Corporate Social Responsibility

The ESG Team regularly identifies issues relevant to the Company’s operations and stakeholder concerns, and formulates corresponding strategies and action plans. The Sustainable Development Committee will consolidate these efforts and reports the implementation progress and timeline to the Board of Directors on a quarterly basis. The Board exercises oversight by evaluating the schedules, materiality assessments, and feasibility of execution of key sustainability topics, and urges the Company to conduct reviews and make necessary adjustments. For the year 2024 and up to the date of printing of the 2025 Annual Report, the following matters have been reported to the Board of Directors: (a) Planning and implementation progress of greenhouse gas (GHG) inventory and verification schedule. (b) Implementation status of the ethical corporate management program. (c) Recent communication activities with various stakeholders. (d) Timeline for the preparation of the Sustainability Report and results of the materiality assessment. (e) Completion of the Sustainability Report.

The Company voluntarily published the first sustainability report on September 30, 2022, and the following annual sustainability report will be published and discussion to the Board of Directors every year, also disclosed on the Company’s website and TWSE MOPS.

(a) Chapter VI, Section 6: “Review and Analysis of Financial Condition, Financial Performance, and Risk Matters – Risk Matters and Analysis up to the Most Recent Fiscal Year and as of the Annual Report Printing Date.”

(b) Promotion Items C and D of this table: “Environmental Issues” and “Social Issues,”  respectively.

(c) Chapter III, Section 3: “Corporate Governance Report – Implementation of Corporate Governance.”

The Company conducts analysis based on the materiality principle outlined in the Sustainability Report, engaging in communication with both internal and external stakeholders. By reviewing domestic and international standards, regulations, and guidelines, and integrating assessment data from various departments and subsidiaries, the Company collaborates with external experts to evaluate material ESG issues. Based on this evaluation, the Company formulates effective risk management strategies for identifying, measuring, monitoring, and controlling risks, thereby minimizing their potential impact. The scope and reporting period of the Sustainability Report cover information related to the company from January 1, 2024, to December 31, 2024. Except for financial performance, which is presented based on the consolidated financial statements, the rest of the content primarily focuses on the Particle board Business Unit. The data disclosed in the report encompasses three aspects: Environmental, Social, and Corporate Governance (ESG). Based on the assessed risks, relevant risk management policies or strategies have been formulated as follows:

(2) Does the Company committed to achieving efficient use of resources and using renewable materials that produce less impact on the environment?

(3) Does the Company evaluate the climate change on the present and future potential risks and opportunities of the corporation and does the Company adopt relevant responsive actions?

(4) Does the Company statistically analyze the greenhouse gas emission, water usage and waste total weight over the past years and does the Company establish policies for reduction of greenhouse gas emission, reduction of water usage or other waste management?

i. The Company’s products also quality numerous environmental protection related international certificates:

a) Acquisition of Chain of Custody (CoC) certificate from Forest Stewardship Council (FSC), certifying that product wood raw materials comply with the forest governance concept and supervision with rigorous environmental protection, sustainable operation and ecological protection.

b) Products qualify the Total Volatile Organic Compounds (TVOC) and formaldehyde inspection compliance standards certified by the international SGS and China National Furniture and indoor Environmental Quality Supervision and Inspection Center, such that the health of consumers is considered and the emission of greenhouse gas is also reduced at the same time.

c) In 2019, the Company successfully developed the No Added Formaldehyde-based-resin (NAF) board, in order to reduce air pollution and also received the formaldehyde-free certificate issued by the U.S. CARB and EPA.

d) Qualified the toxic substance inspection certification for composite wood products formaldehyde control regulations under Title VI CARB Phase 2 of Toxic Substances Control Act (TSCA) of U.S. CARE and U.S. Environmental Protection Agency (EPA), thereby providing environmental quality assurance.

e) Acquired the Swiss SGS certification and the formaldehyde testing certificate complying with F-4 Star Standard of Japan Testing Center for Construction Materials (JTCCM).

f) Qualified the Japanese Industrial Standards (JIS) A5908 F-4 Star, F-3 Star and F-2 Star certifications.

g) Acquired the Canada CANFER certification.

ii. Implementation Status:

a) Promoted emission reduction initiatives, achieving a reduction of approximately 14,773 metric tons of CO₂ emissions in 2024.

b) Prohibited vehicle idling, monitored and analyzed vehicle energy consumption, and conducted regular maintenance to improve energy efficiency.

c) The air conditioning temperature no lower than 26°C and fully replaced lighting with energy-saving fixtures to enhance electricity efficiency.

d) Carried out technical upgrades to increase the recycling and reuse rate of resources, thereby reducing carbon emissions.

e) To prevent environmental pollution, the Company has installed relevant environmental protection facilities, including an online wastewater quality monitoring system and water purification equipment. Additionally, the Company has adopted a wet electrostatic emission dust collection system that exceeds Thailand’s national environmental standards. Regular maintenance and emission monitoring are conducted to ensure compliance with applicable environmental regulations.

