Stock code:6201

Ya Horng Electronic Co., Ltd.

2025

Annual Report

Notice to readers

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

Prining Date: April 30, 2026

Annual Report Website

Market Observation Post System: https://mops.twse.com.tw

Company Website : https://yahorng.com

I. Spokesperson:
Name: Hsu Juei Feng
Title: President
Tel: (06) 593-2201#441
E-mail: [email protected]

Deputy Spokesperson:
Name: Chao Chih Yung
Title: Finance Manager
Tel: (06) 593-2201#533

II. Contact Information of the Head Office and Factories
Add: No.35, Shalun, Anding Dist., Tainan City 745, Taiwan
Tel: (06) 593-2201

III. Stock Transfer Agency
Agency: Transfer Agency Department, CTBC Bank Co., Ltd.
Address: 5F., No. 83, Sec. 1, Chongqing S. Rd., Zhongzheng Dist., Taipei City 100, Taiwan (R.O.C.)
Website: https://www.ctbcbank.com
Tel: +886-2-6636-5566

IV. Contact Information of the Certified Public Accountants for the Latest Financial Report
Name: Accountant Hu, Tzu-Ren CPA and Yao, Shih Chieh CPA
Firm: Ernst & Young, Taiwan
Address: 11th Floor, No. 189, Section 1, Yongfu Road, Tainan City
Website: http://www.ey.com/taiwan
Tel: (06)292-5888

V. Overseas Trade Places for Listed Negotiable Securities: None.

VI. Company website: https://www.yahorng.com

I. Letter to Shareholders ... 4

II. Corporate Governance Report ... 6
A. Information about directors, president and heads of departments and branches ... 6
B. Remuneration paid to directors, president in the most recent year ... 14
C. Corporate governance operation status ... 20
D. Information on Accountants' Fees ... 54
E. Alternation of CPA ... 54
F. The Company's chairman, general manager, or any managerial officer, in charge of finance or accounting matters has in the most recent year held a position at the accounting firm of its CPA or at an affiliated enterprise ... 54
G. Transfer & pledge of stock equity by directors, managerial officers and holders of 10% or more of company shares ... 54
H. Information on relationships among the top ten shareholders ... 55
I. Combined shareholding percentage ... 56

III. Company Shares and Fund Raising ... 56
A. Company Capital and Shares ... 56
B. Section on Corporate Bonds ... 58
C. Preferred Shares ... 58
D. Global Depository Receipts ... 58
E. Subscription of Warrants for Employees ... 58
F. Subscription of New Shares for Employee Restricted Stocks ... 58
G. Issuance of New Shares due to Acquisition of Shares of Another Company ... 58
H. Implementation of fund usage plan ... 58

IV. Operational Highlights ... 58
A. Business Content ... 58
B. Production and Sales Status ... 63
C. Employee Data during the Past Two Years, Up to Apr. 30, 2025 ... 70
D. Information on Environmental Protection Costs ... 70
E. Labor Relations ... 70
F. Information Security Management ... 70
G. Significant Contracts ... 70

V. Analysis of Financial Position, Performance and Risk related Issues ... 70
A. Financial Position ... 70
B. Financial Performance ... 71
C. Cash Flow ... 74
D. Major Capital Expenditures ... 74
E. Investment Policy, Cause of Profit/Loss and Future Investment Plans ... 74
F. Risk Assessment ... 75
G. Other important matters ... 76

VI. Special Notes ... 77
A. Summary of Affiliated Companies ... 77
B. The Most Recent Fiscal Year and up to the Date of this Annual Report Printed, Private Placement Securities ... 77
C. Other supplementary information ... 77

VII. Matters Affecting Shareholders' Equity or Stock Price ... 77

I. Letter to Shareholders

Ladies and gentlemen, shareholders, Hello everyone:

2025 business results:

(1) Business plan implementation results:
The consolidated net operating income of the Company in 2025 was NT$3,327,002 thousand, the consolidated net profit after tax was NT$331,164 thousand, and the after-tax earnings per share was NT$3.71.

(2) Budget implementation: The Company has no public financial forecast for 2025.

(3) Financial revenue and expenditure and profitability analysis:

Unit: Thousands NT$;%

Item		2025
Financial revenue and expenditure	Operating revenues	3,327,002
	Gross prof	785,114
	Net income	331,164
profitability analysis	Return on assets (%)	9.15
	Return on equity (%)	11.66
	Net profits before tax to paid-in capital (%)	46.20
	Net profit margin (%)	9.95
	Earnings per share ($)	3.71

(4) Research and development status:

In 2025, the Group invested NT$112,425 thousand in research and development, which is about 3.38%

of the turnover, to facilitate the research and development of electronic audio messaging, small household appliances and other new products, to strengthen the development ability and quality, and cultivate the independent development ability. The Company actively develops important key product technologies by itself, and cooperates with domestic and foreign academic and research institutions to expand the size of its R&D team, and improve the core competitiveness of the Company.

Overview of 2026 business plan:

(1) Business strategy:

A. Focus on inventory management, eliminate parts inventory, and maintain a reasonable inventory level.

B. Making products more competitive and lowering prices through product differentiation design to improve product value.

C. Actively launching new products and expanding overseas markets to provide customers with faster and better services, with a view to increasing the Group's revenue.

D. Reinvesting in the labor-intensive Southeast Asian subsidiaries, diversifying the risk of European and American markets' boycott of China manufacturing, and reducing production costs.

E. Explore the IoT technology application product market, combine the advantages of existing medical device technology, and find new customers for appropriate cooperation.

F. Actively carrying out product diversification, expanding customer base, increasing production process capacity, improving production efficiency and quality, systematizing the process, expanding capacity, improving human quality and investment layout.

(2) Expected sales volume and basis:

The expected sales volume of the Company is determined according to the industrial environment and market supply and demand, taking its own capacity and the Group's business development account. The Company firmly believes that improving product quality is an important factor for sustainable operation, and will continue to develop new products, continuously improve product quality and customer satisfaction, and maintain a good relationship with suppliers, to jointly move forward towards the Company's goals.

(3) Important production and marketing policies:

A. Making products more competitive and lowering prices through product-differentiation design to improve product value.

B. In the face of the global shortage of materials, strategically prepare safe stock levels of

materials.

C.Cooperating with schools and external design houses to attract new blood.

D.Improving the international medical regulation system, enhancing the competitiveness of medical care products, and becoming the most preferred OEM partner in the household smart medical equipment market.

Future company development strategy

(1) Powerful for a third-region factory to increase overall capacity and reduce production costs.
(2) Striving to develop and expand new customer base and the Hi-Fi turntable market.
(3) Integrating product development and production, promoting design simplification and production automation, reducing labor demand and improving competitiveness.
(4) Actively exploring the market to find new customers.

Impacts of external competitive environment, regulatory environment and overall business environment

(1) Impact of external competitive environment:

The Company pays close attention to any external changes that may affect the Company's business and operational development. In 2025, there was no significant external competitive environment that affected the Company's business or operational development.

(2) Impact of regulatory environment:

A. The EU medical device parent law MDR 2017/745 is very sound and has extremely strict regulations. Our company has obtained the EU MDR 2017/745 wearable medical device license. To maintain shipment qualifications, manufacturers should cooperate with the EU-designated Notified Bodies, set up dedicated regulatory compliance departments and compliance representatives, regularly maintain post-market surveillance (PMS) plans and clinical evaluation reports (CERs), and continuously collect market feedback to prove product safety and efficacy. In addition to MDR, the EU itself already has the Directive on Packaging and Packaging Waste (94/62/EC), WEEE Directive (EU Waste Electrical and Electronic Equipment Directive, RoHS & REACH 2011/65/EU) to comply with. These directives imply environmental sustainability and low-carbon thinking. Therefore, for Taiwanese medical device manufacturers, EU marketing authorization is both a challenge and an opportunity. Products that obtain MDR certification are more internationally competitive, which helps to open up other highly regulated markets and continue to occupy a place in the fiercely competitive global market.

B. The company has obtained the MDR marketing license for the "wearable blood pressure monitor" and will soon obtain the "wearable electrocardiogram" license in the third quarter of this year. It is one of the first second-level wearable medical device manufacturers that can be freely sold in the EU. One. In addition, the Company will complete the filing of the 2024 perpetual report in accordance with the law before the end of August 2025.

(3) Impact of the overall business environment:

A.Yahong Electronics Group has always been rooted in Taiwan and has maintained production bases on both sides of the Taiwan Strait. It has also actively cooperated with the government's investment in the New Southbound Policy. In addition to increasing the flexibility of production locations and reducing the risk of a single market, it also provides customers with more flexible production services. Due to the epidemic, inflation, US tariff policies, the spread of international geopolitical risks, monetary tightening policies and the Federal Reserve's interest rate cuts, the overall business environment has become increasingly complex, and changes or fluctuations are more difficult to predict and control. Asia Hongdian Group will continue to pay close attention to changes in the overall environment and prudently formulate the best business strategy.

B.Green transformation and net-zero commitment: As the world pays more attention to sustainable economy and carbon reduction goals, we will incorporate more environmentally friendly elements into our production and manufacturing processes to support our customers' net-zero emission needs.

Lastly, I hope that all shareholders will continue to give us encouragement, advice and support for the Company as in the past. Thank you!

Chairman: Huang, Chin-I

President: Hsu Juei Feng

Accounting Manager: Chao Chih-Yung

II.Corporate Governance Report

A.Information about directors, president and heads of departments and branches:

1.Director
Unit: Share; Apr 12,2025

Title	Nationality or Place of Registration	Name	Gender Age	Date elected (assumes office )	Term	First Elected Date	Shares held when elected		Current Shareholding		Shares currently held by their spouses and minor children		Shares held under the names of other parties
							Number	%	Number	%	Number	%	Number	%
Chairman	Republic of China	Huang Chin-I	M 71~80	2023.06.09	3 years	1981.11.07	7,264,137	8.14%	7,264,137	8.14%	0	0%	15,728,139	17.63%
Vice Chairman	Republic Of China	Zhi Zhun Investment Co., Ltd.	-	2023.06.09	3 years	2023.06.09	7,300,000	8.18%	7,300,000	8.18%	0	0%	0	0%
	Republic of China	Hsu Wen-Ting	Male 71~80	2023.06.09	3 years	1981.11.07	5,006,160	5.61%	5,006,160	5.61%	0	0%	14,500,000	16.26%
Directors	Republic Of China	Hsu Juei Feng	M 51~60	2023.06.09	3 years	2020.06.09	986,423	1.11%	986,423	1.11%	500,025	0.56%	2,600,000	2.91%
Directors	Republic of China	Huang,Wei-Po	M 41~50	2023.06.09	3 years	2014.06.11	931,035	1.04%	931,035	1.04%	0	0%	920,000	1.03%
Independent Director	Republic Of China	Chen Jung Chao	M 51~60	2023.06.09	3 years	2020.06.09	0	0%	0	0%	0	0%	0	0%
Independent Director	Republic Of China	Tsai Yu Chin	F 51~60	2020.06.09	3 years	2020.06.09	0	0%	0	0%	0	0%	0	0%
Independent Director	Republic Of China	Chou Mao Hsiung	M 51~60	2020.06.09	3 years	2020.06.09	0	0%	0	0%	0	0%	0	0%

Title	Nationality or Place of Registration	Name	Main working (education) experience	Concurrent positions in the Company and other companies	Directors is the spouse or a relative within the second degree or closer of other managers, directors			Remark
					Title	Name	Relationship
Chairman	Republic Of China	Huang Chin-I	Ya Horng Electronic Co.,Ltd.-Chairman	Ya Horng (DG) Legal Representative Director And Chairman
Ya Horng Electronic (M) Sdn Bhd Chairman
Ya Horng Electronic Company Limited (BVI) Legal Representative Director
Ya Horng Electronic Co.,Ltd. Chairman
High Goal International Limited Legal Representative Director
Best Yield Investment Holding Limited Legal Representative Director	Directors	Huang,Wei-Po	Father and son	NA
Vice Chairman	Republic Of China	Zhi Zhun Investment Co., Ltd.	NA	NA	NA	NA	NA	NA
	Republic Of China	Legal Representative Hsu Wen-Ting	Ya Horng Electronic Co., Ltd.-Vice Chairman	Ya Horng (DG) Legal Representative Director
Ya Horng Electronic (M) Sdn Bhd Director
Ya Horng Electronic Company Limited (BVI) Legal Representative Directo
Ya Horng Electronic Co.,Ltd. Vice Chairman
High Goal International Limited Legal Representative Director
Best Yield Investment Holding Limited Legal Representative Director	Directors	Hsu Juei Feng	Father and son	NA
Directors	Republic Of China	Hsu Juei Feng	Polytechnic University Taiwan Semiconductor Manufacturing Company Limited CIM-Engineer
Ya Horng Electronic Co., Ltd-President	Ya Horng Electronic Co.,Ltd.-President
Ya Horng Electronic Philippines Inc Legal Representative Director	Vice Chairman	Hsu,Wen-Ting	Father and son	NA
Directors	Republic Of China	Huang,Wei-Po	University of Bridgeport,MBA
Ya Horng Electronic Co., Ltd-S.D.A. Business Division Marketing Manager	Ya Horng Electronic Co.,Ltd-S.D.A. Business Division Marketing Manager
Ya Horng (DG) Legal Representative Director	Chairman	Huang,Chin-I	Father and son	NA

Title	Nationality or Place of Registration	Name	Main working (education) experience	Concurrent positions in the Company and other companies	Directors is the spouse or a relative within the second degree or closer of other managers, directors
					Title	Name	Relationship
Independent Director	Republic Of China	Chen Jung Chao	National Chung Hsing Universit- Department of Accounting, School of Law and Business
National Chung Cheng University-Master of Law Institute
Water accounting firm-Certified Public Accountant	The Company:None
Water accounting firm-Certified Public Accountant
Weixun Technology Co., Ltd- Independent director
SciVision Biotech Inc.- Independent director	NA	NA	NA	NA
Independent Director	Republic Of China	Tsai Yu Chin	National Chung Cheng University- Master of Accounting and Information Technology Institute
Nan Tai CPAs & Co. Ltd- Partner accountant	The Company:None
Nan Tai CPAs & Co. Ltd-Partner accountant	NA	NA	NA	NA
Independent Director	Republic Of China	Chou Mao Hsiung	National Cheng Kung University-accountancy
Kgi Securities-S-Manager of Capital Markets Department	The Company:None	NA	NA	NA	NA

Major Institutional Shareholders

Apr.12,2025

Name of Institutional Shareholder	Name of Major Shareholders
Zhi Zhun Investment Co., Ltd.	Hsu Wen-Ting.Hsu Juei Feng.Hsu,Ming Hung

Principal shareholder of corporate shareholders with a juridical person as its major shareholder: None.

4. Professional knowledge and independence check matrix of directors

(1).Professional knowledge of directors

Qualifications Name	Professional Knowledge and Experience
Huang,Chin-I Director	Professional Knowledge: please (Note) P11 Experience: Please refer to pages 6-8 Not covered by Article 30 of the Company Act.
Hsu,Wen-Ting Director	Professional Knowledge: please (Note) P11 Experience: Please refer to pages 6-8 Not covered by Article 30 of the Company Act.
Hsu Juei Feng Director	Professional Knowledge: please (Note) P11 Experience: Please refer to pages 6-8 Not covered by Article 30 of the Company Act.
Huang,Weli-Po Director	Professional Knowledge: please (Note) P11 Experience: Please refer to pages 6-8 Not covered by Article 30 of the Company Act.
Chen Jung Chao Independent Director	Professional Knowledge: please (Note) P11 Experience: Please refer to pages 6-8 Not covered by Article 30 of the Company Act.
Tsai Yu Chin Independent Director	Professional Knowledge: please (Note) P11 Experience: Please refer to pages 6-8 Not covered by Article 30 of the Company Act.
Chou Mao Hsiung Independent Director	Professional Knowledge: please (Note) P11 Experience: Please refer to pages 6-8 Not covered by Article 30 of the Company Act.

(2).BIndependence of independent directors

Qualification Name	Independence Attribute	Concurrent independent director position in other publicly traded companies
Chen Jung Chao	The Directors comply with the following conditions from two years before being elected And appointed, and during his tenure in office: (1) Not an employee of the Company or any of its affiliates. (2)Not a director or supervisor of affiliated companies. Not applicable in cases where the person is an independent director of the parent company, any subsidiary, or Subsidiary of the same parent company, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary. (3)Not a nature-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under other's names,in an aggregate amount of one percent or more of the total number of issued shares of the company or ranks as one of its top ten shareholders. (4)Not a manager in the preceding first subparagraphs, or not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, or any of the above persons in the preceding second and third subparagraphs. (5) Not a director, supervisor, or employee of a corporate/institutional shareholder that Directly holds five percent or more of the total number of issued shares of the company, or ranks as one of its top five shareholders, or being appointed based on subparagraph 1 or 2 of Article 27 of the Corporate Law. Not applicable in cases where the person is an Independent director of the parent company, any subsidiary, or subsidiary of the same parent company, As appointed in accordance with the Act or with the laws of the country of the parent or subsidiary. (6)Not a director of the Company or a director, supervisor,office holding half or more of The share that controlled by one person. (Not applicable in cases where the person is an independent director of the parent company, any subsidiary, or subsidiary of the same parent company, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary). (7)Not the same person or spouse that designated as directors (directors), supervisors (supervisors) or equivalent position of the company, or as other company's chairman,general manager and employees.Not applicable in cases where the person is an independent director of the parent company, any subsidiary, or subsidiary of the same parent company, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary. (8)Not a director, supervisor, officer, or shareholder holding 5% or more of the share, of a specified company or institution that has a financial or business relationship with the Company. Not applicable in cases where the specified company or institution holding more than 20% but less than 50% of the share, and the person is an independent director of the parent company, any subsidiary, or subsidiary of the same parent company, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary. (9)Not a professional individual who, or an owner, partner, director, supervisor,or officer of a sole proprietorship, partnership, company, or institution that,provides auditing, commercial, legal, financial, accounting services or consultation to the Company that received remuneration more than NT$50,000 or to any affiliate of the Company, or a spouse thereof. Not applicable in cases where the person is member of Compensation committee or, Public Tender Offer Committee, or Business Mergers and Acquisitions, that exercise related regulations according to Securities and Exchange Act or M&A Act. (10)Not having a marital relationship, or a relative within the second degree of kinship to any other director of the Company. (11)Not been a person of any conditions defined in Article 30 of the Company Law. (12)Not a governmental, juridical person or its Representative as defined in Article 27 of the Company Law.	2
Tsai Yu Chin		0
Chou Mao Hsiung	0

5.The diversity and independence of the Board directors
(1).Diversity within the members of the Board of Directors:

The company adopts a candidate nomination system for the election of all directors.

According to Article 20 of the formulated corporate governance code of practice, the board of directors should strengthen the functions of the board of directors. policy of diversification.

