report: https://www.upc.com.tw/en/esg_reports	Compliant with the rationale and practices of "Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies."
VI. Does the Company engage professional shareholder services agent to process the shareholder meeting affairs?	V
VII. Information Disclosure
(I) Does the Company have the website to disclose financial, business and corporate governance information?	V
(II) Does the Company has adopted other information disclosure method (such as to set up English website, appoint a dedicated person to collect and disclose information,	V

Evaluation item	The state of implementation situation			Any discrepancies of such implementation from the Corporate Governance Best-Practice for TWSE/TPEx Listed Companies, and the reason for such discrepancy.
	Yes	No	Summary and explanation
implementation of the spokesperson system, upload the investor conference video onto the Company website)?			update information on financial affairs, corporate governance and investor conferences from time to time for the reference of investors.	Listed Companies.”
(III) Whether the Company publish and report its annual financial report within two months after the end of a fiscal year, and publish and report its financial reports for the first, second and third quarters as well as its operating status for each month before the specified deadline.	V		The Company’s quarterly financial reports and monthly operational status are announced and completed before the specified deadline.	Compliant with the rationale and practices of “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies.”
VIII. Does the Company has other information which is helpful to understand the important information of corporate governance (including but not limited to employee welfare (employment relations and investor relations), supply chain relations, stakeholder’s rights, the further training for directors and supervisor, the risk management policy and implementation of the risk assessment, the customer policy and the liability insurance for directors and suprvisor, etc.?	V		1. The workers’ rights:
Please refer to IV. Social Issues of sustainable development status on page46~50 & labor relations on page 83 of this annual report.
2. The employee relations:
Please refer to IV. Social Issues of sustainable development status on page46~50 & labor relations on page 83 of this annual report.
3. Investor Relation:
The Company stick on the information disclosure policy and regularly discloses the information about sales revenues and financial statements, simultaneously announces material information, annually holds shareholder meeting and investor conference to convey relevant information about the Company. The Company also appoints the spokesman and deputy spokesman to handle related matter about to investor relation.
4. Supply China Relation:
The Company strictly abides by its corporate social responsibility and requires its suppliers to comply with its corporate social responsibility, including but not limited to environmental protection, social responsibility, integrity, compliance with regulations, respect for intellectual property rights, fair trade, human rights and labor safety, and health. In case of any serious violation by a supplier, the Company has the right to terminate any contract or purchase order with the supplier at any	Compliant with the rationale and practices of “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies.”

Evaluation item	The state of implementation situation	Any discrepancies of such implementation from the Corporate Governance Best-Practice for TWSE/TPEx Listed Companies, and the reason for such discrepancy.
Yes	No	Summary and explanation

5. Right of Interested Person:
The Company’s interested person can contact with the company at any time by the company website and investor mailbox.
6. The training status of the directors:
All directors of the Company have professional backgrounds in the industry. The continuing education was in compliance with regulations in 2024 and disclosed in the "Corporate Governance" section in MOPS for investors to refer to at any time.
7. The risk management policy and the implantation of risk assessment standard:
The Company has established a risk management committee through the approval of the board and formulated risk management policies and procedures. A risk management task force composed of each functional unit and subsidiary compiles the scope of risk management at various levels according to the Company’s operational characteristics. It formulates audit plans according to the risk assessment, and the audit results are reported to the risk management committee and the board.
8. The implementation of customer policy:
The Company contains an intimate communication and sound relationship with our customers.
9. The Company has purchased directors and officer’s liability insurance for all directors and has disclosed it in MOPS. The detailed list of insurance is as following:
The insured	The insurer	The amount insured (NT Dollar)
All directors	Fubon Insurance Co., Ltd.	320,710,000

Evaluation item	The state of implementation situation
	Yes	No	Summary and explanation
			10. Succession planning of members in board of directors and important management:
The Company adopts the “candidate nomination system” to nominate members in board of directors. According to the number of directors to be elected and the required qualifications, the Company solicit and recommend suitable candidates. After the recommended candidates approved by the board of directors, the Company submit the recommended candidates and other candidates recommend by shareholders to shareholders meeting for election.
Succession planning of directors of the Company. In addition to meet the requirements of the law and regulation, the Company will base on the Company’s future development direction and long-term strategic goal and consider professional knowledge, skills, experience and gender, etc. diversified backgrounds and independence requirement to seek suitable candidate. Besides diversified professional knowledge and skills (such as law, industry, finance, science and technology, environmental protection) and industry-government-academic background, the director successor of the Company should have capabilities include business judgment ability, accounting and financial analysis ability, operation management ability (operation and management of subsidiaries), crisis management ability, industry knowledge, international market outlook, leadership ability, decision-making ability and risk management knowledge and ability. Besides, for allocation planning for board of directors and development of Company’s group operation strategy, to give full play the decision-making and supervision functions of the board of directors, the director successor of the Company should have the ability to cooperate with the Company’s main axis of operation, maintain long-term stable growth and development strategies and continuously improve corporate governance. In consideration of the ability beyond the professional competence of each director and to ensure that members in board of directors have a considerable degree of industry knowledge and gain new knowledge, the Company arrange at least 6 hours advanced courses related to finance, risk management, business, commerce, legal affairs, accounting, corporate social responsibility or internal control

Evaluation item	The state of implementation situation			Any discrepancies of such implementation from the Corporate Governance Best-Practice for TWSE/TPEx Listed Companies, and the reason for such discrepancy.
	Yes	No	Summary and explanation
			systems, and financial reporting responsibilities related to the characteristics of the Company’s industry per year for each member in board of directors. The Company’s important management team and the heads of major functional units must be present at the board of directors and related meetings. In addition to being familiar with the operation of the board and related meetings, they could have a considerable degree of professional knowledge and ability related to the establishment and development Company strategy, internal control and legal compliance supervision and execution, risk management control and response. Basically speaking, the directors of the Company all have considerable professional knowledge skills and industrial experience and would complete its overall management capabilities through participation in the supervision and management of the Company’s development planning, internal control, legal compliance and risk control. The Company conducts annual performance evaluation of all directors and the Company also has performance target evaluation for senior management. All of them could be used as a reference to selection of director successor. In general, in respect to the director successor of the Company planning, the Company aim both "professional" and "inheritance" and lay a good foundation for the Company’s sustainable operation. Besides recruiting suitable professionals from outside, the Company reserve talents for future director successor through internal training and senior executives experience cultivation. The succession plan of the members of the board of directors and the key management: Talent is the key asset for the company to ensure sustainable business development. We have planned and launched a succession plan for different levels of management since 2016. The core of the plan is derived from corporate culture, mission and vision as the foundations of organizational development. Based on that, we have developed a talent management systsem to continuously groom talents, constituting a talent pool with the same beliefs and core values. To help make the plan successful, we also invite external consultants to work with the human resources department to conduct regular in-depth

Evaluation item	The state of implementation situation
	Yes	No	Summary and explanation
			interviews and to identify internal talents and/or recruit external talents so as to establish a short-term, 1 to 2 years, and long-term, 3 to 5 and 10 years talent pool varied from front-line, intermediate, and high-level management. While identifying development needs for each talent, an individual development plan (IDP) will be available for them. The training activities cover leadership, professional training, task assignment, project assignment, domestic/overseas job rotation, cross field learning, attending business or strategy meetings, mentoring program, etc. The Chairman, chief executive officer, president and consultants will meet every six months to evaluate development progress of the talents, and to give suggestions and adjust directions. We will take the steps of the PDCA cycle to pragmatically and steadily develop talent's competencies on market insight, strategic thinking, decision-making, leadership and professional capabilities. By leveraging the interaction with others in the process of training activities to build up team spirit and collaborative skills of the talents, ultimately the Company may enrich the talent pool, providing the core human resources to sustain business growth and development of the Company.
IX. Please explain the improvement situation and priority strengthening matter and measure to the unimproved of the corporate governance evaluation report issued by Corporate governance center of TWSE (not applicable, if the company is not reviewed):(I) Improvement situation:
The corporate governance evaluation unimprove indicator			Improvement situation
Does the company's board of directors include at least one female director?			The re-election was held on May 24, 2024, and the elected list included a female director, which was disclosed on the company website and the MOPS.
Does the company upload the English version of the sustainability report on the MOPS and the company website?			The English Version ESG report was uploaded to the ESG digital platform and the company's website on October 7, 2024.
(II) Priority strengthening matter and measureThe Company conducts corporate governance self-evaluation in accordance with the regulations of the competent authority. For the indicators that cannot be achieved, the Company has proposed priority improvement measures or gradual improvement plans based on the Company's current status to improve the corporate governance image.

(V) Structure, Responsibilities and Responsibilities of the Compensation Committee

Profiles of the compensation committee members :

March 31, 2025

Member	Qualification Name	Professional qualifications and experience	Independence	Number of Other Public Companies in Which the Individual is Concurrently Serving as an Compensation Committee Member
Independent Director/Convener	Chiang, Kuo Yu	Please refer to the directors’ information on page 11~12 of this annual report.	0
Independent Director	Pan, Wenent P			1
Independent Director	Hwang, Jung-Chiou			2

The responsibilities of the compensation committee.

(1) Regularly review the committee chater, and make suggestions for amendment, if needed.
(2) Develop and review performance evaluation and compensation policies and schemes for directors and managerial officers.
(3) Review the specific performance metrics and evaluate the performance results associated with the established business goals for use in determining eligibility for compensation rewards of directors and managerial officers.

Implementation information of the compensation committee

(1) The Compensation Committee consists of three (3) members.
(2) Term of office: May 24, 2024 to May 23, 2027. The Compensation Committee meeting was convened 3 times in 2024 (A). The attendance of committee members are as follows:

Title	Name	Should be attendance in Person(A)	Actual attendance in Person(B)	By Proxy	Attendance Rate (%) [B/A]	Remarks
Convener	Chiang, Kuo Yu	1	1	0	100.0	Newly-elected on May 24, 2024
Member	Pan, Wenent P	3	3	0	100.0	Re-elected on May 24, 2024
Member	Hwang, Jung-Chiou	3	3	0	100.0
Member	Wang, Paul P.	2	1	1	50.0	Re-election and dismissal on May 24, 2024

Any other matters that require reporting

If the board of directors declines to adopt a recommendation of the Compensation Committee, the date, term, content of the item, resolution of the board of directors and Company's response to recommendation of the compensation committee should be recorded (such as that if the board of directors has passed a remuneration more favorable to the recommendation of the compensation committee, the departure and its reason should be recorded): None
If with respect to any resolution of the compensation committee, any member has a dissenting or qualified opinion that is on record or stated in a written statement, the date, term, item, resolution of the board of directors, the recommendation of all members, and Company's response to recommendation of each member should be recorded:

Board Meeting	Compensation Committee	Content of the Item	Resolution	The Company's response to recommendation of the Compensation Committee.	The response to any member of the Compensation Committee has a dissenting or qualified opinion that is on record or stated in a written statement.
The 15th meeting of the 16th session January 18, 2024	The 6th meeting of the 5th session January 18, 2024	1. The 2024 Work Plan of the Compensation Committee.
2. The Distribution of Managerial officers in 2023.
3. Regulations for Managerial officers' Salaries.	All attending members of remuneration committee passed the resolution.	All attending members of board of directors passed the resolution.	None
The 16th meeting of the 16th session March 6, 2024	The 7th meeting of the 5th session March 6, 2024	1. Regulations for the Retirement of Managerial Officers.	All attending members of remuneration committee passed the resolution.	All attending members of board of directors passed the resolution.	None
The 2nd meeting of the 17th session August 6, 2024	The 1st meeting of the 6th session August 6, 2024	1. Adjustment for Managerial officers' Salaries in 2024.	All attending members of remuneration committee passed the resolution.	All attending members of remuneration committee passed the resolution.	None

(VI) Status of promotion of sustainable development and its difference from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons

Evaluation Item	Implementation status			Deviation and causes of deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and its reason.
	Yes	No.	Abstract Illustration
I. Has the Company established a governance structure to promote sustainable development and set up a dedicated (or one holding concurrent positions) unit to promote sustainable development, with the board authorizing the senior management to manage the organization which is supervised by the board?	V		In order to ensure the implementation of corporate social responsibility policies and the sustainable operation and management of the Company, the Company has established a "Sustainable Development Committee." The President serves as the Chairman, and relevant group functional heads serve as committee members. There is also an executive secretary. In 2024, 3 committee meetings and 2 educational training were held. Reports on the performance of various business operations were presented to the Board of Directors on May 8, 2024 and November 6, 2024. The Sustainable Development Committee, Risk Management Committee and the unit responsible for greenhouse gas inventory report to the board on the following matters: Planning and achievements of the Sustainability Development Committee; Regular review of risk control items and countermeasures; Latest trends in climate change regulations and responses, as well as planning and progress towards net zero emissions; Greenhouse gas inventory and verification plans implemented by the Company and its subsidiaries; Carbon emission performance of each factory, etc. The board also reviews and supervises the progress of the strategy, and urges the management team to make adjustments when necessary.	Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies".
II. Whether or not the Company conducts operations-related environment, society and corporate governance risk assessment in accordance with the principle of materiality and prescribed relevant risk management policy and strategy?	V		The scope of 2024 disclosure covers the Taipei company and Kaohsiung Linyuan plant. According to the materiality assessment process for the Sustainability Report of the Company and the results of the survey to identify and evaluate the material ESG topics, there are 11 material topics are identified. Based on the impact on the Company and the concerning level of stakeholders, the Company has formulated relevant management policies to mitigate the impact of relevant risks. The identification, assessment and response of risk scenarios based on materiality are as follows:	Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies".
III. What is the Company's role in the development of sustainable development and its influence on the system of development and the use of the system of development?	V		The Company has established a "Sustainable Development Committee." The President serves as the Chairman, and relevant group functional heads serve as committee members. There is also an executive secretary. In 2024, 3 committee meetings and 2 educational training were held. Reports on the performance of various business operations were presented to the Board of Directors on May 8, 2024 and November 6, 2024. The Sustainable Development Committee, Risk Management Committee and the unit responsible for greenhouse gas inventory report to the board on the following matters: Planning and achievements of the Sustainability Development Committee; Regular review of risk control items and countermeasures; Latest trends in climate change regulations and responses, as well as planning and progress towards net zero emissions; Greenhouse gas inventory and verification plans implemented by the Company and its subsidiaries; Carbon emission performance of each factory, etc. The board also reviews and supervises the progress of the strategy, and urges the management team to make adjustments when necessary.	Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies".

		Material issues	Risk items	Description
		Environment	■ Biodiversity ■ Waste ■ Emissions ■ Energy sources ■ Water and effluents	1. Establishing dedicated environmental management units and personnel to implement pollution control measures and continuing the identification and control of environmental protection laws and regulations to reduce the impact on the environment. The environmental inspection reports for air emissions, water pollution, and waste management all comply with regulatory standards, with no significant impact observed on the environment or biodiversity. 2. Implementing the energy management program in accordance with ISO 50001. In accordance with the latest ISO management requirements for identifying opportunities and risks, the Company has established environmental management indicators covering water resources, energy conservation, circular economy, and autonomous management. Through PDCA closed-loop management, environmental performance is continuously improved. 3. Process improvements have reduced total greenhouse gas emissions; the efficiency of equipment is improved through regular maintenance, and energy-saving measures are continuously enhanced. Priority is given to the purchase of products with the Energy Label and Energy Star. Reaching the target set by Energy Administration to “reduce electricity usage by 1% for large electricity users”. 4. Improve the efficiency and reuse of water resources to reduce water intake and water consumption. Simultaneously improve production processes, recycle and reuse wastewater, and enhance treatment efficiency. The daily water consumption of the Linyuan Plant in 2024 is 0.016% of the Fengshan Reservoir, so there is no significant impact on local water sources.
		Society	■ Occupational safety and health policy ■ Non-discrimination ■ Labor Management relations	1. The Company obtains dual certification for the Occupational Safety and Health Management System (ISO 45001 and TOSHMS) annually. Establish occupational safety and health management Committee and personnel. Regular education and training are conducted to train

| | | | | | employees in emergency response ability and work safety awareness. Environmental, safety and health courses must be at least 6 hours per year.
2. A sexual harassment prevention hotline has been set up to provide employees and job seekers with a work environment free from sexual harassment.
3. Compliance with the Labor Standards Act. Communicate and resolve through labor unions, labor-management meetings, and occupational safety and health committees and keep records. | |
| --- | --- | --- | --- | --- | --- | --- |
| | | | | ■ Marketing and labeling
■ Customer health and safety | 1. The Company has obtained ISO 9001 quality management system certification.
2. The Company comply with relevant international regulations, laws and customer requirements and provide detailed information of all product to customers through safety data sheets. To meet the requirements of green environment management and provide downstream customers with safety materials, products have been inspected, analyzed and compared SVHC, RoHS, EN-71, ASTM F-963, PAHs, halogens and their compounds every year. | |
| | | | Corporate governance | ■ Taxation | 1. In response to the increasingly complex cross-border tax environment, the Company has formulated the following tax policies to manage and comply with the tax risk management and achieve the goal of sustainable development. The corporate structure and transactions are aligned with commercial substance, and tax planning does not involve the use of tax havens or low-tax jurisdictions for the purpose of tax avoidance. | |
| | | | For details, please refer to the section headed "1.3 Stakeholder Communication and Materiality Analysis" in the ESG Report of the Company and the Annual Report (VI) "Implementation of Sustainable Development – IV. Social Issues". | | | |
| III. Environmental issues
(I) Whether or not the Company has established the appropriate environmental management system | V | | The Company's environmental management has adopted the global standards for environmental management system (ISO 14001), greenhouse gas inventory system (ISO 14064), and energy management system (ISO 50001) established by the International Organization for Standardization (ISO). Third-party verification is completed every year to meet the opportunities and risks identifications of the latest version of ISO management, and environmental management indicators | | | Compliant with the principles and implementation of the "Sustainable |

according to industry characteristics?			such as water resources conservation, power conservation, circular economy, and self-management are set to continuously improve environmental management performance through PDCA closed-loop methods. We continued to carry out environmental governance in each factory in 2024. In terms of air pollution prevention and control, we adopted low-temperature catalytic oxidation and RTO environmental protection settings, carried out online detection of organized emission outlets, and achieved ultra-low VOCs emissions; we carried out low-nitrogen burner transformation of boilers to reduce NOx emissions; we carried out leak detection and repair (LDAR) projects for unorganized volatile organic compounds to reduce leakage at dynamic and static sealing points. In terms of Scheduled waste, we implement waste reduction management by formulating waste management plans, and implement full life cycle management of waste traceability through the Internet of Things QR code system. For soil and groundwater, we invited professional third-party organizations to conduct routine monitoring twice a year to ensure that the groundwater and soil are effectively protected and uncontaminated by chemicals.	Development Best Practice Principles for TWSE/TPEx Listed Companies".
(II) Does the Company strive to improve the energy usage efficiency and to use relevant low environmental impact recycled materials?	V		The Company's energy management system has been certified by the International Organization for Standardization for energy management system (ISO 50001): The Energy Management System is verified annually by an independent third-party organization (such as Universal Certification Service Co., Ltd.). The validity period is from August 21, 2022 to August 20, 2025. In terms of energy management, all energy-consuming equipment has been phased out to improve the equipment's power consumption efficiency. The Company makes proper use of the large amount of waste heat process steam generated in the manufacturing process. In addition to providing energy for internal production purposes, the Company can also sell the energy to reduce the consumption of fuel resources to achieve the purpose of energy recovery and reuse in a circular economy. Use natural gas green energy with low environmental impact as fuel instead of heavy oil fuel. In addition to planning and implementing the energy management plan of ISO 50001 for the whole plant, and the measures taken include: ■ Improve the equipment efficiency: regularly repair and maintain the equipment and seek energy saving measures and opportunities. ■ Upgrade of energy-efficient equipment: Purchase energy saving products. According to the procurement regulations of the Bureau of Energy, the Company should preferentially purchase the products with an energy saving label, Energy Star or energy saving facilities, etc. ■ Personnel training: Conduct annual training on the operation of major energy-consuming equipment to enhance energy-saving awareness. ■ Implement ISO 50001 energy management certification to involve all employees in energy conservation and carbon reduction management measures.	Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies".