(2) The Company is dedicated to the environmental protection policy and promoting the managing strategies that merge recycling economic and sustainable development, be participated in carbon neutral activities as a response to the sustainability issues.

The production raw materials of the Company use the rubber woods, an economic crop from Thailand, which involves no deforestation and has no adverse impact on the environment. The Company has also acquired the certificate from the Thailand Rubber Wood Association stating that the product source of the Company is rubber wood products complying with sustainable development.

The Company is committed to environmental protection, and implements garbage resource classification, recycles wooden dust distributed in the area, and transforms waste gas into thermal energy for recycled use in the production progress in order to improve resource reuse rate. In addition, the Company also introduces high-efficiency motors and frequency converters in order to increase energy use efficiency. The Company also uses thermal imagers to monitoring the production equipment in real time in order to reduce the loss of energy.

Using diesel in order to reduce the carbon emission.

Actual outcome: More than 93% of the raw materials used in the production process are renewable raw materials. The Company’s particle board is made by recycling discarded rubber wood branches, bark, and waste materials produced in the production process of solid wood boards. In 2022 and 2023, the particle board produced by the Company can store about 0.80 million tons and 1.056 million tons of carbon emissions as estimated, respectively.

(3) Due to global warming and the greenhouse effect, countries worldwide are increasingly strict about protecting forest resources, and the wood supply is dwindling. However, the demand for wood panels continues to increase, accompanied by growth in emerging countries. Our company produces particleboard, which can be made from recycled wood or wood products. Any wood material can be used to manufacture particleboard, which is recognized as environmentally friendly wood panels and is in line with the spirit of sustainability.

The company is located in the south of Thailand. The rainy season from October to November may cause floods due to abnormal climate change, resulting in a shortage of rubber wood harvesting difficulties. Affect short-term price fluctuations. However, the company has both solid wood and particle board business, with a relatively complete wood distribution network, so rubber wood can be purchased in bulk, which has the advantage of raw material acquiring, compare to other competitors. The impact of climate change on the Company is relatively low.

A detailed description of the company’s analysis climate change risk and opportunity, please refer to the section “Climate-Related Information of Publicly Listed Companies” in this annual report and the Company’s sustainability report.

(4) The Company organizes the Energy Saving Committee, and has been committed to the promotion of energy saving and carbon reduction policy as well as the promotion of paperless measure for a long period time. The Company promotes paper recycling and re-use and electronic documents are used to replace paper documents along with the implementation on online signing and approval, in order to respond to the office energy saving and carbon reduction. In addition, the Company also implements general waste resource recycle and the process is further enhanced through waste control system, and wastes are handled by qualified contractor for complete and through processing and treatment.

The Company implements management and reduction of use on oil, gas, water and electricity, in order to achieve the energy saving, carbon reduction and greenhouse gas reduction policies (the statistical information covers GRH, GP and GPT, and the information is expected to be disclosed in sustainability report, which will include a Type 1 moderate assurance opinion in accordance with the AA1000 Assurance Standard (AA1000 v3) issued by the third-party verification):

a) The Company has installed the automatic warehousing system, in order to reduce the CO₂ generated by the use of forklift trucks. Waste gas is recycled as thermal energy in order to reduce the waste gas emission. Formaldehyde in the production waste gas is recycled and recused in order to achieve zero emission. Since 2018, the Company has implemented the wet electrostatic gas precipitator from Europe with performance superior to the national regulations of Thailand. In addition to the satisfaction of the environmental protection standards, the Company is able to achieve effective control effect on the PM 2.5 particles in the waste gas, SO₃ acid fog, organic pollutants, heavy metal pollutants etc., in order to create a green economy with sustainable co-existence with the environment.

b) The greenhouse gas emission

The company continues implementing energy-saving and carbon-reduction measures to reduce the emission risk of factory operations effectively and plans a schedule for GHG inventory and verifications.