The Company has set "Corporate Governance Practical Principles" to ensure boards' diversity. The members of the Board of Directors should be diversified and possess the below skills: Operational judgement skills.

Accounting and financial analysis skills. Operational management skills. Crisis management skills. Industry knowledge. Global market view. Leadership skills. Decision making skills.

If the number of directors of the same gender on the board of directors of the Company is less than one-third, the Company shall state the reasons and the measures to be taken to improve the gender diversity of the board of directors:

Reason: The company has set up seven directors according to its articles of association. The current directors have been elected by the shareholders meeting on June 9, 2023.

There was only one director who was a non-executive director, which was in compliance with the relevant laws and regulations at the time, but still less than one-third due to the industry's characteristics. It is not easy to find talents in a short time.

Measures to be taken: Before the board of directors is re-elected at the end of its term, seek recommendations from various channels such as industry or schools to enhance the company's Improve corporate governance effectiveness and implement a policy of board diversity.

(2). Specific management goals for diversification of board members:

Achievement of diversification of board members: The company's directors are all equipped with rich business management, leadership decision-making and related industry knowledge.

The company also continues to arrange a variety of advanced training courses for directors to improve their decision-making quality and fulfill their supervisory responsibilities. And then strengthen the functions of the board of directors. There are 7 members in the 18th session of the company's board of directors.

(Note) The company's current board member diversity policy and implementation are as follows:

Core Items Name (Gender)	Age	Operational judgement skills	Accounting and financial analysis skills	Operational management skills	Crisis management skills	Industry knowledge	Global market view	Leadership skills	Decision making skills
Huang Chin-I (M)	71~80	V	V	V	V	V	V	V	V
Hsu WenN-Ting (M)	71~80	V	V	V	V	V	V	V	V
Hsu Juei Feng (M)	51~60	V	V	V	V	V	V	V	V
Huang Weil-Po (M)	41~50	V	V			V	V	V
Chen Jung Chao (M)	51~60	V	V	V	V				V
Tsai Yu Chin (F)	51~60	V	V	V					V
Chou Mao Hsiung (M)	51~60	V	V			V			V

(3). Independence within the members of the Board of Directors:

The board of directors of the Company is composed of 7 directors, including 3 independent Directors (43%).

The Company also pays attention to gender equality in the composition of the board, with one female independent director. None of the 3 independent directors has a term of office of less than six years, their qualifications meet the requirements for independent directors prescribed by laws and regulations, and they are familiar with the financial and operating conditions of the Company.

The company's board of directors emphasizes the functions of independent operation and transparency.

Directors and independent directors are independent individuals and independently exercise their duties.

The 3 independent directors also follow the relevant laws and regulations, cooperate with the powers of the audit committee, review the control of the company's existing or potential risks, etc., based on the effective implementation of the company's internal control, the selection (dismissal) of certified accountants and independence and proper preparation of financial statements.

Apr 12,2025

Management Team Information

Position	Nationality	Name	Gender	Date elected (Inauguration)	Shareholding		Currently holding shares of spouses and minor children		Shares held under the names of other parties		Main experience (education background)	Concurrent positions at other companies	Directors is the spouse or a relative within the second degree or closer of other managers, directors			Remark
					Number	%	Number	%	Number	%			Title	Name	Relationship
President	Republic of China	Hsu Juei Feng	M	2019.01.01	986,423	1.11%	500,025	0.56%	2,600,000	2.91%	Polytechnic University Polytechnic University Taiwan Semiconductor Manufacturing Company Limited CIM-Engineer Ya Horng Electronic Co., Ltd- President	None	Vice Chairman	Hsu,Wen-Ting	Father and son	NA
S.D.A. Business DivisionAssociate	Republic of China	Huang Wei Min	M	2015.07.01	925,035	1.04%	3,150	0.00%	920,000	1.03%	The City University London Str John Cass Business School Ya Horng Electronic Co., Ltd- S.D.A. Business DivisionAssociate Ya Horng (DG)-President	None	Chairman	Huang,Chin-I	Father and son	NA
Accounting Manager	Republic of China	Chao Chih-Yung	M	2011.05.01	2,000	0.00%	0	0%	0	0%	Soochow Universityaccountancy PwC TaiwanDirector of Audit Department	None	NA	NA	NA	NA

B. Remuneration paid to directors, president in the most recent year

(1). Remuneration of Directors and Independent Directors

Title	Name	Compensation of Directors								Percent of A,B, C and D to net profit after tax
		Remunerations (A)		Retirement allowance (B)		Remunerati on from distribution of earnings (C)		Business execution expenses (D)
		The Company	All companies within the consolidated financial statement	The Company	All companies within the consolidated financial statement	The Company	All companies within the consolidated financial statement	The Company	All companies within the consolidated financial statement	The Company	All companies within the consolidated financial statement
Director	Huang,Chin-I	0	0	0	0	1,442	1,442	15	15	0.44%	0.44%
	Zhi Zhun Investment Co., Ltd.	0	0	0	0	1,442	1,442	0	0	0.44%	0.44%
	Representative:Hsu,Wen-Ting
	Hsu Juei Feng	0	0	0	0	865	865	15	15	0.27%	0.27%
	Huang,Wei-Po	0	0	0	0	865	865	15	15	0.27%	0.27%
	Hsu,Wen-Ting	0	0	0	0	0	0	15	15	0.00%	0.00%
Independent director	Chen Jung Chao	0	0	0	0	865	865	15	15	0.27%	0.27%
	Tsai Yu Chin	0	0	0	0	865	865	15	15	0.27%	0.27%
	Chou Mao Hsiung	0	0	0	0	865	865	15	15	0.27%	0.27%

Title	Name	Relevant remuneration of part-time personnel							Percent of A, B, C, D, E, F and G to net rofit after tax	Is there any remuneration
		Remuneration, money award and special expenses etc. (E)		Retirement allowance (F)		Employee profit sharing from earnings distribution (G)
		The Company	All companies within the consolidated financial statement t	The Company	All companies within the consolidated financial statement	The Company cash dividends	All companies within the financial statements stock dividends	All companies within the consolidated financial statement	Stock dividends		The Company	All companies within the consolidated financial statement
Director	Huang,Chin-I	3,962	3,962	0	0	725	0		0	1.86%	1.86%	Non
	Zhi Zhun Investment Co., Ltd.	0	0	0	0	0	0	0	0	0.44%	0.44%	Non
	Representative:Hsu,Wen-Ting
	Hsu Juei Feng	1,955	1,955	0	0	414	0	414	0	0.98%	0.98%	Non
	Huang,Wei-Po	1,263	1,263	0	0	269	0	269	0	0.73%	0.73%	Non
	Hsu,Wen-Ting	3,962	3,962	0	0	725	0		0	1.42%	1.42%	Non
Independent director	Chen Jung Chao	0	0	0	0	0	0	0	0	0.27%	0.27%	Non
	Tsai Yu Chin	0	0	0	0	0	0	0	0	0.27%	0.27%	Non
	Chou Mao Hsiung	0	0	0	0	0	0	0	0	0.27%	0.27%	Non
1.Please state the policy, system, standards and structure of independent directors' remuneration, and describe the correlation with the amount of remuneration according to the responsibilities responsibilities,risks, and investment time:(1) Remuneration policy, systems, standards and structureA.Independent director remuneration and attendance fees are proposed and processed according to "Director remuneration policies".B.Independent director attendance fees: according to business execution expenses, and calculated based on the attendance of board meetings.(2) Correlation with the amount of remuneration according to the responsibilities, risks, and investment timeA.The company's articles of association stipulate that the resolution of the board of directors shall not allocate more than 5% to the remuneration of directors.B.Independent directors' compensation is issued on year basis.C.The attendance fee is based on the actual number of attendances as the standard for issuance, and no variable or other remuneration is paid.2.Other than disclosure in the above table, Directors remunerations earned by providing services (e.g. providing consulting services as a non-employee) to the Company and all consolidated entities in the most recent financial statements: None.

Range of Remunerations for Directors

Range of remunerations paid to directors	Name of Directors
	Summation of the first 4 items (A+B+C+D)		Summation of the first 7 items (A+B+C+D+E+F+G)
	The Company	All companies involved in financial statement (H)	The Company	All companies involved in financial statement (I)
Under NT$1,000,000	Hsu,Wen-Ting	Hsu,Wen-Ting	-	-
NT$1,000,000 (included) ~ NT$2,000,000 (excluded)	Huang,Chin-I
Zhi Zhun Investment Co., Ltd.
Hsu Juei Feng
Huang,Wei-Po
Chen Jung Chao
Tsai Yu Chin
Chou Mao Hsiung	Huang,Chin-I
Zhi Zhun Investment Co., Ltd.
Hsu Juei Feng
Huang,Wei-Po
Chen Jung Chao
Tsai Yu Chin
Chou Mao Hsiung.	Chen Jung Chao
Tsai Yu Chin
Chou Mao Hsiung
Zhi Zhun Investment Co., Ltd.	Chen Jung Chao
Tsai Yu Chin
Chou Mao Hsiung
Zhi Zhun Investment Co., Ltd.
NT$2,000,000 (included) ~ NT$ 3,500,000(excluded)	-	-	Hsu Juei Feng
Huang,Wei-Po	Hsu Juei Feng
Huang,Wei-Po
NT$3,500,000 (included) ~ NT$5,000,000(excluded)	-	-	Hsu,Wen-Ting	Hsu,Wen-Ting
NT$5,000,000 (included) ~ NT$10,000,000(excluded)	-	-	Huang,Chin-I	Huang,Chin-I
NT$1,000,000 (included) ~ NT$15,000,000(excluded)	-	-	-	-
NT$15,000,000 (included) ~ NT$ 30,000,000(excluded)	-	-	-	-
NT$30,000,000 (included) ~ NT$50,000,000(excluded)	-	-	-	-
NT$50,000,000 (included) ~ NT$100,000,000(excluded)	-	-	-	-
Over NT$100,000,000	-	-	-	-
Total	7	7	7	7

(2). Remuneration paid to the General Managers

Title	Name	Remunerations (A)		Retirement allowance (B)		Money award and special payment etc. (C)
		The Company	All companies in the financial statement	The Company	All companies in the financial statement	The Company	All companies in the financial statement
President	Hsu Juei Feng	1,534	1,534	0	0	421	421
Earning distribution as dividends for personnel (D)				Rate of total amount of A, B, C and D to pure profits after tax (%)		Remuneration from other invested businesses apart from subsidiaries.
---	---	---	---	---	---	---
The Company		All companies in the financial statement		The Company	All companies in the financial statement
Cash Dividends	Stock Dividends	Cash Dividends	Stock Dividends
414	0	414	0	0.72%	0.72%	None

Range of Remunerations

Range of remuneration paid to general managers	Names of General Manager
	The Company	All companies in the financial statement E
Under NT$1,000,000	-	-
NT$1,000,000 (included) ~ NT$2,000,000 (excluded)	-	-
NT$2,000,000 (included) ~ NT$3,500,000 (excluded)	HSU JUEI FENG	HSU JUEI FENG
NT$3,500,000 (included) ~ NT$5,000,000 (excluded)	-	-
NT$5,000,000 (included) ~ NT$10,000,000 (excluded)	-	-
NT$10,000,000 (included) ~ NT$15,000,000 (excluded)	-	-
NT$15,000,000 (included) ~ NT$30,000,000 (excluded)	-	-
NT$30,000,000 (included) ~ NT$50,000,000 (excluded)	-	-
NT$50,000,000 (included) ~ NT$100,000,000 (excluded)	-	-
Over NT$100,000,000	-	-
Total	1	1

(3). The remuneration of the top five highest paid executives of TWSE

Title	Name	Remunerations (A)		Retirement allowance (B)		Money award and special payment etc. (C)		Earning distribution as dividends for personnel (D)				Rate of total amount of A, B, C and D to pure profits after tax (%)		Remuneration from other invested businesses apart from subsidiaries
		The Company	All companies in the financial statement	The Company	All companies in the financial statement	The Company	All companies in the financial statement	The Company		All companies in the financial statement		The Company	All companies in the financial statement
								cash dividends	stock dividends	cash dividends	stock dividends
Chairman	Huang,Chin-I	2,781	2,781	0	0	1,181	1,181	725	0	725	0	1.42%	1.42%	Non
Vice Chairman	Hsu,Wen-Ting	2,781	2,781	0	0	1,181	1,181	725	0	725	0	1.42%	1.42%	Non
General manager	Hsu Juei Feng	1,534	1,534	0	0	421	421	414	0	414	0	0.72%	0.72%	Non
S.D.A. Business Division Associate	Huang Wei Min	1,534	1,534	91	91	394	394	352	0	352	0	0.72%	0.72%	Non
Accounting Manager	CHAO CHIH-YUNG	1,062	1,062	0	0	235	235	269	0	269	0	0.47%	0.47%	Non

(4). Employee profit sharing granted to the management team
Unit: NT$ Thousand

	Title	Name	Stock Dividends	Cash Dividends	Total	Proportion of total amount to net profits after tax (%)
Manager	Chairman	Huang,Chin-I	0	2,754	2,754	0.83%
	Vice Chairman	Hsu,Wen-Ting
	General manager	Hsu Juei Feng
	Electronic Business DivisionAssociate	Huang Li Juan
	S.D.A. Business DivisionAssociate	Huang Wei Min
	Accounting Manager	Chao Chih-Yung
	S.D.A. Business Division Marketing Manager	Huang,Wei-Po

(5). Analysis of the proportion of the total remuneration of directors, supervisors, general managers and deputy general managers of the Company paid by the Company and all companies in the consolidated financial statement to net profit after tax in individual financial statements of the past two fiscal years.

Title	2024	2025(Note)
Directors	5.52%	6.22%
General Managers

Note: As of the printing date of this Annual Report, the distribution list of employee profit sharing has not been fixed, and shall be proposed as stipulated according to the actual distribution of last year.

a. The remuneration to directors of the Company mainly comprises directors' compensation, and business execution expenses. Directors' remuneration is determined based on the director's remuneration policy, the company's operating status and scale, and with reference to industry standards.

Directors' compensation: According to Article 26 of the Company's Articles of Incorporation, "The Company shall appropriate of the net income before tax of the fiscal year as employees' compensation and no more than 5% of the bonus to director from the current pre-tax profit before the appropriation of employee bonus and directors' bonus." The 2025 directors' compensation was proposed by the held on Mar 10, 2026, and resolved by the Board of Directors. Directors' compensation is mainly associated with the Company's profit and operating performance combined with considerations for the future prosperity of the industry and the long-term operating strategy to mitigate future operating risks. Business execution expenses: Mainly attendance fees.

b. The manager's salary consists of fixed salary and variable salary. The fixed salary is the monthly salary. The variable salary includes the employee remuneration and year-end bonus. It is mainly paid based on the performance of the individual's annual assessment. Employee remuneration is calculated in accordance with Article 26 of the company's articles of association, "The company's annual pre-tax profits before deducting employee remuneration and directors' remuneration are As for the benefits, no less than 2% should be allocated for employee remuneration and employee remuneration." Employee remuneration and director remuneration distribution should be reported to the shareholders' meeting; the year end bonus shall be determined based on the annual operating results of the Company, and the amount shall be determined by the Board of Directors after being approved by the Company's Remuneration Committee. The proportion of remuneration paid to directors and general managers to net profit after tax in the financial statements for the fiscal year 2025 increased slightly, mainly due to a slight adjustment in salaries.

c. The relationship between the procedures for determining remuneration and the operating performance and future risks: The procedures for determining remuneration refer to the usual level of payment in the industry and consider the company's operating performance, participation level, and contribution to the Company, and reasonable remuneration is hereby paid. The Remuneration Committee and the Board of Directors shall periodically review the reasonableness of the remuneration and shall review the remuneration system from time to time in the light of actual operating conditions and relevant legislation, and shall not induce the directors and the president to engage in any act of overstepping the risk appetite of

the Company in pursuit of remuneration in order to avoid improper incidents such as losses sustained by the Company after payment of remuneration.

C. Corporate governance operation status

Information on implementation of Board of Directors:

The board of directors met five times in 2025. with their attendance shown as follows:

Title	Name	Attendance in person	By proxy	Attendance rate in person (%)	Remarks
Chairman	Huang, Chin-I	5	0	100%	Serving another
Director	Zhi Zhun Investment Co., Ltd.
Representative: Hsu, Wen-	5	0	100%	Newly appointed
Director	Hsu, Juei Feng	5	0	100%	Serving another term
Director	Huang, Wei-Po	5	0	100%	Serving another term
Independent director	Chen, Jung Chao	5	0	100%	Serving another term
Independent director	Tsai, Yu Chin	5	0	100%	Serving another term
Independent director	Chou Mao Hsiung	5	0	100%	Serving another term
Other matters to be noted:
1. The Board Meeting’s date, session, proposal contents, all Independent Directors’ opinions and the Company’s actions in response to the opinions if any of the following occurred:
(1) Matters specified in Article 14-3 of Taiwan’s Securities and Exchange Act: The company has established an audit committee and the provisions of Article 14-3 of the Securities and Exchange Act do not apply. For an explanation of the matters listed in Article 14-5 of the Securities and Exchange Act, please refer to the Operations of the Audit Committee (page 22).
(2) Other matters apart from the aforementioned where an independent director has a dissenting opinion or qualified opinion: None
2. For the director’s avoidance of proposals with a conflict of personal interest, state the name of the director, the proposal content, the reason for the avoidance of personal interest, and the voting participation status: None.
3. Evaluation of targets for strengthening of the functions of the board during the current and immediately preceding fiscal years (such as the establishment of an Audit Committee, increase in transparency, etc.), and measures taken toward achievement thereof: The Company established an Audit Committee and Compensation committee, both to assist in supervision of the Board.