		The Company utilizes a steam system to convert waste heat from the production process into high-quality steam. In 2024, a total of 202,000 tons of steam was generated, and 152,000 tons of steam condensate were recovered and recycled, achieving a reuse rate of 75.25%. This amount of steam is equivalent to the output of a 30-ton boiler operating for nine months, demonstrating significant energy and water-saving benefits. The Company (including subsidiaries) has invested a total of NTD 147,339.6 thousand in 2024 (an increase of NTD 1,462 thousand from 2023), which is expected to save 6,484 kWh of power and 26,586 tons of carbon per year; Partially completed, the actual total power consumption was 3,604 kWh and carbon reduction was 14,776 tons/year. The details are as follows: 1. Energy management (1) Installation of solar panels that can generate 1,014 kWh of power per hour and carbon reduction by 4,159 tons/year; partially completed installation of 703 kWh of carbon reduction and carbon reduction of 2,883 tons/year. (2) The air compressor is upgraded to an energy-saving air compressor (two-stage compression + frequency conversion), which can save 440 kWh of power and 1,804 tons/year of carbon; the partial completion actually saved 631 kWh of power and a reduction in carbon emissions of 2,588 tons/year. (3) Custom-made energy-saving water pumps for the cooling water system, after analysis, can save electricity by 1,318 kWh and a reduction in carbon emissions of 6,723 tons/year; Partial completion achieved actual electricity savings of 689 kWh and a reduction in carbon emissions of 2,826 tons/year. (4) Frequency converters to blowers, which can save electricity by 532 kWh and a reduction in carbon emissions of 2,181 tons/year; Under construction. (5) Purchased a steam turbine generator set that can generate 1,600 kWh of electricity and a reduction in carbon emissions of 6,560 tons/year; The equipment has been installed and is now operational. 2. Improve equipment efficiency: (1) The addition of low-pressure steam tube bundles to the air preheaters in the phthalic anhydride plant can save 3.5 tonnes of high-pressure steam per hour, and the saved high-pressure steam generates electricity with the turbine generator, resulted in the generation of 636 kWh per hour and a reduction in carbon emissions of 2,609 tons/year. (2) The alcohol preheating system in the plasticizer plant replaces high-pressure steam with low-pressure steam, uses the saved high-pressure steam to generate electricity with the turbine generator, which resulted in the generation of 944 kWh per hour and a reduction in carbon emissions of 3,869 tons/year.

			The above uses the 2023 Taiwan carbon emission coefficient, which is 0.494 kg CO2e (carbon dioxide equivalent) per kWh.
(III) Whether or not the Company assesses the current and future potential risk and opportunity from climate change and adopt response measures?	V		The Company identified 10 major risks and opportunities based on the possibility of occurrence and impact of related risks and opportunities, and assessed the impact on the Company's business, strategy and finance, formulated responsive measures and managed the transition of climate-related risks Please refer to the description of "Climate-related Information Implementation Status" on page 52~56 of this annual report. For risk and opportunity descriptions and response measures, please refer to "6.2 Strategy (disclosure of actual and potential climate-related impacts on the organization's business, strategy, and financial planning" of the ESG Sustainability Report.	Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies".
(IV) Whether or not the company counts greenhouse gas emissions, water consumption and total waste weight in the past two years and prescribes greenhouse gas reduction, water consumption or other waste management policies.	V		1. Greenhouse gas emissionsThe Company completed the inventory via ISO 14064-1. The company's greenhouse gas emissions in the past two years, information on conviction and reduction targets, strategies and specific action plans, please refer to "The Company's Greenhouse Gas Inventory and Assurance Status" and "Greenhouse Gas Reduction Goals, Strategies, and Concrete Action Plans" on Page 55~56 of the annual report or refer to ESG report.2. Water consumption(1) The Membrane Bioreactor (MBR) system further removes impurities from the biologically treated reclaimed water, enabling it to be recycled and reused in production processes. The reuse rate can reach 3 to 5 cycles, with an annual reclaimed water reuse rate target of over 90%. The measures taken include: (1) stabilizing production schedules and quality management, significantly reducing product changeover cleaning water. (2) Tracking and testing the water source. The abnormal water quality may cause water resource consumption. (3) Inspecting the water pressure and relocating the fire-fighting water pipes on the ground to reduce the waste of water leakage. (4) Enhancing the wastewater treatment capacity of each Plant, and reusing the production line with reclaimed water from the recycling economy.(2) Water consumption (scope of data: Linyuan Plant and Linhai Plant and Taipei office in Taiwan)The water intake volume in 2024 was 251.37 million liters [ML] an increase of 6.9% from the 235.15 ML in 2023. In terms of reclaimed water performance, the amount of reclaimed water in 2024 was 35.64 ML an increase of 5.9% compared to 33.65 ML in 2023, meeting the established target.	Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies".

| | | | 3. Waste management
The Company has a comprehensive waste management system; have Self-utilization and disposal facilities for scheduled waste and qualified waste handling outsourced. Dedicated environmental personnel are responsible for managing the entire lifecycle of waste, including generation registration, storage, removal, disposal, and reporting. Regular monthly inspections are conducted to ensure that all waste operations comply with the requirements of the Waste Disposal Act.
Waste management achievements: (scope of data: Linyuan Plant and Linhai Plant in Taiwan) | |
| --- | --- | --- | --- | --- |
| Year | Waste processing volume (metric tons) | General business waste | Hazardous industrial waste |
| Outsourced treatment (metric tons) | In-house treatment (metric tons) | Reuse (metric tons) | Treatment percent (%) | Outsourced treatment (metric tons) | In-house treatment (metric tons) | Reuse (metric tons) |
| 2023 | 4,578.75 | 128.13 | 3,887.18 | 87.49 | 89.61% | 15.57 | 460.38 | - |
| 2024 | 3,813.34 | 119.93 | 3,215.59 | 54.50 | 88.90% | 6.03 | 417.29 | - |
| The Company has completed the waste disposal management in accordance with the requirements of the Department of Environmental Protection. In 2024, 88.90% of the waste was general industrial waste, and 11.10% was hazardous industrial waste. More than 95.27% of the generated waste was treated in-house, which effectively reduced the carbon emissions from additional waste transportation and lowered the risk of improper waste disposal. The processing volume in 2024 was significantly reduced by 16.72% compared to the previous year. |
| IV. Social Issues
(I) Does the Company prescribe relevant management policies and processes according to the relevant laws and regulations and international human rights treaties? | V | | The Company has established an internal control system according to the relevant laws and regulations and international human rights treaties and prescribed the management rules of human resources to make sure that employee hiring, performance checks, and promotion do not treat people differently because of their race, gender, age, religion, or partisan considerations. The specific policies and implementation status are as follows:
1. Sexual Harassment Prevention
The Company has established a sexual harassment prevention grievance hotline and clearly declares the protection of employees' human rights in the Company's "Workplace Rules," "Sexual Harassment Prevention and Complaints and Disciplinary Measures" and other internal documents, including basic regulatory requirements, freedom of employment, humane treatment, prohibition of improper discrimination and sexual harassment.
2. Prohibition of forced labor and abide by the labor laws and regulations of the local government
There are no incidents related to forced or compulsory labor or the employment of child labor in any of the Company's business activities, and the leave system is implemented and the Labor Standards Act and other laws and regulations are complied with. | Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies". |

| | | 3.Providing a safe and healthy work environment
The Company adheres to the occupational safety and health policy of "compliance with laws and regulations, zero casualties, and prevention of disasters." For details, please refer to Corporate website/Workplace co-prosperity/Employee safety. | |
| --- | --- | --- | --- |
| (II) Whether or not the Company has established and implemented reasonable employee benefit policies (including remuneration, leave and other benefits, etc.), and appropriately reflect the Company's business performance or achievements in the employee remuneration policy? | V | The Company has established the internal control system and established management rules of human resources to ensure that employees' remunerations, benefits and assessments are fair, just and reasonably reflected in employee attendance, wedding and funeral celebrations and remuneration.

Overall remuneration and performance policy
(1) UPC Technology focuses on the achievement of practical operating results and values the importance of the salary and benefits program for employees. Salary surveys are conducted every year to measure the market standards and employee salary is appropriately adjusted to attract and retain talents.
(2) Employee remuneration is determined by job evaluation on education, professional knowledge and skills, work experience, job complexity and responsibility. The standard salary of the lowest bracket is higher than the minimum wage stipulated in the "Labor Standards Act".
(3) We adopt the equal employment policy applying to the employees at all levels. There is no different treatment due to the gender of the employees. New hires will have equal pay regardless their race, religion, political affiliation, gender or marital status.
(4) In terms of the employee performance management practice, supervisors and employees jointly establish goals at the beginning of the year, meet and review work progress in the middle of the year and evaluate the results at the end of the year aligning with the Company's business strategies and goals. The key behaviors of the competencies are also major item of the performance appraisal, which can lead a sound and fair appraisal procedures for the employees. The performance results are applied to employee training and development, job improvement, promotion/demotion, distribution of bonuses and incentives, thus boost up employee's morale to achieve business sustainability and corporate social responsibility.
(5) According to Article 28 of the Company's Articles of Incorporation, the Company shall allocate no less than 1% of the balance after deducting the accumulated losses from the profit of the current year; the Company shall assess the Implemented after the resolution of the Board of Directors is passed.

2.Employee fringe benefits and welfare programs
(1) The Employee Welfare Committee holds a meeting every three months to plan and implement various welfare programs. The Company allocates a fixed percentage of amount of employee salaries to the employee welfare fund of the Employee Welfare Committee every month in accordance with the law. | Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies". |

| | | (2) The benefits include festival and Labor Day bonuses, birthday gifts, retirement gifts, gratuity for wedding, funeral, hospitalization, company outing and year-end bonus.
(3) Organize annual employee domestic and overseas tours, and encourage employees to participate in group activities.
(4) Employees are entitled to labor and health insurance, and there is employee group insurance plan available. Employee spouse, parents and children can also participate in preferred insurance discount plans at their own expense.
(5) There is a nursing room for female employees who may need them, so employees can balance their work and family care.
(6) Employee health management: Annual general or special operation item health checkup, and medical personnel are hired to regularly visit the Company for health consultation and other services. Also build a fitness center and yoga studio, providing employees to perform various fitness exercises during their breaks or after work.
(7) Comprehensive leave measures, such as personal leave, maternity leave, paternity leave, parental leave without pay, marriage leave, bereavement leave, menstrual leave, family care leave, etc.
3. The Company has a labor union as an independent and functioning labor organization. It provides the voice and opinion for employees, and actively participates in the activities of the national union federation to fully demonstrate the employees' right of association and negotiation. However, as the labor union has never requested the Company for a collective agreement for negotiation, no collective agreement has been signed so far. | |
| --- | --- | --- | --- |
| (III) Does the Company provide employees with a safe and healthy working environment and regularly train its employees on safety and health education? | V | 1. Implement occupational safety and health policy
The Company abides by the occupational safety and health policy of "Regulatory compliance. Zero casualties. Disaster prevention." The occupational safety and health management system (ISO-45001 and TOSHMS) provides safe and healthy working conditions, compliance with safety and health laws and other requirements, elimination of hazards and reduction in occupational safety and health risks and advocacy for employee safety and health consultation and participation to build a healthy and happy workplace.
Disaster prevention and control are part of the Company core philosophy and the Company use appropriate management tools, proven technology and available resources to compile operating and occupational issues to provide effective countermeasures. The Company also continues to refine its occupational safety culture, and improves protection management of operators and put in resources to create a zero-hazard environment. The Company also establishes quantitative indicators to expand occupational safety and health practices to products and services, further improving the overall performance and controlling risks. | Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies". |

		In 2024, two disability injury incidents occurred, with a disability injury frequency rate of 19.97 (per million working hours). All disability injuries have been reviewed, and effective preventive measures have been implemented. 2. Implement labor inspection and occupational disease prevention In order to protect workers from hazardous substances in the workplace and provide them with a healthy and comfortable working environment, the Company inspects the work environment every six months for areas that may be exposed to hazardous substances or sources of danger to verify the actual exposure of workers. The Company has inspected organic solvents, specific chemical substances, dusty workplaces, central air-conditioning equipment, indoor workplace and personal noise dose in 2024 to make sure that they all meet the allowable values specified by the laws and regulations. 3. Implement employee voluntary management The company has established annual mobility management plan goals to encourage employees to autonomously identify improvement opportunities in various work environments. These opportunities and suggested improvements are logged into the "Mobility Management System." Responsible units are tasked with implementing specific improvements based on the suggestions and opportunities logged in the system. A total of 567 fingdings on-site were completely improved in 2024, representing a 56% increase compared to 363 actions in 2023, which enhanced on-site safety improvements and walk-around management target. 4. Equipment safety management The Company has categorized equipment and put dangerous machinery and equipment under strict control according to the law and conducted detailed inspection to ensure that they operate safely. In 2024, the Company has a total of 83 units of high-risk machinery/equipment and conducts regular inspections in accordance with the Regulations for Safety Inspection of Hazardous Machines and Equipment to ensure that they operate safely. The Company appoints safety health officer and emergency care personnel and arranges "ESH training" for employees by the ESH department. Additionally, the Company exceeds legal requirements by organizing employee health checks and safety and health seminars six times a year. On-site medical services were adjusted from quarterly to bimonthly. In 2024, a total of 28 sessions of occupational safety and fire protection education and training were held.

| | | | 5. Certification status:
The Company's obtains dual certification for the Occupational Safety and Health Management System (ISO-45001 and TOSHMS) annually. The certificate is valid from January 21, 2024 to January 20, 2027.

The number of fire incidents in 2024, the number of deaths and injuries, and the ratio of the number of fatalities and injuries to the total number of employees, and the relevant improvement measures in response to the fire: No such situation. | |
| --- | --- | --- | --- | --- |
| (IV) Has the Company established an effective career development training program for its employees? | V | | The Company values its employees as important assets, and employee training and development is one of important business operations. According to the Company's vision, mission and business strategies we develop a comprehensive training system to provide integrated and diversified training and learning resources for talent development. Complete occupational training program are provided to supervisors and employees at all levels, including new employee orientation, management training, hard skills training, environmental, safety and health training and soft skills training. We also value employee's business conducts by delivering mandatory business ethic programs. As results, improve employees' work performance, which help boost the company's sustainable business growth, by enhancing their competencies. Supervisors and employees meet at the beginning of the year to discuss and set up individual development plan when finishing year-end performance review. Please refer to page 84 of the annual report for information on continuing education and training of the Company's employees. | Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies". |
| (V) Whether or not the Company complies with relevant regulations and international policy in customer health and safety, customer privacy, marketing and labeling of products and services and prescribed relevant consumer protection policies and complain procedures? | V | | The Company comply with relevant international regulations, laws and customer requirements and provide detailed information of all product to customers through safety data sheets. To meet the requirements of green environment management and provide downstream customers with safety materials, products have been inspected, analyzed and compared SVHC, RoHS, EN-71, ASTM F-963, PAHs, halogens and their compounds every year.

The Company has set up a management system for customer data to manage and protect customer privacy. The internal audit of personal information, external verification, crisis prevention and education and training sessions all safeguard customers' data. The quality assurance unit and the inspection impartiality organization hold inspection technology seminars from time to time to ensure the latest regulations and analysis technology.

In order to ensure the rights and interests of consumers, the Company has established quality management policies and points of contact for customers. Customer complaint cases can be directed to the point of contact of each business department (detailed company website https://www.upc.com.tw/zh-TW/Html/contacts) or handled by designated specialists.

In recent years, the Company has invested more human resources to strengthen the layout and protection of intellectual property patents, and searched and communicated with customers about the intellectual property protection nets of competitors in the market, in order to know ourselves and our competitors, and maintain the profits in the competitive situation. | Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies". |

| (VI) Whether or not the Company prescribed "Supplier Management Policy" and required suppliers comply with the relevant regulations on environmental protection, occupational safety and health or labor human rights and their state of implementation? | V | The Company has established the "Supplier Corporate Social Responsibility Evaluation System" to establish the screening criteria for suppliers protecting the environment, human rights, safety, health and sustainability and to assess the requirements and expectations for suppliers' environmental safety and health risks, social responsibility, prohibition of child labor, labor management, basic rights of labor, integrity, regulatory compliance, intellectual property rights, fair trade, code of conducts and ethical operations.

The Company has established supplier audit projects to adopt supplier selection, audit consultation, performance evaluation and supplier discussion forums to implement the requirements of sustainability in the daily management of the supply chain. 100% of the Company's suppliers has met the following criteria in 2024.

Supplier assessment:
All suppliers must pass the supplier assessment and comply with the Supplier Code of Conduct. Process-related raw material suppliers must pass the ISO9001 quality management system certification.
Supplier audit:
The Company has established an audit team and a counseling team to track the progress of improvement corresponding to suppliers' deficiencies, jointly improve quality and technology, reinforce environmental protection, safety and health performance and incorporate automation into the process to improve production capacity. | Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies". |
| --- | --- | --- | --- |
| V. Whether or not the Company prepares sustainability reports or other reports disclosing the Company's non-financial information in accordance with widely recognized international standards or guidelines? Whether or not the above-mentioned report has obtained the confirmation or assurance opinion of the third-party verification entity? | V | The Company's 2024 Sustainability Report is prepared in accordance with the "Global Reporting Initiative (GRI)" Standards 2021 and the AA1000AS V3 Type 1 moderate assurance level. The requirements of the Taiwan Stock Exchange's "Guidelines for the Preparation and Filing of Sustainability Reports by Listed Companies", the Sustainability Accounting Standards Board (SASB) Disclosure Report, and the Task Force on Climate-related Financial Disclosures (TCFD) are all disclosed in this report.