Environmental wood debris and dust are recycled as fuel in order to reduce the external purchase of wood and use of diesel, such that the carbon emission is reduced at the same time. To achieve the goal of environmental protection, energy factory technology is improved and modified to further include the “Wood Flour Burner” nozzle, in order to use the wood skin and wood flour as the dual fuel of waste recycled fuel. Actual outcome: a total of approximately 21,506 tons of CO₂ carbon emission was reduced in 2023 and a total of approximately 14,566 tons of CO₂ carbon emission was reduced in 2024.

For information on the Company’s greenhouse gas inventory results, assurance status, and reduction policies, please refer to the section “Climate-Related Information of Publicly Listed Companies” in this annual report.

c) Water usage

Unit：million liters

To enhance the efficient use of water resources, the Company has strengthened the promotion of water conservation and the recycling and reuse of process water. Rainwater is also collected through an eco-pond and utilized for environmental cleaning. As a result, the water recycling rate increased from 26.32% to 28.26%. In addition, the company has installed an automatic detection system for wastewater quality online and water purification equipment. In 2024, the Company’s total wastewater discharge amounted to 36 m³, representing a reduction compared to 55 m³ in 2022.

d) Waste

Unit：ton

The company is committed to reusing resources to achieve the goal of reducing waste. Products that fail quality control will be chipped and re-entered into the manufacturing process.

The Company does not produce hazardous waste, and non-hazardous wastes are categorized according to local environmental protection laws and regulations; the Company chooses a qualified vendor to clean up the waste and formulates relevant management procedures. In addition, the in-charge department shall perform on-site audits at least once a year, depending on the needs. If the audit result fails, the Company will force the vendor to stop the operation and improve within the requested time. If the improvement does not meet the requirements, the contract will be terminated, and change the vendor to another qualified vendor to fulfill the corporate responsibility of waste management.

(2) Does the company have reasonable employee benefit measures (including salaries, leave, and other benefits), and do business performance or results reflect on employee salaries?

(3) Does the company provide a healthy and safe working environment and organize training on health and safety for its employees on a regular basis?

(4) Does the Company have an effective career capacity development training program established for employees?

(5) Does the company comply with laws and international standards with regards to the customer health and safety of products and services, customer privacy, marketing and labeling of products and services and did the company establish policies and reporting procedures related to consumer or customer rights and benefit protection?

(6) Does the company implement supplier management policies, requiring suppliers to observe relevant regulations on environmental protection, occupational health and safety, or labor and human rights? If so, describe the results.

Human Rights Policy

Green River Holding Co. Ltd. (Green River) is committed to ESG and dedicated to protecting its employees’ rights and interests. The Company follows the United Nations Global Compact (UNGC), the Universal Declaration of Human Rights (UDHR), the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, as well as the spirit and fundamentals of protecting human rights, embodied in such international human rights treaties. At the Company, we place the utmost value on human rights, prevent invasions or violations of human rights in any form, and treat all employees with the same dignity and respect. This Human Rights Policy applies to the Company and its subsidiaries and strictly complies with labor-related laws and regulations in all countries where we operate.

Recruiting Policy

The Company is committed to fostering a diverse, open and fair workplace. Zero tolerance on any differential treatments in language, attitude, behavior or any forms of discrimination in respect of an employee’s gender (including sexual orientation), race, color, place of birth, social status, age, marital or family status, language, religion, political affiliation, nationality, appearance, facial features, pregnancy, disability, political background, association membership and mental or physical disabilities.

No child labor (age under 15) is employed in our operation; disallow the employment of forced, bonded (including debt bonded), indentured or involuntary labor.

Eliminate all forms of forced labor, eliminate employment and employment discrimination, prohibit harassment, and respect privacy rights, Commit to creating an equal employment opportunity with dignity, safety, equality, and free from harassment and discrimination work environment.

Respects human rights and implement humane workplace management. Employees should not be corporally punished, threatened, insulted, harassed, abused, or inhumanely treated by any means.

Reasonable Work hours

To establish the norms of regular and extending working hours, and cares and manages employees’ attendance regularly.

Healthy Work Environment

Providing employees with a safe and healthy work environment and the necessary emergency facilities. The Company is striving to eliminate all hazardous factors that threaten employees’ safety and health, conduct regular training on occupational safety, and to minimize the occupational injuries risk; promoting employees’ mental and physical health by regularly offering free physical checkups and other benefits.