The Board of Directors Evaluation and Implementation

Evaluation Frequency	Evaluation Period	Evaluation Scope
Annually	2025/1/1 to 2025/12/31	The scope of evaluation includes
1. The overall Board of Directors
2. Individual Board members
3. Functional Committee (Including Audit Committee and Remuneration Committee)	Including internal self-evaluation of the Board of Directors, self-valuation of the Board members, or other appropriate methods for performance evaluation.	The measurement items of the performance assessment of the Board of Directors include the following five aspects
1. Involvement in the Company's operations
2. Enhancement to the Board's decision quality
3. Composition and structure of the Board
4. Election of directors and continuous improvement
5. Internal control
The measurement items of the performance assessment of Board members include the following six aspects
1. Control over the Company's goals and tasks
2. Recognition of director duties
3. Involvement in the Company's operations
4. Internal relationship management and communication
5. Directors' professional and continuing education and training
6. Internal control
The measurement items of the performance assessment of the Audit Committee include the following five aspects
1. Involvement in the Company's operations
2. Recognition of the Audit Committee's duties

Operation of the Audit Committee:
In most recent year, the Audit Committee held 5 meetings, and the attendance of Independent Directors is as follows:

Title	Name	Attendance in person	Attendance rate in person (%)
Independent Director	Chen Jung Chao	5	100%
Independent Director	Tsai Yu Chin	5	100%
Independent Director	Chou Mao Hsuung	5	100%

Other noteworthy matters:

When one of the following situations occurred to the operations of the Audit Committee, state the date, period, proposal contents, independent directors opinion, opinion with reservations or significant recommendation and resolutions of the Audit Committee, and the Company's actions in response to the opinions of the Audit Committee:
(1) Matters specified in Article 14-5 of the Taiwan's Securities and Exchange Act: Please refer to following pages, page No. 22.
(2) Resolutions passed by two-thirds of all Directors but without approval of the Audit Committee except for the preceding item: None
Efforts made by independent directors in preventing Conflict of Interests when required: None
Communications between the independent directors, the internal auditors and independent auditors (including means of communication and results, regarding Company financials, operations and other matters):
(1) The "audit report" is prepared regularly and submitted to all independent directors (Audit Committee members) for review.
(2) For each audit report, the improvement of internal control deficiencies and abnormal matters shall be tracked, and a quarterly tracking report prepared and submitted to each independent director (Audit Committee member).
(3) The internal audit director shall attend the Audit Committee meeting to report the audit business quarterly as required, and communicate with the independent directors through the meeting.
(4) Independent directors can understand the Company's operating conditions (including financial and business conditions) and audit status through the audit report regularly provided by the board of directors, the Audit Committee and the audit unit.
(5) The major matters of the communications between independent directors and internal auditors in 2025

Date	Communication meeting	Matters of communication	Resolution
2025.02.25	Audit Committee & Board of Directors	Audit Report Progress Report for Q4 2024
Approving of the 2024 Statement of Internal Control System.	No objection
2025.04.29	Audit Committee & Board of Directors	Audit Report Progress Report for Q1 2025	No objection
2025.08.05	Audit Committee & Board of Directors	Audit Report Progress Report for Q2 2025	No objection

| 2025.11.04 | Audit Committee & Board of Directors | Audit Report Progress Report for Q3 2025
Finalization of the 2026 audit plan | No objection |
| --- | --- | --- | --- |

(6). Independent communication between accountants and independent directors:

Date	Matters of communication	Resolution
2025.02.25	Audit Quality Index (AQI) Information. Accountants communicated and discussed the audit planning matters and key audit matters in 2024	No objection
2025.04.29	Accountants communicated and discussed the audit planning matters in 2025 Q1
Road map for sustainable development of listed counter companies	No objection
2025.08.05	Accountants communicated and discussed the audit planning matters in 2025 Q2	No objection
2025.11.04	Accountants communicated and discussed the audit planning matters in 2025 Q3	No objection

(7). The Company approved the appointment and independence assessment of the CPA at the Audit Committee meeting and the board meeting on 2026.03.10. None of the directors (including independent directors) objected to the approval.

Audit Committee annual major matters and operation status:

(1). Annual major annual matters:

A. The internal control system is formulated or amended in accordance with Article 14-1.

B. Evaluation of the effectiveness of the internal control system.

C. Review and revise the "Procedures for Acquisition and Disposal of Assets", "Procedures for Derivatives Transactions", Procedures for Lending of Capital to Other Parties", and "Procedures for Endorsement and Guarantee" or any other major financial business behaviors

D. Matters involving directors' own interests.

E. Material asset or derivative transactions.

F. Major loan extensions, endorsements or guarantees.

G. Offer issue, or private placement of equity securities.

H. Appointment, dismissal and remuneration of the certifying CPA.

I. Appointment and dismissal of financial, accounting or internal audit directors.

J. The annual financial report signed or sealed by the chairman, manager, and chief accountant, and the second quarter financial report audited and certified by the certifying CPA.

K. Regulatory Compliance.

(2). Implementation:

Audit Committee Meeting Date / Meeting Number	Proposal Content and Subsequent Handling	Matters Listed in Article 14-5 of the Stock Exchange Act
2025/02/25 2th Board 9th Meeting	1. Approved the Company's internal control statement 2024.
2. Review of the Company's 2024 individual financial report and consolidated financial report.
3. Profit distribution proposal for 2024.
4. In line with the remuneration regulations for grassroots employees, the definition of "internal control system" was added.
5. Amendment to the Articles of Association.
6. Revise the company's "Internal Control System"
7. Approved the assessment of independence and competence of CPAs
8. It is proposed that Ernst & Young and its affiliated companies not provide services that have not been confirmed in advance. The procedures and general policies as well as the list of non-certified services shall be re-confirmed.	V
	Audit committee resolution (2025/02/25): Passed by all attending Audit committee members. Company's response to Audit committee opinions: Passed by all attending directors.
2025/04/29 2th Board 10th Meeting	1. Change of dual-signature accountant case
2. Consolidated financial report for 2025 Q1	V
	Audit committee resolution (2025/04/29): Passed by all attending Audit committee members. Company's response to Audit committee opinions: Passed by all attending directors.

2025/08/05 2th Board 11th Meeting	1.Consolidated financial report for 2025 Q2	V
	Audit committee resolution (2024/08/06) : Passed by all attending Audit committee members. Company's response to Audit committee opinions: Passed by all attending directors.
2025/11/04 2th Board 12th Meeting	1.Consolidated financial report for 2025 Q3.
2. Formulate the "2026 Annual Audit Plan."	V
	Audit committee resolution (2025/11/04): Passed by all attending Audit committee members. Company's response to Audit committee opinions: Passed by all attending directors.
Resolutions passed by two-thirds of all Directors but without approval of the Audit Committee except for the preceding item:None.

The Company's implementation of corporate governance and the differences from the Corporate Governance Principles for TWSE/TPEx Listed Companies and the reasons therefor

Items	Implementation Status (Note)			Difference from Corporate Governance Practice Principles for TWSE/GTSM Listed Companies and reasons
	Yes	No	Description
1. Does the Company set and disclose corporate governance code of practice according to corporate governance practice principles for TWSE/GTSM-L listed companies?	V		The Company has defined and disclosed the Corporate Governance Code of Practice on Public Information Observatory and the Investor Relations section of the Company's website in accordance with the "Code of Practice for Listed OTPEs"(http://www.yahorng.com/).	No Difference
2. The Company's equity structure and shareholder equity
(1) Has the Company established internal operating procedures to handle shareholder recommendations, doubts, disputes and litigations, and implemented them in accordance with the procedures?
(2) Does the Company have a list of the major shareholders who actually control the Company and those who ultimately have control over the major shareholders?
(3) How does the Company establish its risk management mechanism and firewalls involving related enterprises?
(4) Has the Company set internal standards to prohibit the use of undisclosed insider information to trade securities on the market?	V		(1) The corporate governance code of practice has been clearly regulated, and the company has a spokesperson, an acting spokesperson, an investor zone, and a stakeholder zone as a channel for shareholder suggestions and communication.
(2) In accordance with Article 25 of the Securities and Exchange Act, the Company has reported monthly to the website "Market Observation Post System" designated by the Securities and Futures Bureau for changes in the equity held by insiders (directors, managerial officers, and shareholders holding more than 10% of the total shares).
(3) The Company and its affiliated companies' operations and finance are conducted independently and have formulated "Measures for the Supervision and Management of Subsidiaries," "Operational Procedures for Transactions with Related Parties, Specific Companies, and Group Companies," "Financial affairs between related parties" to regulate financial operations among the Company and the affiliated companies and matters that should be supervised so that there is a good risk management and control mechanism between the affiliates.
(4) The Company has established the "Operational Procedures for Handling Material Internal Information" and "Code of Ethical Conduct" which regulates prohibiting Company insiders from using undisclosed information on the market to trade securities and regularly conduct insider education and publicity to all staff members.	No Difference
3. Organization and responsibilities of the Board of				No Difference

Items	Implementation Status (Note)
	Yes	No	Description
Directors
(1)Has the Board of Directors formulated policy and specific management goals regarding the diversity of membership and implemented the same accordingly?
(2)Has the Company establish other functional committees besides the Compensation Committee and Audit Committee?
(3)Has the Company formulated board performance evaluation measures and methods, and conducted performance evaluation annually and regularly?
Has the Company reported the results of erformance evaluations to the Board of Directors,and used such results as a reference for individual directors' remuneration and nomination for reappointment?	V	V	(1)The Company has set “Corporate Governance Practical Principles” to ensure boards’ diversity. Please refer to “[P.9-11] in previous pages for board members’ professions and independence).

(2)In addition to setting up the Remuneration Committee and Audit Committee, the Company's corporate governance is implemented under the responsibility of each department. Other functional committees will be set up as required after discussion by the Board of Directors.

(3)The Company has formulated the "Performance Evaluation Method of the Board of Directors" on Aug. 7, 2020, which was implemented after discussion and approval by the Board of Directors. It is stipulated that the Board of Directors shall perform performance evaluations of the Board of Directors and the Board members at first quarter of every year. The scope of the Company's Board evaluation includes the performance evaluation of the overall Board of Directors, individual Board members, Audit Committee. And Remuneration Committee. According to the method, the performance evaluation of the Board of Directors will be conducted at the end of each year, and the performance selfevaluation questionnaire will be issued to all board members of that year. Through regular Board performance evaluation every year, after each director completes the evaluation on the operation, culture, internal and external relationship management, self-evaluation, and other aspects of the Board of Directors for the current year, the deliberating units of the Board of Directors will compile the statistics and make a report at the first Board meeting of the year. Evaluation indicators:
A.The performance evaluation of the Company’s "Board of Directors" covers five aspects:
(a) Involvement in the Company’s operations
(b) Enhancement to the Board’s decision quality
(c) Composition and structure of the Board
(d) Elections and continuous training of the directors
(e) Internal control There are a total of 45 measurement indicators
B.The performance evaluation of the "Board members" covers six aspects: | |

Items	Implementation Status (Note)
	Yes	No	Description
			(a) Control over the Company's goals and tasks
(b) Recognition of director duties
(c) Involvement in the Company's operations
(d) Internal relationship management and communication
(e) Directors' professional and continuing education and training
(f) Internal control There are a total of 23 measurement indicators
C.The performance evaluation of the "Audit Committee" covers five aspects:
(a) Involvement in the Company's operations
(b) Recognition of the Audit Committee's duties
(c) Enhancement to the Audit Committee's decision quality
(d) Composition of the Audit Committee and appointment of Committee members
(e) Internal control There are a total of 22 measurement indicators
D.The performance evaluation of the "Remuneration Committee" covers five aspects:
(a) Involvement in the Company's operations.
(b) Recognition of the Remuneration Committee's duties
(c) Enhancement to the Remuneration Committee's decision quality
(d) Composition of the Remuneration Committee and appointment of Committee members
(e) Internal control
There are a total of 19 measurement indicators Evaluation Results:
E.The Company's 2024 Board performance self-evaluation began of Jan 2025.The deliberative unit of the Chairman's Office provided the questionnaires according to the Rules. The questionnaire was distributed of Jan 2025 and analyzed by the above methods. The 2024 Board performance evaluation results are as follows:
(a) The average self-evaluation score of the Board of Directors' performance evaluation is 98.2 points
(b) The average self-evaluation score of the Board members' performance evaluation is 99.2 points
(c) The Audit Committee performed its duties competently .
(d) The Remuneration Committee has performed its duties competently .

Items	Implementation Status (Note)
	Yes	No	Description
(4)Does the Company regularly evaluate the independence of the CPA?	V		F.There are no significant improvement items in the performance evaluation of the Company’s "Board of Directors," "Audit Committee" and "Remuneration Committee" in 2025.
Future optimization direction:
Plan directors’ professional development courses according to the overall needs of the Company to assist directors in fulfilling their functions.
G.The performance evaluation results were reported on the Board of Directors on Mar 10, 2026. After the report by the Board of Directors, the method and the results of the evaluation were disclosed to the investor area of the Company’s website (http://www.sinmag.com.tw/).
The results of the performance evaluation of the Company’s Board of Directors will be used as a reference for the remuneration and nomination for renewal of individual directors.

(4) The Company’s Audit Committee evaluates the independence and suitability of its certified public accountants every year. In addition to requiring the certified public accountants to provide a "Statement of Independence" and "Audit Quality Indicators (AQIs)", the evaluation is conducted in accordance with the standards and 13 AQI indicators in Note 1 on page 31 of this annual report; and the results will be submitted to the Audit Committee and the Board of Directors for review and approval on Mar 10, 2026. | |

Items	Implementation Status (Note)			Difference from Corporate Governance Practice Principles for TWSE/GTSM Listed Companies and reasons
	Yes	No	Description
4. Has the TWSE/TPEx listed company established a dedicated unit or personnel responsible for corporate governance matters (including but notlimited to providing directors/supervisors with the information needed to perform their duties, organizing board meetings and shareholder meetings, carrying outand modifying business registration, and preparing board/shareholder meeting minutes)?	V		The Board of Directors of the Company adopted the resolution on Jan 10, 2023, and established the post of Corporate Governance Officer, which was concurrently held by the Company's Chief Financial Officer, to protect the rights and interests of shareholders and strengthen the functions of the Board of Directors. CHAO CHIH-YUNG, Manager of the Finance Department, has served as a financial supervisor of a listed company for more than 15 years, and her qualifications are in compliance with the law. The main duties of the Corporate Governance Officer are to handle matters related to the meetings of the Board of Directors and Shareholders' Meetings according to the laws, prepare the minutes of the Board of Directors meetings and Shareholders' Meetings, assist directors in taking office and continue their education and training, provide directors with nformation needed to perform their duties, and assist directors in complying with laws and regulations, etc. For "Corporate Governance Officer", please see following pages [P.32]	No Difference
5. Has the Company established communication channels with stakeholders (including but not limited to shareholders, employees, customers and suppliers, etc.)and a special sections for stakeholders on the Company's website, and responded appropriately to important corporate social responsibility issues that are of concern to stakeholders?	V		The Company has established a "Stakeholders section" on its official website with the contact information of spokespersons and relevant business departments to respond to the important corporate and social concerns of stakeholders (including but not limited to shareholders, employees, customers, and suppliers). Please refer to the official website of the Company https://www.yahorng.com/profile.php?kind=5⟨=tchinese	No Difference
6. Has the Company appointed a professional stock affairs agency to handle matters for shareholders affairs?	V		The Company authorized the Agency Department to CTBC Bank to handle the affairs of the shareholders' meeting.	No Difference

Items	Implementation Status (Note)
	Yes	No	Description
7. Disclosure of information
(1) Has the Company set up a website to disclose finance and business matters and corporate governance information?

(2) Has the Company adopted other measures (such as English website, a designated person responsible for the collection and disclosure of information, implementation of the spokesman system, the legal entities announcements uploaded to website, etc.) to disclose information?

(3) Does the Company publish and make official filing of annual financial report within two months after the end of an accounting period, and publish/file Q1,Q2 and Q3 financial reports along with the Monthly business performance statements before the required due dates? | V | | (1) The Company discloses relevant financial, business, and stock affairs information in the investor area of the Company website and has a corporate governance area to explain the relevant regulations and implementation. Website: https://www.yahorng.com

(2) In addition to appointing a dedicated person to collect and disclose the Company's information, the Company also assigns a spokesperson and deputy spokesperson who comprehensively understand the Company's finance and business as well as being able to coordinate various departments to provide relevant information and speak on behalf of the Company in a unified manner to ensure that information that may affect the decision-making of shareholders and stakeholders can be disclosed in a timely and appropriate manner. When an investor conference is held, the relevant information is also uploaded to the investor area of the Company website and Market Observation Post System (MOPS) for investors' inquiries.

(3) The Company announce and report the annual financial report within two months after the end of the fiscal year, and announce and file the financial reports for the first, second, and third quarter and the operating conditions of each month before the specified period. | Comply with the code provisions. |
| 8. Whether the company has other important Information that is helpful to understand the operation of corporate governance (including but not limited to employee rights, employee care, investor relations, supplier relations, rights of interested parties, training of directors). The implementation of risk management policies and risk measurement standards, the implementation of customer policies, the company's purchase of liability insurance for directors and supervisors, etc.)? | V | | (1) Interests and rights of employees: The Company has always treated employees in good faith to ensure their legal interests and rights in accordance with the Labor Standards Act.

(2) Care for employees: by adopting a welfare system and good education and training, a relationship of mutual trust has been established with employees. Such as subsidies for employee association activities, employee travel, dinner parties, medical subsidies, medical consultation and parking lots, etc.

(3) Investor relations: set up a special area for investors, provide sufficient information for investors' reference, and set up a communication platform for investors to contact the company.

(4) Supplier relationship: The Company regards suppliers as long-term partners with the goal of common growth, strengthens information exchange and | Comply with the code provisions. |

Items	Implementation Status (Note)			Difference from Corporate Governance Practice Principles for TWSE/GTSM Listed Companies and reasons
	Yes	No	Description
			problem communication with suppliers, and provides suppliers with the business management learning opportunity. In addition to promoting quality, the Company urges manufacturers to reorganize their production environment, improve their production processes, and implement relevant safety management, to create a win-win situation and achieve coexistence and mutual prosperity.

(5) Stakeholders’ rights: The Company has a spokesperson and an acting spokesperson serving as the Company’s communication channels with the outside. The stakeholders can communicate with the Company and make suggestions to safeguard their legitimate rights and interests. The Company has set up a special area for stakeholders on the Company’s website to provide multiple communication channels and communication platforms for stakeholders to contact the Company.

(6) Status of directors’ further education: All directors of the Company are required to follow the “Guidelines for the Implementation of Directors’ Further Education by TWSE and TPEx Listed Companies”, and the related information has been disclosed on the MOPS.

(7) Implementation of risk management policies and risk measurement standards: The Company has formulates various internal control systems and related measures, and have dedicated people to implement various risk management measures and assessments. The Audit Department also formulates its annual audit plan based on the risk assessment results and implements it to perform the supervision mechanism and control the implementation of various risk management measures.

(8) Implementation of customer policies: The Company has a business department to provide customer service and customer complaint handling, maintain a smooth communication channel with customers, and maintain a stable and good relationship with customers to create profits.

(9) The Company’s purchase of liability insurance for directors: The Company has adopted a resolution of the board meeting on Mar 10, 2026 to continue to purchase liability insurance for all directors, and the relevant contents are disclosed on the MOPS. | |

Items	Implementation Status (Note)			Difference from Corporate Governance Practice Principles for TWSE/GTSM Listed Companies and reasons
	Yes	No	Description

Please describe the improvements that have been made in response to the corporate governance evaluation results issued by the Corporate Governance Center of the Taiwan Stock Exchange in the most recent year, and propose priorities and measures for those not yet improved:

A. The improved corporate governance assessment results released in the most recent year include:

a. It is expected that the Chinese and English versions of the shareholder meeting manual and meeting supplementary materials will be uploaded 30 days before the meeting B. Priority matters and measures to strengthen the corporate governance evaluation results:

a. It is expected to disclose the annual greenhouse gas emissions, water consumption and total weight of waste (non-hazardous waste) for the past two years.