At the same time, a third-party verification was commissioned to the "British Standards Institution (BSI)" for AA1000 Type 1 moderate assurance. Scope of the sustainability report: UPC Technology's Taipei office and Linyuan Plant. | Compliant with the principles and implementation of the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies". |
| VI. If the Company has established its own sustainability code based on the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, please describe any discrepancies between the policies and their implementation in the Company: | | | |

The Company has established its sustainability code based on the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the content has met the requirements of the competent authority.

VII. Other important information for facilitating the understanding of sustainability and its implementation:
The Company has set up an enterprise sustainability page on the official website (http://www.upc.com.tw) and regularly updated the relevant information for all stakeholders to access at any time.

(VIII) Climate-related information of TWSE/TPEx-listed companies

Climate-related information implementation status

	Item	Implementation status (Note 1)
1	Describe the monitoring and governance of climate-related risks and opportunities by the Board of Directors and the management.	The Company's Sustainable Development Committee, Risk Management Committee and GHG inventory hold regular meetings each year to review, track and revise sustainability and climate-related issues. Also report to the Board of Directors on the results of business implementation each year. In 2024, the Board of Directors was convened six times. The board reviews and supervises the progress of the strategy and urges the management team to make adjustments when necessary. Monthly operation management meetings are held under the chairman of the board of directors to promote and report on energy conservation and carbon reduction initiatives from time to time.
2	Describe how the identified climate risks and opportunities affect the Company's business, strategy and finance (short-, medium-, and long-term).	Please refer to Note 2 for details and opportunities and their financial impacts (table)" in the ESG report for details.
3	Describe the financial impact of extreme climate events and transitional actions.	Please refer to Note 2 for details and opportunities and their financial impacts (table)" in the ESG report for details.
4	Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.	Through the identification of environmental aspects in ISO 14001 Environmental Management System and pre- and post-processing stage identification, ISO 14064-1 greenhouse gas emissions inventory, ISO 50001 Energy Management System energy review identification, and assessment and management of climate-related risks, and by commissioning third-party verification or verification, various risks and opportunities (such as climate-related risks) are addressed through management, supervision, and improvement measures consulted by the Risk Management Committee, ESG meetings, or management review meetings.
5	If conducting a scenario analysis to assess resilience to climate change risks, it should include descriptions of the scenario, parameters, assumptions, analysis factors, and primary financial impacts.	Identify, assess and manage a total of 10 climate-related risks and opportunities in accordance with ISO 14001, ISO 14064-1 and ISO 50001. When formulating risk scenarios, consider transformation risks (regulatory policies/market/technology/reputation) and physical risks (immediate and long-term), and make risk descriptions for possible events, including the degree of financial impact, impact time (short, medium, long), impacted objects in the value chain, risk opportunity descriptions and response measures. Scenarios (risk opportunity factors) include: typhoons causing heavy rainfall, extreme climate causing drought and water shortage, and global average temperature rise (including 2°C).

	Item	Implementation status (Note 1)
6	If there is a transition plan in place to manage climate-related risks, specify the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.	In response to the potential risks of global climate change, the plan is to reduce the impact of greenhouse gases on global climate change through energy conservation, carbon reduction and emission reduction. 1. Greenhouse gas intensity < 0.4 metric tons CO2e/metric ton of product in 2024. 2. The average annual electricity saving rate from 2015 to 2024 is 1.01%, meeting the requirement of "large electricity users should save 1% per year". 3. Greenhouse gas emissions in 2024: 241,431.7 metric tons CO2e (Scope 1: 30,826.33 metric tons CO2e (12.77%); Scope 2: 14,197.11 metric tons CO2e (5.88%); Scope 3: 196,408.26 metric tons CO2e (81.35%). 4. Continuously update and adopt energy-efficient equipment: (1) The process lamps were replaced with LED lamps, saving 72,332 KWh/y. (2) New air compressor Ktec Two-stage variable frequency screw air compressor 220Kw, power saving: 77,768 kWh. (3) New water pump, electricity savings: 219,753 kWh. (4) The calorific value generated by the incineration of PA-heavy + PA-light (light and heavy materials in the distillation tower) is used to convert the standard coal consumption, reducing greenhouse gas emissions: 47.42 MT/year. (5) Reduction of greenhouse gas emissions from self-produced steam: 26591.83 MT/year. 5. Water pollution prevention and response mechanism: (1) A new rainwater buffer tank was added, and the water recovery rate of the Linyuan plant was 99.05%. (2) PA field wastewater recycling and reuse: 5.738 million liters (ML). (3) Water recycling and reuse in plasticizer field: 35.64 million liters (ML).
7	If internal carbon pricing is used as a planning tool, the basis for setting the price shall be stated.	Internal carbon pricing not yet used as a planning tool.
8	If climate-related goals are set, the activities covered, the scope of greenhouse gas emissions, the planning period, and the progress of each year should be explained. If carbon offsets or Renewable Energy Certificates (RECs) are used to achieve these goals, information should be provided about the source and quantity of carbon offsets exchanged or the number of RECs used.	No climate-related targets have been set.
9	Greenhouse gas inventory and assurance, and reduction goals, strategies, and concrete action plans.	Please refer to Table 1 and Table 2 below.

Note1: Please refer to "6. Climate-Related Information" of the ESG Sustainability Report for details.

Note2: Based on the likelihood and impact of climate-related risks and opportunities, we identified 10 risks and 8 opportunities, and assessed the timing and potential financial impact, as shown in the table below:

	Types of risks and opportunities	Risk and opportunity projects	Risk Opportunity Description	Occurrence period	Potential financial impact	Expected impact on financial situation	Expected impact on capital costs
1	Transformation Risks - Policy and Regulation	Climate Information Disclosure Obligation	Customers, environmental authorities and the Financial Supervisory Commission require companies to disclose and report their greenhouse gas emissions.	Short term (1-3 years)	Increased operating costs	Increased funding needs	No impact
2		Carbon Fee	Carbon fee collection by the Ministry of Environment.	Short term (1-3 years)	Increased operating costs	Increased funding needs	No impact
3		Carbon emission control and carbon trading system	Limit the expansion of production capacity or even reduce production capacity.	Medium term (3-5 years)	Increased operating costs	No impact	No impact
4	Transformation Risks - Policies and regulations	Draft amendments to the regulations	with contracted electricity consumption exceeding 10,000 kW, the annual electricity saving rate is increased to 1.5%, and is calculated for the entire company; for large electricity users with contracted electricity consumption greater than 800 and not more than 10,000 kW, the annual electricity saving rate must reach 1.0%	Long term (>5 years)	Increased operating costs	Increased funding needs	No impact
5	Transformation Risk - Reputation	Impact on company reputation	If there is any negative news about climate change, energy conservation and carbon reduction, it may affect the company's reputation and cause its stock price to fall.	Medium term (3-5 years)	Revenue reduction	Increased funding needs	No impact
6	Physical Risk - Immediacy	Extreme climate causes drought and water shortage	Water scarcity causes disruptions to production.	Medium term (3-5 years)	Revenue reduction	Reduced funding requirements	No impact
7	Physical risks - long term	Global average temperature rise (including 2°C)	Air conditioning and chilled water main units increase energy consumption and raise costs.	Long term (>5 years)	Increased operating costs	Increased funding needs	No impact
8	Opportunity - Resource Efficiency	Improved energy efficiency	Reduce energy consumption and greenhouse gas emissions.	Medium term (3-5 years)	Reduced operating costs	Increased funding needs	No impact
9	Opportunities - Products and Services	Stakeholders focus on low-carbon products	1. Stakeholders demand disclosure and declaration of greenhouse gas reductions. 2. Seize low-carbon business opportunities.	Long term (>5 years)	Initial operating costs increase, and later revenue increases	No impact	No impact
10	Opportunity-Resilience	Improving the ability to resist natural disasters	Develop the ability to adapt to climate change (typhoons causing heavy rainfall) and identify and manage risks and the resulting financial impacts in advance.	Medium term (3-5 years)	Increased operating costs	No impact	No impact

For risk and opportunity descriptions and response measures, please refer to "6.2 Strategy (disclosure of actual and potential climate-related impacts on the organization's business, strategy, and financial planning."

Table 1. The Company's greenhouse gas inspection and assurance in the last 2 years
1. Greenhouse Gas Inventory Information
Unit: emission: tCO2e; intensity: tCO2e/Product (T)

	2023		2024
		Total emissions	Intensity	Total emissions	Intensity
The Company	Scope 1	39,048.38	0.2609	30,826.33	0.3194
	Scope 2	15,640.29	0.1045	14,197.11	0.1471
	Scope 3 (Note 2)	not applicable	not applicable	196,408.26	2.0353
	Subtotal	54,688.67	0.3654	241,431.70	2.5019
Consolidated financial statements of subsidiaries (Note )	Scope 1	not applicable	not applicable	398,621.00	0.1763
	Scope 2	not applicable	not applicable	263,099.00	0.1163
	Subtotal	not applicable	not applicable	661,720.00	0.2926

Note 1: The scope of information that should be disclosed at least in accordance with the sustainable development roadmap of listed companies: Consolidated financial statements of subsidiaries have been disclosed since 2025.
Note 2: The greenhouse gas emission coefficient is quoted from the announcement of the Ministry of Environment on February 5, 2024. It mainly uses IPCC 2013 AR5 and follows the ISO 14064-1:2018 standard. It is calculated using the Ministry of Environment's Greenhouse Gas Emission Information Platform.

Assumed greenhouse gas information for the most recent two years up to the date of publication of the annual report

	2023	2024
		Total emissions (metric tons CO2e)	Total emissions (metric tons CO2e)
The Company	Scope 1	39,048.3763	30,826.3239
	Scope 2	15,640.2853	14,197.1125
	Subtotal	54,688.6616	45,023.4364
Assurance institutions		DNV GL Business Assurance Co., Ltd. (DNV)	DNV GL Business Assurance Co., Ltd. (DNV)
Assurance Circumstances		Assurance criteria: ISAE3410/ISO 14064-3 / Reasonable assurance	Assurance criteria: ISAE3410/ISO 14064-3
Convinced opinion/conclusion		No retention restrictions	No retention restrictions

Note: According to the sustainable development roadmap for listed companies, the information that should be disclosed at least covers: parent company; consolidated financial statements of subsidiaries will be implemented starting from 2027.

Table 2. Greenhouse gas reduction goals, strategies, and concrete action plans.

The greenhouse gas inventory of our company originally only included Scope 1 and Scope 2. Scope 3 was included for the first time in 2024, and Category 1 to Category 4 have been fully included in the inventory. Therefore, 2024 was reset as the base year. The greenhouse gas emissions of the consolidated company in 2024 were 903,151.7 metric tons CO2e. As this was the first year of disclosure of the consolidated company, there is no comparative information. Regarding the company's confirmed information, Scope 1 and Scope 2 emissions were 45,023.4364 metric tons CO2e, a decrease of 17.67% from 2022. In the future, we will continue to implement the goal of lowering annual combined emissions compared to the previous year. In addition, excluding subsidiaries, we will meet the requirement of "large electricity users are required to save 1% of electricity per year".

In response to the increasingly stringent global management of hazardous chemicals and the general trend of plastic reduction and net zero emissions, we have formulated a green chemistry policy and transformation blueprint, established the three main development axes of "high value, environmental sustainability, and low-carbon circulation", and comprehensively promoted the green chemistry transformation. Gradually introduce green processes, practice low-carbon sustainability, forward-looking technology research and development, layout carbon reduction innovation and other strategies and specific actions. As the company implements the greenhouse gas reduction plan, it continues to update high-performance equipment to promote energy conservation and carbon reduction, improve production efficiency, and strive to develop low-carbon emission, high-performance, and environmentally friendly products. Build a green supply chain, implement a circular economy, and maximize resource utilization. Specific actions include: implementing a circular economy, recycling resources, introducing AI smart process control, and building renewable energy. We are developing innovative technologies for carbon reduction, including evaluating carbon capture technology, developing carbon dioxide-based chemicals, and purchasing green and low-carbon raw materials. At the same time, in response to the carbon fee levied by the domestic climate change law, we have formulated an independent carbon reduction plan and are implementing it to reduce carbon emissions and carbon fees.

For specific carbon reduction measures and results, please refer to page 44 (VI) Implementation of Sustainable Development >> III. Environmental Issues (II) and page 53 (VII) Implementation of Climate-related Information, point 6 of this annual report.

(VIII) The outcomes of the company performance on business conduct and ethics management, which has resulted in any variance between the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, and the reason for any such variance.

Assessment Item	The state of implementation (Note)			The variance from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, and the reason for any such variance.
	Yes	No	Summary and explanation
I. The policy of codes of business conduct and ethics
(I) Is there a Company policy of the codes of business conduct and ethics approved by the board of directors in place?
And, the Company specifies the codes into internal management regulations and external document.
Furthermore, do the board of directors and senior management vigorously commit to abiding by the policy?	V		The Company has formulated its Business Ethic Policy approved by the board and published on the Company's website. The board and the management have followed the guidelines to perform their work. We have conducted the training for employees periodically. The guideline is also part of the training course for new hires to reinforce their professional ethics, preventing them from having unethical behaviors.	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"
(II) Does the Company introduce a risk assessment mechanism to regularly analyze and review any business activities obscuring high-risk unethical conducts within its business scope? Thus, establish at least two prevention measures itemized in paragraph 2, Article 7 of Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies?	V		For operating activities at higher risk within the scope of business, such as raw materials or assets procurement and sales, the Company has established management system for preventing bribery and acceptance of bribes, prohibiting illegal political donations, inappropriate charitable donations or sponsorships.
The Company also enforces the employee's code of conducts and the whistleblower policy how to report corruption and misconducts to prevent any unethical behaviors occurring.	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"
(III) Does the Company prescribe operation procedures, guidelines, disciplinary actions and grievance mechanism to avoid any ethical misconducts occurring? Does the company regularly review and amend the scheme?	V		The Company's business ethic policy formulates the Ethical Management procedures and guidelines how to whistleblow a corruption or misconducts, and at the same time provide channels for whistleblowing.
The policy or produres is subject to amended when needed.	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"
II. Enforcement of codes of business conduct and ethics
(I) Does the Company evaluate the credit records of its transaction partners and put the ethical terms into the agreement?	V		All employees of the Group shall sign a Letter of Commitment to commit they will strictly abide by the business Ethic policy. The sales department conducts credit evaluations to the customers who have regular transactions with the Company twice a year and record the review results.
The content of the evaluation includes the customer's financial and business risks and collects the customer's exposure to the mass media's illegal cases and the surrounding neighbor's positive and negative comments on the evaluated customer. All of them are important reference indicators for the customer's credit evaluation. When necessary, the Company will engage a third party to conduct credit investigation. The Company will stop credit transactions with the customer with bad credit or poor social perception and stop trading with the customer under serious circumstances.
Procurement Department annually conducts credit evaluations and	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"

Assessment Item	The state of implementation (Note)			The variance from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, and the reason for any such variance.
	Yes	No	Summary and explanation
			assessments to the suppliers whom the Company has regular transactions with. The Company ceases to transact with supplier with poor credit. In the purchase agreement between the Company and supplier, there is terms and conditions to prevent unfaithful conduct.
(II) Does the Company establish a dedicated unit that is under the board of directors and responsible for implementing the policy of codes of business conduct and ethics? The dedicated unit shall report the policy, preventive measures against ethical misconducts at the board meetingat at least once a year.	V		The human resources department is responsible for the formulation of the business ethic policy, and the internal auditor supervises the implementation and audits the compliance irregularly. The Company's board fulfills its management obligations, monitors the prevention of unethical behaviors, and reviews and improves the results from time to time to ensure the implementation of the business ethic policy. The ethics implementation status of 2024 had reported to Board of Director on January 16, 2025.	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"
(III) Does the Company formulate the policy to prevent conflict of interest and enforce it with proper communication channel?	V		The Company has formulated "Policy and behavior guidelines for avoiding conflict of interests" and strictly comply with it.	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"
(IV) Does the Company establish sound accounting system and internal control system, prescribe relevant internal audit plan based on the risk assessment mechanism on unethical conducts, and audit the compliance status of the plan to prevent any dishonesty or engage a certified public accountant to do the auditing?	V		We have established an effective accounting system and internal control system, and review them regularly to ensure their continuous and effective implementation. The Company's audit unit, based on the risk assessment of unethical behaviors, has drawn up relevant audit plans, checked the status of compliance, and provided follow-up recommendations for improvement to senior executives and the dedicated unit for ethical management, and then submitted audit reports to the board.	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"
(V) Does the Company regularly deliver internal or external business conduct and ethics training?	V		Business conduct and ethics training has been planned as a mandatory course for all employees every year as part of individual performance results. In 2024, total of 206, or 91.15% employees complete the training including senior executives, managers, staff, consultants, etc. The employees participating in the training must pass the test after class and sign a commitment letter to declare that they will abide by the relevant regulations on business conduct and ethics.	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"
III. The implementation of Company's whistleblower system(I) Does the Company clearly specify a reporting and reward system, establish a convenient reporting channel and appoint a properly dedicated personnel for the accused person?	V		The Company has prescribed "Report procedures on non-complying with codes of business conduct and ethics." Once receiving the report, an investigation team will be formed to investigate the case within three days. The content of report should include the contact information of whistleblower, nature of facts with the witnesses and so on. The report channels is listed as follows:	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"

Assessment Item	The state of implementation (Note)			The variance from the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, and the reason for any such variance.
	Yes	No	Summary and explanation
			1. The Email of HR Supervisor: [email protected]. The Employee Grievance Email: [email protected]. The website of UPC: www.upc.com.tw4. A written report submitted to the audit committee, auditor and other specific supervisors.
(II) Does the Company stipulate a standard operating procedure and relevant confidentiality measures how to handle the report during and/or after investigation?	V		The process of investigation and all relevant information about the report will be classified. To prevent retaliation to whistleblower and investigator, the investigation results will be kept in human resource department and copied to audit department.	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"
(III) Does the Company take any actions to prevent unfair treatment for whistleblower?	V		In order to protect the safety of whistleblowers, the documents related to whistleblowing are kept strictly confidential to prevent the whistleblowers from retaliation. No whistleblowing report was filed in 2024.	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"
IV. Information disclosure Does the Company disclose its implementation results of Codes of Business Conduct and Ethicson Company website and MOPS?	V		In addition to publishing Codes of Business Conduct and Ethics on Company website, www.upc.com.tw, the Company set up a section in intra website for employee to check the detailed information anytime.	Compliant with the principles and implementation of the "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies"
V. If the Company formulates its "Codes of Business Conduct and Ethics" based on "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies," please describe its implementation and variance.The Company has formulated the Codes of Business Conduct and Ethics. We have reviewed the implementation results and continuously improved to ensure compliance with the policy.
VI. Other key information which is helpful to understand the implementation status on the codes of business conduct and ethics (such as if the Company reviewed and amended its Codes of Business Conduct ad Ethics.)The Company pays attention on relevant regulations developed and released in domestic and aboard. We encourage all employees to raise their suggestions to review and improve the performance on implementing the Company's codes of business conduct and ethics.