Friendly and Harmonious Labor-Management Communication

To improve communication between Labor-Management and address issues effectively, the Company sets up suggestion boxes and holds Labor-management meetings.

(b)Specific management plans include,

a. The proportion of female employees is about 26%. There is a breastfeeding room in the working area, and the number of days of maternity leave is better than Taiwan’s Labor Standards Act,

b. The company keeps a quota for employing disabled people with suitable working and environmental facilities, providing employment opportunities equally. The Company employs 9 and 9 disabled employees in 2023 and 2024, respectively.

c. The company has a whistleblower mailbox and a labor opinion mailbox to provide employees with appropriate communication methods,

d. Employee benefits, Please refer to 5. Labor relations and 8. Employee Working Environment and Personnel Safety Protection Measures of V. Operational Overview.

e. The company has obtained FSC CoC certification. FCS attaches great importance to labor human rights. Its assessment content include FSC Core Labour Requirements.

f. In 2024, a total of 272 participants attended training sessions on the Company’s human rights policy, relevant regulations, and employee welfare, amounting to 272 training hours.

g. The ratio of basic salary between female and male employees in the same position and job grade is 1:1, with no differences based on gender. The distribution of employee positions in 2024 is as follows:

(2) The Company’s salary and compensation policy complies with relevant laws of the government, and the reasonable salary and compensation of employees is determined based on the employees’ educational background, experience, and work performance. The Company has established the Employee Performance Evaluation Regulations, and also specified the Reward and Punishment System. In addition to the consideration of employees’ work performance, the Company also evaluates the ethical conduct standard of employees in order to protect the corporate image of the Company and to comply with the required corporate social responsibility of the Company.

The Company emphasizes employees’ rights and welfare and also shares profit earnings with employees, as well as maintain excellent working environment. Including comprehensive physical and mental care for all ethnic groups. For workplace diversity information, please refer to ii. specific management plans in Part (a) of this form.

Please refer to (5) Employee Bonus and Directors’ and Supervisors’ Compensation of 1. Capital and Shares of IV. Status on Financing of this Annual Report for Employee Compensation information. Please refer to 5. Labor relations of V. Operation Overview of this Annual Report for other employee welfare.

(3) The Company establishes the dedicated occupational safety unit and is staffed with occupational safety personnel complying with the government license standards, and also inspects all items according to the plan as well as performs review and improvement, in order to ensure that the work environment provided complies with the regulatory standards. In addition, the Company also periodically organizes employee physical examination, fire drill, first aid treatment, professional equipment training, work safety, environmental sanitation promotion and prepare adequate safety equipment for employee and medical station. The Company has established an labor safety committee, which convenes an occupational safety and health meeting every three months. In line with the Company’s philosophy and policies, the Committee formulates safety and health guidelines, sets management objectives, and develops implementation plans. It also monitors and audits management performance in accordance with the established plans, aiming for “zero workplace accidents and injuries.” Through initiatives such as risk assessments, hazard identification, safety and health education campaigns, and pre-shift briefings, the Company actively enhances employees’ risk awareness and safety knowledge. Please refer to 8. Employee Working Environment and Personnel Safety Protection Measures of V. Operation Overview of this Annual Report. The company has not experienced any fire and major occupational accidents this year. The industrial safety education training and promotion in the past three years are as follows:

(4) The Company sets up employees’ annual training program every year following the Skill Development Promotion Act, the employees’ work content, and career path, which is to implement safety, hygiene, management ability, and job-related training to employees in order to increase employees’ competency in terms of occupational skills. Please refer to 5. Labor relations of V. Operation Overview of this Annual.

(5) The Company’s products are widely used in furniture and building materials. In compliance with ISO 9001:2015 standards, the Company has established comprehensive procedures and proactively obtained various international certifications and test qualification reports. The Company is committed to the reduction of organic compounds and formaldehyde volatilization, in order to achieve high quality particle boards and the sustainable development goals of eco-friendly, toxic free, healthy and clean environment, thereby protecting the health and safety of end consumers.

The Company’s Human Resources Department is responsible for formulating the personal information protection regulations (please refer to the Company’s website and Sustainability Report for details). The policy applies to all subsidiaries, employees, and customers. To enhance employees’ information security awareness and managing and protecting customer privacy, the Company conducted an online information session and arranged internal training courses, with a total of 272 participants and 272 training hours. In 2024, no personal data complaints were reported.