Note 1: Criteria for assessing the independence of CPAs

Assessment Item	Assessment Result	Whether the Independence Requirement Is Met
Financial interests	No direct financial interest or significant indirect financial interest was found.	Yes
Financing and guarantee	There was no financing or guarantee found.	Yes
Business relationship	There is no close business relationship, nor sale of goods or provision of services.	Yes
Family and personal relationship	None.	Yes
Employment relationship	None.	Yes
Gifts and special offers	No behavior affecting professional decision-making or acquisition of confidential information was found.	Yes
Rotation of CPAs	The rotation of CPAs met the requirement.	Yes
Non-audit business	There is no business content that affects independence.	Yes
CPA's Statement of Independence	The Statement of Independence provided by the CPA was obtained.	Yes

2025 Corporate Governance Officer Training Situation

Date		Organizer	Course	Hours	Total hours in the year
Rise	Until
May.09,2025	May.09,2025	Taiwan Institute of Directors	Practicing sustainable development through the OTC market	3.0	15.0
Jun.23,2025	Jun.23,2025	Taiwan Corporate Governance Association	Trump 2.0, the Death of Globalization and Regional Wars	3.0
Jun.23,2025	Jun.23,2025	Taiwan Corporate Governance Association	Operational Practices of the Sustainable Development Committee (Sustainability Director, Working Group)	3.0
Jul.11,2025	Jul.11,2025	Taiwan Institute of Directors	[Practical Implementation of Cross-Generational Talent Management and Sustainability Standards IFRS S1/S2]	6.0

Organization and operation status of the Compensation Committee:

(1). Information on members of the Compensation Committee

Position	Name	Professional Knowledge and Experience	Independence Attribute	Number of concurrent duty as a Remuneration Committee member at a public company
Independent director (convener)	Chen Jung Chao	Please refer to page 9-10 of the Annual Report	2
Independent director	Tsai Yu Chin			0
Independent director	Chou Mao Hsiung			0

(2). Operation status of the Compensation Committee

a. There are 3 members in the Company's Compensation Committee.

b. Current Term: From Jun 9, 2023 to Jun 8, 2026. The Compensation Committee held 2 meetings in the recent year, the qualifications and attendance of the Committee are shown as follows:

Title	Name	Attendance in person	By proxy	Attendance rate in person (%)
Convener	Chen Jung Chao	2	0	100%
Committee member	Tsai Yu Chin	2	0	100%
Committee member	Chou Mao Hsiung	2	0	100%
Other noteworthy matters: 1. The Board of Directors does not accept Compensation Committee’s suggestions or amendments: None. 2. The resolutions of the Compensation Committee which Committee member has oppositions or reservations: None.

(3). The resolutions of the Compensation Committee and the Company's action:

Meeting Date	Major Matters	Resolution	The Company's Handling of the Remuneration Committee's Opinions
1/10/2025	1. The distribution of year-end bonus to managers of the Company. 2. Discuss salary adjustment proposal 2025.	Passed by all Audit committee members	Submitted to and passed by all attending directors.
8/05/2025	1. Revise the Directors' Remuneration Policy. 2. Discuss the company's 2024 annual director's remuneration amount and manager employee remuneration distribution plan.	Passed by all Audit committee members	Submitted to and passed by all attending directors.

Implementation of the Sustainable Development and the Differences of Practice for Sustainable Development of Listed OTC Companies and Its Reasons

Items	Implement status			Differences between the fulfillment of the Sustainable Development and the Differences of Practice for Sustainable Development of Listed OTC Companies and Its Reasons
	Yes	No	Description
1. Does the Company establish a governance structure to promote sustainable development and set up a special (part-time) unit to promote sustainable development, which is authorized by the board of directors to be handled by senior management, and is the board of directors supervising the situation?		V	The Company has not yet established a governance structure to promote sustainable development.	In the future, it will be handled according to the company's development needs and laws and regulations
2. Does the company conduct risk assessments on environmental, social and corporate governance issues related to the company's operations in accordance with the principle of materiality, and formulate relevant risk management policies or strategies?	V		All major operational decisions of the Company have been carefully evaluated and analyzed by each responsible unit, and submitted to the senior executives, with resolutions obtained from the board meeting for implementation. The audit unit will also draw up an annual audit plan based on the risk assessment results every year and implement the audit in accordance with the plan. The environmental, social and corporate governance policies related to the Company's operations have been specifically implemented in individual internal control systems and relevant management rules and regulations, and have been handled in accordance with relevant laws and regulations.
1. Environmental aspect: By using energy and water resources efficiently and reducing environmental impact, the Company has become a global friendly corporate citizen.
2. Social aspect: Create a pleasant workplace and ensure a safe working environment, use a perfect system to protect the rights and interests of employees, attract and retain talents, so that employees can be well suited with their places, give full play to their talents, and keep the enterprise competitive.
3. Implement the Code of Practice on Corporate Governance and internal control mechanism to ensure that all personnel and operations of the Company comply with relevant laws and regulations.	No Difference
3. Environmental issues
(1) Does the company establish proper environmental management systems based on the characteristics of their industries?	V		(1) In order to comply with product environmental responsibility and global (EU) regulatory requirements, the company has introduced RoHS and REACH standards and The Company has obtained ISO9001 and ISO13485 International Quality	No Difference

Items	Implement status			Differences between the fulfillment of the Sustainable Development and the Differences of Practice for Sustainable Development of Listed OTC Companies and Its Reasons
	Yes	No	Description
(2)Does the company endeavor to utilize all resources more efficiently and use renewable materials which have low impact on the environment?	V		Assurance Standard Certification, and is practicing such management systems.

(2)The company’s new product design, new parts, and materials are in accordance with the relevant recycling organization standards REACH (EC) 1907/2006 electronic products (directive 2011/65/EU & (EU) 2015/863 energy-consuming products ecological design) and other directives Requirements to increase the reuse and recovery rate of recyclable materials in products, improve product energy and resource efficiency, and reduce the demand for natural resources. | |
| (3)Does the Company evaluate the potential risks and opportunities of climate change to the Company now and in the future, and take corresponding measures to respond to climate related issues? | V | | (3)The company pays attention to the impact of climate change caused by greenhouse gas effects on the environment and operations, implements reductions in water and electricity consumption and waste generation, and continues to promote power-saving measures, replacing fluorescent lamps with LED fluorescent lamps.The company is equipped with a generator, which automatically switches to a diesel generator to supply power in case of a sudden power outage. | |
| (4)Does the Company make statistics on greenhouse gas emissions, water consumption and total weight of waste for the past two years, and formulate policies for energy conservation and carbon reduction, greenhouse gas reduction, water consumption reduction or other waste management? | V | | (4)The company’s main energy consumption comes from purchased electricity, diesel for emergency generators and gasoline for official vehicles.
The CO2 emission from electricity consumption was about 898.17metric tons in 2025.
The CO2 emission from electricity consumption was about 900.18 metric tons in 2024.
The water consumption in 2025 is 22,435 kilowatt hours.
The water consumption in 2024 is 17,886 kilowatt hours.
The total weight of waste was 98.39 metric tons in 2025. (Non-hazardous waste)
The total weight of waste was 77.505 metric tons in 2024. (Non-hazardous waste)
Waste is managed at the source to reduce resource consumption, and priority is given to resource recycling and reuse. Company waste and general industrial waste are stored separately according to their main component characteristics. Company | |

Items	Implement status
	Yes	No	Description
			wastes are all entrusted to private clearing and disposal licensing agencies to clear and dispose of them. Before clearing and transporting, the contract is signed for qualification review, and finally the records of proper industrial waste clearing are obtained to understand the operation and management of entrusted waste clearing, transporting, storage, and handling.
4.Social Issues
(1)Has the Company formulated relevant management policies and procedures in accordance with relevant laws and regulations as well as the International Bill of Human Rights?

(2)Has the Company formulated and implemented reasonable employee welfare measures (including remuneration, vacation, and other benefits, etc.), and appropriately reflected operating performance or results in employee remuneration?

(3)Does the Company provide employees with a safe and healthy working environment, and related education? | V | | (1)Formulate relevant internal management measures in accordance with relevant domestic labor laws and regulations, Ensuring non-discrimination and prohibiting inhuman treatment, regardless of race, religion Education, gender, age, nationality, etc., all employees are treated fairly workers, and regularly hold labor-management meetings every year, so that employees can fully Understand the company’s operating activities and protect the rights and interests of employees.

(2)The company attaches great importance to the physical and mental health and welfare of employees, and provides comprehensive diversified welfare measures. Have working rules and related management Regulations covering employees’ basic wages, working hours, and labor standards special leave, meals and other allowances and health checks, employee meals halls, parking spaces, etc. Another employee welfare committee was established to The welfare committee elected by employees operates and handles various Welfare matters, including weddings and funerals/birth/travel/society activities Subsidies, May Day and birthday gifts, hospitalization condolences, etc. Our company Ensure the company’s overall salary through regular market salary surveys Competitive in the market; at the same time, it is not less than 2% of the current year’s profit Remuneration is given to employees to motivate colleagues with excellent work performance.

(3)The Company has employees with the labor safety and health management certificate and regularly receives relevant training to maintain the safety and health of employees. The Company completely bans smoking, implements 6S, provides a clean | No Difference |

Items	Implement status
	Yes	No	Description
(4)Has the Company established an effective career development training program for employees?	V		environment for employees, has a medical room to provide medical care and health consultation, and provides regular employee health examination and health examination for operations of particular hazard to health every year. Every month, doctors from Xinlou Hospital are stationed in the factory for employee consultation, and various work safety and health training is implemented through the occupational safety and environmental protection room.
(5)Does the Company comply with relevant laws and regulations and international standards regarding customer health and safety, customer privacy, marketing and labeling of products and services, and establish relevant customer rights protection policies and complaint procedures?	V		(4)In order to enable employees to have professional quality and development advantages, the Company holds internal training courses and and external abroad for professional training from time to time.
(5)Services and management of customer complaints are available to all the Company's products and services, and customer satisfaction is taken as the basis of the Company's improvement of services. Comply with confidentiality agreements and personal data protection laws for customer privacy and addition to providing the latest information and product information on the Company's website, there is a stakeholder communication channel through which relevant stakeholders can appeal or communicate. After receiving the information provided by the stakeholder, the Company will transfer it to the responsible person for confirmation or processing, and reply to the stakeholder before the deadline.
(6)Has the Company formulated supplier management policies that require suppliers to follow relevant regulations on issues such as environmental protection, occupational safety and health, or labor rights, and monitor their implementation?	V		(6)The company has third-party supplier evaluation methods and third-party manufacturer management methods, requiring suppliers to meet the requirements in the method. If there is a violation and has a significant impact on environmental protection, occupational safety, labor rights and society, the company may terminate or rescind the contract at any time. And expressly stipulated in the purchase contract. From time to time, the company sends people to third-party manufacturers to evaluate suppliers and hold educational training and communication meetings.

Items	Implement status			Differences between the fulfillment of the Sustainable Development and the Differences of Practice for Sustainable Development of Listed OTC Companies and Its Reasons
	Yes	No	Description
5. Does the Company reference international reporting standards or guidelines to prepare sustainability reports (e.g., corporate social responsibility report) that disclose non-financial information about the Company? Has the assurance or opinion from third-party certifying institutions been obtained for the reports of the preceding paragraph ?	V		The Company has prepared the "2024 Sustainability Report" in accordance with the framework of the Sustainability Reporting Principles (GRI 2021) issued by the Global Sustainability Standards Board (GSSB), which was discussed and approved by the Board of Directors on August 5, 2025.	No Difference
6. If the Company makes its own corporate social responsibilities principles according to the Rules of Corporate Social Responsibility Best Practice Principles for TWSE/GTSMListed Companies, please state the differences:: The company has not yet developed practice principles for sustainable development.
7. Other important information that can help to understand the implementation of sustainable development: The Company always shares its operating results with employees, so that they can trust the Company and strive for growth together with the Company.
(1) In terms of environmental protection: The Company attaches importance to energy conservation and actively implements various energy conservation and carbon reduction measures, including reducing the starting hours of the air conditioner host and raising the set temperature, purchasing energy-saving and environment protection lamps when adding new lamps, and gradually replacing old and power consuming equipment. The Company actively promotes electronic operation, reduces the use of paper, recycles the toner cartridges and hands them over to professional vendors, and cooperates with suppliers to recycle product cartons and packaging materials. The Company has joined the government's electronic exchange mechanism to save the delivery time of official documents, reduce paper consumption and postage, and make the delivery and receipt of documents more convenient.
(2) Human rights: The Company's employees, regardless of gender, religion or political party, are equal in their employment opportunities. The Company has created a good working environment to ensure that employees are free from discrimination and harassment. The key points of prevention and treatment of sexual harassment and the non-discrimination policy are formulated according to law to safeguard gender equality in work and personal dignity.
(3) Safety and health: The Company has set a "Labor Safety and Health Room" to conduct regular health examination and safety training for employees.

Climate related information

Implementation of climate-related information

Item	Implementation
1. Describe board and management oversight and governance of climaterelated risks and opportunities	Our company has incorporated climate risks and opportunities into the core of corporate governance to ensure that they are consistent with the overall business strategy.
The Board of Directors serves as the highest oversight body for climate change management, responsible for overseeing climate-related decisions, approving response strategies, and ensuring the allocation and implementation of resources. The Board reviews the climate strategy and its implementation outcomes annually to strengthen the company's climate resilience and compliance.

2. Describe how the identified climate and opportunities will affect the company's business, strategy and finances (short-term, medium-term, long-term)	Since 2024, Our company has introduced the TCFD framework (Task Force on Climate-Related Financial Disclosures), using the four major aspects of "governance", "strategy", "risk management", and "indicators and goals" to objectively assess the potential risks and opportunities of climate change to the company now and in the future, in order to reduce the impact of climate risks.
	Four major aspects	Management Actions	Responsible Unit
	Governance	1. The board of directors of Our company is the highest organization for "climate change" management and oversees the To guide the Sustainable Development Promotion Group to set up targets and Performance management for climate change related issues The scope of theory.
2. The Sustainability Promotion Group proposes climate-related actions and reports to the Board of Directors.	Board of Directors, Sustainable Development Promotion Group
	Strategy	1. Based on the TCFD framework, regularly identify short-, medium- and long-term climate risks and opportunities to the organization. impact on operations, strategy and financial planning.
2. Assess the financial impact of the risks and opportunities brought about by climate change on Our company.	General Manager's Office
	Risk Management	Evaluate and decide on relevant issues based on the scope and severity of climate change impacts.
discuss high-impact projects across departments, formulate management measures, and integrate them into risk management Management system.	Sustainable Development Promotion Group
Indicators and targets	1. Short-term goals: Continuously refine greenhouse gas inventory procedures and extend them to all overseas subsidiaries, including the Dongguan plant and the Philippines plant, to establish a global carbon management system; plan to complete the construction of BRPV (Building Reinforced Photovoltaic) systems by 2027, operating under a "self-generation and self-consumption + green electricity certificate" model to	Each business unit

| | | strengthen energy self-sufficiency and enhance overall operational resilience.
2. Medium- to long-term goals: Based on this, formally establish a long-term carbon reduction path and transformation target of "net-zero emissions by 2050". | | |
| --- | --- | --- | --- | --- |
| | Climate change risks/opportunities: | | | |
| | We have assessed the physical and transition risks faced by our company and proposed the climate-related risks and opportunities that may have financial impacts, as well as the response strategies as follows: | | | |
| | Physical risks/opportunities | | | |
| | Risks/Opportunities | Short, medium and long term identification | Financial impact-/+ | Response strategies |
| | Water shortage
Risk: Water shortage for industry
Opportunity: Enhanced water recycling | short | - Additional cost for purchasing water
- This could impact monthly financial closing and revenue reporting, potentially leading to difficulties in producing financial statements.
+ Recycle water and reduce water bills | 1. Increase capital expenditure investment to replace desktop computers with notebook computers (NBs) and enhance digital and operational resilience under extreme weather conditions through SAP-enabled remote work.
2. Strengthen evacuation drills for climate-related risks and disasters. |
| | Extreme weather affects staff attendance
Risk: Staff suspension from work or classes. | short | - Supply chain disruptions can lead to production stoppages and reduced revenue. | 1. Increase capital expenditures to notebook computers NB gradually replaces desktop computers and SAP system support Work from |

| | Unstable product delivery time
Opportunity: Enhanced work from home
Office Flexibility | | -Extreme weather could damage factory facilities, increasing operating costs such as equipment repairs.
-Our products rely on exports; port closures or logistical disruptions due to typhoons or other weather events will directly impact revenue.
+Secondary supply sources can mitigate disaster losses. | home. | |
| --- | --- | --- | --- | --- | --- |
| | Extreme weather causes operational disruptions
Risk: Supply chain disruption
Risk: Unstable product delivery Certainly
Opportunity: Building enterprise resilience | middle | - Supply chain disruptions have caused production to be disrupted, reducing Operating income
- Disasters cause damage, affecting production and reducing Operating income
- Disasters cause damage to hardware facilities, increasing costs
Capital expenditure
+ A second supply source can shorten the production impact Time, reduce disaster losses | 1.Find a secondary supply source to mitigate the impact of supply chain disruptions.
2. Implement early warning and protection measures: monitor weather, reinforce factory buildings, and stockpile generators and supplies.
3. Establish an Operational Continuity Plan (BCP) and diversify production across multiple sites, including the Philippines, to mitigate risks. In the event of power shortages, temporarily manufacture non-electricity processes to maintain capacity.
4. Apply for disaster damage | |

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| | | | | insurance to strengthen resilience.
5. Plan and construct BRPV (Building Reinforced Photovoltaic) systems to enhance the physical resilience of factory roofs and provide cooling. |
| --- | --- | --- | --- | --- |
| | Transformation risks/opportunities | | | |
| | Risks/Opportunities | Short, medium and long term identification | Financial impact-/+ | Response strategies |
| | Technical risks
Risk: Insufficient technology upgrades
Weak competitiveness
Opportunities: Optimize resource efficiency and cost | middle | - Decrease in profit income
- The introduction of low-carbon raw materials (such as the slightly combustible refrigerant R1234yf) has a higher unit price and requires additional costs for safety facility construction, which may affect initial gross profit and pricing competitiveness.
+ Reduce energy resource costs. In the medium to long term, it can effectively reduce carbon expenditure. | 1. Implement DFMEA (Design Failure Mode and Effects Analysis) from the initial design stage of new models to prevent safety and quality issues.
2. Increase R&D investment to introduce environmentally friendly, low-carbon refrigerants and high-efficiency equipment, and strengthen safety training for operations using slightly flammable refrigerants.
3. Simultaneously launch the BRPV (Bring Your Own Photovoltaic) |

| | | | | project, transforming the production base into a green energy factory.
4. Accumulate design and safe operation experience with low-carbon refrigerants, transforming this technology into a core service that helps customers maintain the use of low-carbon materials. | |
| --- | --- | --- | --- | --- | --- |
| | Compliance Risk Risk: Net-zero regulations
Opportunities: Improve product quality and efficiency | long | - Violators face export restrictions and fines
+ Reduce energy costs | 1. Research and develop products with low carbon emissions.
2. The products have passed relevant international certifications.
3. Replace equipment to improve energy efficiency. | |
| | Market Risk
Risks: Consumer behavior and biases Good change
Opportunity: Respond to market bias early Good development products | long | - Failure to follow market trends, market share decreased few
+ Grasp the market trends and develop low-carbon products.
Increase revenue | 1. Drive value-driven marketing transformation: Highlight products that comply with environmental and low-carbon regulations, targeting international brand clients who value ESG.
2. Establish a differentiated advantage by providing low-carbon solutions, avoiding the pitfalls of price wars. | |

