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Our selected production sites are all located within industrial zones approved by local governments. These locations do not include protected habitats or high-biodiversity areas that are important to Indigenous peoples or local communities. Nevertheless, we remain committed to ecological preservation. With relatively large factory premises, we cultivate appropriate greenery within our facilities to enhance the environment and mitigate our environmental impact. We also reference the Biodiversity Risk Filter developed by the World Wide Fund for Nature (WWF) to assess the potential biodiversity impacts and dependency risks associated with our business operations. The results indicate medium to medium-low biodiversity risk levels.

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To address waste management, the Company adopts a waste reduction-first approach, followed by classification and recycling, and finally waste disposal. Policies have been established for recycling resources such as water, electricity, and raw materials, with specific targets and implementation methods in accordance with ISO 14001, all disclosed on the Company’s website. The Company complies with government regulations and pays waste disposal fees as required under waste management laws. Waste generated from the Company’s operations primarily includes wastewater and waste liquids from the coating production lines. Oversight, management, and audits of waste disposal contractors are conducted through document reviews. In 2024, the Company generated 581.43 tons of general industrial waste, 12,962.50 tons of recyclable waste, and 4,077.03 tons of hazardous/dangerous/toxic waste. All waste is handled by qualified disposal contractors. Food waste from the employee cafeteria is collected by livestock industry contractors for recycling; this volume has not yet been included in statistics but will be added to recyclable waste counts in the future. The Company’s target for 2025 is to reduce hazardous waste by ≥3%, while the actual reduction achieved in 2024 was 19.17%. Starting in 2024, on-site inspections of hazardous waste disposal vendors have been conducted, including incineration of oil-contaminated rags, paint sludge, sanding belts, as well as disposal of waste liquids and fluorescent lamps.

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Our water consumption is primarily for factory operations. Each year, we set a concrete target of reducing water usage by 2–3% and manage each production site accordingly. Domestic wastewater is recycled through RO treatment for reuse in irrigation and toilet cleaning. In 2024, 20,210 tons of wastewater were reclaimed and used as secondary water; for example, watering plants in the morning to reduce evaporation, and supplying water to fish tanks through a circulating system. To minimize unnecessary water waste, we also promote good water-use habits among employees, such as turning off taps immediately after use.

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Since September 2022, the Company has implemented a systematic energy management system and established an “Energy Promotion Team” to review energy targets and responsibilities, plan and improve management measures, ensure timely execution and progress tracking of energy management initiatives, and ensure operations comply with energy management system requirements. The purpose of obtaining ISO 50001 certification is to manage and control energy according to the ISO 50001 management system, efficiently manage energy usage, reduce greenhouse gas emissions, and achieve energy-saving and carbon reduction goals.

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The Company designates June and December of each year as Environmental Awareness Months, promoting various energy-saving and carbon reduction policies to employees. Specific annual electricity-saving targets are set for each production site, with performance tracked and disclosed on the Company’s website. Greenhouse gas inventories are conducted in accordance with ISO 14064-1, with verification entrusted to the third-party organization BSI.

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Our company has a policy on the management of hazardous substances to prevent them from being mixed into our products in order to protect the global environment.

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The procurement strategy comprehensively considers factors such as supplier quality, price, delivery schedules, and cooperation to select suitable suppliers. Since these raw material suppliers are not exclusive and there are at least two suppliers available for the same materials, the supply sources are relatively sufficient, thus avoiding the risk of over-concentration in procurement. Since 2016, including both customer bulk purchases and the Company’s own procurement of raw materials and parts, the proportion of local procurement has gradually increased from below 50% to 80–90%. In recent years, due to global climate change potentially causing disasters such as typhoons, droughts, floods, and disruptions in transportation and communications, the Company requires major raw material suppliers to prepare contingency plans to minimize the impact of incidents that may disrupt the Company’s supply. Suppliers are also required to manage their own suppliers accordingly and to comply with the Company’s integrity policy.

2024 Procurement

Item	Unit	Purchase volume	Ratio
Sheet Metal	Tons	25,871	77.03%
Metal Pipe	Tons	7,485	22.29%
Metal Block	Tons	229	0.68%
Total	Tons	33,585	100%

2024 Local Procurement

Origin	Unit	Amount	Ratio
Local Procurement in Vietnam	NT$ Thousand	3,420,591	83.06%

2023 Procurement

Item	Unit	Purchase volume	Ratio
Sheet Metal	Tons	22,050	61.55%
Metal Pipe	Tons	12,999	36.28%
Metal Block	Tons	779	2.17%
Total	Tons	35,828	100%

2023 Local Procurement

Origin	Unit	Amount	Ratio
Local Procurement in Vietnam	NT$ Thousand	3,212,277	82.76%

2022 Procurement

Item	Unit	Purchase volume	Ratio
Sheet Metal	Tons	31,149	66.52%
Metal Pipe	Tons	14,360	30.67%
Metal Block	Tons	1,317	2.81%
Total	Tons	46,826	100%

2022 Local Procurement

Origin	Unit	Amount	Ratio
Local Procurement in Vietnam	NT$ Thousand	3,970,470	88.57%

The main raw materials of our products, coming from major steel factories in the world, include iron coils/iron plates, iron pipes/iron bars, aluminum ingots, etc. All steel suppliers are required to provide certification documents and to guarantee that any metal used for their products or packaging, such as tungsten, tin, tantalum, gold, are not from Democratic Republic of the Congo and its neighboring countries or any mines controlled by the juntas in these areas. By implementing source control with the primary steel suppliers, we can effectively identify and trace the origin of our raw materials, thereby eliminating the use of conflict minerals.

Regarding raw material risks, our company has established a Risk Management Committee to regularly assess raw material risks. Major risks for our company include significant fluctuations in steel prices and material scarcity. Our risk mitigation strategy involves maintaining low price levels, establishing appropriate safety stock, and being flexible in responding to production demands. When facing material shortages, we promptly procure and urge suppliers to deliver goods. We also negotiate with customers to consider alternative materials, thereby reducing risks associated with critical raw materials.

The Company values the protection of the environment and society. We also choose companies with the same integrity. In addition to regular factory visits to assess the suitability of our suppliers, we also conduct annual evaluations of our existing vendors. In addition, all our suppliers abide by our honesty policy of not accepting gifts or commission and prohibiting transactions with related parties. If a supplier violates the policy, the Group will cease business relation immediately; this is to ensure reasonable quotations, the best quality, and the best service so that the Company and our suppliers can jointly strive to enhance corporate social responsibility.

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