The Company’s products fully comply with environmental standards (including formaldehyde emission levels), specifications, quantities, and dimensions as labeled, in accordance with its product management policy. The Company and authorized dealers sign quality commitment letter and establish penalty clauses, and provide Anti-counterfeiting product label to ensure that customers receive the legitimate Green River boards and to eliminate any counterfeit products.

The Company has obtained ISO 9001:2015 and  various international certifications (please refer to C. Environmental issues in Part (a) of this table, ensuring that product quality complies with environmental regulations and international standards. Additionally, the Company provides the certificate from the Thailand Rubber Wood Association stating that the product source of the Company is rubber wood products complying with sustainable development to customers.

Based on the characteristics of its various products and corresponding sales strategies, the Company actively seeks to understand customer and market needs. It conducts periodic audits on the implementation of customer-related policies and has established a formal Customer Satisfaction Survey Procedure. Regular customer satisfaction surveys are conducted, covering aspects such as product quality, delivery speed, service quality, and repurchase intention. Multiple complaint and feedback channels are established (including designated contact persons on the Company website, telephone, email, and various communication platforms). In addition, customer complaints are handled through a consolidated reporting and follow-up system (Correction and Prevention Action Plan), which is also used as part of the performance evaluation for the sales department. These efforts aim to foster strong customer relationships and deliver optimal service.

(6)(a) The Company establishes partnerships with suppliers based on the principle of equality and mutual benefit. In addition, the Company reviews the qualification of suppliers and contractors every half year according Vendor management policy, also implements audits irregularly in order to ensure the quality of supplies and operational requirements. The Company formulate a code of conduct for suppliers and require suppliers to sign a consent letter to ensure that the Company’s suppliers do not violate labor practices or adhere to sustainability clauses, etc. Thereby achieving the promotion of social responsibility.

(b) specific management plans

1. According to the Company’s current supplier evaluation work guidelines, supplier evaluation is conducted in the first and second half of each year in February and August. During the evaluation period, the top 10 suppliers in each group’s (divided by procurement items)  transaction amount are evaluated based on their price, product quality, delivery time, and after-sales service will be evaluated. Suppliers whose evaluation results do not meet the criteria will ask for improvement, suspension of transactions, or removal from the supplier list. By the end of 2024, 354 supplier evaluations had been conducted, of which 96%  of suppliers were rated A, 4% were rated B, and no suppliers were rated C this year.

2. The Purchasing Department conducts improvement tracking on supplier deficiencies and evaluation results.

3. Before suppliers and contractors enter the factory for construction, occupational safety and health education will be conducted, and the Company’s safety personnel will conduct inspections.

4. All suppliers of the Company must comply with the following regulations:

1) Contractors must comply with factory rules and strict zone-divided safety regulations.

2) Contractor superiors or supervisors must receive complete training on safety.

3) Contractors and supervisors must apply for work permits.

4) The contractor must put signs and operating notices indicating hazards and warning messages.

5) The contractor must cordon off the work area and prohibit non-construction personnel from entering the construction area.

6) Tools, machines, and equipment used for work must be safe.

7) After the work is completed, the area must be cleaned and restored.

8) Contractors must dress neatly and wear protective equipment according to the nature of the work.

9) No child labor (age under 15)

(b) The company’s sustainability report follows the Universal Standards 2021 (Universal Standards 2021) announced by the GRI Association in 2021 as the main comprehensive disclosure framework and echoes the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, “Sustainable Development Goals” from SDGs, the framework set by the Task Force on Climate-related Financial Disclosures (TCFD), and “Sustainability Accounting Standards” from SASB.”