			3.Short-term cost savings through LED replacement and water recycling; medium-term energy transition through BRPV projects; long-term market differentiation through modular design and green manufacturing processes.
3.Describing the financial impact of extreme climate events and transition actions Describing the financial impact of extreme climate events and transition actions	Financial impacts of extreme weather events
Extreme weather events (such as typhoons and heavy rainfall) can damage factory facilities, thereby increasing capital expenditures (CapEx) for equipment repairs and operating costs (OpEx) such as purchasing water trucks. Furthermore, supply chain disruptions can directly impact order fulfillment and revenue.
Financial impact of transformation actions
In response to the anticipated increase in operating costs due to cap-and-load regulations and carbon fee systems, the company is actively investing in emissions reduction and replacing outdated equipment. Although this will increase initial R&D and safety setup costs, in the medium to long term, it will effectively reduce future carbon fee expenditures, avoid regulatory penalties, and generate long-term positive financial benefits by securing international green contracts, thereby substantially reducing operating costs.
4.Describe how climate risk identification, assessment and management processes are integrated into the overall risk management system	Based on the TCFD framework,our company incorporates climate risks into overall risk management:
1.Identification and assessment: The Sustainability Team works with various departments to manage risks related to extreme climate, regulatory changes, and market transitions based on the degree of impact and probability.
2.Strategic integration: Incorporate equipment upgrades, supply chain resilience and low-carbon product development into annual risk plans, with the board of directors overseeing implementation.
3.Resource optimization: Ensure effective resource allocation through cross-departmental coordination, enhance climate resilience and competitiveness, and achieve sustainable development goals.
5.If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis	In response to sustainable development and to avoid the termination of company operations due to extreme weather, future evaluation discussions will include scenario analysis to assess the risks and opportunities in scenarios such as extreme weather and resource shortages.

factors and main financial impacts used should be explained.
6.If there is a transformation plan to manage climate-related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical and transformation risks.	Our comoany will actively implement measures and management policies to respond to climate risks and opportunities based on the risk identification results of TCFD (Climate-related Financial Disclosures). The specific measures are as follows:
1.Improve the efficiency of energy and water use during operations to reduce negative impacts on the environment, implement power saving measures and cooling water recycling in operations, and By strengthening resource recycling and waste reduction, we can further reduce the environmental burden.
2.Eco-design concepts are incorporated into product design from the beginning. New components and material selections are strictly in compliance with relevant recycling and energy-consuming product specifications to improve product The reuse and recovery rates of recyclable materials are increased, while optimizing energy and resource efficiency and reducing dependence on natural resources.
3.In the production sector, energy conservation and carbon reduction can be improved by optimizing equipment replacement and recycling mechanisms.
Indicators and targets for identification and management:
Short-term goals: Continuously improve greenhouse gas inventory operations and extend them to all overseas group subsidiaries, including the Dongguan plant and the Philippines plant, to establish a global carbon management system; plan to complete the construction of BRPV (Building Reinforced Photovoltaic) systems by 2027, operating under a "self-generation and self-consumption + green electricity certificate" model to strengthen energy self-sufficiency and enhance overall operational resilience.
Medium- and long-term goals: Based on this group inventory, formally establish a long-term carbon reduction path and transformation target of "net-zero emissions by 2050".
7.If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.	Our company has not yet promoted any internal carbon pricing related plans, but it still incorporates carbon risks into the assessment basis of climate risk management and long-term strategies, hoping to reduce carbon emissions from within the company and drive peers to respond to carbon reduction actions.
8.If climate-related goals are set, the activities covered, the scope of greenhouse corporate	According to the "Sustainable Development Roadmap for Listed Companies" issued by the Financial Supervisory Commission in March 2022, our company is a company with paid-in capital of less than NT$5 billion. In accordance with the regulatory progress of the competent authority, we have not yet planned specific absolute carbon reduction targets in metric tons or percentages. Instead, our current focus is on comprehensive inventory and the establishment of green energy facilities. Specific information is as follows:

| emissions, the planning schedule, annual achievement progress and other information should be explained; if carbon offsets or renewable energy certificates (RECs) are used to achieve relevant goals, the information should be explained. The source and quantity of carbon reduction credits or the quantity of renewable energy certificates (RECs) being redeemed. | 1. Coverage of Activities and Emissions: Currently, climate targets and inventory have been expanded to cover the group's operations (including
2. the Taiwan headquarters, the Dongguan plant in China, and the Philippines plant), achieving 100% coverage of operational sites. The scope of greenhouse gas emissions fully covers Category 1 (direct emissions), Category 2 (energy indirect emissions), and part of Category 3 (other indirect emissions).
Climate Targets and Planning Timeline:
Short-term goals (to 2027): Continuously refine greenhouse gas inventory procedures and extend them to all overseas subsidiaries, including the Dongguan plant and the Philippines plant, to establish a global carbon management system; plan to complete the construction of BRPV (Building Reinforced Photovoltaic) systems by 2027. Due to anticipated production electricity demand exceeding system power generation, a "self-consumption + green electricity certificates" model will be adopted to strengthen energy self-sufficiency and enhance overall operational resilience. Medium- to long-term goals: Based on this group inventory, formally establish a long-term carbon reduction path and transformation target of "net-zero emissions by 2050".
3. Annual progress: The company formally expands the scope of its greenhouse gas inventory to include overseas subsidiaries (including the Dongguan plant and the Philippines plant) and changes the base year to 2025. The group's total greenhouse gas emission equivalent (Category I and II) in 2025 is 3,368.6598 metric tons of CO2e, and Category III is 881.8006 metric tons of CO2e. Currently, the company focuses on continuous monitoring and implementation of reduction strategies, steadily implementing a low-carbon transition through four major strategies: promoting energy conservation, water recycling, implementing 6S activities, and improving equipment efficiency.
4. Carbon Offset or Renewable Energy Certificate (REC) Usage: The company has not yet actually used carbon offsets or RECs to achieve its offset targets. However, the company has planned that after the completion of the BRPV (Building Reinforced Safety Photovoltaic System), due to the anticipated production electricity demand exceeding the system's power generation, a "self-consumption + green electricity certificate" model will be adopted. In the future, in addition to increasing energy self-sufficiency, the obtained certificates will also be used for internal operational scheduling. |
| --- | --- |
| 9. Greenhouse gas inventory and assurance situation and reduction goals, strategies and specific action plans (separately filled in 1-1 and | In accordance with the sustainable development roadmap for listed companies, our company is required to disclose its greenhouse gas inventory information for the previous year starting in 2026. We have already expanded the scope of our inventory to include overseas locations such as our Dongguan and Philippines plants, achieving 100% coverage of the Group's operating locations.
1. The Group's 2025 greenhouse gas inventory has been commissioned to ARES for verification, and the verification process is expected to be completed by the end of July 2026.
2. Greenhouse gas reduction targets and strategies are being implemented in accordance with the progress of regulatory authorities. Specific |

1-2). actions include planning and implementing BRPV (Building Reinforced Photovoltaic) systems and promoting energy-saving measures at all plants.

Company Greenhouse Gas Inventory and Confirmation Situation in the Last Two Years
2.1 Greenhouse gas inventory information

Describe the emission volume (metric tons CO2e), intensity (metric tons CO2e/million dollars) and data coverage of greenhouse gases in the past two years.
According to the sustainable development roadmap for listed companies: 1. Parent companies should be subject to individual audits starting from 2026. 2. The inventory of subsidiaries with consolidated financial statements should begin in 2027. The parent company has established a greenhouse gas inventory mechanism in accordance with the ISO 14064-1 Greenhouse Gas Inventory Standard (ISO 14064:2018) published by the International Organization for Standardization (ISO). The company has completed the inventories for ISO 14064-1 Scopes 1, 2, and 3 for 2024 (2023) and 2025 (2024). (In 2025, the inventory scope was further expanded to include overseas group locations such as the Dongguan plant and the Philippines plant, achieving 100% group coverage.) The 2024 inventory data has been verified by an external third-party verification unit (ETC Foundation Taiwan Commodity Testing and Verification Center) in accordance with ISO 14064-3:2019 for greenhouse gas inventory. The 2025 group inventory data has been verified by ARS, with certification expected to be completed by the end of July 2026 .The company's greenhouse gas inventory for the past two years is as follows:
Scope of Greenhouse Gas Inventory		2024 (Voluntary Disclosure)	20254(Voluntary Disclosure)
Our company (Taiwan headquarters)	Direct greenhouse gas emissions (Category 1)	70.1815	101.6203
	Indirect greenhouse gas emissions from energy sources (Category2)	900.1829	898.1672
	Other indirect greenhouse gas emissions (Category 3)	204.9101	234.4909
	Total for Categories 1 and 2 (tons of CO2e)	970.3644	999.7875
	Density (tons of CO2e/million yuan)	0.2950	0.3026
Group (Taiwan Headquarters +	Direct greenhouse gas emissions (Category 1)	-	211.5579
	Indirect greenhouse gas emissions from energy sources (Category 2)	-	3,157.1019
	Other indirect greenhouse gas emissions (Category 3)	-	881.8006

| Dongguan Factory + Philippines Factory) | Total for Categories 1 and 2 (tons of CO2e)
Density (tons of CO2e/million yuan) | - | 3,368.6598
1.0125 |
| --- | --- | --- | --- |

2.2. Greenhouse Gas verification information

Describe the confidence situation in the last two years as of the publication date of the annual report, including the scope of the confidence, the organization of the confidence, the criteria for the confidence and the opinion of the confidence.

According to the sustainable development roadmap for listed companies, at least the scope of assurance should be implemented:

The parent company entity should implement the confirmation starting from 2028.
Consolidated financial reporting subsidiaries should implement this requirement starting from 2029.

The company's greenhouse gas inventory implementation status in the past two years is as follows:

Scope of execution assurance		2024 (Voluntary Disclosure)	2025 (Voluntary Disclosure)
Our company will be headquartered in Taiwan in 2024 and will expand into a group in 2025.	Category 1: Direct Greenhouse Gas Emissions	70.1815	211.5579
	Category 2: Indirect Greenhouse Gas Emissions	900.1829	3,157.1019
	Category 3 Other Indirect Greenhouse Gases	204.9101	881.8006
	Total for Categories 1 and 2 (tons of CO2e)	970.3644	3,368.6598
	Density (tons of CO2e/million yuan)	0.2950	1.0125
	Percentage of the data disclosed in section 1-1-1 above	100%	100%
Convinced opinion/conclusion		ETC (Taiwan Commodity Testing and Verification Center)	ARES
Statement of Confirmation		The third-party verification agency ETC (Taiwan Product Testing and Verification Center) conducted an audit in accordance with ISO 14064-3:2019. The audit results showed no unresolved issues, and reasonable assurance was granted for direct emissions (Category 1) and indirect emissions from energy inputs (Category 2); limited assurance was granted for transport (Category 3) and organization-use of products (Category 4). Overall, the audit opinion complies with the requirements of ISO 14064-1:2018.	The verification has been commissioned to a third-party verification agency, Aris. An on-site audit is planned for June 2026, with evidence collection expected to be completed by the end of July.

Note: The Company currently only performs ISO 14064-3 greenhouse gas verification, which is not a confirmation of the entire ESG report. Therefore, the above information is the verification result.

2.3 Greenhouse gas reduction goals, strategies, and specific action plans:

Describe the greenhouse gas reduction base year and its data, reduction goals, strategies, and specific action plans, as well as the achievement of reduction goals.

Our company actively responds to the global trend of sustainable development, with the "Sustainability Promotion Team" serving as the core unit for formulating and implementing sustainable policies. We continue to deepen ESG governance and, by 2025, further expand the scope of greenhouse gas inventory to include overseas group locations such as our Dongguan and Philippines plants, achieving 100% group coverage and systematically promoting various environmental and carbon reduction strategies.

In product design and manufacturing, Asia Pacific Electric adheres to the principles of compliance with international environmental regulations and product environmental responsibility. We have fully implemented EU RoHS (2011/65/EU and (EU) 2015/863) and REACH (EC 1907/2006) standards and obtained international quality management certifications such as ISO 9001 and ISO 13485, and operate in accordance with these management system standards.

In our operations, we implement energy-saving measures, recycle cooling water, and further reduce our environmental burden by strengthening resource recycling and waste reduction. Especially in the production sector, the optimization of equipment replacement and recycling mechanisms has significantly improved energy conservation and carbon reduction.

Management	Execution
Reduce consumables in the production process	When producing molded parts in the factory, recycled cardboard boxes are reused; for finished products, in response to international trends, recyclable and recycled packaging design is actively adopted (promoting a plan for 100% recyclable or recycled packaging materials), reducing the use of plastics, and strictly controlling and prohibiting the use of harmful environmental chemicals.
Replace inefficient and high energy-consuming equipment	The factory's traditional lighting will be continuously replaced with LED energy-saving lamps; old air conditioners, chiller units and production equipment will be replaced with high-efficiency equipment with "energy-saving labels" or frequency conversion functions.
Strengthening compliant procurement	Prioritizing local sourcing (by 2025, the local sourcing rate of the Taiwan plant will reach 88.95%), reducing the carbon footprint of the supply chain; at the same time, completing environmental and social impact assessments for all 381 qualified suppliers (100% passed), promoting a local green supply chain, and enhancing the sustainability and resilience of the overall supply chain.

Status of Implementation of Integrity Operation and differences to the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and rationale.

Items	Implementation Status
	Yes	No	Description
1. Formulate ethical corporate management policy and plan
(1) Does the company formulate ethical corporate management policy that approved by the board of directors, and declare its policies and procedures in its guidelines and external documents, as well as the commitment from its board and top executives to implement the policies?

(2) Has the Company established mechanism for evaluating the risk of unethical conduct, regularly analyzed and evaluated the activities in the scope of business with a higher risk of unethical conduct, and on the basis of this, formulated a plan to prevent unethical conduct, which covers at least the preventive measures for the conduct set out in Paragraph 2 of Article 7 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies"?
(3) Has the Company specified operating procedures, conduct uidelines, and disciplinary and complaint systems for violations in the plan to prevent unethical conduct and implemented the plan as well as reviewed and amended it at regular intervals? | V | | (1) The Company has formulated a code of ethical conduct, and the board of directors and the management perform their functions and powers with prudence on business execution. If a board member has a conflict of personal interest with a proposal, he/she will automatically avoid participating in the voting of the proposal, to actively implement the Company's ethical corporate management policy.

(2) In order to ensure the implementation of ethical corporate management, the Company has established an effective accounting system and internal control system. The internal auditors also regularly audit the compliance with such systems, punish and admonish those who violate the regulations based on the situation.

(3) The Company has regulations in the Employee Code for employees to follow when performing their duties. | No Difference |
| 2. The implementation of ethical corporate management:
(1) Does the Company evaluate the ethical records of its counterparties and specify the ethical conduct clauses in the contracts signed with the counterparties?

(2) Does the Company have a dedicated unit under the Board of Directors to promote ethical corporate management and report regularly (at least once a year) to the Board of Directors on its ethical management policy, plan to prevent unethical conduct, and the state of monitoring and implementation of such policy and plan?
(3) Does the Company have a policy to prevent conflict of interest, | V | | (1) When conducting various business transactions to establish the relationship with suppliers or customers, the Company has clear relevant prevention provisions internally, including requesting the counterparty to provide the company certificate or conduct credit investigation, in order to avoid damaging the reputation of the Company due to transactions with unethical suppliers and customers.

(2) The Company has legal intellectual property and internal audit units to conduct policy propaganda and supervision on the implementation status from time to time, and report to the board of directors regularly.

(3) In order to prevent employees from conflicts of interest | No Difference |

Items	Implementation Status			Difference from implementation of Integrity Operation and differences to the Ethical Corporate for TWSE/GTSM Listed Companies and reasons
	Yes	No	Description
provide appropriate channels for explanation, and carry out the implementation?

(4) Does Company establish an effective accounting system and internal control system for the implementation of ethical corporate management, and have the internal audit unit draw up relevant audit plans based on the evaluation results of risk of unethical conduct and audit the compliance with the plan to prevent unethical conduct, or entrust a CPA to perform the audit?

(5) Does the Company regularly organize internal and external education and training on ethical corporate management? | V | | when dealing with various affairs on behalf of the company, the Company has established levels of authority for the review, and reports to the relevant supervisors of those who violate the Company's regulations.

(4) The Company has established an effective accounting system and internal control system. The internal auditors include the evaluation of high-risk operations in the annual audit plan, and prepare audit reports on the audit results and submit them to the board of directors for review on a regular basis. In addition, each department shall self evaluate the internal control system every year to ensure the effectiveness of the system design and implementation.

(5) The Company has regulations in the Employee Code for employees' performance of their duties, and strengthens the propaganda to employees. | |
| 3. The operation of the Company's whistleblower reporting system

(1) Has the Company set up a specific whistleblower reporting and reward system and a convenient reporting channel, and designated appropriate personnel to deal with the reported matters?

(2) Has the Company formulated standard operating procedures for The investigation of the reported matters, follow-up measures to Be taken after the completion of the investigation, and the Relevant confidentiality mechanisms?

(3) Does Company take measures to protect whistleblowers from being improperly treated due to reporting? | V | V | (1) If our employees are involved in this matter, they can Report and appeal through the stakeholder area/report and complaint window on the company's website. However, so far, no violation of company policies has occurred.

(2) There is no standard operating procedure for investigation yet.

(3) However, the informant's name will be kept confidential to avoid unnecessary troubles. | No Difference |
| 4. Enhance Information Disclosure
Does the Company disclose the content and implementation results of its Ethical Corporate Management Best Practice Principles on its website and the Market Observation Post System? | | V | Not yet formulated by the Company. | Will be formulated according to the actual situation in the future. |
| 5. If the Company has established its own ethical corporate management best practice principles in accordance with the "Ethical Corporate Management Principles for TWSE/GTSM Listed Companies", please state the differences between its own principles and the state of implementation: The company has not yet decided. | | | | |
| 6. Other important information that can help to understand the company's ethical corporate management operation: The company strictly abides by the Company Law, Securities and Exchange Law, listing regulations and other relevant business conduct laws as the basis for implementing honest operations. | | | | |

Other important information that may enhance the understanding of the Company's corporate governance: None.