(IX) It could disclose together, if there is any other important information which is helpful to understand corporate governance implementation of the Company: None.

(X) The implementation of internal control System

Internal Control System Statement

Please refer to the market observationpost system, query path:

MOPS Homepage>> Single Company>> Corporate Governance >> Corporate Rules/Internal

Control>>Internal Control Statement Announcement >> Enter the company code and click "Search"

Or visit the website https://mops.twse.com.tw/mops/#/web/t06sg20.

Where a CPA has been hired to carry out a special audit of the internal control system, furnish the CPA audit report: None

(XI) During 2024 and as of publish the date of annual report, material resolutions of shareholders' meeting and board of directors meeting.

Shareholders' Meeting

Date	Item	Important resolution items	Implementation situation
May 24, 2024	1	Ratification of 2023 business report and financial statements.	Follow the resolution result.
	2	Ratification of 2023 profit distribution. Cash dividends: NT$0.2 per share.	The cash dividends record date of March 30, 2024 and have been distributed on April 24, 2024.
	3	Approved amendment of the article of incorporation.	The MOEA approved the registration on June 24, 2024, and disclosed on company website.
	4	Approved amendment of the Rules of Procedure for Shareholders Meetings.	The amended procedure has been announced on the Company's website, and handled in accordance with the amendment
	5	Election of the 17th Directors (including independent directors). Directors: Ms. Bih, Ann, Mr. Miao, Feng-Sheng, and Mr. Hsueh, Chang-Wei. Mr. Miau, Matthew Feng-Chiang, institutional representative of Y.S. Educational Foundation, Mr. Chen, Chun, institutional representative of Capital Investment Co., Ltd., and Mr. Hsu, Tsao Hua, institutional representative of Lien Hwa Industrial Co., Ltd.; Independent directors: Mr. Pan, Wenent P., Mr. Hwang, Jung-Chiou, and Mr. Chiang, Kuo Yu;	The MOEA approved the registration on June 24, 2024, and disclosed on company website.
	6	Approved to release the directors from the non-competition restrictions.	Follow the resolution result.

Board of Directors

Date	Summary of important item	Implementation
March 6, 2024	1. Resolved to approve the 2023 financial statements.	It was resolved to approve the 2023 financial statements, which has been announced on the MOPS and submitted to the 2024 annual general meeting for approval.
	1. Resolved to approve the 2023 profit distribution.	It was resolved to approve the distribution of shareholder dividends of NT$0.2 per share, which has been announced on the MOPS and submitted to the 2024 shareholder meeting.

Date	Summary of important item	Implementation
March 6, 2024	2. The list of candidates for the 17th board of directors and the qualification examination matters.	It was resolved to approve the list of 9 director candidates (including 3 independent directors): (1) Independent directors: Mr. Pan, Wenent P., Mr. Hwang, Jung-Chiou, and Mr. Chiang, Kuo Yu; (2) Institutional representative: Mr. Miau, Matthew Feng-Chiang, institutional representative of Y.S. Educational Foundation, Mr. Chen, Chun, institutional representative of Capital Investment Co., Ltd., and Mr. Hsu, Tsao Hua, institutional representative of Lien Hwa Industrial Co., Ltd.; (3) Natural person directors: Mr. Hsueh, Chang-Wei, Mr. Hsueh, Chang-Wei, Mr. Miao, Feng-Sheng, and Ms. Bih, Ann.
	3. Resolution of matters related to the convening of the 2024 shareholder meeting, including the date, venue, reasons and period of shareholders' proposals.	It was resolved to hold the 2024 Annual General Meeting on May 24, 2024, which has been announced on the MOPS as a reference for shareholders.
	4. Resolved to approve the Regulations Governing Retirement of the Company's Managerial Officers.	It was resolved to approve the retirement of the Company's Chief Overseas Strategy Officer, Mr. Ko Yi-Shaw, and relieved from duty as a manager from March 7, 2024, which has been announced on the MOPS.
May 8, 2024	1. Resolved to approve the consolidated financial reports for the first quarter of 2024.	It has been announced on the MOPS.
	2. Rresolved to approve the indirect investment in the company's PRC subsidiary Panjin Union Chemical Industrial Co., Ltd. through the company's BVI subsidiaries.	It has been approved by the Department of Investment Review, Ministry of Economic Affairs, R.O.C. on July 3, 2024, and must be completed within three years from the date of approval."
May 24, 2024	1. Elect the Chairman of the 17th Board of Directors of the company.	It was resolved to elect Mr. Miau, Matthew Feng Chiang as the Chairman of the 17th Board of Directors of the company, effective from May 24, 2024.
	2. Approved to appoint the members of the Compensation Committee.	It was resolved to appoint Mr. Pan, Wenent P. Mr. Hwang, Jung-Chiou and Mr. Chiang, Kuo-Yu, independent directors, as members of the Compensation Committee, effective from May 24, 2024.
	3. Approved to appoint the members of the Risk Management Committee.	It was resolved to appoint Mr. Pan, Wenent P. Mr. Hwang, Jung-Chiou and Mr. Chiang, Kuo-Yu, independent directors, as members of the Risk Management Committee, effective from May 24, 2024.
August 6, 2024	1. Resolved to approve the consolidated financial reports for the second quarter of 2024.	It has been announced on the MOPS.
November 6, 2024	1. Resolved to approve the consolidated financial reports for the third quarter of 2024.	It has been announced on the MOPS.

Date	Summary of important item	Implementation
January 16, 2025	1. Rpproved to appoint the managerial.	It was resolve to promote Special Assistant Mr. Hsu, Tsao Hua as Senior Vice President of the company and effective from 2025/01/16, and has been announced on the MOPS.
	2. Resolved to approve the release of the Company's managerial officers from the non-compete restriction.	It was resolved to release Mr. Hsu, Tsao Hua, Senior Vice President from managerial non-compete restrictions, which has been announced on the MOPS.
March 7, 2025	1. Resolved to approve the 2024 consolidated financial statements.	It has been announced on the MOPS and submitted to the 2024 annual general meeting.
	2. Resolved to approve to distribute cash from capital reserves.	It was resolved to distribute cash from capital reserves in total at NT$0.15 per share.
	3. Resolved to approve matters related to convening the 2025 Annual General Shareholders' Meeting, including matters such as the date, location, method of convening, reasons for the meeting, period for shareholder proposals."	It was resolved to schedule 2025 Annual General Shareholders' Meeting on May 28, 2025, which has been announced on the MOPS for shareholder's reference.
	4. Resolved to issue the employee stock options.	It was resolved to issue first employee stock option certificates of 2025, 40,000 units, a total of 40,000,000 common shares were subscribed and it was declared effective on March 28, 2025.

(XII) During 2024 and as of the publish date of annual report, the main content of opinions that the director has expressed a different opinion to material resolution and that is on record or stated in a written statement: None.

IV. Information Regarding the Audit Fee

(I) Audit fees paid to the CPA and the accounting firm and the amount of audit and non-audit of the affiliates and the content of non-audit services:

Unit: In NT$ thousands

Name of Accounting Firm	Name of the certified public accountant	Period Covered by CPA's Audit	Audit Fee	Non-Audit Fee	Total	Remarks
Deloitte & Touche	Liu, Chien-Liang	2024	4,500	3,573	8,073	Note
	Lin, Wen-Chin

Note: In 2024, non-audit fees include consulting services on the group's investment restructuring of NT$2,228 thousand, tax audit of NT$800 thousand, transfer pricing-related books for NT$350 thousand, capital audit for NT$80 thousand, reading annual reports for shareholder meeting for NT$50 thousand, direct deduction of projects for professional business operators at NT$35 thousand and review of full-time employees' salary for NT$30 thousand.

(II) When the company changes its accounting firm and the audit fees paid for the fiscal year in which such change took place are lower than those for the previous fiscal year, the amounts of the audit fees before and after the change and the reasons shall be disclosed: Not applicable.

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

V. Information on Replacement of CPA: None.
VI. Where the company's chairman, president, or any managerial officer in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its certified public accountant or at an affiliated enterprise of such accounting firm: None.
VII. The most recent year and as of the publish date of annual report, information of any equity transfer and pledge of equity interests by directors, managereal officers, and shareholders with over $10\%$ Shareholdings

(I) Transfer of equity interests of directors, managerial officer and major shareholders Unit: Shares

Title	Name	2024		As of March 30, 2025
		Shareholding Increase (Decrease)	Pledged shareholding Increase (Decrease)	Shareholding Increase (Decrease)	Pledged shareholding Increase (Decrease)
Chairman & CSQ	Yu Shiu Educational Foundation	-	-	-	-
	Rep.: Miau, Matthew Feng Chiang	-	-	-	-
Director & President	Bih, Ann	-	-	-	-
Director	Tsu Fung Investment Corp.	-	-	-	-
	Rep.: Chen, Chun	-	-	-	-
Director & Senior Vice President	Lien Hwa Industrial Holdings Corp.	-	-	-	-
	Rep.: Hsu, Tsao Hua	-	-	-	-
Over 10% Major Shareholders	Lien Hwa Industrial Holdings Corp.	-	-	-	-
Director	Hsueh, Chang-Wei	-	-	-	-
Director	Miao, Feng-Sheng	-	-	-	-
Vice Chairman & overseas CSO	Ko, Yi-Shaw (Note 1)	-112,000	-	-	-
Independent Director	Pan, Wenent P	-	-	-	-
Independent Director	Hwang, Jung-Chiou	-	-	-	-
Independent Director	Chiang, Kuo Yu	-	-	-	-
Independent Director	Wang, Paul P. (Note 1)	-	-	-	-
Vice President	Wu, Cheng-Chien Simon	312,000	-	-	-
Plant Manager	Fang, Hung-Ching	40,000	-	-	-

Note 1: Mr. Ko, Yi-Shaw resigned on March 7, 2024 and Mr. Wang, Paul P. resigned on May 24, 2024.
(II) Information of equity transfer: None.
(III) Information of equity pledge: None.

VIII. Relationship among the company's top 10 shareholders its any one is a related party or a relative within the second degree of kinship

Relationship among the Top 10 Shareholders
March 30, 2025 Unit: : share : %

Name	Current Shareholding		Spouse's/minor's Shareholding		Shareholding by Nominee Arrangement		Name and relationship between the company's top ten shareholders, or spouses or relatives within two degrees		Remark
	Share Numbers	%	Share Number	%	Share Number	%	Name	Relationship
Lien Hwa Industrial Holdings Corp.	424,880,973	31.05	-	-	-	-	MiTAC Synnex Yi Yuan Yi Feng	Same chairman. Same chairman. The company rep. director is Yi yuan's chairman and Yi Feng's rep. director.	-
Rep.: Miau, Matthew Feng Chiang	4,919,004	0.36	-	-	-	-
Synnex Technology International Corp.	68,992,033	5.04	-	-	-	-	Lien Hwa MiTAC Tong Da	Same chairman. Same chairman. The company rep. director is Tong Da's chairman and its rep. director.	-
Rep.: Miau, Matthew Feng Chiang	4,919,004	0.36	-	-	-	-
Mei An Investment Co., Ltd.	24,637,789	1.80	-	-	-	-	-	-	-
Rep.: Hsu, Ih-Chen	-	-	-	-	-	-
Yi Yuan Investment Co., Ltd.	21,532,067	1.57	-	-	-	-	Lien Hwa Yi Feng	The chairman is Lien Hwa's and Yi Feng's rep. director The company rep. director is TYi Feng's chairman	-
Rep.: Sun Song-En	84,815	0.01	-	-	-	-
Liberty Stationery Corp.	20,655,409	1.51	-	-	-	-	-	-	-
Rep.: Kadota Akiteru	-	-	-	-	-	-
Tsu Fung Investment Corp.	17,460,231	1.28	-	-	-	-	MiTAC	The chairman is MiTAC's rep. director	-
Rep.: Ho, Jhi-Wu	-	-	-	-	-	-
MiTAC International Corp.	16,179,560	1.18	-	-	-	-	Lien Hwa Synnex Tsu Fung	Same chairman. Same chairman. The company rep. director is Tsu Fung's chairman.	-
Rep.: Miau, Matthew Feng Chiang	4,919,004	0.36	-	-	-	-
Tong Da Investment Corp.	14,510,176	1.06	-	-	-	-	Synnex	The chairman is Synnex's rep. director	-
Rep.: Chou, Teh-Chien	-	-	-	-	-	-
Yi Feng Investment Co., Ltd	13,123,114	0.96	-	-	-	-	Yi Yuan Lien Hwa	The chairman is Lien Hwa and Yi Yuan's rep. director The company rep. director is Yi Yuan's chairman	-
Rep.: Sui, Suo-Hua	-	-	-	-	-	-
JPMorgan in custody for Vanguard Total International Stock Index Fund, a series of Vanguard Star Funds	9,026,277	0.66	-	-	-	-	-	-	-

IX. The number of shares held by the company, the company's directors, managers and the business of the same investment company directly or indirectly controlled by the company, and the consolidated shareholding ratio

Consolidated shareholding ratio
December 31, 2024 Unit: thousand share · %

Investee	Shareholdings by the Company (Note)		Direct or Indirect Shareholdings by Directors/Supervisors/Managers		Total Ownership
	Share holding	%	Share holding	%	Share holding	%
CHL	433,310	100	-	-	433,310	100
Glory Ace	605	100	-	-	605	100
Union Venture Capital Corp.	22,701	100	-	-	22,701	100
Wei Chen Investment Corp.	16,000	100	-	-	16,000	100
Taiwan Union Int'l Investment Corp.	78,719	100	-	-	78,719	100
UPC Chemicals (Malaysia)	163,427	100	-	-	163,427	100

Note: Investments under equity method.

Capital Information

I. Capital and Shares

(I) Source of capital

Issued Shares
March 31, 2025; Unit: share/NT Dollar

Month/Year	Par Value (NT$)	Authorized Capital		Paid-in Capital		Remark
		Share Numbers (share)	Amount (NT$ dollar)	Share Numbers (share)	Amount (NT$ dollar)	Sources of Capital	Capital Increased by property except Cash	Others
2024/02	10	2,000,000,000	20,000,000,000	1,364,956,607	13,649,566,070	Employee stock option warrant subscription NT$13,795,000	None	February 17, 2024 Ching-Shou-Shang-Tzi No. 11330018400
2024/06	10	2,000,000,000	20,000,000,000	1,366,220,607	13,662,206,070	Employee stock option warrant subscription NT$12,640,000	None	June 6, 2024 Ching-Shou-Shang-Tzi No. 11330083000
2024/08	10	2,000,000,000	20,000,000,000	1,367,412,107	13,674,121,070	Employee stock option warrant subscription NT$11,915,000	None	August 28, 2024 Ching-Shou-Shang-Tzi No. 11330153010
2024/11	10	2,000,000,000	20,000,000,000	1,367,718,607	13,677,186,070	Employee stock option warrant subscription NT$3,065,000	None	November 25, 2024 Ching-Shou-Shang-Tzi No. 11330203890
2025/02	10	2,000,000,000	20,000,000,000	1,367,924,607	13,679,246,070	Employee stock option warrant subscription NT$2,060,000	None	February 26, 2025 Ching-Shou-Shang-Tzi No. 11430018450
2025/03	10	2,000,000,000	20,000,000,000	1,368,354,607	13,683,546,070	Employee stock option warrant subscription NT$4,300,000	None	Has not been registration yet

Type of Stock
March 31, 2025; Unit: share

Share Type	Authorized Capital			Remarks
	Listed Shares	Un-issued Shares	Total Shares
Common stock	1,368,354,607	631,645,393	2,000,000,000	Belong to List-Company stock

Information for Shelf Registration: None
(IV) Major Shareholders
March 30, 2025

Item	Shareholders	Shareholding (share)	Shareholding Percentage (%)
1	Lien Hwa Industrial Holdings Corp.	424,880,973	31.05
2	Synnex Technology International Corp.	68,992,033	5.04
3	Mei An Investment Co., Ltd.	24,637,789	1.80
4	Yi Yuan Investment Co., Ltd.	21,532,067	1.57
5	Liberty Stationery Corp.	20,655,409	1.51
6	Tsu Fung Investment Corp.	17,460,231	1.28
7	MiTAC International Corp.	16,179,560	1.18
8	Tong Da Investment Corp.	14,510,176	1.06
9	Yi Feng Investment Co., Ltd	13,123,114	0.96
10	JPMorgan in custody for Vanguard Total International Stock Index Fund, a series of Vanguard Star Funds	9,026,277	0.66

(III) Dividend policy of the Company and implementation

The dividends policy prescribed in the Company's Articles of Incorporation

After final account if there is earning in current year's earnings, the earnings shall first be used to pay all taxes and offset prior years' accumulated losses and then set aside 10 percent as legal reserve. The Company may then appropriate a certain amount as special reserve according to the relevant regulations. The residual earnings, plus the accumulated undistributed earnings, may be appropriated to shareholders according to the distribution plan proposed by the board of directors. If such surplus earning is distributed in the form of new share, it shall be submitted to the shareholders' meeting for approval. If such surplus earning is distributed in the form of cash, it is authorized to the board of director to decide after a resolution has been adopted by a super majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting.

The legal reserve shall be appropriated until its balance reaches the total paid-in capital. The legal reserve may be used to offset losses. When there are no losses, the portion of the legal reserve exceeding 25% of the total paid-in capital may be capitalized or distributed as cash dividends. The Board of Directors is also authorized to make a supermajority resolution to distribute all or part of the aforementioned legal reserve and capital surplus in cash and report to the shareholders' meeting.

The industry environment of the Company rapidly changes. The business life cycle is in the stable improvement stage and the Company will control the economic environment to purse sustainable operations. When the board of directors proposes the earnings distribution proposal, it should consider the Company's long-term financial planning, future money need and shareholder interest protection to decide the distribution type, distribution amount and distribution timing. Generally speaking, the cash dividends and bonus shall not be lower than 10% of the total shareholders' dividends and bonus in the fiscal year. However, the shareholders' meeting can resolve to adjust it because of financial structure improvement, expansion and other material capital expenditures.

The Company will maintain a stable dividend policy with a dividend amount of not less than 30% of the current year's earnings appropriated and distributed to shareholders.
The dividends distribution status in 2024

Based on the above principles, the Board of Directors of the company had resolved on March 7, 2025, which intends to distribute cash NT$199,412 thousand from capital reserve in total at NT$0.15 per share after the 2024 loss off-setting proposal is approved by the shareholders' meeting on May 28, 2025.