(a) The Company established ER Section, and is dedicated to become an outstanding corporate citizen, and the Company continues to care for the education of disadvantaged groups, construct educational resource sharing, promote industry-academic cooperation, and outstanding talent cultivation. In addition, the Company also organizes various public welfare activities for socially disadvantaged group care, community medical health educational resource subsidies, and elderly care, etc. The public welfare activities span across the Songkhla region, Trang, Thailand, where the Company located and surrounding areas, and the beneficiaries include all major colleges and universities, local junior high and elementary schools, non-profit-seeking social organizations, and the general public. The Company also encourages employees to jointly participate in social welfare activities in order to assist employees to maintain physical and mental health as well as a work life balance, thereby achieving growth with the Company together. The Company provides free health examinations to surrounding residences and allocates budget in scholarship and senior citizen care programs every year: (1) in 2024, the company provide low-income student scholarship, outstanding student scholarship and aid in campus construction is NT$ 351 thousand. The Company cooperate with schools and government institutions, including the selection process and provide the scholarship on time. The Company hopes to assist the students with financial aid and encourage them to concentrate on their studies. (2) In 2024, the company provide for the senior citizen caring program is NT$ 427 thousand. Monthly visits to the poor, seriously ill, shut-in, and disabled elderly in the community, and provide assistance and daily necessities subsidies. (3) Approximately NT$ 366 thousand was spent on participating in charity activities and community services in 2024, joining in community or official activities, providing annual electrical appliance safety inspections and maintenance, holding skills training for local communities, etc., to foster neighbor relations. The total amount of donation and related CSR activities in 2024 was NT$ 1,429 thousand.

(b) Since 2015, the Company has consecutively received various social welfare awards and social welfare service awards from the central government and local government. The Company seeks to attract people sharing the same notion to be committed to the care of socially disadvantaged groups. In addition, through the integration of government and local social resources along with the teamwork development model, the Company creates an organization operated based on innovation and human culture.

(c) The Company has passed the latest version of ISO 9001:2015 standard, which certifies the company’s production environment is safe, eco-friendly, stable, well-managed, and provides high-quality products and comprehensive services.

In addition, the Company has established relevant corporate governance principles, including such as: “Rules of Procedures for Shareholders Meetings”, “Procedures and Rules of Board of Directors Meeting”, “Regulations Governing Procedure for Board of Directors Meetings”, “Regulations for Election of Directors”, “Rules Governing the Scope of Powers of Independent Directors”, “Audit Committee Charter”, “Regulations Governing Audit Committee Operation”, “Remuneration Committee Charter”, “Regulations Governing Remuneration Committee Operation”, “Regulations Governing Establishment of Internal Audit Systems”, “Code of Ethical Conduct”, “Ethical Corporate Management Best Practice Principles”, “Sustainable Development Practice Principles”, “Regulations on Sustainable Information Management”, “Procedures for Acquisition and Disposal of Assets”, “Policies and Procedures for Loaning of Funds and Making of Endorsements and Guarantees accordingly”, “Regulations on Governing Related Party Transactions”, “Subsidiary Supervision and Management Regulations.”, “Management Operation Measures for Internal Material Information Processing and Prevention of Insider Trading”. In addition, the Company releases material information of the Company according to relevant laws, and periodically discloses financial and non-financial information. The Board of Directors also follows the responsibilities assigned by the shareholders in order to lead the operation of the Company and to effectively achieve the management function of supervising the management level.

(3) Does the company establish and execute the risk management and firewall system within its conglomerate structure?

(4) Does the company establish internal rules against insiders trading with undisclosed information?

(2) The company shall retain at all times a register of major shareholders with controlling power, and of the persons with ultimate control over those major shareholders and maintains excellent relationships with major shareholders.

(3) The Company has established relevant control mechanisms in the internal control system of the Company, “the Corporate Governance Best Practice Principles”, “Subsidiary Supervision and Management Regulations.”, “Regulations on Governing Related Party Transactions” according to the laws and audits regularly.

(4)

(a) The directors of the company handed in a declaration of willingness to comply with the SEC law when they were elected.

(b) Every employee has to sign a non-disclosure agreement when onboarding.

(c) The Company has established the “Management Operation Measures for Internal Material Information Processing and Prevention of Insider Trading” and “Code of Ethical Conduct” in order to regulate all employees, managerial officers, and directors of the Company as well as any person who has learned the information by reason of occupational or controlling relationship to prevent any conduct possibly involving insider trading, and the Company also implements audits and educational promotion periodically.

(d) In addition, the Company arranges related courses in our orientation training for new employees and managerial officers.

(e) The company arrange the BOD schedule for the next years in advance and reminds directors not to trade in the company’s stock during the closed period Board of Directors. The company updates  the latest laws and regulations for insiders and arranges relevant courses every year, in order to avoid directors violating the norm.

(2) Does the company voluntarily establish other functional committees in addition to the Compensation Committee and the Audit Committee?

(3) Does the company establish a standard to measure the performance of the Board, and implement it annually? And submitting the results of performance assessments to the Board of Directors and use them as reference in determining compensation for individual directors, their nomination and additional office term.