Status of Implementation of Internal Control System: Market Observation Post System

https://mopsov.twse.com.tw/mops/web/t06sg20

Important resolutions made by the Shareholders' Meeting and Board of Directors, from periods 2025 and up to the printing date of this Annual Report
(1) The resolutions approved by the entire attending shareholders at the annual shareholders' meeting on Jun 7, 2024 and its implementation

Resolutions	Implementation
The approval of the 2024 Business Report and Financial Report	It has been approved by the shareholders meeting.
Approval of the 2024 earnings distribution	Shareholder's cash dividend: NT$ 4 per share.
Distributed on Aug 29, 2025.
Amendment to the Articles of Association	The change of registration was completed on July 9, 2025.

(2) The resolutions approved by the board of directors for 2025, up to April 30, 2026 and its implementation

Meeting Date	Summary of Important Resolutions	Resolution
January 10, 2025	1. Approved the Company's 2025 operating plan.
2. Approved bonus distribution plan for managerial officers.
3. Discuss the company's proposed salary increase in 2025.	Adopted by all directors present without objection
February 25, 2025	1. Approved the effectiveness assessment of the Company's internal control system design and implementation for 2024.
2. Approved the Company's 2024 business report, and financial statements.
3. Approved the distribution proposal of the Company's 2024 employee and director compensation.
4. pproved the Company's earnings distribution proposal for 2024.
5. Approved the distribution of the Company's cash dividends.
6. In line with the remuneration regulations for grassroots employees, the definition of "internal control system" was added.
7. Amendment to the Articles of Association.
8. Revise the company's "Internal Control System"
9. Approved the assessment of independence and competence of CPAs.
10. It is proposed that Ernst & Young and its affiliated companies not provide services that have not been confirmed in advance. The procedures and general policies as well as the list of non-certified services shall be re-confirmed.
11. The company's "Directors and Managers' Liability Insurance" renewal case.
12. Approved the related matters concerning the convening of the Company's 2025 Annual Shareholders' Meeting.	Adopted by all directors present without objection
April 29, 2025	1. Change of dual-signature accountant case
2. Consolidated financial report for 2025 Q1.	Adopted by all directors present without objection
August 5, 2025	1. Consolidated financial report for 2025 Q2.
2. Revise the Directors' Remuneration Policy.
3. Discussion of the remuneration amount of directors and the remuneration distribution plan of managers for 2024.
4. Consideration of the 2024 Sustainability Report.	Adopted by all directors present without objection
November 4, 2025	1. Consolidated financial report for 2025 Q3.
2. Approved the Company's 2025 audit plan.	Adopted by all directors present without

Meeting Date	Summary of Important Resolutions	Resolution
		objection
January 30, 2026	1. Approved the Company's 2026 operating plan.
2. Approved bonus distribution plan for managerial officers.	Adopted by all directors present without objection
Apr 28, 2026	1. Consolidated financial report for 2026 Q1.
2. Discuss the company's proposed salary increase in 2026.	Adopted by all directors present without objection

Directors or supervisors have expressed opposition or qualified opinions that have been noted in the record or declared in writing in connection with the important resolutions passed by the Board of Directors in the latest year and up to the printing date of this Annual Report: None.

D. Information on Accountants' Fees
Unit: NT$

CPA firm	CPA name	CPA audit period	Audit fee	Non-audit fee	Total	Remarks
Ernst & Young, Taiwan	Hu, Tzu-Ren	January 1, 2025~December 31, 2025	3,130	200	3,330	Non-audit public services include tax certification and investment verification.
	YAO,SHIH-CHIEH	January 1, 2025~December 31, 2025

Alter the CPA Firm and the audit fee in altering year is less than that in the previous year: None.
The audit fee is reduced by over 10% compared with the previous year: None.

E. Alternation of CPA: None.

F. The Company's chairman, general manager, or any managerial officer in charge of finance or accounting Matters has in the most recent year held a position at the accounting firm of its CPA or at an affiliated enterprise: None.

G. Transfer & pledge of stock equity by directors, managerial officers and holders of 10% or more of company shares: None.

H. Information on relationships among the top ten shareholders:

Name	Shareholding		Spouse & Minor Shareholding		Shares Held through Other Parties Shares		Related Party (Between Top 10Shareholders)		Remark
	Number	%	Number	%	Number	%	Name	Relation
Jiahe Investment Co., Ltd.	9,048,839	10.14%	0	0	0	0	Na	Na
Representative: Huang,Wei-Po	931,035	1.04%	0	0	920,000	1.03%	Huang,Chin-I Huang Wei Min	Father and son Brother
Jiacheng Investment Co., Ltd.	8,519,300	9.55%	0	0	0	0	Na	Na
Representative: Huang Wei Min	925,035	1.04%	3,150	0.00%	920,000	1.03%	Huang,Chin-I Huang,Wei-Po	Father and son Brother
Zhizhun Investment Co., Ltd.	7,300,000	8.18%	0	0	0	0	Na	Na
Representative: Hsu,Juei Feng	986,423	1.11%	500,025	0.56%	2,600,000	2.91%	Hsu,Wen-Ting Hsu,Ming Hung	Father and son Brother
Huang,Chin-I	7,264,137	8.14%	0	0	15,728,139	17.63%	Huang,Wei-Po Huang Wei Min	Father and son Father and son
Youzhen Investment Co., Ltd.	6,200,000	6.95%	0	0	0	0	Na	Na
Representative: Hsu,Ming Hung	0	0	0	0	0	0	Hsu,Wen-Ting Hsu,Juei Feng	Father and son Brother
Zhimao Investment Co., Ltd.	6,200,000	6.95%	0	0	0	0	Na	Na
Representative: Hsu,Juei Feng	986,423	1.11%	500,025	0.56%	2,600,000	2.91%	Hsu,Wen-Ting Hsu,Ming Hung	Father and son Brother
Hsu,Wen-Ting	5,006,160	5.61%	0	0	14,500,000	16.26%	Hsu,Juei Feng Hsu,Ming Hung	Father and son Father and son
Yamin Investment Co., Ltd.	1,781,339	2.00%	0	0	0	0	Na	Na
Representative: Huang Wei Min	925,035	1.04%	3,150	0.00%	920,000	1.03%	Huang,Chin-I Huang,Wei-Po	Father and son Brother
Asia Union Investment Co., Ltd.	1,227,800	1.38%	0	0	0	0	Na	Na
Representative: Huang,Wei-Po	931,035	1.04%	0	0	920,000	1.03%	Huang,Chin-I Huang,Wei-Po	Father and son Brother
Zhihong Investment Co., Ltd.	1,198,900	1.34%	0	0	0	0	Na	Na
Representative: Hsu,Ming Hung	0	0	0	0	0	0	Hsu,Wen-Ting Hsu,Juei Feng	Father and son Brother-	-

I. Combined shareholding percentage

12/31/2025;Unit:shares

Reinvestment	Investment by the Company		Direct or indirect control of Directors, Supervisors, or Managers		Combined Investment
	Shares	%	Shares	%	Shares	%
Ya Horng Electronic Co.,Ltd.(BVI)	6,677,423	31.33%	14,636,059	68.67%	21,313,482	100.00%
High Goal International Limited	14,889,975	100.00%	0	0	14,889,975	100.00%
Best Yield Investment Holding Limited	0	0	21,740,002	100.00%	21,740,002	100.00%
Ya Horng (Dong Guan) Electronic Co.,Ltd	0	0	0	100.00%	0	100.00%
Ya Horng Electronic Philippines Inc.	5,696,000	100.00%	0	0	5,696,000	100.00%

Note: Long-term equity investment of the Company calculated according to the equity method

III. Company Shares and Fund Raising

A. Company Capital and Shares

Capital and Shares

4/14/2026; Unit:shares

Type	Authorized Capital
	Issued Outstanding Shares (Listed Stock)	Non-issued Shares	Total
Common Shares	89,200,000	30,800,000	120,000,000

Sources of Capital
Unit: NT$; shares

Month/Year	Issue price	Authorized capital stock		Paid-in Capital		Remarks
		Shares	Amount	Shares	Amount	Source of capital	Approval date and document No.
Nov. 1981	NT$ 10,000 Per share	600	6,000,000	600	6,000,000	Cash	(70) Tai-Jian-III No. 228965
Oct. 1985	NT$ 10,000 Per share	1,800	18,000,000	1,800	18,000,000	Capital increase of NT$12,000,000 in cash	(74) Tai-Jian-Shang-Hsin No. 152597
Apr. 1986	NT$ 10,000 Per share	2,000	20,000,000	2,000	20,000,000	Capital increase of NT$2,000,000 in cash	(75) Tai-Jian-III Wu No. 118168
Sep. 1990	NT$ 10,000 Per share	12,000	120,000,000	12,000	120,000,000	Capital increase of NT$100,000,000 in cash	(79) Jing-Shang No. 119422
Dec. 1998	NT$ 10,000 Per share	19,500	195,000,000	195,000	195,000,000	Capital increase of NT$75,000,000 in cash	(87) Jing-Shang No. 087140034
Apr. 2000	NT$ 10 Per share	19,500,000	195,000,000	19,500,000	195,000,000	-	(89) Jing-Shang No. 089110592
Jul. 2001	NT$ 10 Per share	60,000,000	600,000,000	60,000,000	600,000,000	Capital increase of NT$355,000,000 in cash
Capital increase of NT$50,000,000 from earnings	(89) Tai-Tsai-Cheng (I)No. 96306 and (90) Jing-Shang No. 09001279780
Ocr. 2001	NT$ 10 Per share	72,000,000	720,000,000	63,000,000	630,000,000	Capital increase of NT$30,000,000 from earnings	(90) Tai-Tsai (I) No. 155693 and (90) Jing-Shang No. 0900140497
Ocr. 2003	NT$ 10 Per share	120,000,000	1,200,000,000	84,000,000	840,000,000	Capital increase of NT$100,000,000 in cash
Capital increase of NT$110,000,000 from earnings	(92) Jing-Shang No. 09201291100

3.Information on Shelf Registration System: None

List of Major Shareholders
4/14/2026

Name of major shareholder	Shares Held	Shareholdings
Jiahe Investment Co., Ltd.	9,048,839	10.14%
Jiacheng Investment Co., Ltd.	8,519,300	9.55%
Zhizhun Investment Co., Ltd.	7,300,000	8.18%
Huang,Chin-I	7,264,137	8.14%
Youzhen Investment Co., Ltd.	6,200,000	6.95%
Zhimao Investment Co., Ltd.	6,200,000	6.95%
Hsu,Wen-Ting	5,006,160	5.61%
Yamin Investment Co., Ltd.	1,781,339	2.00%
Asia Union Investment Co., Ltd.	1,227,800	1.38%
Zhihong Investment Co., Ltd.	1,198,900	1.34%

Dividend Policy and Execution Status

(1). Dividend policy in Articles of Association:

a. If the Company makes a profit in the current year, it shall allocate no less than 2% to employee compensation, with at least 50% of the compensation allocated to frontline employees; and no more than 5% to directors' compensation. However, if the Company has accumulated losses, it shall reserve funds in advance to offset such losses. The profit in the current year referred to in the preceding paragraph means the profit before tax of the current year before deducting the remuneration of employees and directors.

Employees may be remunerated in stock or cash, and the recipients may include employees of subordinate companies who meet certain conditions, and the board meeting is authorized to formulate relevant regulations.

b. In addition to paying income tax in accordance with the law, the profit of the Company after the final settlement of each year shall first be used to cover the losses of previous years, and then 10% of the balance shall be set aside as the legal reserve, until when the cumulative legal reserve reaches the total capital. A special reserve shall be set aside or reversed according to law, and then the balance, together with the cumulative undistributed earnings of the previous year, shall form the current distributable earnings. Other than part of the earnings to be retained at the Company's discretion, the board of directors shall prepare a dividend distribution plan and submit it to the shareholders' meeting for resolution. The Company authorizes the board meeting, with the attendance of more than two-thirds of the directors and the approval of more than half of the directors present, to make a resolution on the distribution in cash of dividends and bonuses, or all or part of the legal reserve or capital reserve, and report it to the shareholders' meeting.

c. Since the company's future corporate life cycle is in a positive maturity period, that is, the growth and profitability of the industry are relatively stable; the future dividend will be mainly in cash supplemented by stocks. For the dividend distribution policy, the Company's future product planning, investment environment and other demand for capital must be taken into account, while the interests of shareholders shall be taken care of. The cash dividend shall not be less than 50% of the total dividends distributed in the current year, unless there are capital needs such as a major capital budget for improvement of product competition status, reinvestment expenditure in response to the investment environment, or other major capital expenditure.

(2). Dividend distribution situation: The company's board of directors resolved on Mar 10, 2026, to distribute a cash dividend of NT$ 3.1.0 per share from the distributable earnings in 2025, and authorized the chairman to set another ex-dividend base date, payment date and other related matters.

Impact of Planned Issuance of Bonus Shares on the Company's Business Performance and Earnings Per Share: Not Applicable.
Remuneration to Employees and Directors

(1). Information on Remuneration to Employees and Directors, in the Company's Articles of Incorporation: Please explain in detail (5).

(2). The Estimation Basis of the Remuneration Amount to Employees and Directors for the Current Period; The Estimation Basis of the Number of Shares of Stock Dividend to Employees; and the Accounting Treatment of the Discrepancy, if any, between the Actual Distributed Amount of Employees' Stock Bonus and Estimated Figure Thereof:

a. The remuneration of employees and directors in the current period was estimated and listed based on Article 26 of the Articles of Association.

b. All employees' remuneration approved by the board meeting of the Company is paid in cash.

c. If the actual amount of employee compensation is different from the estimated amount, it will be changed based on accounting estimates.

(3). The board of directors approves the proposed distribution of remuneration:

a. It is proposed to distribute employee remuneration of NT$28,902,000 and director remuneration of NT$7,211,000 in cash.

b. If there is a difference between the actual distribution and the recognized amount, the discrepancy, the reasons and the handling situation: there is no difference between the company's actual distribution and the recognized amount.

c. The amount of employee remuneration distributed in stock and its proportion to the total after-tax net income and total employee remuneration in the current individual or respective financial report: Not applicable.

(4). Information on the Amount of Compensation for Distribution and the Calculation of Earnings Per Share as Approved by the Board of Directors are as follows:

a. Actual Distribution: The cash dividend distributed to employee shall be NT$37,405,000 and directors' remuneration of NT$9,350,000.

b. In the case of any differences between the actual distributed and recognized number, please state the difference, reasons and response: The Company's actually distributed number does not differ from the recognized.

Share Repurchases: None

B. Section on Corporate Bonds: None.

C. Preferred Shares: None.

D. Global Depository Receipts: None.

E. Subscription of Warrants for Employees: None.

F. Subscription of New Shares for Employee Restricted Stocks: None.

G. Issuance of New Shares due to Acquisition of Shares of Another Company: None.

H. Implementation of fund usage plan: None.

IV. Operational Highlights

A. Business Content

Business Scope

(1). Main business contents

Electrical and audio-visual electronic products manufacturing industry, furniture and furnishings manufacturing industry, computer and peripheral equipment manufacturing industry, electronic components manufacturing industry, data storage media manufacturing and replication industry, measuring and weighing instrument manufacturing industry, medical equipment manufacturing industry, mold manufacturing industry, international trade industry, medical equipment wholesale

industry, medical equipment retail industry, measuring and weighing instrument import industry, telecommunications regulated radio frequency equipment import industry, etc.

(2). Revenue Mix:

Unit: Thousands NT$

Item	2025		2024
	Sales Amount	Proportion %	Sales Amount	Proportion %
Electronic audio messaging	2,793,792	83.97%	2,754,034	83.00%
Health care	430,859	12.95%	371,620	11.20%
Others	102,351	3.08%	192,570	5.80%
Total	3,327,002	100.00%	3,318,224	100.00%

(3). Current Product Items: Our company's electronic audio products mainly include professional DJ turntables, DJ controllers, mixers and professional keyboards, and our health home appliances include multi-functional body fat meters, blood pressure monitors, forehead thermometers and oral health machines.

(4). New products planned to be developed: Audio products: Internet Streaming Audio Device. Other health appliances include urine testing machines, Multifunctional forehead thermometer, pet breathing detector, etc.

Industry overview

(1). Current situation and future development of the industry Current Status

a. Electronic audio messaging

Electronic audio products mainly include CD/MP3 players, audio mixers, turntables, amplifiers, media controllers, etc. In recent years, due to the slowdown in overall economic growth and the rising inflation rate faced by the world after the COVID-19 pandemic, coupled with the price offensive from new competitors from mainland China, products must continue to innovate and keep pace with new technologies in order to maintain the competitiveness of high-end products and get rid of competition from low-priced products.

Electronic audio products are mainly sold in developed countries, with the United States being the largest market, followed by Europe, Japan and other regions. As global industrial technology becomes increasingly advanced, audio product technology has also shifted from analog to digital.

Furthermore, the original business model of physical music media has been gradually replaced by streaming music. In addition, with the improvement of people's living standards, the level of entertainment consumption has become increasingly diversified. Entertainment venues such as PUBs and nightclubs have flourished. Various large and small concerts and radio DJ performances have also become a trend due to the development of the entertainment industry. As a result, the DJ entertainment industry has gradually spread from advanced countries such as Europe and the United States to the world. The professionalization and digitization of audio products is the current global trend, and the development of special-purpose professional audio products is a market that audio manufacturers are actively exploring. Therefore, in the field of professional audio, there is still a lot of room for growth in functional professional audio products, such as professional DJ software

controllers, electronic synthesizers, sound processors, mixers and professional music equipment. In addition, due to the advancement of the technology industry and the increasingly popular personal computer music and audio-visual entertainment environment, the concept of digitalization of electronic products has spread throughout the world. If manufacturers can introduce digitalization into the market and develop products such as DJ direct-drive motor turntable controllers (DJ special effects turntables), DJ digital mixers and high-power MI (MUSIC INSTRUMENT), the audio industry will still have considerable room for growth in the future.

b. Health care industry:

Healthy home appliances cover a wide range of content, generally referring to health testing, measuring instruments, equipment or appliances and other health and medical equipment that can be provided at home. They can diagnose or prevent diseases, regulate physiological structure or function. Their product development period and life cycle are relatively long, and the products often require verification and clinical

testing, and must comply with relevant laws and regulations before they can be manufactured and sold. Therefore, the entry barrier is higher than that of general home appliances.