The shareholder dividend is fully distributed in cash. It is in compliance with the dividends policy that cash dividends shall not be lower than 10%.

The explanation of the material change of proposed dividend policy: The proposed dividends policy does not have material changes.

(IV) Effect upon business performance and earnings per share of any stock dividends distribution proposed or adopted at the most recent shareholders' meeting: Not applicable

(V) Compensation of employees and directors

The percentages or ranges with respect to employees' and director's compensation, as set forth in the company's Articles of incorporation:

If the Company has earnings after offsetting the prior years' accumulated losses, if any, the Company should distribute no less 1% of the earnings as employees' compensation and no more than 1% of the earnings as directors' compensation.

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

(1) The basis for estimating the amount of employees' and directors' compensation: The consideration estimation is based on the business performance on the current term.

(2) Calculating the number of shares to be distributed as employees' 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 any number change after acknowledgment of the annual financial report, it will comply with accounting estimation change and will record the adjustment on the distribution year.

Information on any approval by the board of directors of distribution of compensation:

Unit: NT$ thousands

2024 compensation of employees and directors	The resolution of board of directors (March 7, 2025)
Employee compensation (cash)	0
Director compensation (cash)	0

(1) If there is any discrepancy between that amount and the estimated figure for the fiscal year these expenses are recognized, the discrepancy, its cause and the status of treatment shall be disclosed: If there is any number change after the announcement date, it will comply with the accounting estimation change and will record the adjustment on the distribution year.

(2) The amount of any employee compensation distributed in stocks, and the size of that amount as a percentage of the sum of the after-tax net income stated in the parent company only financial reports or individual financial reports for the current period and total employee compensation: Not applicable.

The actual distribution of employees' and directors' compensation for the previous fiscal year (with an indication of the number of shares, monetary amount and stock price, of the shares distributed), and, if there is any discrepancy between the actual distribution and the recognized employees', directors', or supervisors' compensation, additionally the discrepancy, cause, and how it is treated.

Unit: NT$ thousands

2023 compensation of employees and directors	The resolution of board of directors (March 6 2024)	The actual distribution amount
Employee compensation (cash)	0	0
Director compensation (cash)	0	0

The discrepancy, its cause, and the status of treatment: Because the pre-tax losses in 2023 and 2024, there is no employee and director remuneration was estimated.

(VI) Implementation status of Treasury Stock

Exception Completed:

March 31, 2025

Batch No. of repurchases	16th	17th	18th
Purpose of Repurchase	transfer to employee	transfer to employee	transfer to employee
Repurchase period	2020/3/16 ~ 2020/05/15	2020/06/11 ~ 2020/08/10	2020/08/07 ~ 2020/10/06
Repurchase price range (NT$ dollar)	8.30-11.30	8.60-11.50	11.00-14.00
Completed share repurchase type and quantity	common shares 10,000,000 shares	common shares 10,000,000 shares	common shares 20,000,000 shares
Amount of capital stock repurchased (NT$ dollar)	93,355,874	100,558,287	260,178,894
The actual repurchased in proportion to plan repurchased (%)	100	100	100
Number of shares cancellation or transferred	1,335,000 shares (Note)	0 shares	0 shares
The accumulated number of its own shares that the company holds	8,665,000 share	18,665,000 shares	38,665,000 share
Accumulated quantity of company holding in proportion to total company outstanding shares (%)	0.63%	1.36%	2.83%

Note: Transferred on October 22, 2021.

In progression : None.

II. Implementation status of Corporate Bonds

Corporate Bond Type		UPC TECHNOLOGY CORPORATION 1st Secured Corporate Bond Issue in 2022
Issue date		July 26, 2022
Denomination		NT$1,000,000
Issuing and transaction location		not applicable
Issue price		Issue by denomination
Total price		NT$3,000,000,000
Coupon rate		1.8%
Tenor		5years
Maturity: July 26, 2027
Guarantee agency		Total amount NT$3 billion; comprised of NT$1.5 billion Tranche A, NT$1 billion Tranche B and NT$0.5 billion Tranche C. Tranche A: Mega International Commercial Bank Co., Ltd., Tranche B: Bank of Taiwan Co., Ltd. and Tranche C: Hua Nan Commercial Bank, Ltd., According to the entrustment guarantee contract signed by the individual and the performance of the corporate bonds guarantee contract.
Consignee		Bank Sinopac Company Limited
Underwriting institution		Mega Securitids Co., Ltd.
Certified lawyer		Yue, Chung Chieh Law Firm
Yue, Chung Chieh
CPA		Deloitte & TOUCHE
CPA Liu, Chien-Liang
Repayment method		Repayment in lump sum upon maturity
Outstanding principal		NT$3,000,000,000
Terms of redemption or advance repayment		Not applicable
Restrictive clause		None
Name of credit rating agency, rating date, rating of corporate bonds		Not applicable
Other rights attached	As of the printing date of this annual report, converted amount of (exchanged or subscribed) ordinary shares, GDRs or other securities	Not applicable
	Issuance and conversion (exchange or subscription) method	None
Issuance and conversion, exchange or subscription method, issuing condition dilution, and impact on existing shareholders' equity		Not applicable
Transfer agent		Not applicable

In case of convertible corporate bonds, exchangeable corporate bonds and the registration of corporate bonds or corporate bonds with warrants, it should be according to its nature and follow the table format to disclose convertible bonds, exchangeable corporate bonds, the registration of corporate bonds or corporate bonds with warrants and corporate bonds with warrants: Not applicable.

III. Implementation status of Preferred Shares: None.

IV. Implementation status of Issuance of Global Depository Receipts: None.

V. Implementation status of Issuance of Employee Stock Warrants:

The unexpired employee stock warrants issued by the Company in existence as of the date of publication of the annual report, and the effect of such warrants upon shareholders' equity:

March 31, 2025 ; Unit: NT$ dollar, share

The type of employee stock warrants	The 7th employee stock warrant	The 8th employee stock warrant
The effective date of declaration and Approval total units (Note 1)	The effective date of declaration: December 26, 2018
Approval total units: 40,000	The effective date of declaration: March 28, 2025
Approval total units: 40,000
Issuance date	August 15, 2019	Have not yet been issued
Issued quantity	40,000	Have not yet been issued
Unissued quantity	0	40,000
Quantity subscribed shares in proportion to total outstanding shares	2.92%	0.00%
Valid duration	6 years	6 years
Performance	Issue new stock shares	Issue new stock shares
Restricted exercise period and percentage	With exception for the lock-up period in accordance with the law, an employee may request for exercising the employee stock warrants pursuant to the below schedule after 2 full years since the issuance of the employee stock warrants and before 10 days of expiration date.
ScheduleExercisable subscription ratio
After the period of 2 years 50%
After the period of 3 years 75%
After the period of 4 years 100%	With exception for the lock-up period in accordance with the law, an employee may request for exercising the employee stock warrants pursuant to the below schedule after 2 full years since the issuance of the employee stock warrants and before 10 days of expiration date.
ScheduleExercisable subscription ratio
After the period of 2 years 50%
After the period of 3 years 75%
After the period of 4 years 100%
Quantity of warrants exercised	36,007,000 shares	0 shares
Amount of warrant exercised	NT$313,318,700	NT$0
Quantity of warrants unexercised (Note 2)	3,223,000 shares	0 shares
Subscription price per share of the warrants unexercised	NT$8.5	Have not yet been issued
Quantity unsubscribed shares in proportion to total outstanding shares	0.24%	0.00%
Effect on shareholders' equity	Two years after the issuance of employee warrants, the warrant holders can exercise employee warrants in accordance with the terms and conditions of the rules governing and issuing employee warrants. Therefore, it has not caused any actual significant effect on shareholders' equity.	Two years after the issuance of employee warrants, the warrant holders can exercise employee warrants in accordance with the terms and conditions of the rules governing and issuing employee warrants. Therefore, it has not caused any actual significant effect on shareholders' equity.

Note 1. Each unit of employee subscription warrant can subscribe 1,000 shares of the Company's common shares.
Note 2: It is net of the forfeited stock shares.

The names of manages and top ten employees holding employee stock warrants and the cumulative number of such warrants granted and exercised by said managers and employees.
March 31, 2025 ; Unit: NT$ dollar, share

	Title	Name	Shares of obtained stock warrant	Percentage of obtained stocks to outstanding shares (%)	Exercised				Unexercised
					Quantity	Exercise price (NT$)	Subscription Amount	Percentage of exercised warrant to total outstanding shares (%)	Quantity	Exercise price (NT$)	Subscription Amount	Percentage of exercised warrant to total outstanding shares (%)
Managers	President	Bib, Ann	3,732,000	0.27	3,172,000	8.9
8.5	27,582,800	0.23	560,000	8.5	4,760,000	0.04
	Vice President	Wu, Cheng-Chien Simon
	Chief Strategy Officer	Miau, Matthew Feng Chiang
	Plant Manager	Fang, Hung-Ching
Employees	President of Subsidiary	Chang, Te-Wei	8,654,000	0.63	6,140,000	8.9
8.5	53,281,200	0.45	2,514,000	8.5	21,369,000	0.18
	President of Subsidiary	Chung, Yi-Yao
	President of Subsidiary	Yang, Ching-Fu
	President of Subsidiary	Bai, Qing-Hua
	President of Subsidiary	Li, Xi-Jun
	Chief consultant	Ko, Yi-Shaw (Note)
	Group Head of Engineering and Manufacturing	Hsu, Chih-Shiao
	Group Head of Vice Engineering and Manufacturing	Cheng, Hsi Tien
	Group Head of Logistics	Kao, Chien-Yang
	Group Head of Sales and Marketing	Yu, Hui-Chen
	Group Head of Material and Asset Procurement	Hsieh, Tso-Ming
	Group Head of Research and Development	Ma, Chao-Chen
	Group Head of EHS	Huang, Wen-Tan
Special Assistant	Wu, Wei-Ting

Note: Mr. Ko, Yi-Shaw retired and appointed to be the Chief consultant on March 6, 2025.

VI. Implementation status of Issuance of New Restricted Employee Shares: None.

VII. Implementation status of Issuance of new shares in connection with a merger or acquisition or with acquisition of shares of any other company: None.

VIII. Financing Plans and Implementation

(I) For the period as of the quarter preceding the date of publication of the annual report, with respect to each uncompleted public issue or private placement of securities, and to such issues and placements that were completed in the most recent 3 years but have not yet fully yielded the planned benefits: None.

(II) Status of implementation: Not applicable.

Operational Highlights

I. Business Overview

(I) Business Scope

1. The content and ratio of main business

The main business of the Company is manufacture and sale of anhydrides (including phthalic anhydride PA, maleic anhydride MA), plasticizers (DOP, DINP...), etc. The anhydride business weighs $6\%$ , the plasticizer business weighs $76\%$ , and the polyvinyl chloride resin (PVC) business weighs $13\%$ . The market scope covers Taiwan, Mainland China, Southeast Asia, Japan, the Middle East, India, Africa, New Zealand, Australia, the United States and Canada, and it is also the world's largest supplier of phthalic anhydride and plasticizers.

2. Products

Product Type	Product
Plasticizer	Bis(2-ethylhexyl) Phthalate	(DEHP)
	Diisononyl Phthalate	(DINP)
	Di(2-Propyl Heptyl) Phthalate	(DPHP)
	Dibutyl Phthalate	(DBP)
	Bis(2-ethylhexyl) Terephthalate	(UN488/DOTP)
	Diisononyl Terephthalate	UN499 (DINT)
	Tri(2-ethylhexyl) Trimellitate	(TOTM (TEHTM))
	Tri-isononyl Trimellitate	(UN399/TINTM)
	Trioctyl Trimellitate	(TNOTM)/
	Tris(2-propyl)heptyl trimellitate	(TPHTM)
	Di(2-ethylhexyl) Adipate	(DOA)
	Adipate Plasticizer	(DINA)
	Di(2-propyl heptyl) Adipate	(UN100 /DPHA)
	Hydrogenated Phthalate	(UniHydro®UN899(DINCH))
	Polyester Plasticizer	(UN615、UN620、UN630、UN640)
	Linear plasticizer	(UN200/DnDP、UN291/911P、UN380/810TM)
	Di(2-ethylhexyl) Maleate	(DOM)
	Di(2-ethylhexyl) Sebacate	(DOS)
	Epoxidized soybean oil	(ESBO)
	Other bio-based plasticizer	(UN9138、UN9375)
Acid & Anhydride	Phthalic Anhydride	(PA)
	Fumaric Acid	(FA)
	Maleic Anhydride	(MA)
Plastic	PVC
Other Specialty Chemicals	Polyester polyol
	Fatty Esters
	Unsaturated Polyester Resins	(UPR)

3. New Products development

(1)	Different grades of unsaturated polyester resins	(4)	Carbonate plasticizer
(2)	Polyester plasticizer	(5)	Low carbon emission plastic pellets
(3)	Bio-based plasticizer

(II)Industry overview

1. The current situation and development of the industry

The global plasticizer industry covers several segments from raw material production and plasticizer manufacturing to downstream applications. The main types of plasticizers include phthalates (such as DOP, DINP) and non-phthalate plasticizers (such as DOTP, DOA, DINA, TOTM, TINTM, polymeric-based). As a key additive in plastic production (especially PVC), plasticizers play an important role in various industries such as construction, automotive, wires and cables, packaging, and healthcare.

In addition, the global demand for special-purpose plasticizers (such as low-toxicity, low-smoke, low-fog, high-temperature resistant, and more) is gradually increasing, and these products will become key targets for future development. Although economic growth in Mainland China has slowed, the demand for PVC and plasticizers has not seen significant growth. However, due to the continued demographic dividend and UPC's multiple production bases in Mainland China (such as the Zhongshan, Zhuhai, Zhenjiang, Taizhou, Nanchong, and Panjin Plants), it continues to reliably meet domestic market demand.

With the adjustment of the global economic structure, Taiwan has gradually shifted its industrial development focus towards research and development innovation and value-added enhancement, dedicated to producing environmentally friendly and sustainable green products. In contrast, Mainland China was once known as the "world's factory". However, due to the impact of geopolitical factors, Western countries and export-oriented customers have started gradually shifting their supply chains to Southeast Asia and Northeast Asia, seeking more stable alternatives.

In recent years, Southeast Asia countries such as Malaysia, Indonesia, Thailand, and Vietnam have become popular choices for foreign investment due to their advantages in land and labor costs, improving infrastructure, and rapid economic growth. Due to the ongoing slump in the Chinese market, many foreign-invested companies have shifted their production bases to Southeast Asia, making the region a promising emerging market. UPC Chemicals (Malaysia) market expansion in Southeast Asia, India, and Africa, leveraging the import tariff exemption policy among ASEAN countries and the supply advantages of proximity to local markets, is expected to significantly contribute to future business growth.

2. Connection of industry upstream, midstream and downstream

Our Supply Chain - Vertical and horizontal integration

The trend of product development and competition situation.

Plasticizer is one of the plastic additives with the largest production and consumption volume in the world. It is the most important additive with the most consumption volume in PVC processing and plays an important role in the areas of rubber coatings, adhesives, and sealing materials. In recent years, the great China area has become an area that manufactures and consumes plasticizers the most. In accordance with the economic growth and technological development, the growth of plasticizer brings new and high requirements to industrial plasticizer. As countries around the world have increased their environmental awareness, plastic products such as medical supplies, food packaging, and toys are subject to stricter safety requirements on plasticizers. As governments of various countries aim to achieve net zero emissions by 2050, the electric vehicle market has gradually expanded and has driven the demand for the quality of plasticizers for automotive base coating, interior decoration, instrument boards, and other parts and components. Therefore, the industry is focusing on the development of polyester plasticizers with low smoke and high temperature resistance to meet the needs of emerging markets.

More and more downstream products are restricting phthalate plasticizers, causing many enterprises to increase the production of dioctyl terephthalate (DOTP). The Company has DOTP production lines in Zhuhai, Taizhou, and Panjin, and the competition in the market of many plasticizer products has become increasingly fierce. The decline in the market of some plasticizers is mainly due to the impact of environmental protection factors, and the demand for non-phthalate plasticizers is growing rapidly. With the rapid growth of market demand for green plasticizers and the increase in technological investment by related companies, the consumption of traditional plasticizers will further decline.

The company's development is geared towards the development of polyester plasticizers based on customer needs. In the next few years, we will gradually increase the number of special-purpose/environmentally friendly plasticizers to replace the limitations of traditional plasticizers and provide better services to industry and society., environment and make further contributions.

(III) Technology and R&D Overview

R&D Expenditures

2024 : Around NT$39,176 thousands

2025 (As of March 31) : Around NT$9,499 thousands

Successful development of technology and product

(1) The demand for high-priced TOTM in the market is replaced, and the new product of thermal-resistant polyester plasticizer is developed.
(2) Plasticizer for new-generation electric vehicle leather, base coating, and high-voltage cables.
(3) Development of low-temperature resistant plasticizer new products.
(4) Completion of the development of DBP low-temperature process technology.
(5) Development of new specifications of UPR products.

(IV) The long/short term business development plan

Short-term

(1) Core product consumption and new application development.
(2) Development of polyester plasticizer for downstream industries according to customer needs.
(3) Non-phthalic anhydride series plasticizer
(4) Development of low-temperature resistant, low-volatility, and heat-resistant plasticizer.

Long-term

To increase the market share of plasticizers, in addition to further developing the existing market

in mainland China and optimizing the distributor system to serve a small number of customers and increase market share. In the future, the restructuring of the global supply chain will focus on ASEAN, which has the advantage of being a tariff-free area. The Company will develop products that meet the high-quality requirements of Europe and the United States and expand the sales of high value-added products to create more profits and value for the Company.

II. Market and Sales Overview

(I) Market Analysis

Main products sales region
Unit: NT$ thousands

Item	Year	2024
		Amount	%
Export	Asia	70,035,234	96%
	Other area	939,412	1%
Domestic		2,345,634	3%
Total		73,320,280	100%

Note: Domestic sales include the sales in Taiwan.

The market share: The main product market is in Mainland China, Southeast Asia and Taiwan. The market share is around 22% in Mainland China and around 14.6% in global.
The future supply, demand and its growth.

The supply and price fluctuations of key raw materials for plasticizers, (such as iso-octyl alcohol and phthalic anhydride), will directly impact the production cost of plasticizers and may exacerbate market supply instability. 2-ethylhexylalcohol, as one of the main raw materials for plasticizers, is influenced by multiple factors such as fluctuations in oil prices, production capacity, and changes in market demand. With the release of new production capacity, the supply of iso-octyl alcohol may become oversupplied, leading to a price decrease and alleviating the production cost pressure of plasticizers. However, the demand growth is not necessarily in synch with the supply growth, which may lead to price fluctuations and thus affect the profit of the plasticizer.