(4) Does the company regularly evaluate the independence of CPAs?

1. Basic requirements and values: Gender, age, nationality, and culture.
2. Professional knowledge and skills: A professional background (e.g., law, accounting, industry, finance, marketing, and technology), professional skills, and industry experience.

The members of the Board of Directors should be diversified and possess the below skills:

Please refer below table for the experience and professional ability of the members of the Board of Directors.

(Continue)

The Company has eight directors, including three independent directors, and one of the independent directors is female and directors with employee status account for about 38% of all directors. The professional backgrounds of the Board Members include management, scientific/engineering, financial, environment fields, etc., and their profiles cover chairman, managerial officers, and professors. The Board Members with diverse knowledge, including industry and academic fields, match the Company’s diversity goal. Therefore, Directors can provide professional opinions in different aspects, beneficial to the company’s business performance and management efficiency. The Company places strong emphasis on gender equality in the composition of its Board of Directors, with a goal to increase the proportion of female directors to one-third (33%) or more. Currently, 87% of board members (7 seats) are male and 13% (1 seat) are female. The Company is committed to improving gender diversity and will endeavor to nominate more female candidates in future board elections to achieve this objective.

Specific management objectives of the company’s diversity policy:

(2) The company established the Sustainability Development Committee on March 12, 2025, to assist the Board of Directors in overseeing sustainability-related matters. The Company will further establish other types of functional committees depending upon the actual operation status and according to the regulatory requirements.

(3) The Board of Directors of the Company passed the Board Performance Evaluation Measures of the Board of Directors on 2019/12/25. In accordance with the procedure, the Company assesses the Board’s performance annually and submits the performance evaluation results to the Board of Directors, using them as a reference in determining compensation and nomination for individual directors. Please refer to (1) Board of Directors Implementation Status of 3. Corporate Governance Operation Status of III. Corporate Governance Report in this Annual Report for 2024 performance evaluation criteria and results.

(4) The Company assesses the suitability of the CPA yearly; The Company shall obtain the CPA independence declaration and referencing AQI results, then submit to the Board of Directors together. The annual assessment has submitted to the Board of Directors on 2024/03/13 and 2025/03/12, respectively. The criteria and major content are listed below:

Professionality-the service quality and timeliness from the CPA meet the needs.

Independency-the CPA don’t hold shares of the Company or any affiliate of the Company.

Interest avoidance-the CPA does not co-invest or share interests with the Company or any affiliate of the Company.

Rotation-As of the latest certification, the CPA has never provided the Company with the audit service for consecutive 7 years.

(2) No major difference.

(3) No major difference.

(4) No major difference.

(2) The main responsibilities of the corporate governance unit are to handle matters relating to board meetings and shareholders meetings according to laws, produce minutes of board meetings and shareholders meetings, assist in onboarding and continuous development of directors, furnish information required for business execution by directors and assisting with legal compliance. In addition, review the qualifications of independent directors in nomination, election, and performance period if in compliance with the related regulations and report to the Board of Directors; and handling of matters relating to the change in directors.

(3) The Implementation is as follows：
A. furnishing information required for business execution by directors and arranging refresher courses:
(a) Providing the latest or amended law and regulations related to the Company’s business and corporate governance when the directors onboard and to update periodically.
(b) Furnishing information required for business execution by directors and maintaining the communication between directors and chief officers of each division.
(c) Assist in arranging meetings with chief internal auditor or CPA.
(d) Assist in arranging refresher courses.
(e) Assist in arranging factory on site visits.

B. Handling matters relating to board meetings and shareholders meetings procedures and resolutions in compliance with laws.
(a) reporting to the Board of Directors, independent directors or audit committee on the company’s corporate governance operations and confirming whether the company’s shareholders’ meeting and board meeting are in compliance with relevant laws and corporate governance codes.
(b) Assisting and reminding the directors which the laws and regulations that should be followed when executing business or making a resolution of the Board of Directors.
(c) Reviewing the material information announcement of an important resolution from the Board of Directors meeting to ensure the content’s legality and correctness for protecting investors have reciprocal transaction information.

C. Schedule the date of the Board of Directors meetings in advance with the expected agenda. Reminds directors of the meeting agendas and restate the insider trading-related regulations one month before the meeting. The agenda items and comprehensive pre-meeting materials for Board of Directors meetings shall be sent together with the notice of the meeting to each director at least seven days in advance. The Company shall remind directors if a director is an interested party with respect to an agenda item, shall enter recusal. The proposals in the meeting will be explained by the in-charge person each proposal by each. And finishing the minutes of a Board of Directors meeting within 20 days after the meeting.