Our company's health home appliance products include multi-functional body fat meter, blood pressure meter, forehead thermometer and oral health machine, etc. The industry market is mainly in North America, Western Europe and Asia Pacific. With the increasing burden of medical costs brought by aging and chronic diseases, coupled with the rise of health awareness and fitness, the awareness of self-health management at home has gradually risen. Through the introduction of digital technology, medical, health care and digital technology have been integrated. Combined with the above, it is gradually developing towards smart healthcare, digital healthcare, and precision healthcare, and is also promoting the rise of the precision health industry from disease prevention, detection, diagnosis, treatment, and care. Through the establishment of information and communication platform infrastructure, the application of big data analysis, the introduction of artificial intelligence, etc., we are actively seeking more efficient personalized home health solutions, which will promote the continued steady growth of the global health appliances and related medical devices market.

(2). The Industry Value Chain and Relationships

a. Electronic Audio products

b. Health care

(3). Various Product Trends

a. Electronic Audio products

The changes of audio products are polarized and the network is streaming. From 2015 to 2017, Digital media and content channels flipped, CDs and MP3 were gradually eliminated from the market due to copyright issues. Following the network streaming app and subscription mode, all generations of XYZ have witnessed the changes of the times and technology generations together. In addition, family music listening has entered the WIFI wireless speaker multicast connection mode, and Bluetooth is used on music playlists for sharing feelings in small groups and communities.

In recent years, retro analog has been a trend. The mellow music quality of traditional analog is more memorable than digital music, and vinyl turntables are once again retro and popular. The retro trend created by the young middle class, the sharing of vinyl music enthusiasts, and the high-end turntables with a high-end fashion taste are all mid- to long-term audio product trends that we deeply understand and invest in.

At the same time, the horizontal extension in the professional field is also a category that the

Company has been cultivating for the special needs of public broadcasting, performance, speech, audio-visual hall and academy for broadcasting, recording, and integrated communication operations.

b. Health care

As the issues of global aging and chronic diseases have attracted increasing attention, global health care and medical expenditures have also increased simultaneously. Governments of various countries will more carefully evaluate the rationality and effectiveness of medical expenditures. In addition, the general public will gradually pay more attention to medical awareness, and will partially transfer preventive medicine and health care or detection from medical institutions to the home environment, and invest more resources in health appliances or medical products. Through policy support and reforms, the global health appliance industry will grow steadily.

In recent years, with the changes in technology, living environment and the epidemic, consumers have been stimulated to pursue personal health care, physical training and related services. Combined with cross-industry cooperation such as digital technology, testing data, service platforms and experience creation, future innovative business opportunities will be active. Our company focuses on the development of products such as body fat monitors and blood pressure monitors. In response to the popularization of mobile devices, mobile health care products and services that utilize the functions of mobile devices and wearable devices have emerged. In addition, the application of technologies such as big data and artificial intelligence has become more mature, which has also led to the launch of medical software apps and artificial intelligence diagnostic assistance software that have passed medical device regulations. In the future, it is expected to drive a new wave of development in the smart health home appliance industry.

(4). Competitive situation

a. Electronic Audio products

Based on the reputation of technology and quality for the performance and arrangement of professional DJs and recording studios, the Company will further deepen the product technology and enhance the details of user experience, and improve the matching and alignment of electronic hardware and software, all of which are the conditions for the leading position of the Company's products. Accumulating experience in the design of past keyboard products, expanding product categories to the category of electronic musical instruments, and also increasing Increases the company's diversity in audio products.

b. Health care

Product price competitiveness, high quality stability and advanced technology are necessary for healthy home appliances. Both product strength and brand strength must go hand in hand. Product development needs to take into account factory assembly modularization, the product itself can have added value that is different from competitors, get closer to customers, understand consumer market demand, continuously develop new products and improve technical patents, and mainly consolidate the creativity of product strength to gain competitive advantage. Differentiate product grades and enhance the company's image to achieve high-quality, high-specification, and high-grade products.

3. Technology and R&D

(1). R&D expenses in the past year and up to the date of report:

Unit: NT$ Thousand

| Year
Item | 2025 | January-March 2026 | Estimated R&D Expenses for 2026 |
| --- | --- | --- | --- |
| R&D expenses | 112,425 | 24,824 | 107,559 |

(2). Technologies or products successfully developed in the most recent year and up to the printing:

a. Electronic Audio products

(a). Commemorative Edition Turntable from a World-Class Audio Brand
(b). Patented high-precision foot switch guitar multi-effects pedal
(c). Portable DJ all-in-one machine with WIFI network streaming

(d). Portable cross-platform four-track mixing DJ controller
(e). Professional performance dual-track brush mixer

b. Health care

(a). Multifunctional wireless stethoscope
(b). Automatic oral irrigator

(3). The 2026 R&D plan, current progress of and the unfinished R&D plan, amount to be further invested, and the estimated time of mass production:

Unit: NT$ thousand

Product or Technology	Mass Production Progress	Current Progress	Amount to be Further Invested
Audio products and small home appliances	December 2026	23.08%	82,735

The amount of R&D expenditure has been gradually budgeted according to the progress of new product development. With the growth of the business volume, the annual R&D expenditure will gradually increase in the future to support future R&D plans and increase the competitiveness of the Company in the market.

(4). The main factors influencing the success of R&D in the future: In terms of R&D goals, besides long-term dedication and focused research to accumulate breakthroughs, it's crucial to have sufficient market planning capabilities from the initial planning and positioning assessment stages regarding the core pain points the product can address for consumers in the market and the key selling points emphasized in product marketing. Close communication with end-user brand clients is essential to produce high-quality products that are well-received by the market. Even in this era of numerous emerging technologies, it's vital to consider human factors and minimize the learning curve to create an impressive integration of multiple technologies and convenience for users, while also leveraging AI and automation to control production quality and maintain reasonable prices acceptable to consumers.
4. Long and Short-term Business Development Plans.

(1). Electronic Audio products

a. Short-term Business Development Plans:

(a). Integrate DJ products and improve production efficiency.
(b). Expand the business of electronic musical instrument products and increase the turnover.
(c). Strengthen core-technology products and develop innovative products in line with market trends.
(d). Expand the high-end HiFi turntable market.

b. Long-term Business Development Plans:

(a). Invest in the R&D of digital mixers and digital amplifiers to expand different market areas.
(b). Strengthen the R&D of electronic musical instrument products and software.
(c). Actively improve the design capability of high-class vinyl record players, and expand the market of mid to high-class vinyl record players.
(d). Establish production bases outside Taiwan and China to provide higher production flexibility.
(e). Use the current R&D foundation to strengthen the R&D team, and find partners to expand different product lines and increase the turnover.
(f). R&D and production of high value-added products to increase output value and develop new customers.

(2). Health care

a. Short-term Business Development Plans:

(a). Strengthen service quality and customer relationships, deeply understand and quickly respond to customer needs, and establish a solid cooperation foundation.
(b). Focus on process improvement and quality control, enhance overall management efficiency, and strengthen customer satisfaction and brand trust.

b. Long-term Business Development Plans:

(a). Actively introduce and cultivate R&D talents to strengthen core technology and product design capabilities.
(b). Cooperate deeply with global brand customers to jointly develop innovative products, expand diversified product portfolios, and enhance market competitiveness.
(c). Continue to optimize product quality, factory management and production efficiency, implement resource conservation and cost control to improve overall operational efficiency.

(d). Systematically introduce and update international medical quality standards (such as MDSAP, MDR, etc.), obtain certification qualifications for the European and American markets, and enhance the company's competitive advantage in the global health and medical equipment market.

B. Production and Sales Status

1. Market Analysis

(1). Sales regions of major products:

Unit: thousand NT$

Area	2025
	Net sales	Percentage (%)
U.S	2,135,411	64.18%
Japan	410,772	12.35%
France	338,054	10.16%
Canada	184,258	5.54%
China (including Hong)	114,738	3.45%
Others	143,769	4.32%
Total net sales	3,327,002	100.00%

Revenue is categorized based on the country of the customer.

(2). Future market Supply & Demand and Growth

a. Electronic Audio products

(a). Possible future supply and demand of the market

According to the statistical data of Yearbook of World Electronic Data, Europe and the U.S. are still the main consumer regions of global audio-video products, accounting for about 40% of the global consumer market. However, the production and supply are mainly from the Asia Pacific region. In recent years, Taiwanese manufacturers have been actively moving towards international operation, emphasizing international division of labor and cooperation, and establishing production bases in Southeast Asia and mainland China with their production management experience in Taiwan, and using the complete local supply chain and low labor cost compared with Taiwan's to increase their competitive advantage, and striving for more than half of the global European and U.S. consumer markets. Looking into the future, as international brands of professional audio products are still favored by consumers, under the demand for high-quality and multi-functional products, the supply side will still rely on professional ODM/OEM plants with technical and management advantages as the main source of supply.

(b). Future growth of the industry

In recent years, the rapid and vigorous development of high-tech industries has led to a substantial growth in the world economy and a relative improvement in the living standards of people around the world, which has also stimulated the growth of the general consumer product market. With the stable growth of the general consumer market, various emerging entertainment industries have been driven to develop rapidly and become more diversified. In recent years, with the rise of the self-media trend, personal recording studios have emerged one after another, and electronic musical instruments have also become a new synonym in recent years. The trend has gradually spread from advanced countries such as Europe and the United States to all parts of the world. As the entertainment industry develops towards diversification and specialization, the demand for high-quality, multifunctional products is increasing. As a result, professional audio equipment with special sound effects and multifunctional functions, professional laser turntables used in producing electronic music, and traditional turntables are becoming increasingly popular in markets around the world. According to the forecast of GLOBAL INFORMATION, a research organization, the business audio market is expected to be worth US$12.5 billion in 2025 and reach US$17.13 billion in 2030, with a compound annual growth rate of 6.5% during the forecast period (2025-2030). Benefiting from the increase in digitization, the popularity of high-speed networks and smartphones, audio products have

also extended from analog to digital as consumer electronics products have gone digital. It is clear that professional audio products will continue to grow steadily in the future under the market demand for digitalization and multi-functions.

b. Health care

(a). Possible future supply and demand situation

Our company's main health home appliances products mainly include body fat meters and blood pressure monitors. According to statistics from the research organization RESEARCH NESTER, North America, Asia Pacific and Europe are the main consumer markets, and the global manufacturers of related products are mainly Japanese, Taiwanese and Chinese companies. Since our company invested in health home appliances, it has mainly focused on ODM production and actively developed products that meet customer and market needs. At present, Yahong Company has high requirements for quality and technology, and carries out various product development and production for customers who require high-quality products with high production technology content.

(b). Future growth of the industry

With the rapid growth of the global aging population, changes in lifestyle have caused increased psychological pressure, and people's awareness of civilization diseases has continued to improve, all of which have led to an increase in the number of chronic diseases and obesity. As people's awareness of health care and routine examinations increases, their purchasing power increases, wearable and portable devices and mobile applications become more popular, and manufacturers launch innovative products combined with new technologies, all of which have driven the growth of the market for measurement products related to health appliances. Related products are used in healthcare, sports and fitness applications. Helps monitor and manage health and provide diagnostic insights in healthcare settings.

The Company's main health home appliance products mainly include body fat scales and blood pressure monitors. In terms of body fat scales, according to the statistics and forecasts of the research organization GLOBAL INFORMATION, the market value of body fat measurement will be US$610.9 million in 2023, and it is expected to reach US$681.71 million by 2024, with a compound annual growth rate of 11.68%, and will reach US$1,324.17 million by 2030; in terms of blood pressure monitors, according to the statistics and forecasts of the research organization RESEARCH NESTER, the global blood pressure monitor market size will be US$1.12 billion in 2023, and it is estimated to grow to US$4.83 billion by 2036, with a compound annual growth rate of 11.9% from 2024 to 2036. It can be seen that with the continuous increase in the global aging population and chronic disease population, coupled with the rising health awareness of people, the market for related health home appliances that can continuously monitor overall health at home will have future business opportunities.

(3). Competitive Niche & Business Development Advantages, Disadvantages and Countermeasures

a. Competitive Niche

(a). Major customers are world famous brands

In order to maintain the excellent quality of our audio and health appliances products, our company continuously improves product added value and quality control and stabilizes profits, and has never engaged in vicious price competition with its peers. In terms of audio products, its main sales customers are well-known brands in Europe and the United States. In terms of health appliances and other products, it focuses on the production of mid-to-high-end products, and its main sales customers are also world-renowned health and small appliance brand manufacturers and potential customers. With many years of good cooperation experience, in addition to obtaining stable and long-term orders from customers, it can also continuously cooperate with customers to develop new products and jointly create more business opportunities.

(b). Continuous development of niche products

The sales of the Company's professional audio products will continue to grow due to their leading product design. At present, in addition to the development and completion of the world's only digital technology of high torque, Quick start DD motor, automatic beat control and master tempo, and being selected by global professional DJ audio product brands as the premium professional DJ turntable maker, the Company has developed and completed a number of professional recording equipment for recording studios in cooperation with a leading U.S. recording equipment brand.

In terms of health care appliances, the company has launched technical cooperation with customers

to combine existing physiological signal sensing technology Technology and Internet of Things applications connect the customer's overall service platform to provide integrated health care services. at the same time, We actively strengthen the quality system qualifications for medical device production and work with partners to develop global main We need to expand into the market and deepen our international layout.

b. Business Development Advantages, Disadvantages and Countermeasures

Advantages

(a). The global consumption and entertainment levels continue to improve, and the demand for professional audio products is keen.

In recent years, due to the vigorous development of the electronic information industry, the global economy has grown significantly, which has further stimulated consumers' willingness to consume. According to the statistics of the Yearbook of World Electronics Data, the market of the electronics industry has grown steadily. Due to an increase of the willingness to consume, the demand for audio and video products for professional DJs is growing day by day. In addition, radio stations and recording studios have and increasing demand for audio and video products for professional DJs, in order to meet the requirement of young consumers. Both the Company's present and future product development goals aim at the high-end digital and professional audio and video market and the Company continues introducing new products to maintain its market competitiveness.

(b). Good R&D capability, high added value and increasing competitiveness of products Due to the development of the technology industry, audio and communication products have entered the digital era; therefore, the development of new products, the improvement of the functions of existing models or other R&D capabilities are what the operators may rely upon to survive in the market competition.

The Company has always attached great importance to product R&D. In recent years, it has been more active in the R&D of technologies and attracting and training R&D talents. The key staff of the R&D team are rich in related experience, and have good product planning and R&D capabilities, and the Company has achieved competitiveness in the market with its R&D and design capabilities in software, hardware and firmware required for relevant product technologies and patented technologies.

In terms of testing equipment, the Company keeps updating and investing, so that the products can accurately reach the ideal specifications. The Company has continuously developed new models and products with high added value, so that our products have always been popular. In the last three years, our R&D expenses were NT$112,425 thousand, NT$114,658 thousand and NT$111,203 thousand, respectively, accounting for 3.38% - 3.46% & 3.26% of the revenue. This shows that the Company pays attention to its R&D capabilities, and its specific R&D achievements have gradually emerged.

(c). The stable quality is highly recognized by customers

The Company has been engaged in the production and marketing of audio and small home appliances for many years, has accumulated considerable experience in manufacturing technology, and strictly requires the quality control of each production process. The Company has passed the ISO-9001 and ISO-13485 international quality certification and medical certification, which shows that its products are of good quality, and the internationally famous audio and communication factories are all its stable customers. In the future, the Company will continue maintaining good cooperation in technical exchange with the world's major factories, to grasp the market trend of technology, and launch more market-oriented and diversified new products.

Disadvantages and Countermeasures

(a). Due to the impact of global geopolitical factors in recent years, the weak economic recovery, the fluctuation of international raw material cost prices, the continuous increase in wage costs and the appreciation of Asian currencies such as the Taiwan dollar, it is not conducive to inventory and cost control, affecting product prices and profits, and increasing the financial risk of inventory materials.

Countermeasures:

i. Look for new material substitutes to effectively reduce the cost of raw materials, and reduce the financial risk of material inventory.

ii. Outsource some mature products or processes with high labor requirements to overseas factories with relatively low labor costs. Some electronic audio products, health appliances and small household appliances are reinvested in factories in mainland China as production bases to reap the benefits of international production division of labor and effectively reduce production costs. We also increase production capacity through automated production and reduce labor costs by controlling quality. In addition, since the start of the US-China trade war, the company has actively invested in its Philippine factory as a production base for some electronic audio products.

iii. In compliance with the introduction of ERP system, implement the complete production process specification, strengthen the management, and training of production technicians to improve production efficiency.

iv. Standardize and share parts and components, and reduce unnecessary part molding.

(b). High proportion of export sales, greatly affected by exchange rate changes. Countermeasures:

i. The possible exchange loss arising from the exchange rate change shall be included in the consideration of the quotation to current customers.

ii. In terms of foreign exchange funding arrangement, the current funds of purchase and sales will offset each other, and only one currency is adopted as far as possible, in order to manage foreign exchange assets and liabilities.

iii. Keep close relationship with dealing banks, keep abreast of exchange rate changes at any time, and take timely response measures, such as increasing asset positions of strong currencies and increasing liability positions of weak currencies.

iv. Pay attention to the change of exchange rate at any time, and take necessary hedging measures in a timely manner, or directly offset foreign currency assets and liabilities to reduce the risk of exchange rate changes.

Core Products, Main Applications, and Manufacturing Process

(1). Tant application of main products

Product Item	Important Use Of The Product
Audio	Professional audio equipment mainly used in consumer entertainment places, radio stations, music recording studios, etc.
health care	By combining IoT technology with medical devices (body fat meter, blood pressure monitor, forehead thermometer, oral health machine, etc.), we can achieve smart personal health care.

(2). Production process of main products

a. ElectronicAudio products

b. Health care

Status of Core Material Suppliers

Raw Material Name	Supply Area	Supply Status
Display module	Domestic manufacturers	No supply shortage
Mid game	Chinese manufacturers	No supply shortage
Substrate assembly	Domestic manufacturers	No supply shortage
Panel	Domestic manufacturers	No supply shortage
IC	Foreign manufacturers	No supply shortage

Major suppliers and customers in the past two years

(1). The name, amount and proportion of suppliers who accounted for more than 10% of the total purchase amount in any of the last two years: None.
(2). Major customers in the past two years

Unit: NT$ Thousand

	2024				2025				2025 (As of the previous quarter)
Item	Vendor	Amount	Percentage of total Net Purchases (%)	Relationship with the issuer	Vendor	Amount	Percentage in Total Net customer (%)	Relationship with the Issuer	Vendor	Amount	Percentage in Total Net customer (As of the previous quarter) (%)	Relationship with the Issuer
1	Customer A	1,954,906	58.91	-	Customer A	1,821,027	54.74	-	Customer A	377,982	54.16	-
2	Customer B	169,507	5.11	-	Customer B	338,054	10.16	-	Customer B	31,756	4.55	-
3	Others	1,193,811	35.98	-	Others	1,167,921	35.10	-	Others	288,159	41.29	-
	Total Net Sales	3,318,224	100.00		Total Net Sales	3,327,002	100.00		Total Net Sales	697,897	100.00
Reason for changes:In fiscal year 2025, the company continued to reduce customer concentration risk by actively developing new customers and expanding sales of high-end turntables and health appliances. (Customer B was the main driver of sales expansion in the high-end turntable market.) In Q1 of fiscal year 2026, due to factors such as a relatively high base in Q1 of fiscal year 2025 and slower customer demand, overall sales decreased compared to the same period last year; however, the proportion of major customers remained relatively stable.