The Company is the world's largest supplier of phthalic anhydride and plasticizers, and the supply of products is stable and unhindered. In recent years, China's environmental protection regulations have become stricter, and carbide route PVC production capacity due to high pollution and high energy consumption has been phased out. In addition, the United States has implemented the "Prevention of Forced Uyghur Labor Act" to restrict the supply of calcium carbide from Xinjiang. The Company uses the ethylene route VCM to produce PVC, which has clear traceability and more competitive products. In response to market demand and trends, we continue to promote the development of environmentally friendly plasticizers and are committed to developing niche products to increase our market share in Mainland China. At the same time, our company is deepening its presence in the Southeast Asian market, having established sales offices in Vietnam and Thailand. Leveraging the advantages of the Regional Comprehensive Economic Partnership (RCEP), we are actively expanding into markets such as Thailand, Vietnam, and Indonesia, with a focus on developing these potential markets in the future.

The pros and cons and response strategy to competitive niche and development vision.

(1) Pros

The Company has a complete factory layout. With the flexible coordination of production and sales in various regions, we can effectively serve customers and expand our products in coastal cities in Mainland China for domestic sales and export markets.
PVC has been put into production smoothly and has good market feedback. Through the overall layout, the Company has drawn up the best proportion of various sales categories, sales customers, and sales regions. Not only can sales and profits be maximized at the current stage, but despite the

short-term impact of the global economic downturn, the PVC market will continue to grow in the long term.

Develop multiple distribution channels in Southeast Asia, connected to the factory in Malaysia, and set up distribution centers in Thailand and Vietnam and take advantage of the import tariff exemption among ASEAN countries and the convenience of nearby supply to actively increase market share in Southeast Asia. In addition, it can also be exported to the South Asia, including India and Middle East markets to expand its sales territory.
■ Environmental protection requirements (sewage treatment, prohibition of coal burning, conversion to the use of natural gas, and smell of exhaust) are becoming stricter, which is favorable to the long-term development of the Company's regular plants. The higher energy costs of competitors also make the Company more competitive.

(2) Cons and response strategy

Competitors in mainland China regarding plasticizers, phenolic anhydride (PA), and maleic anhydride (MA) continue to expand their production capacity, and large-scale refining and chemical competitors will join the market competition in the future.
The international market has increasingly strict requirements for the certification of imported products. Product exports may be affected by regulatory frameworks such as the EU's REACH, Korea's K-REACH, and India's BIS certification.

Response strategy:

In recent years, the global economic environment has continued to change, influenced by trade barriers, tariff policy changes, and geopolitical tensions. To reduce the risks faced by our export business and enhance market diversification (expanding into emerging markets to reduce reliance on a single region or country), our company closely monitors international trade policy dynamics and adjusts operational strategies in a timely manner. At the same time, we strengthen product innovation and develop high-value-added products to enhance brand competitiveness and profit margins, thereby reducing the impact of price sensitivity.
The environmental requirements and $\mathrm{CO}_{2}$ emission standards have become stricter, and calcium carbide PVC production will be limited. These are favorable to the Company, which adopts the ethylene process to produce PVC. The Company uses the PA/MA process reaction heat recovery to produce steam every year. 5 million tonnes of steam can be produced, and 1.156 million tonnes of CO2e emissions can be reduced, further improving the efficiency of energy-saving and carbon emissions reduction.
The market is now highly competitive because of the labor cost and competitors' continuous expansion of their production capacity. The Company has adjusted its production capacity to enhance competitiveness and expand the production of higher-margin products such as environmentally friendly plasticizers and polyester plasticizers, in the hope to continue improving its market share in the depression and the wave of replacing the weak with the strong.
In response to the requirements of various countries, the Company has applied for international certification and invited personnel to conduct industrial inspections at its factories and conduct sample testing for certification and replace equipment to reduce production cost.

(II) Main application and production process of main products

Products		Main uses
Acids and anhydrides	Phthalic anhydride (PA)	Raw materials for plasticizers, unsaturated polyester resins, dyes, pigments, alkyd resins, paint solvents, insect repellents, pharmaceutical chemistry, resin hardeners
	Fumaric acid (FA)	Raw materials for unsaturated polyester resins, alkyd resins, paper sizing agents, food souring agents, feed additives, lubricant modifiers, plasticizers, printing inks, aspartic acid
	Maleic anhydride (MA)	Raw materials for unsaturated polyester resin, 1,4-butanediol, alkyd resin, pesticide chemicals, papermaking additives, latex paint vehicle and adhesive, and biodegradable plastics

Products		Main uses
General purpose phthalate plasticizer	Di(2-ethylhexyl) Phthalate (DEHP)	PVC plasticizer, suitable for hard and soft PVC products, styrofoam, rubber cloth, shoe materials, furniture, water pipes, tape, UL 60 degree wires and cables
	Diisononyl phthalate (DINP)	PVC plasticizer, suitable for soft PVC products, rubber, rubber cloth, shoe materials, furniture, water pipes, tape, UL 60 degree wires and cables
	Di-(2-propylheptyl)phthalate (DPHP)	PVC plasticizer, suitable for tape, hose, car leather, sofa leather, UL 70~90 degree wires and cables
	Dibutyl phthalate (DBP)	PVC plasticizer, suitable for water pipes, plastic boards, celluloid coatings, vinyl floor tiles, polyvinyl acetate adhesives.
Terephthalate plasticizer	Di(2-ethylhexyl) Terephthalate (DOTP)	PVC plasticizer, suitable for rubber, tape, plastic floor, UL 70 degree wires and cable insulation.
Trimellitate plasticizer	Tri(2-EthylHexyl) Trimellitate (TOTM)	PVC plasticizer, suitable for automotive interior decoration, rubber tape, hose and water pipe, UL 105 degree wires and cables
Adipate plasticizer	Di(2-ethylhexyl) Adipate (DOA)	PVC secondary plasticizer, suitable for cling film, soft rubber/tape
	Diisononyl adipate (DINA)	PVC secondary plasticizer, suitable for cling film, soft rubber/tape
	Di-(2-propylheptyl) Adipate (DPHA)	PVC secondary plasticizer, suitable for cling film, soft rubber/tape, automobile leather, wires and cables, gloves, water pipes, rubber shoes, drapes
Benzene-free hydrogenated plasticizer	Diisononyl cyclohexane-1,2-dicarboxylate (DINCH)	PVC plasticizer, benzene-free structural form gives products higher safety, especially suitable for products that come into contact with human body, such as medical equipment, children's toys, food packaging, gloves, flooring and other applications.
Polyester plasticizer	Adipate polyester	PVC plasticizer, suitable for cables, tapes, films, rubbers, oil-resistant boots, oil-resistant pipes, UL 105 degree wires
Linear plasticizer	Didecyl phthalate (DnDP)	PVC plasticizer, suitable for automotive interior decoration, UL 70~90 degree wires and cables, rubber tape, shoe soles
	1,2-Benzenedicarboxylic acid, di-C9-10-11-branched and linear alkyl esters (911P)	PVC plasticizer, suitable for automobile interior decoration, rubber tape, hose and water pipes, outdoor canvas, UL 70~90 degree wires and cables
	Tri (n-octyl, n-decyl) trimellitate (810TM)	PVC plasticizer, suitable for car interior, gardening water hoses, UL 105 degree wires and cables
	Tri-n-octyl trimellitate (TNOTM)	PVC plasticizer, suitable for car interior, gardening water hoses, UL 105 degree wires and cables
Bioplasticizer	Epoxidized soybean oil (ESBO)	PVC plasticizer, suitable for children's toys, materials come into contact with food, carpets, wallpapers, rubber tapes, packaging films, drinking water pipes, hoses
	Bis(2-ethylhexyl) Sebacate (DOS)	PVC plasticizer, suitable for cold-resistant wires and cables, rubber, films, adhesives, food packaging materials
	Bio-based Plasticizer (Vegetable-oil based)	PVC plasticizer, suitable for children's toys, materials come into contact with food, carpets, wallpapers, rubber tapes, packaging films, drinking water pipes, hoses
	Bio-based Plasticizer (Polyester type)	PVC plasticizer, suitable for children's toys, materials come into contact with food, carpets, wallpapers, rubber tapes, packaging films, drinking water pipes, hoses
Polyvinyl chloride (PVC)		Used in a variety of PVC products, such as pipe fittings, tapes, plastic bottles, wires and cables, toy shoe materials and high mechanical film, etc.
Unsaturated polyester resin (UPR)		Thermosetting resin, widely used in handicrafts, imitation jade/imitation crystal/transparent handicrafts, marine resin, glass fiber products, cooling water towers, quartz stone, artificial stone, etc.
Polyester polyol		Widely used in the manufacture of cast polyurethane elastomers, thermoplastic polyurethanes, polyurethane microporous materials and polyurethane foam materials for shoes, such as synthetic leather, adhesives, UV coatings, shoe soles, rigid foams, etc.
Fatty Ester		Cosmetic esters, PVC/PS internal lubricants, textile lubricants

2. Production process of main products

PA	Oxidation of o-xylene with air Air Oxidation Condensation Crude PA Distillation PA
FA	Isomerisation of maleic acid contained in the waste water from PA plant waste water from PA plant Heat treatment Isomerisation Crude FA Bleaching Filtration Crystallization Drying FA
MA	Oxidation of N-butane with air Air N-butane Oxidation Cooling Solvent absorption Dissolution Crude MA Distillation Oxidation MA
DEHP	Esterification of PA and 2-EH PA Mono esterification Double esterification Stripping 2EH Distillation Processing tank Filtration DEHP
Specialty plasticizer	Esterification of acid/anhydride and C4-C10 alcohols PA, TMA, AA Heating Esterification C4-10 alcohol Removal of water and excess alcohol Processing tank Filtration Specialty plasticizers
UPR & Polyol	Esterification of diacid and glycol. Then mixed with monomers & additives. Monomer Diacid Esterification Filtration Dilution Filtration UPR Glycol Polyol
PVC	Polymerization of VCM VCM Polimerization Stripping Filtration Drying PVC Additives

(III) The supply status of important raw materials

Important raw materials
Name	Main source of supply	The supply status
2-Ethyl-hexanol	Domestic supply and import from overseas	Supply Agreement
Orthoxylene	Domestic supply and import from overseas	Supply Agreement
ISO-NONYL ALCOHOL	Domestic supply and import from overseas	Supply Agreement

(IV) The list of suppliers and clients accounting for 10% or more of the Company total procurement (sales) amount in the 2 most recent years.

The list of suppliers of the 2 most recent fiscal years.
Unit: NT$ thousands; %

	2023				2024
Item	Name	Amount	whole year net purchase ratio	Relationship with Issuer	Name	Amount	whole year net purchase ratio	Relationship with Issuer
1	Supplier W	9,970,575	14	-	Supplier W	8,659,675	12	-
2	Supplier P	8,081,968	12		Supplier P	7,567,234	11	-
3	Supplier A3	8,055,661	12	-	Supplier E	7,508,077	11	-
4	Others	42,718,098	62	-	Supplier A3	6,869,201	10	-
5	-	-	-	-	Others	39,863,369	56	-
	The net procurement amount	68,826,302	100	-	The net procurement amount	70,467,556	100	-

Note: The explanation of the reason for increases or decreases in the above figures: The main consideration is the market price and supply amount of suppliers, etc.

The list of clients of the 2 most recent fiscal years: There is no sales amount of a signal client accounts for 10% of the Company total sales amount in 2023 and 2024.
Unit: NT$ thousands; %

	2023				2024
Item	Name	Amount	whole year net sales ratio	Relationship with Issuer	Name	Amount	whole year net sales ratio	Relationship with Issuer
1	Others	73,196,046	100	-	Others	73,320,280	100	-
	Net sales revenue	73,196,046	100	-	Net sales revenue	73,320,280	100	-

III. Employee demographic data for last two years as of the publication date of this annual report

Year		2023	2024	As of March 31, 2025
Number of Employees	Taiwan	226	226	229
	Oversea	1,688	1,686	1,683
	Total	1,914	1,912	1,912
Average Age		39.48	39.82	39.90
Average Years of Service		9.76	10.15	10.22
Education distribution ratio (%)	Ph.D.	0.10	0.16	0.16
	Masters	3.45	3.66	3.92
	Bachelor’s Degree	67.19	68.25	68.41
	Senior High School	21.37	20.45	20.24
	Below Senior High School	7.89	7.48	7.27

IV. The expense of environmental protection

(I) In the most recent year and as of the date of publication of the annual report, the loss due to environmental pollution and the estimated amount and countermeasures that may occur in the future

Losses suffered by the Company due to environmental pollution incidents

Currency: New Taiwan Dollar

Issuance date	Disposition reference number	The articles of law violation	The content of the violation	The content of the disposition
August 5, 2024	Environmental Protection Bureau of Kaohsiung City Government Tu Zi No. 11336732200	Article 38, Paragraph 2 of the Toxic and Concern Auguesthemical Substances Control Act	No training or drills organized by the joint defense organization were participated in in 2023, and no training (drill) records were kept on site.	NT$60,000 Environmental lecture 2 hours
August 5, 2024	Environmental Protection Bureau of Kaohsiung City Government Gi Zi No. 11336694100	Air Pollution Control Act, Article 32, Paragraph 1, Clause 3	Leakage occurred on site when process equipment was being replaced, causing the leakage of particulate pollutants and the escape of chemical odors, which caused air pollution.	NT$120,000 Environmental lecture 2 hours
August 21, 2024	Environmental Protection Bureau of Kaohsiung City Government Tu Zi No. 11336732300	Article 39, Paragraph 1, Clause 1 of the Toxic and Concern Chemical Substances Control Act	A leak occurred on site when process equipment was being replaced, resulting in the leakage of phthalic anhydride vapor.	NT$1,000,000 Environmental lecture 2 hours
March 28, 2025	Kaohsiung City Labor Inspection No. 11470580000	Article 6, Paragraph 1, Item 1 of the Occupational Safety and Health Act	There is no protection at the motor rotation point of the solid waste liquid mixing tank and the MPA pipeline of DOP does not have content flow direction indication.	NT$110,000

Estimation of possible expenses that could be incurred currently and in the future and measures being or to be taken:

In 2024 and as of the date of publication of the annual report, there was four deficiency identified. In order to alleviate concerns from the Environmental Protection Bureau and the public, the Company has implemented the following improvement measures and response strategies.

(1) Strengthen the self-inspection and management of equipment components:

Check the integrity of dynamic and static equipment, strictly control leakage, and inspect the entire plant on a monthly basis.
Each jurisdiction implements a self-testing, reporting and improvement system. Suspected slight leakage will be repaired immediately.
Meanwhile, the Company will implement safety and environmental protection voluntary management, and encourage voluntary reporting and improvement of case closure.
Carry out the third-level maintenance of facilities to reduce equipment abnormalities.

(2) Improve the control and effectiveness of self-inspection.
- Regular EHS audit and automatic inspection.
- The supervisors adopt management by walking around, reporting on-site abnormalities, and following up on improvements.
- Check the integrity of dynamic and static equipment, strictly control leakage.

(3) Check the integrity of dynamic and static equipment, strictly control leakage, We plan monthly internal inspections of equipment components and commission external suppliers to conduct leak monitoring and repair work to reduce the emission of volatile organic compounds from equipment components..

(4) Strengthen and improve the regulatory response capabilities of on-site personnel, supervisors, and designated personnel; implement internal inspections of equipment components and follow up for preventive improvements.

(5) Develop a joint prevention and control emergency drill plan, conduct drills regularly, evaluate drill results, and make continuous improvements.

(II) Hazardous substances prohibition management and relevant information

To fulfill corporate responsibility and to avoid the highly development of industry and human activity will cause the significant major pollution and environmental pollution. All manufacture spot has passed ISO9001 Quality Management System / ISO 14001 Environmental Management System / OHSAS 18001 & TOSHMS Occupational Safety and Health Management System Verification / ISO50001 (Energy Management System). In addition, after the Company adopts ISO14061-1 greenhouse gas CO2 reduction target, the Company target at least 1% reduction in greenhouse gas unit emissions per unit of revenue per year. This is for health maintenance and environmental safety and to manufacture more environmentally friendly product. The Company complies with the requirements to chemical substances of each and every nation and customer, and the Company strictly requires our suppliers to prevent or limit the supply of monitoring hazard chemicals. All of the Company's products are complied with relevant regulations such as EU RoHS 2.0 Directive and REACH Substances of Very High Concern (SVHC).

Under the leadership of current and former general managers and the efforts of all colleagues, the Company has established a considerable scale and continuous updating its organization structure and equipment and the human quality, testing technology and data quality have also been improved. Base on the existing basis, the Company continuously moves forward to the goal of sustainable management and green product management.

Specific facts:

In addition to regular business inspection, every January the Company engages fair examine institution, with the aim of compliance, to analyze the environmental pollutants such as high-concentration compounds to check whether the product is compliance with the requirement of green environmental management substance. Provide customer with product technology support anytime. In the recent fiscal year, the Company purchased GC-MS gas chromatography mass spectrometer and HPLC liquid chromatography instrument inspection equipment. The Company use the more precise method to prevent the hazardous substance polluting the product.
The Company regularly engage qualified inspection company to inspect the compliance of factory air pollution, wastewater emission, waste disposal, toxic chemical management and noise control.

V. Labor Relations

(I) Employee welfare and pension system

Since the Company was established, the Company has been valuing the employee welfare and people development, which are cornerstones to make sustainable business growth. With this belief, how to keep employees engaged and motivated, the Company has been pouring a lot of resources in employee compensation & benefits, workplace safety, employee healthcare, training and development, etc. Thus, keeping our business growing, profitable for the past decades, one of the keys is attributed to the cohesive workforces exerting teamwork to make our business successful.

After declaration of the end of martial law, the society and political structure have changed rapidly and labor autonomy awareness arose. The Company labor union is established in the early of 1988 and the Company holds a positive attitude to it. It will bring positive impact both to the Company and the employee to reach the mutual agreement by bilateral communication. The Company adheres to its principles to continue issuing employee stock options and buying back shares for employees to subscribe to, greatly improving the real interests of employees. The implementation encourages all employees to actively engage in work as shareholders, a clever way to take into account the interests of both employees and investors for balanced development.

The Company will continue to uphold its belief in measures such as review and improvement of the company systems, employee training, active communication, promotion of collaboration and improvement of safety and welfare. Please refer to ESG Reports on employee relations in workplace co-prosperity, workplace safety management and employee health.