D. In accordance with related laws and regulation to handle the pre-registration of shareholders’ meeting, to prepare the shareholders meeting notice, the handbook of the annual meeting of shareholders, the minutes of the shareholders meeting, and to handle the change of registration when the articles of association is amended, or the directors are re-elected.

(2) Does the company have other information disclosure channels (e.g. building an English website, appointing designated people to handle information collection and disclosure, creating a spokesman system, webcasting investor conferences)?

(3) Does the Company announce and report the annual financial statements within two months after the end of the fiscal year, and announce and report the first, second and third quarter financial statements as well as the operating status of each month before the prescribed deadline?

(2) The Company assigns dedicated personnel to be responsible for the collection and disclosure of the Company’s information and to announce and report relevant information on MOPS, and the Company also establishes the spokesman system to be responsible for providing explanations to the outside in order to ensure that information possibly affecting the decision making of the shareholders and stakeholders to be timely and appropriately disclosed. Relevant information of the investor conferences organized or participated in by the Company has been published on the Company’s website and MOPS.

(3) The Company follows relevant laws and regulations to announce and report the annual financial statements based on the prescribed deadline, as well as the quarterly financial statements and the operating status of each month.

(2) Employee Care: The Company encourages employees to participate in various educational trainings, provides labor insurance and group insurance, periodically organizes employee health examinations, etc., establishes excellent interaction with employees, and values the rights and benefits of employees.

(3) Investor Relationships: The Company convenes shareholders meetings according to the Company Act and relevant laws in order to provide sufficient opportunities for submission of proposals by shareholders. In addition, the Company has also set up a spokesman and contact window to handle questions raised by investors. The Company has established the investor section on the Company’s website (including Traditional Chinese, English, and Simplified Chinese) and also discloses company financial and business information on MOPS according to the laws. Furthermore, the Company irregularly organizes or participates in investor conferences in order to protect the rights and benefits of investors, as well as to fulfill corporate responsibility for shareholders.

(4) Supplier Relationships: The Company maintains long-term and excellent collaboration relationships with main suppliers.

(5) Rights of Stakeholders: Stakeholders may communicate with and make suggestions to the Company in order to maintain their legitimate rights and benefits.

(6) Status on Educational Training of Directors and Supervisors: The Directors of the Company have all participated in corporate governance related courses. In addition, the Company has no supervisors.

(7) Implementation Status of Risk Management Policy and Risk Measurement Standards: The Company focuses on its core business and cooperates with the launch of all policies related to the laws, and also establishes operation of various standards to implement regulations in light of reducing and preventing any possible risks.

(8) Implementation Status of Customer Policy: The Company assigns dedicated personnel to handle customer complaints, and also properly determine the cause of issue and accountability in order to ensure service quality to customers.

(9) Status of Liability Insurance Purchased by the Company for the Directors and Supervisors: The Company has purchased liability insurance for all Directors.

(a) Matters Not Received for Scores and Already Improved: Does the company set up a dedicated unit in charge of the promotion and execution of the company’s corporate conduct and ethics, responsible for establishing and supervising the implementation of ethical corporate management policies and prevention programs; also disclose the promotion and execution of the dedicated unit on their company websites and annual reports and report to the board of directors on a regular basis (at least once a year)? The company established the Sustainability Development Committee on March 12, 2025, under which the “Corporate Governance and Ethical Business Team” was formed to assist the Board in overseeing sustainability-related matters. The team is responsible for revising internal regulations, promoting legal compliance, organizing training programs, and and assessing the implementation of ethical commitments. The corporate governance officer reported the promotion and implementation of the company’s corporate conduct and ethics to the Audit Committee, Sustainability Development Committee, and the Board of Directors on May 8, 2025, and May 9, 2024, respectively. Relevant information has been disclosed  on the Company’s website and the annual report.

(b) Priority Enhancement and Measures: Has the company ensured that a majority of the directors and the convener of the Audit Committee personally attend the shareholders’ meeting, and disclosed the attendance list in the meeting minutes? The company has requested that directors attend the shareholders’ meeting and has informed them of the meeting schedule in advance. It is expected that this year’s shareholders’ meeting will meet this requirement.