C. Employee Data during the Past Two Years, Up to Apr. 30, 2025

Year		2024	2025	Up to March 31, 2026
Employee Number	Direct personnel	488	522	501
	Indirect personnel	642	614	588
	Total	1,130	1,136	1,089
Average age		40.02	41.12	40.73
Average Seniority		9.86	9.59	9.63
Education Distribution %	PhD Degree	0.00%	0.00%	0.00%
	Master Degree	2.48%	2.29%	2.39%
	College	25.22%	26.14%	27.36%
	High School	38.50%	43.05%	44.81%
	Below High School	33.80%	28.52%	25.44%

D. Information on Environmental Protection Costs

The loss caused by environmental pollution during the latest year and up to the printing date of this Annual Report: None.
Countermeasures (including improvement measures) and possible expenditures: Not applicable.

E. Labor Relations

The Company's employee welfare measures, further education, training, retirement system and their implementation, as well as labor-management agreements and employee right and interest protection measures:

(1). Welfare measures:
An employee welfare committee was established, the Company and the committee implemented the employee welfare as follows:
a. Festival and birthday bonus.
b. Subsidies for wedding and funeral, childbirth, and hospitalization for injuries and diseases.
c. Regular health checks.
d. Employee travel activities.
e. Arious leisure activity clubs.
f. Year-end dinner.
g. Year-end bonus and employee bonus.

(2). Career Development and Training for Employees:
In order to comply with the long-term development of the Company and improve the quality of employees, in addition to the systematic planning of annual training, various courses are held irregularly and personnel are sent out for lectures; grants are given to those who pass specific certification examinations.

The implementation of relevant education and training in 2025 is as follows:

Course category	Number of courses	Number of people	Hours	Cost
Pprofessional Training	23	30	68	83,900

(3). Retirement System:
In addition to the employee entitlement of payments under the Labor Insurance Act, the Company, in accordance with the Labor Standards Act and the Labor Pension Act, has formulated retirement measures to protect employees on their retirement and pension for their services, and has set aside a pension reserve on a monthly basis, deposited it in a special account, and appropriated

pensions to the individual labor pension account to protect employees' lives.

(4). Agreement between labor and management and various employee right and interest protection measures:

The successful achievement of the business objectives of the Company depends on the dedication and contribution of the employees, and the management also provides a stage for the labor to perform.

Therefore, the harmony between labor and management has always been the focus of the Company. The Company adheres to the concept of caring for employees and creating a win-win situation. In the aspects of salary, welfare and training policies, the Company upholds employee benefits, personal job satisfaction and a good working environment. Both labor and management are striving for the growth of the Company.

(5). Working Environment and Protective Measures for Employee's Personal Safety

In accordance with the Labor Safety and Health Act, in order to prevent occupational disasters and ensure labor safety and health, the "Labor Safety and Health Management Operation Instructions" and the "Safety and Health Teaching Material for Employees" are formulated which are applicable to the management of all employees' operating activities in the Company and the management of special equipment, raw materials and chemicals.

a. Training and plans:

(a). The safety and health management unit shall draw up an annual safety and health plan as required to plan the training and inspection schedule, and implement relevant matters according to the scheduled dates.

(b). The "Safety and Health Teaching Material for Employees" shall be explained to new employees during the orientation training for new employees to improve their understanding of and attention to the safety and health of the operations and workplaces.

(c). Professional training is provided to dedicated personnel to closely integrate production with safety and health.

b. Prevention and treatment of disasters: It shall be based on the "Fire Protection Plan" formulated by the Company and approved by the Fire Department.

(a). Equipment safety:

i. The elevators and stackers shall be maintained regularly to ensure safety, and shall be Handled in accordance with the "Management Measures for Machinery and Equipment".

ii. Organic solvents shall be stored in isolation, marked with warning signs, and handled in accordance with the "Operation Instructions for the Management of Hazardous Materials".

iii. Provide operation safety rules to ensure correct operation, human safety and product quality.

(b). Environmental sanitation:

i. Carry out specific prevention and injury reduction for various disasters (such as floods, fires, earthquakes, typhoons, etc.), and complete staff team formation and drills in advance, in order to deal with disasters quickly when they occur.

ii. Carry out kitchen and restaurant hygiene inspection and 6S inspection of the whole plant area irregularly.

iii. Outsource the public safety inspection of buildings before the end of June every two years: Regularly outsource site and office work environment inspection to a professional institution, and implement engineering improvement or administrative management in accordance with regulations and standards to maintain the health and personal safety of employees.

(c). Fire safety:

i. The fire controller shall prepare relevant equipment in accordance with the fire protection plan formulated by the Company to meet urgent needs. The equipment in various places shall be regularly checked for its service life and serviceability. The expired or unusable equipment shall be replaced with new ones.

ii. Outsource the maintenance and filing of fire safety equipment before the fourth quarter of each year.

(d). Healthcare:

i. In order to master the health status of employees, assign appropriate work, prevent occupational diseases, reduce labor disputes, implement health examination for new employees, and conduct regular health checks for employees every year for professional physicians to conduct on-site inspection on the health status of employees and issue complete inspection reports for employees to understand their own health status.

ii. Resident doctor, once a month, 3 hours each time.

Loss suffered from labor disputes in the latest year and up to the printing date of this Annual Report: None.
The estimated amount of current and potential future losses and countermeasures: Not applicable.

F. Information Security Management

Information security management measures implemented by the company:

(1). Security management of information operation outsourcing services
(2). Security management of self-modification of information operations
(3). Security management of physical environment
(4). Computer hardware security management
(5). Software security management
(6). Network security management
(7). Access control management
(8). Data security management

Regularly perform system data recovery test drills every year to ensure the normal operation of the information system and data preservation, which can reduce the risk of data loss caused by unwarned natural disasters and human negligence.

If an information security incident occurs and the information system cannot operate or affects execution efficiency, the information unit will carry out contingency operations.

If the losses, possible impacts and response measures due to major information security incidents in the most recent year and as of the publication date of the annual report cannot be reasonably estimated, the fact that they cannot be reasonably estimated should be stated: The company's network incidents in 2025 The impact event has no significant impact on the company's overall operations.

G. Significant Contracts: Na.

V. Analysis of Financial Position, Performance and Risk related Issues

A. Financial Position A. Financial Position
Unit: NT$ Thousand

| Year
Item | 2025 | 2024 | Difference | |
| --- | --- | --- | --- | --- |
| | | | Amount | % |
| Current assets | 2,710,668 | 2,838,670 | (128,002) | (4.51) |
| Property, plant and equipment | 664,651 | 672,597 | (7,946) | (1.18) |
| Intangible assets | 276 | 490 | (214) | (43.67) |
| Other assets | 203,761 | 198,932 | 4,829 | 2.43 |
| Total Assets | 3,579,356 | 3,710,689 | (131,333) | (3.54) |
| Current liabilities | 651,140 | 738,589 | (87,449) | (11.84) |
| Non-current liabilities | 111,913 | 109,924 | 1,989 | 1.81 |

B.Financial performance

Unit: NT$ Thousand

Item	2025	2024	Increase (decrease) Amount	Change Percentage (%)
	Amount	Amount
Operating revenues	3,327,002	3,318,224	8,778	0.26
Operating costs	2,541,888	2,462,604	79,284	3.22
Gross profit	785,114	855,620	(70,506)	(8.24)
Operating expenses	395,779	388,656	7,123	1.83
Operating income	389,335	466,964	(77,629)	(16.62)
Non-operating income and expenses	22,726	60,289	(37,563)	(62.30)
Income from continuing operations before income tax	412,061	527,253	(115,192)	(21.85)
Income tax expenses	80,897	109,505	(28,608)	(26.12)
Net income	331,164	417,748	(86,584)	(20.73)
Other comprehensive income, net of tax	(20,269)	36,149	(56,418)	(156.07)
Total comprehensive income	310,895	453,897	(143,002)	(31.51)
Net income attributable to: Stockholders of the parent	331,164	417,748	(86,584)	(20.73)
Comprehensive income attributable to: Stockholders of the parent	310,895	453,897	(143,002)	(31.51)
Comprehensive income attributable to: Stockholders of the parent	331,164	417,748	(86,584)	(20.73)

Analysis and description will be given only if the increase/decrease in ratio reaches 20% or exceeds NT$10mn. Non-operating income and expenses: The decrease compared to last year is due to the appreciation of the New Taiwan Dollar and Renminbi against the US Dollar, resulting in reduced exchange rate profits. Net profit before tax / income tax expense / net profit for the period / total comprehensive profit and loss for the period / net profit attributable to the parent company's owners / total comprehensive profit and loss attributable to the parent company's owners: decreased compared to the previous year, due to slight impacts from exchange rates and the US-China trade war / geopolitics, which also reduced non-operating income and affected profitability.

Other comprehensive income and loss for the period decreased compared to the previous year. This was due to a decrease in actuarial income and loss resulting from changes in financial assumptions, which led to a decrease in the remeasurement of welfare plans and a decrease in the exchange difference in the translation of financial statements of foreign operating entities. All of these factors contributed to a decrease in other comprehensive income and loss (net after tax) for the period.

The possible impact of the expected sales volume and its basis on the Company's future financial and business operations, and the countermeasure: Please refer to the "Report to Shareholders" on page 4.

C.Cash Flow
Unit: NT$

Cash beginning balance	Cash flow from operating activities	Cash flow from investment & financing activities	Effect of exchange rate changes on cash and cash equivalents	Cash balance
653,658	319,200	(385,083)	(10,781)	576,994

Analysis of changes in cash flow for the year:

Cash inflow from operating activities was RMB 319,200,000, mainly due to the increase in pre-tax net profit, the decrease in accounts payable, and the payment of income tax.

Cash outflows from investing and financing activities amounted to RMB385,083,000, primarily due to the distribution of cash dividends to shareholders.

Improvement plan for insufficient liquidity: Mainly due to the payment of cash dividends to shareholders and the increase in financial assets measured at amortized cost.
Cash liquidity analysis for the next year:

Net cash flow from operating activities is projected to be approximately RMB 340,620,000 for the coming year. Capital expenditures and cash dividends to shareholders are projected to be approximately RMB 361,662,000, leaving a cash balance of approximately RMB 555,952,000.

D.Major Capital Expenditures

1 Major Capital Expenditures and its Sources of Capital:
Unit: NT$ Thousand

Project	Actual or Planned Source of Capital	Total Capital (2025 & 2024)	Actual capital expenditure
			2025	2024
Property/ plant	Self-owned funds	173,724	—	173,724
Machinery / Molds and equipment	Self-owned funds	64,115	42,228	21,887

Possible effects on financial business: The purchase of Machinery / Molds and equipment can improve the company's product quality and increase the sales volume of new products, which is beneficial to inject turnover and market competitiveness.

E.Investment Policy, Cause of Profit/Loss and Future Investment Plans

Policy for Recent Investments: Based on business operation needs, the company conducts diversified operations based on the principle of diversifying risks and enhancing corporate competitiveness, and conducts prudent assessments.
The main reasons for the loss on reinvestment and the improvement plan: In fiscal year 2025, the equity method of accounting for the interests of the Company's subsidiaries was 39,767, mainly due to the profits of subsidiaries such as Asia Pacific in the Philippines and yahorng Dongguan.
Investment plan for the next year: The company will carefully evaluate investment plans from a long-term strategic perspective to respond to future market and production capacity expansion needs.

F. Risk Assessment

Effect of Changes in Interest Rate, Foreign Exchange and Inflation on Corporate Finance, and our Countermeasures:

Unit: NT$ Thousand

Item/Year	2025
Operating revenues	3,327,002
Income from continuing operations before income tax	412,061
Net gain (loss) on foreign exchange	(4,923)
Financial costs	3,062
Ratio of exchange gain (loss) to Operating revenues	(0.15%)
Ratio of exchange gain (loss) to Income from continuing operations before income tax	(1.19%)
Financial costs to Operating revenues	0.09%
Financial costs to Income from continuing operations before income tax	0.74%
Inflation rate	1.66%

(1). The impact of interest rates, exchange rate changes, and inflation on the company's profits and losses is as shown in the table above. The financial cost is NT$3062, accounting for 0.09% of the year's revenue. The proportion is not high, so changes in interest rates have no significant impact on the company; changes in exchange rates. On the other hand, since the company mainly exports, exchange rate changes have a certain impact on the company. Therefore, it is necessary to strengthen the management of exchange rate fluctuations, including customer quotations that need to take into account exchange rate changes and make foreign currency conversions at the appropriate time, etc., to minimize exchange risks. The exchange loss in 2025 is NT$ 4,923 thousand. The inflation rate in 2025 is 1.66%. Since the company's quotations to customers and suppliers are mostly adjusted dynamically by the market, it will not have a major impact.
(2). Effect of Changes in Interest Rate, Foreign Exchange and our Countermeasures.

a. Regularly analyze the exchange rate trend and keep in touch with banks to grasp the latest changes of exchange rate information.
b. Analyze the exchange rate risk in real time and reflect it appropriately in the export quotation.
c. Imported raw materials or equipment are priced in foreign currencies to offset the exchange risk of export sales revenue.
d. Adjust foreign currency deposits in due time according to the capital situation and exchange rate changes.

Policies, Main Causes of Profit/Loss and Action Plans with Respect to High-risk, High leveraged Investment, Lending or Endorsement Guarantee, and Derivatives Transactions:

(1). High-risk, High-leveraged Investments: None.
(2). Procedures for Lending Funds to Others and Countermeasures: These are handled in accordance with the "Procedures for Loans to Others" and the "Procedures for Endorsements/Guarantees" formulated by the Company.

(3). Derivatives Transactions: This is handled in accordance with the "Procedures for Derivative Trading" formulated by the Company.

Future Research and Development Projects and Corresponding Budget: Please refer to page 61.
Effects of Changes in Policies and Regulations on Corporate Finance and Sales and our Countermeasures: None.
The impact of technological changes (including information security risks) and industrial changes on the company's financial business and response measures:

(1). The impact of technological changes (including information security risks) on the company's financial business and countermeasures:

The Company's protective measures including build the firewall, anti-virus software, mail archiving auditing system, WinSrv domain management system, network flow monitoring system, and backup system. In the most recent year and up to the printing date of the annual report, there has been no major hacker attack and no loss due to major infocomm security incidents.

(2). The impact of industrial changes on the Company's financial and business operations and Countermeasure:

The Company has been actively and continuously developing new products and improving customer satisfaction to ensure its market competitive advantage, and grasp industrial trends and industry market information and evaluate their impact on the Company's operations, so as to make corresponding adjustments to maintain its market competitiveness.

The Impact of the Changes of Corporate Image on Corporate Risk Management and our Action Plan:

Since its inception, the Company has been committed to corporate social responsibility based on a decent business operation philosophy. In recent years, the corporate image has remained good without any corporate image crisis; in addition, through the spokesperson mechanism, the Company released significant information in accordance with the law to assume due responsibility to shareholders and the public.

Anticipated Results and Risks of Acquisition: None.
Anticipated Results and Risks of Expansion of Factory Buildings: The Company's plant expansion and increase of new product lines and product items will produce a synergy, which will help to expand the operation scale and increase the market share.
Risks during Concentrated Stock Replenishment and Sale:

(1). The risk from concentration of purchase: The Company has not made any purchase of more than 10% from any manufacturer in the last two years, so the risk of concentration of purchase is minimal.

(2). The risk from concentration of sales: There was only two customer accounting for more than 10% of the Company's total sales in the last two years, with the sales relatively concentrated. However, the proportion of sales decreased slightly due to the Company's continuous development of new customers and the increase of sales to other customers; besides, the Company has maintained a good and close relationship with customers since its establishment, and the risk from concentration of sales is not high.

(3). Countermeasure: Strengthen product sales in other sales regions and develop new customers to diversify possible risks.

Effects and Risks of the Large Amount of Share Transfers or Changes by Directors or Major Shareholders: None.
Effects and Risks of Change in Operating Right: None.
Litigation or Non-litigation Matters: None.
Other important risks and countermeasures: None.

G. Other important matters: None.

VI. Special Notes

A. Summary of Affiliated Companies

Consolidated Operational Reports of Affiliated Companies: https://doc.twse.com.tw/server-java/t57sb01?step=1&colorchg=1&co_id=6201&year=&mtype=K&isnew=true
Consolidated Financial Statements of Affiliates: None.
Related company reports: None.

B. The Most Recent Fiscal Year and up to the Date of this Annual Report Printed, Private Placement Securities: None.
C. Other supplementary information: None.

VII. Matters Affecting Shareholders' Equity or Stock Price

A. Matters according to the Article 36.3.2 of the Securities and Exchange Act of Taiwan in the most recent year and up to the date of printing of this Annual Report which have significant impact to Shareholders' Equity or stock price: None.

Ya Horng Electronic Co., Ltd.

Chairman: Huang, Chin-I

AI assistant

YAHORNG Annual Report 2025

52528_rns_2026-05-11_bd49a54a-bd6d-4933-949f-fcecb55b7bae.pdf

Contents

I. Letter to Shareholders

II.Corporate Governance Report

4. Professional knowledge and independence check matrix of directors

(1).Professional knowledge of directors

C. Corporate governance operation status

2.2. Greenhouse Gas verification information

III. Company Shares and Fund Raising

A. Company Capital and Shares

IV. Operational Highlights

b. Health care

(4). Competitive situation

a. Electronic Audio products

b. Health care

3. Technology and R&D

a. Electronic Audio products

B. Production and Sales Status

1. Market Analysis

(1). Sales regions of major products:

(2). Future market Supply & Demand and Growth

a. Electronic Audio products

(a). Possible future supply and demand of the market

(b). Future growth of the industry

D. Information on Environmental Protection Costs

E. Labor Relations

F. Risk Assessment

AI assistant

YAHORNG — Annual Report 2025

52528_rns_2026-05-11_bd49a54a-bd6d-4933-949f-fcecb55b7bae.pdf

Contents

I. Letter to Shareholders

II.Corporate Governance Report

4. Professional knowledge and independence check matrix of directors

(1).Professional knowledge of directors

C. Corporate governance operation status

2.2. Greenhouse Gas verification information

III. Company Shares and Fund Raising

A. Company Capital and Shares

IV. Operational Highlights

b. Health care

(4). Competitive situation

a. Electronic Audio products

b. Health care

3. Technology and R&D

a. Electronic Audio products

B. Production and Sales Status

1. Market Analysis

(1). Sales regions of major products:

(2). Future market Supply & Demand and Growth

a. Electronic Audio products

(a). Possible future supply and demand of the market

(b). Future growth of the industry

D. Information on Environmental Protection Costs

E. Labor Relations

F. Risk Assessment

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YAHORNG Annual Report 2025