The Company establishes its employee retirement system in accordance with the Labor Standards Act. All employees in Taiwan are eligible for the following practices based on their service tenures under either the new or old measurement:

Employees adopting the old pension system - An employee pension supervision and management committee was established, which allocates more than 2% of the total salary of the employees using the old system to the statutory pension fund account of the Bank of Taiwan in accordance with the Labor Standards Act.
Employees adopting the new pension system - From 1 July, 2005, in accordance with Labor Pension Act, the Company will contribute "6 percent of the worker's monthly wage" and "voluntary contribution to the labor pension from their monthly wages" to the personal pension funds account in Bureau of Labor Insurance of the seniority in new system.
As of December 31, 2024, the number of employees subject to the old system (including those with years of service under the old system) and the number of employees subject to the new system are 90 and 136 respectively; the balance of the old system retirement fund account is NT$260,351,851.
When employees retire, the Company holds a farewell party and invites coworkers to get together and offer retirement farewell wishes and blessings.
The Company gives retirement commemorative gold coin and gifts to express gratitude to employees for their contributions.
The Company applies the following rules in accordance with the Labor Standards Act and Labor Pension Act:

(1) Employees can request for retirement once meet one of the following conditions. If they choose to adopt the Labor Pension Act, the regulations of the Act shall apply.

A. Have served for more than 15 years and reached the age of 55.

B. Those who have worked for more than 25 years.

C. Have served for more than 10 years and reached the age of 60.

(2) The Company shall not force employees to retire unless they have one of the following circumstances.

A. Those who are over sixty-five years old.

B. Physically and mentally handicapped and become unsuitable for work.

With respect to the age specified in the above subparagraph 1, who may be extended by agreement between the employer and the employee. For the business unit may apply to the central authority for the changes to jobs that have risks and require physical strength. However, the age restriction should not be lowered to less than 55 years old.

(3) Criteria for payment of worker pensions

A. For service tenure before or after the adoption of the Labor Standards Act, or the service tenure defined under the Labor Pension Act which selects to continue to be covered by the pension regulations of the Labor Standards Act or maintain the eligibility for the Labor Pension Act, the pension payments will be given in accordance with Article 84-2 and Article 55 of the Labor Standards Act.

B. Those who have the work tenure mentioned in the preceding paragraph and are eligible for mandatory retirement in accordance with Subparagraph 2, Paragraph 1, Article 54 of the Labor Standards Act, will receive additional 20% in pension payments in accordance with Subparagraph 2, Paragraph 1, Article 55 of Labor Standards Act if they suffer from mental and physical disability due to the performance of their duties.

C. For employees who are eligible for the requirements of the Labor Pension Act, the Company allocates 6% of the employee's monthly salary to the personal pension account on a monthly basis.

(4) Pension payment

The Company shall pay employees' pensions within 30 days of the employees' retirement.

In view of rapid change of market, the Company together with employees have been striving to improve efficiency and effectiveness on all aspects of operations so as to achieve business goals. We believe that maintaining harmonious relationships with employees is based on mutual trust, mutual cooperation, and mutually beneficial relations.

Nowadays, due to the economic transformation for domestic market, building up and maintaining a harmonious relationship between employer and employee is significant important. Otherwise, it is difficult to overcome the various challenges facing the market internationalization and trade liberalization. Looking on the bright side, by constructive dialogues between the management and the Union, both parties have learned a lot of great lessons from each other. This is a solid foundation on which holds the employer-employee together, and it is estimated that the labor disputes leading to the possibility of loss is very low in the future.

(II) The employee training and development

The Company values employees as an important asset. Hence, employee training and development program is a key portion of business operations. Following the organizational visions, missions, and strategies, we establish the talent development strategy and the training system. To achieve the goal, we aim for providing integrative learning resources to enhance their knowledge, skills, and performances. Encouraging employees to continuously learn new knowledge and experience is a motivator of advancement and innovation, which ultimately may improve the work efficiency and create a better learning environment. There has been a training and development policy available in place, providing employees with varieties of training programs. All employees have to earn 12 or more training credits which are based on their professional and managerial level every year. Combining organizational goals with individual career plan, one of the promotion criteria is related with the training credits. The total training hours in 2024 is 6,334 hours, and the average training hours of each employee is 28.03. With regard to the safety and health training, the total training hours is 2,999 and the average training hours 13.27 per person.

In 2024, a total of 996 hours were provided for the company's general training, accounting for 16% of the total number of courses in the company. In order to strengthen the awareness of all employees' work, health and safety and information security fire drills and seminars, environmental protection and waste disposal laws and regulations advocacy, health promotion advocacy, etc., information security - introduction to social engineering attack methods and email security education and training, information security precautions, etc.; to help new recruits adapt to the work to provide new recruits with a basic understanding

of the corporate culture, business philosophy, and rules and regulations. 100% of new recruits have completed the training. In terms of professional training, in the face of rapid changes in the external environment, we re-examined our internal resources. In order to improve the efficiency of organizational management, we plan to organize strategy workshops. Through three days of intensive training and brainstorming, we can plan for short-, medium-, and long-term strategic development, build team consensus, and create new heights in business operations. In terms of management training, to help new supervisors quickly master and adapt to management, new supervisor training is provided to strengthen basic management knowledge; for junior supervisors and potential talents, it provides supervisors' roles and responsibilities, cost concepts and awareness courses, and continues to strengthen the management functions of competent supervisors.

In order to improve the efficiency of organizational management, the work items of each department and the principle of division of labor were re-examined this year, and the establishment of personnel for each position was reviewed to implement the goal of lean management. In the future, the internal rotation plan will be supplemented by planning to continue to develop the diversified skills of professional talents, enhance career diversity and build a talent pool.

(III) During 2024 and as of 31 March, 2025, does the Company suffer any losses from labor dispute: None.

The estimated amount and mitigation plan to current and future labor dispute – The possibility of suffering loss from labor disputes is very low since we have maintained a good labor relationship with the Union and employees.

VI. Cyber security Management

(I) Cybersecurity risk management structure

The Company aims to build a strict and effective information security defense. According to the cyber security risk management framework, the Information Security Management Committee has established an information security task force, an emergency response task force, and an audit task force. The Information Security Management Committee coordinates the formulation, implementation, risk management, regulatory compliance and auditing of cyber security and related policies. The audit supervisor supervises the implementation of cyber security operations and evaluates the effectiveness of the information security risk management measures of the entire Group. And the audit supervisor hosts regular quarterly information security review meetings are convened, and periodic reports on the execution effectiveness of the overall information security management organization's relevant security management operations and systems are submitted to the board of directors.

In 2024, the Company held a total of 7 internal review meetings, and reported the current cyber security status and implementation to the Board of Directors on November 6, 2024.

(II) Cyber security policy, specific management plan, and the resources committed to cyber security management

In order to effectively carry out the cyber security policy, the Company has appointed a chief information security officer and established a dedicated cyber security unit that has a supervisor and at least two full-time specialists responsible for cyber security-related monitoring and the implementation of various management plans formulated by the cyber security Management Committee.

The Company complies with the relevant laws and regulations to formulate cyber security management regulations in accordance with the ISO27001 framework, and provides appropriate protection measures for the Company's information assets to ensure its confidentiality, integrity, availability and regulatory compliance. The Company regularly holds cyber security training courses and disseminates its cyber security policy. It formulates a cyber security management plan summarizing the implementation of the corporate group's plan and important incidents to be reported to the top executive handling information-related matters.

In order to reinforce information security protection capabilities, the Company commissions a professional information security consulting company to regularly perform vulnerability scans to

identify potential risks for correction and periodically perform social engineering phishing email drills. In 2024, the Company conducted one social engineering drill of the email system and issued at least four information security bulletins to convey important regulations and precautions for information security protection. The NGFW (including Threat Prevention, URL Filtering, and WildFire) and the online behavior management device - InstantCheck were updated and effective operation currently.

The Company conducts information security training and after-course evaluation for all employees every year. In 2024, the Company organized two information security training sessions, including "Introduction to Social Engineering Attacks and Email Security Training" and "Information Security Prevention and Email Precautions." Each person from the dedicated information security unit shall receive at least 32 hours of professional information security training.

(III) The losses and possible impacts suffered from major information security incidents and the countermeasures in 2024 to the date of publication of the annual report:

On April 9, 2024, the Company detected network transmission anomalies, and some systems were attacked by hackers. The Cybersecurity Department immediately activated the cyber security defense and recovery mechanism, which prevented the attack from extending to various factories and production lines. Technical experts from external information security companies were also engaged to jointly address the issue. The incident did not have a major impact on the company's finances or operations.

At the same time, following the recommendations of cybersecurity experts regarding the company's medium- and long-term cybersecurity protection, the construction of various improved cybersecurity measures was completed in August of this year. Moving forward, regular cybersecurity effectiveness assessments will be conducted to continuously improve the network and cyber infrastructure, strengthen security controls, and enhance employee security awareness to ensure robust cybersecurity.

VII. Important agreements

The nature of the agreement	Party	Effective and expiration date	Key terms and conditions	Restrictive covenants
Syndicated loan contract	Mega International Commercial Bank
Bank of Taiwan
Hua Nan Commercial Bank
First Commercial Bank
E.SUN Commercial Bank	From November 23, 2023 to the full settlement of the Company	Five-year revolving line of credit of NTD 4 billion.	Subject to the restrictions stated in the syndicated loan contract.
Long-term raw material supply contract	ExxonMobil Chemical Asia Pacific	From January 1, 2021 to December 31, 2030.	To obtain stable supply and advantageous prices of raw materials, the Company strengthen its flexibility in raw material scheduling to protect and expand its market share and develop new markets. Enter into long-term plasticizer raw material supply agreement.	None
Delegation guarantee agreement (including the agreement of corporate bond performance guarantee)	Mega International Commercial Bank	From July 26, 2022 to July 26, 2027.	To repay the existing loans to financial institutions, the Company proposed to issue corporate bonds, and apply to Mega International Commercial Bank for a guaranteed loan of a total amount of NT$1.5 billion.	Subject to the restrictions stated in the delegation guarantee agreement.

The nature of the agreement	Party	Effective and expiration date	Key terms and conditions	Restrictive covenants
Delegation guarantee agreement (including the agreement of corporate bond performance guarantee)	Bank of Taiwan	From July 26, 2022 to July 26, 2027.	To repay the existing loans to financial institutions, the Company proposed to issue corporate bonds, and apply to the Bank of Taiwan for a guaranteed loan of a total amount of NT$1 billion.	Subject to the restrictions stated in the delegation guarantee agreement.
Delegation guarantee agreement (including the agreement of corporate bond performance guarantee)	Hua Nan Commercial Bank	From July 26, 2022 to July 26, 2027.	To repay the existing loans to financial institutions, the Company proposed to issue corporate bonds, and apply to Hua Nan Commercial Bank for a guaranteed loan of a total amount of NT$500 million.	Subject to the restrictions stated in the delegation guarantee agreement.

Financial status, operating results, and risk management review

I. Financial Status Analysis
Unit: NT$ thousands

Item\Year	2024	2023	Difference
			Amount	%
Current assets	20,835,789	20,812,329	23,460	0
Property, Plant and Equipment	15,953,808	16,123,291	(169,483)	(1)
Other Assets	20,281,308	18,721,049	1,560,259	8
Total assets	57,070,905	55,656,669	1,414,236	3
Current liabilities	9,918,108	8,263,676	1,654,432	20
Non-Current liabilities	17,687,108	17,343,462	343,646	2
Total liabilities	27,605,216	25,607,138	1,998,078	8
Capital stock	13,678,937	13,647,497	31,440	0
Surplus capital	1,373,465	1,378,837	(5,372)	0
Retained earnings	2,231,891	4,841,129	(2,609,238)	(54)
Other equity	12,620,337	10,621,009	1,999,328	19
Treasury Stock	(438,941)	(438,941)	-	-
Non-Controlling Interest	-	-	-	-
Total equity	29,465,689	30,049,531	(583,842)	(2)
(I) The main reasons for any material change in the company's assets, liabilities or equity during the past 2 fiscal years, and describe the effect thereof. Where the effect is of material significance, the annual report shall describe the measures to be taken in response. (The increase/decrease difference ratio more than 20% and its amount equal or exceeding to 10 million).
(1) Increase of current liabilities: Mainly due to increase in short-term loans.
(2) Decrease of retained earnings: Mainly due to the increase in net loss in the current year, resulting in a decrease in retained earnings.
(II) Effect: No significant effect
(III) The measures to be taken in response: Not applicable

II. The comparison and analysis of financial performance

Unit: NT$ thousands

| Year
Item | 2024 | 2023 | Increase (decrease) amount | Change (%) |
| --- | --- | --- | --- | --- |
| Operating revenue | 73,320,280 | 73,196,046 | 124,234 | 0 |
| Operating costs | 73,496,603 | 70,988,639 | 2,507,964 | 4 |
| Gross profit | (176,323) | 2,207,407 | (2,383,730) | (108) |
| Operating expenses | 2,499,534 | 2,404,918 | 94,616 | 4 |
| Loss from operations | (2,675,857) | (197,511) | (2,478,346) | 1255 |
| Non-operating income and expenses | (37,720) | 40,975 | (78,695) | (192) |
| Profit (loss) before income tax | (2,713,577) | (156,536) | (2,557,041) | 1634 |
| Income tax expenses | (329,722) | 126,290 | (456,012) | (361) |
| Net loss for the year | (2,383,855) | (282,826) | (2,101,029) | 743 |
| Other comprehensive income | 2,040,680 | 4,403,273 | (2,362,593) | (54) |
| Total comprehensive income | (343,175) | 4,120,447 | (4,463,622) | (108) |
| Net income (loss) attributed to stockholders of the Company | (2,383,855) | (282,826) | (2,101,029) | 743 |
| Net income (loss) attributed to non-controlling interest | - | - | - | - |
| Comprehensive income attributed to stockholders of the Company | (343,175) | 4,120,447 | (4,463,622) | (108) |
| Comprehensive income attributed to non-controlling interest | - | - | - | - |
| (I) The main reasons for any material change in operating revenues, operating income or income before tax during the past 2 fiscal years (the increase/decrease difference ratio more than 20% and its amount equal or exceeding to 10 million).
(1) The increase in gross operating loss and net operating loss was primarily due to the decrease in gross margin in 2024.
(2) The increase in net non-operating income and expenses was mainly due to the increase in interest expenses from loans.
(3) Net loss before tax, net loss for the year, and net loss attributable to the owners of the Company increased, mainly due to the increase in gross operating loss.
(4) The increase in income tax benefits was mainly due to the increase in losses.
(5) The decrease in other comprehensive income was mainly due to the reduction in unrealized gains on financial assets measured at fair value through other comprehensive income.
(6) The total comprehensive income attributable to the owners of the Company decreased mainly due to an increase in gross operating loss and a decrease in unrealized gains on financial assets measured at fair value through other comprehensive income.
(II) The sales volume forecast and its basis: The Company's estimated sales revenue in the coming year is the best estimation based on market conditions, industry bloom/distress, the Company's operating plan and product sales trends.
(III) The effect upon the Company's financial operations: No significant effect.
(IV) Measures to be taken in response: Not applicable. | | | | |

III. Cash flow analysis

(I) The analysis of liquidity during the past 2 fiscal years

| Year
Item | 2024 | 2023 | Increase (minus)% |
| --- | --- | --- | --- |
| Cash flow ratio (%) | 19.9 | * | * |
| Cash flow adequacy ratio (%) | 40.8 | 55.7 | -26.8% |
| Cash re-investment ratio (%) | 2.6 | * | * |
| The analysis and explanation of the change of increase (decrease) difference ratio more than 20%:
Cash flow ratio: Not shown because the 2023 operating activities are considered net cash used.
Cash flow adequacy ratio: The net cash flow from operating activities for the five-year period in 2024 decreased, resulting in a lower ratio.
Cash flow reinvestment ratio: Not shown because the net cash from 2023 operating activities deducting dividend payment became negative. | | | |

(II) The liquidity analysis for the coming year
Unit: NT$ thousands

Cash at the beginning of year balance	The estimated net cash inflow from operating activities in the whole year	Expect whole year Cash outflow	The estimated amount of cash short (surplus)	Estimated short of cash Remedial measures
(1)	(2)	(3)	(1)+(2)-(3)	Investment plan	Financial plan
4,862,588	2,360,209	(838,001)	6,384,796	-	-

The analysis on cash flow change:
(1) Operating activities: Net cash in from operating activities.
(2) Investing activities: Mainly on purchasing property, plant and equipment for factory construction and expansion of affiliates.
(3) Financial activities: Mainly on the distribution from capital reserve.
The remedial measure to expect short of cash and liquidation analysis: not applicable.

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

V. The Company's reinvestment policy for the most recent year

( I ) The Company's reinvestment policy for the latest fiscal year: The Company's reinvestment is in the aim of the long-term strategic planning and mainly bases on the need of future business development and vertical integration.
( II ) The main reason and improvement plan for the profit or loss of the reinvested entities: The profits mainly come from steady business growth and sound cost control. The loss-making company is mainly due to the substandard business scale. To improve performance and eliminate investment loss, the Company will consider relevant elements to adjust sales and management policy for those reinvested entities with poor performance.
(III) The investment plan in the coming year: In according to the Company's business roadmap and cooperation with the implementation of business plan.

VI. Analysis of Risk Management

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

The effect on the Company income (loss) from interest and exchange income (expense):

Unit: NT$ thousands

Item	2024
Interest income (expenses) –A	(451,821)
Exchange gains or losses – B	(155,636)
Operating Income(loss) – C	(2,675,857)
A/C	NA
B/C	NA

The effect on the Company income (loss) from inflation:

Inflation will impact the Company's raw material prices and gross profit; however, through reasonable price adjustments and cost management measures, the negative effects can be minimized, ensuring the Company's stable operational capacity.

The response measures to change in interest rate, exchange rate and inflation:

(1) The principle for engaging in derivative transactions is to hedge risks, in accordance with the "Derivative Transaction Procedures". In the future, if there are related business needs, the company will choose to conduct financial transactions with banks with which it has business relationships and regularly assess profits and losses to minimize the impact of exchange rate fluctuations on overall earnings.

(2) The principle of the Company's fund allocation is conservation and stability. The Company funds are deposited mainly in large bank to ensure the safety of funds and maintain liquidity.

(3) Regularly evaluate the bank loan interest rate. With the priority consideration of maximum benefit of the group's funds, the Company takes advantage of the group's size and operational flexibility performance to negotiate preferential interest rates with financial institutions.

(4) Monitoring market information and economic data, paying attention to trends and changes in interest rates and exchange rates, and taking timely measures to respond accordingly.

(5) In recent years, geopolitical factors have led to significant fluctuations in exchange rates across countries. The Company actively develops local suppliers to reduce the impact of exchange rate fluctuations on supply sources, and improves production processes while managing appropriate inventory levels to mitigate the effects of raw material price and exchange rate fluctuations on the Company's operations.

