OCCUPATIONAL SAFETY AND HEALTH

The right to life is far more important than the right to work, and occupational safety is the most critical working condition that the Company and its employees must jointly uphold. As an employer, all personnel act as company representatives coordinating with clients; therefore, detailed occupational safety and health management information is not disclosed at this time. The Company has established a Safety Office to implement the Occupational Health and Safety Management System. We comply with labor laws, fulfill our corporate responsibilities, and ensure the care and protection of employees. Safety and health/environmental policies, as well as labor safety and health regulations, have been established, and occupational safety and health meetings are held quarterly. Employees are expected to understand and comply with occupational safety and health regulations relevant to their own roles, ensuring their personal safety at work. The Company has obtained ISO 14001:2015 Environmental Management System and ISO 45001:2018 Occupational Health and Safety Management System certifications. In 2024, three safety and environmental procedures were newly established or revised. A management review meeting was held on July 6, 2024, and the Company successfully passed the external audit on July 26, 2024. These management systems cover 4,477 employees and 162 non-employee personnel. Procurement, development, construction, production, maintenance, and contracting activities all fully comply with ISO 14001:2015 and ISO 45001:2018 requirements.

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^{Hazard and Risk Assessment}

Disasters are commonly perceived as unexpected and unplanned events. In the context of safety management, however, the concept of a disaster refers to the process from the root cause, through a sequence of events over time, to the resulting phenomenon or outcome. Given the complexity of plant equipment and frequent human-machine interactions, implementing autonomous safety inspections to prevent equipment failures and human errors has always been a critical workplace safety concern.

The Company conducts regular hazard identification and risk assessments in accordance with the “Hazard and Risk Assessment Procedure.” Potential occupational health and safety hazards associated with operational activities, products, and service processes are proactively and continuously identified and assessed. In 2024, 15 high-risk items were identified (including elevator/hoist cable or chain breakage, collisions, brake hooks contacting cables/chains, crushing, electric shocks, mold/spring/part ejection, etc.), 62 medium-risk items, and 17 low-risk items. These assessments allow the Company to evaluate health and safety risks and opportunities, aiming for zero accidents. Continuous hazard identification and risk evaluation help determine opportunities to eliminate or reduce safety and health risks, thereby implementing the safety and health policy and achieving continuous improvement.

Work environment monitoring is conducted to understand the actual conditions of employees’ work environments and to assess their exposure levels through planning, sampling, analysis, or instrument measurement. Appropriate strategies must be established to achieve these objectives. The Company monitors environmental factors such as noise, respirable dust, carbon monoxide, carbon dioxide, xylene, toluene, illuminance, humidity, and temperature, executing 767 measurement samples in total. Of these, 618 samples—including noise, respirable dust, oxygen, carbon dioxide, xylene, toluene, illuminance, humidity, and temperature—met the standards, while 47 noise, 13 illuminance, and 89 temperature samples were non-compliant. Immediate corrective actions were taken, including improving lighting and ventilation, and strictly requiring employees to use earplugs to reduce noise exposure.

The Company provides employees with earplugs and earmuffs and conducts regular specialized medical examinations to ensure proper care and protection for all personnel.

^{The Procedure of Risk Assessment}

^{Prevention of Occupational Safety Impacts}

The Company regards contractors as important work partners. To ensure the safety of contractor personnel, production sites implement measures in accordance with local occupational safety and health laws and related regulations. Contractor work plans are reviewed, and suppliers or clients entering the facility are required to wear safety protective equipment as stipulated. Various management mechanisms are promoted to enhance contractor safety, such as compliance with the Contractor Control Table requirements (including equipment operation training records and professional licenses) and regular or random inspections during the construction process to confirm work safety. A contractor qualification review system has been established, classifying contractors based on their service items to create a vendor registry. This system enables the procurement unit to proactively understand contractor sources while improving construction quality and occupational safety standards. Each production shift is assigned one safety officer responsible for checking equipment and fire safety according to established checklists. The Safety Office conducts weekly plant inspections, recording deficiencies and issuing reports for on-site correction, with follow-up verification. The Management Department also inspects one plant weekly, recording deficiencies and ensuring corrective actions are completed. In 2024, the Company conducted labor safety education and training for employees, covering general safety supervision, forklift operation, overhead crane operation, and hazard analysis management. A total of 11,978 training hours were delivered, with 5,064 participants, representing a 31% increase in training hours compared to 2023. In compliance with international regulations, customer requirements, and environmental trends, the Company maintains a registry for 236 chemical substances used in operations to ensure proper control and management.

^{Safety Dojo (Training Center)}

The Company has established a Safety Dojo at the Baishan plant. The term “dojo” originates from Japanese and refers to a training place. The Safety Dojo has become an excellent venue for employees to learn numerous important safety courses. The training conducted at the dojo mainly covers safety, quality, and environmental protection. Safety Dojo education is an experiential safety education method. By simulating scenarios such as being stroked by objects, fingers being caught in a stamping press, and safety shoes being crushed, employees can effectively combine “listening, observing, and doing” through watching, participating, and experiencing. This helps them gain a deeper understanding of the dangers and consequences of safety incidents and enhances their awareness of the importance of safety on an emotional level.

^{Notification and Investigation Mechanism for Occupational Hazards}

In accordance with local regulations, the Company supervises the investigation and handling of occupational accidents and compiles occupational accident statistics to monitor employees’ safety in real time. When an occupational accident occurs, the Safety Office immediately initiates an investigation, conducting analysis, handling the incident, and developing corrective measures. Regular safety and health communications are carried out to prevent similar incidents from recurring. In 2024, the Company recorded a total of six occupational accidents, primarily involving crush injuries. In addition to establishing relevant operating procedures and strengthening awareness campaigns, protective measures were installed on potentially hazardous equipment. All employee injuries were actively and properly addressed, and every effort was made to assist affected employees in returning to the workplace.