(II) The company's policy regarding high-risk investments, highly leveraged investments, loans to other parties, endorsements, guarantees, and derivatives transactions; the main reasons for the profits/losses generated thereby; and mitigation measures to be taken in the future:

High risk and highly leveraged trading: None.
Loaning of other parties: The UPC group company only loan fund between their subsidiaries.
Endorsements/guarantees: The UPC group companies only make endorsements/guarantees in according to its shareholding ration to company which is directly/indirectly held more than 50% of its total outstanding common shares by the Company and which is co-invested by the Company.
Derivatives transaction: Risk-aversion is our policy and the Company does not do the speculating transition.
Loaning of Funds, Endorsement/Guarantee and Derivative Transaction are all complied with relevant regulations and the rules of Loaning of Funds, the rule of endorsement and guarantee and the rule of derivative transaction of the UPC group. The counterparty and amount of loaning of fund and endorsement/guarantee were all in compliance with the Company's rule and has no losses occurred in the latest fiscal years. In the future, the Company will stick on the policy to avoid the risk

from fluctuation of currency exchange rate the interest rate and regularly assess and timely adjust the relevant hedge strategy.

(Ⅲ) Research and development work plan be carried out in the future, and further expenditures expected for research and development work.

Research and development Project
Application of special esters in lubricating oils
Recycle PET for reuse
Carbon capture and reuse as plasticizer
The re-investment expenses in research and development: Approximately NT$21 million
The significant element to successful research and development:
Focus on the training of research and development personnel in their expertise field.
In order to enhance its market competitiveness, the Company should strive to develop and integrate upstream and downstream products.
The Company keeps understanding the application needs of market product and adjusts development direction swiftly.
In the process of developing products, the Company should keep to understand the latest relevant regulations and trends in work safety, environmental protection, etc., and develop mitigation measures swiftly.

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

Taiwan policy:
The government will begin levying carbon fees in 2026. The subjects of levying are the electricity and gas supply industry and manufacturing industries with an annual greenhouse gas emission of 25,000 tons of CO2e or more. The general carbon fee rate is NT$300 per CO2e ton. The total carbon emissions from the Company's Linyuan Plant in 2024 for Scope 1 and Scope 2 amounted to approximately 54,000 tons of CO2e, making it subject to carbon tax. In order to achieve the net zero transformation and reduce the carbon expenses, the Company will propose a voluntary reduction plan that meets the reduction target before June 30, 2025, and apply the preferential rates: NT$50 per CO2e ton (based on the industrial designation reduction rate, and the scientific basis reduction target SBTi) or NT$100 per CO2e ton (based on the technical benchmark reduction rate).
The Ministry of Economic Affairs announced the "Water Consumption Fee Collection Measures" on January 6, 2023, which will take effect from February 1. During the low water period (November of the previous year to April of the current year), any monthly water consumption exceeding nine Large water users who consume more than 1,000 kilowatt-hours of water will be levied a water consumption fee of 3 yuan/kilowatt hour. The charge will be halved during the buffer period from February 1, 2023 to June 30, 2025. If the water recovery rate reaches the standard, you can enjoy a lower rate. Those who use recycled water, fresh sea water, develop water resources or invest in water-saving equipment can have their water consumption charges reduced or deducted, up to 60%
International policy:
The EU Carbon Border Adjustment Mechanism (CBAM) Act came into effect on May 17, 2023. According to the announced CBAM Act (Regulation No. 956/2023), October 1, 2023 to December 31, 2025 is the transitional period for the introduction of CBAM period (during which only the

carbon content of products needs to be reported), and CBAM will be fully implemented from January 2026. The initial scope of control includes cement, electricity, hydrogen, fertilizer, steel, and aluminum products, and plans to cover all product categories bound by the EU ETS by 2030 (including polymers, chemicals, paper and pulp, mineral oil products, etc.), the chemicals exported to Europe are expected to have a buffer period of 5 years before they are included in the CBAM regulations.
- Besides, on February 6, 2025, the European Union Commission on Climate Policy expressed that the application of CBAM will be limited to 97% of the total carbon emissions (only 20% of the enterprises in the plan) in order to reduce the administrative burden.
- In February 2022, the Organization for Economic Co-operation and Development (OECD) announced Global Plastics Outlook: Policy scenarios to 2060 (Global Plastics Outlook: Policy Scenarios to 2060) that it is estimated that the global plastic waste will almost double in 40 years, from 353 million tons in 2019 to 1 billion tons in 2060. Moreover, only 10% of the waste plastics are recycled. In March of the same year, the United Nations Environment Assembly began drafting the first legally binding “Global Plastic Treaty”, originally planned to be implemented by the end of 2024. However, at the 2024 INC-5 meeting in Busan, negotiations broke down due to the inability of countries to reach a consensus on key issues, and it was decided to hold an extended meeting (INC 5.2) in 2025 to continue discussions.
- Mainland China announced the suspension of tariff reductions for certain products under the “Cross-Strait Economic Cooperation Framework Agreement (ECFA)” on December 21, 2023, and May 30, 2024. Starting from January 1, 2024, 12 petrochemical products (including propylene, paraxylene, and more.) will no longer enjoy tariff reductions. Additionally, starting from June 15, 2024, an additional 134 Taiwanese products exported to China (covering petrochemicals, machinery, textiles, steel, and metals) will also lose tariff preferences, including plasticizer products such as Di-iso-nonyl Phthalate (DINP) and Di(2-propylheptyl) phthalate (DPHP), with the tariff rate reverting to 6.5%..

UPC’s response measures:

In response to the increasing global regulation of hazardous chemicals and the growing trends of reducing plastic and achieving net-zero emissions, we have formulated a green chemistry policy and transformation blueprint. This establishes three key development pillars: “Value enhancement, environmental sustainability, and low-carbon circularity”. We are fully committed to driving the green chemistry transformation.

We uphold the core philosophy of innovation and sustainability, focusing on developing high-quality, high-performance, and environmentally harmonious chemical products. We aim to help our customers realize eco-friendly concepts and achieve the goal of sustainable product development.

(1) Creating green processes and practicing low-carbon sustainability:

We continuously update high-performance equipment to promote energy saving and carbon reduction, improve production efficiency, and focus on developing low-carbon emissions, high-performance, and environmentally friendly products. We aim to build a green supply chain, implement a circular economy, and achieve maximum resource utilization. Specific actions include:

Implementing a Circular Economy: Planning the recycling of PET waste through chemical decomposition processes to produce eco-friendly plasticizers; recycling by-product ethylene glycol (EG) for use in unsaturated polyester resin (UPR) production, creating new value through resource circulation.
Resource Recycling and Utilization: Promoting the recovery and reuse of waste heat within the Plant to produce clean steam energy, improving energy efficiency and reducing traditional energy consumption; also recycling and reusing solid, liquid, and gaseous waste within the Plant.

■ AI Smart Process Control: Implementing a smart AI monitoring system to enhance process control and equipment maintenance efficiency, ensuring a safer and more energy-efficient production process.
■ Establishing Renewable Energy: Installing a solar power generation system to reduce carbon emissions.

(2) Enhancing water resource management and improving recycling efficiency:

In terms of water resource management, we continuously optimize treatment technologies to improve the recycling rate of water resources. Specific achievements include:

■ Introduction of MBR System: In 2021, the Linyuan Plant installed a Membrane Bioreactor (MBR) system, combining membrane separation and activated sludge processes to enhance wastewater treatment efficiency while significantly reducing Chemical Oxygen Demand (COD) emissions.
■ Enhancing Water Recycling Efficiency: Actively promoting water management and recycling, the overall water recovery rate within the Plant reached 99.07%, with the recovery rate excluding the cooling tower circulation volume at 45.29%, significantly improving water resource utilization efficiency.

(3) Forward-looking technology research and development, focusing on carbon reduction innovation:

We continue to promote industry-academia-research collaboration projects, assess market development opportunities for high-value specialty chemicals, and strategically plan for carbon reduction innovative technologies, including:

■ Evaluating carbon capture technology: Continuously assessing more efficient carbon capture and emission reduction technologies to further reduce CO₂ emissions from exhaust gases.
■ Developing CO₂-based chemicals: Enhancing the commercial application value of CO₂-derived products, promoting simultaneous carbon reduction and efficiency improvement, and exploring new markets for green products.
■ Procuring green low-carbon raw materials: Forming strategic alliances with suppliers to negotiate the procurement of green, low-carbon raw materials, in order to reduce product carbon emissions and enhance competitive advantage.

(4) Expanding the global market and building a green benchmark brand:

We continue to expand our presence in international markets, actively developing markets in Japan, India, Southeast Asia, and the Middle East. We aim to enhance our brand's global visibility and meet the high standards of carbon reduction and environmental sustainability required by international supply chains with eco-friendly products. Our goal is to become a benchmark company in the global green chemicals industry.

(V) Effect on the company's financial operations of developments in science and technology (including cybersecurity risk) as well as industrial change, and measures to be taken in response

Impact of technological change:

In the face of ever-changing forms of hacker intrusion, cyber security is always at risk, and the challenges are unprecedented. This poses a significant threat to the confidentiality, integrity, availability, and authorization mechanism of systems and data. Hacker intrusions, virus infections, security breaches, data leakage, human negligence, and service interruption are all risks that exist at any time. The Company has also implemented the guidelines with reference to the information security control guidelines for listed companies issued by the competent authorities.

The Company upholds a strong commitment by establishing a comprehensive and thorough information security policy and management plan. We have invested over NT$50 million in cybersecurity resources to

ensure the security and resilience of the information environment. We not only regularly review and optimize hardware and software facilities to ensure that the systems remain up-to-date, but we also implement a multi-layered defense architecture, including next-generation firewalls (NGFW), proactive intrusion detection and prevention systems (IPS/IDS), cloud-based internet security management, antivirus and endpoint detection and response systems (XDR), edge device control mechanisms, document encryption systems, and multi-factor authentication (MFA). These measures comprehensively enhance access control and data security, reducing the risk of unauthorized access.

In addition, we closely monitor international cybersecurity threat landscapes and technological development trends, continuously adjusting our defense strategies and strengthening our cybersecurity governance system. To strengthen the human firewall, the Company regularly conducts cybersecurity training, simulation drills, and social engineering attack-defense testing to enhance the overall cybersecurity awareness and immediate response capabilities of all employees, ensuring a swift and effective response to any sudden cybersecurity incidents.

Through a dual approach of technological innovation and organizational culture, we are committed to creating a secure, resilient, and trustworthy digital operations environment to protect the Company's core assets and customer data security.

Impact of industrial changes:

The global plasticizer industry is currently facing multiple challenges, including market pressure from oversupply, increasingly stringent environmental regulations, and uncertainties brought about by geopolitical tensions and tariff wars. These changes have a profound impact on the finance and business of UPC Technology:

The imbalance between supply and demand in the market affects revenue and profit

The overcapacity has caused the price war and narrowed down the profit margins.
The decline in demand for traditional plasticizer products has affected the profitability performance of the Company's core business.

Increased environmental and regulatory pressures have raised operational costs

As carbon emission regulations tighten, the company needs to invest more resources in transitioning to a low-carbon model.
The production process must meet environmental requirements, increasing the cost of technological upgrades and green production.

Geopolitics and trade wars bring trade risks

The uncertainty in the international market may impact the stability of the supply chain and export business.
Fluctuations in raw material prices and transportation costs impact financial planning and cost management.

Mitigation matters

In response to industry changes, Liancheng has adopted a dual-axis strategy of "digital transformation" and "net-zero transformation" to strengthen its financial resilience and business competitiveness, ensuring sustainable development.

Digital transformation enhances operational efficiency and decision-making capabilities

ERP system upgrade and data platform construction: Integrating operational data from various business units to enhance management efficiency.
Introducing the BI decision-making board: keeping track of the manufacturing and sales status in a real time manner, optimizing financial and business decision making.

Net zero transformation to reduce costs and comply with regulations

Smart occupational safety and AI technology application: Participating in the government's AI smart petrochemical safety program to improve production safety and sustainability.

■ Energy saving and emission reduction and circular economy: Introducing the predictive maintenance to reduce carbon emissions and recovering the process waste acid water from benzene (PA) to produce Fatty Acids (FA), and increase the resource utilization.

Expanding high value-added businesses and reduce market volatility

■ R&D of green and high-performance products: Development of low-carbon bio-plasticizer, CO2-based plasticizer, and high-temperature and low-odorine electric vehicle plasticizer to meet the market demand transformation.

■ Layout in the green energy industry: Actively evaluating new businesses such as sustainable aviation fuel (SAF), marine green fuels, and biodiesel to expand revenue sources and reduce the impact of declining demand for traditional plasticizer products.

Strengthening the Group's integration and logistics services

■ Expanding the special environmental protection plasticizer and logistics services, and improving the supply chain resilience and service value.

■ Working with MiTAC-Synnex Group to explore new energy opportunities and improve long-term competitiveness.

In the face of industrial reform and global challenges, UPC Technology Corp. has transformed through digital and net-zero dual axes to improve operational efficiency, reduce risks, and expand new businesses to ensure financial stability and market competitiveness. In the future, the Company will continue to develop green products and new energy business, and work with partners to create sustainable value.

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

The Company follows the founder's principles of "honesty, stability, and pragmatism". The Company adjusts its organizational structure and operational plans in response to changes in the macro environment. Members of the Risk Management Committee and the risk management team regularly track and review potential risks and responses. The internal control and internal audit system of the Company and its subsidiaries have been strengthened. Additionally, the Group has enhanced the audit efforts for projects across various functional organizations. As a result, the corporate image has been improved, and risks and crises arising from changes have been mitigated.

(VII) Expected benefits and potential risks associated with any merger and acquisitions, and measures to be taken in response: The Company currently does not conduct mergers and acquisitions.

(VIII) Expected benefits and potential risks associated with plant capacity expansion, and measures to be taken in response: The Company currently does not plan to expand factory.

(IX) Risks associated with any consolidation of sales or purchasing operations, and mitigation measures being or to be taken:

In recent years, due to the global economic downturn and the China-US trade war, the financial risk in the Chinese market has increased, and the risk of business bankruptcies has risen. However, as the Chinese government has implemented a loose monetary policy to stimulate the economy, the potential threat to the company's sales business has been somewhat alleviated.

The Company's main sales market is Mainland China. If the economy in Mainland China continues to decline, the operating conditions of downstream customers may deteriorate, which in turn may affect their ability to pay and increase the Company's risk of bad debt.

Mitigation Measures:

■ Strategic Alliances and Long-term Cooperation: The Company actively establishes strategic alliances and long-term cooperation with downstream customers and enhances cooperation adhesion through joint development of new products, technology sharing and signing contracts.

■ Regular Visits and Follow-ups: The sales team regularly visits customers, referencing risk radar and other business credit information from websites in mainland China to understand their operational

and financial status. A customer credit rating system is also established to serve as a reference for sales and credit decisions.

Regular Financial Statement Review: The customer payment status and financial statements are reviewed every six months to assess financial risks. Credit limits are adjusted accordingly, with rolling adjustments made every three months based on the customer's actual purchase volume. This ensures close monitoring of payment status and the actual usage of credit limits, with strict risk control measures in place.

(X) Directors, supervisors or over 10% shareholders, the impact of a large number of shares transferred or replaced on the company, risks and countermeasures: None.

(XI) Impact of changes in management rights on the company, risks and response measures: None

(XII) Litigious and non-litigious incidents: None.

(XIII) Other important risks, and response measures: None.

VII. Other important matters: None.

Important Notice

I. The consolidated business report of affiliates

Please refer to the market observation post system, query path:
MOPS Homepage>> Single Company>> "Electronic Document Download">> Three Forms for Related Companies>> Enter the company code and click "Search".

Or visit the website https://mopsov.twse.com.tw/mops/web/t57sb01_q10

II. The most recent year and as of publish the date of annual report, the private placement of securities information: None.

III. Other matters that require additional description: None.

IV. The most recent year and as of publish the date of annual report, any situations of listed in Article 36, paragraph 3, subparagraph 2 of the Securities and Exchange Act, which significant impact on shareholders' equity and the Company securities price: None.

UPC TECHNOLOGY CORP.

Chairman: Miau, Matthew Feng Chiang

UPC GROUP

9th Fl., Building A, No209 Nangang Rd., Sec.1,
Nangang Dist., Taipei, 115, Taiwan, R.O.C.
Tel:(02)2651-7889
Fax:(02)2651-5818

AI assistant

UPC Annual Report 2024

51771_rns_2025-06-11_e3932a5a-389b-4795-9a0a-b669a6d4751c.pdf

UPC TECHNOLOGY CORPORATION

2024 ANNUAL REPROT

Financial status, operating results, and risk management review...88

Important Notice...98

Corporate Governance Report

III. Implementation of Corporate Governance

(I) Board of Directors

IV. Information Regarding the Audit Fee

Capital Information

Operational Highlights

I. Business Overview

(I) Business Scope

1. The content and ratio of main business

2. Products

3. New Products development

(II)Industry overview

1. The current situation and development of the industry

2. Connection of industry upstream, midstream and downstream

II. Market and Sales Overview

(I) Market Analysis

(1) Pros

(2) Cons and response strategy

Response strategy:

2. Production process of main products

Financial status, operating results, and risk management review

II. The comparison and analysis of financial performance

(2) Enhancing water resource management and improving recycling efficiency:

(3) Forward-looking technology research and development, focusing on carbon reduction innovation:

(4) Expanding the global market and building a green benchmark brand:

(V) Effect on the company's financial operations of developments in science and technology (including cybersecurity risk) as well as industrial change, and measures to be taken in response

Impact of technological change:

Impact of industrial changes:

Mitigation matters

UPC GROUP

AI assistant

UPC — Annual Report 2024

51771_rns_2025-06-11_e3932a5a-389b-4795-9a0a-b669a6d4751c.pdf

UPC TECHNOLOGY CORPORATION

2024 ANNUAL REPROT

Financial status, operating results, and risk management review...88

Important Notice...98

Corporate Governance Report

III. Implementation of Corporate Governance

(I) Board of Directors

IV. Information Regarding the Audit Fee

Capital Information

Operational Highlights

I. Business Overview

(I) Business Scope

1. The content and ratio of main business

2. Products

3. New Products development

(II)Industry overview

1. The current situation and development of the industry

2. Connection of industry upstream, midstream and downstream

II. Market and Sales Overview

(I) Market Analysis

(1) Pros

(2) Cons and response strategy

Response strategy:

2. Production process of main products

Financial status, operating results, and risk management review

II. The comparison and analysis of financial performance

(2) Enhancing water resource management and improving recycling efficiency:

(3) Forward-looking technology research and development, focusing on carbon reduction innovation:

(4) Expanding the global market and building a green benchmark brand:

(V) Effect on the company's financial operations of developments in science and technology (including cybersecurity risk) as well as industrial change, and measures to be taken in response

Impact of technological change:

Impact of industrial changes:

Mitigation matters

UPC GROUP

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UPC Annual Report 2024