Human Rights and Talent Management Policy

Walsin Lihwa complies by the laws and regulations of each operating location around the world, is committed to safeguarding the basic human rights of employees, protects the legitimate rights and interests of employees, supports and abides by the following human rights conventions and human rights protection standards recognized by the international community, and strives to be fair and reasonable and treats every worker—permanent, temporary, migrant, intern or contractor—with respect, and extends the same principle to partners.

• Universal Declaration of Human Rights (UDHR)
• United Nations Global Compact (UNGC)
• ILO Declaration on Fundamental Principles and Rights at Work
• United Nations Guiding Principles on Business and Human Rights (UNGPs)
• United Nations Declaration on the Rights of Indigenous Peoples

The scope of application of the Company's human rights policy includes the Company and domestic and foreign subsidiaries, joint ventures, and other enterprise organizations associated with the Group and that the Group has substantial control over, as well as suppliers, contractors, partners (customers, communities) and other stakeholders. The Company is committed to preventing any human rights violations. Furthermore, Walsin Lihwa also listens to the views of stakeholders through diversified, open, and two-way communication channels, and regularly discloses them publicly on the Company's official website and sustainability reports. At the same time, the Company briefs all new employees on the policy during onboarding to ensure that they understand the implementation of the Group's human rights policy. Please refer to the company website for relevant goals and implementation measures.

Walsin Lihwa always respects and supports the labor standards of the Universal Declaration of Human Rights, the United Nations Global Compact (UNGC), and the International Labor Organization Convention, and is committed to ensuring that every individual within and outside the Company is treated equally and with dignity. The Company's human rights management process includes the establishment of human rights policies, the formulation of strategies for mitigation and remedial action, training on human rights issues, and the operation of grievance mechanisms. The following are other human rights issues of concern to the Company and corresponding mitigation measures:

In 2024, a total of 5,208.22 hours (4 courses) of human rights-related education and training were implemented for internal employees, including the "Promoting a Friendly Workplace", "An Introduction of Taiwan Personal Data Protection Act", and "Workplace misconduct", as well as the "Human Rights Training" courses organized for management . The training was also promoted during supplier conferences.

Walsin Lihwa protects the human rights of employees through the labor union and labor-management meeting systems; 100% of employees who are eligible are protected by the labor union. Suppliers are bound by the "Supplier Management Commitment".

Walsin Lihwa mainly divides the hiring of non-standard workers into 2 categories: temporary workers and outsourced workers. The human rights of these non-standard workers are managed through the Company's hiring management regulations and the temporary worker and outsourced worker system. These workers enjoy the same hiring conditions as formal employees at Walsin Lihwa, except for the overall benefits package. They have the same basic protections, such as labor and health insurance.

Walsin Lihwa established a labor union in November 1976 to pursue improvement of working conditions and promote smooth communication between labor and management. The Company's policy announcements and employees' opinions and suggestions are communicated through 2-way direct communication between employer and employees. A labor union representative meeting is held annually, and quarterly labor-management communication and coordination meetings are held for union representatives. Various issues related to employees are discussed at the meetings, and company representatives are present for communication. Plants are equipped with labor union meeting rooms, allowing employees to communicate and exchange opinions with labor union representatives on a daily basis. Seminars are also held periodically where union board members can communicate directly with senior executives.

Selection and commendation activities for exemplary workers are also organized annually, and 63 model labor representatives were selected in 2024. Walsin Lihwa has also set up various channels for grievances. In addition to holding quarterly labor-management consultation meetings, weekly or ad hoc meetings may be held as an important channel for employees to communicate their rights and interests, to ensure regular interaction between labor and management. The discussion topics at labor-management consultation meetings include discussions on personnel recruitment and departures, the company's business development and talent development needs, wages and benefits, working environments, and grievance matters. All of the Company's operating activities and major changes to employees' work are in compliance with the requirements of the Labor Standards Act. Employees may exercise their rights in accordance with the Company's policies and procedures, and can also report to labor negotiation representatives to obtain rights and interests protection, thereby maintaining good interactions between labor and management.

Walsin Lihwa has not signed a collective bargaining agreement with the labor union. Although the Company has established a labor union, it has not yet signed a collective bargaining agreement because the union has not requested the Company to negotiate on a collective bargaining agreement.

As of the end of December 2024, Walsin Lihwa has a total of 11,612 employees worldwide, most are regular employees (9,556 male, 1,397 female); 2.4% are contract employees (229 male, 50 female); and approximately 3.3% are foreign migrant workers (378 male, 2 female). Walsin Lihwa has continued to expand the Company's global business scope as well as the scale of its domestic and overseas operations. Through planned investments and collaborations, Walsin Lihwa has realized its strategic vision, expanded its brand value, and continued to increase the total number of employees worldwide.

Because Walsin Lihwa's wire and cable as well as stainless steel operations fall in the heavy manufacturing industry category, the workforce at Walsin Lihwa's plants consists primarily of male workers, and therefore the percentage of male workers is higher than that of female workers. Managers are mainly between the ages of 41 and 50; regular employees are mainly under the age of 30. Wire and cable and stainless steel are technology and labor intensive industries. In terms of educational background, most managers graduated from university, while regular employees mainly graduated from senior high school or lower. Factoring in prevalent legal prohibitions on the employment of child labor, Walsin Lihwa complies with local labor laws and regulations in the areas where it has a business presence and does not employ anyone under 16 years old. Walsin Lihwa Taiwan has 29 employees with mental or physical disabilities in the Taiwan region, amounting to approximately 1% of the total number of employees in Taiwan.

Walsin Lihwa adheres to the principle of employing people based on their talents, choosing the right people for the right job, and believing that employees are the company's most important assets. This is implemented through a well-established internal organization and a fair and open recruitment process. In 2024, 2,243 new employees were hired to meet the company's overall operational needs and promote employment development opportunities. The total number of employees at Walsin Lihwa increased from 4,931 in 2019 to 11,612 in 2024, and the number of new employees also increased from 888 to 2,243, demonstrating a 153% growth rate. Among them, the proportion of new employees under the age of 30 (inclusive) reached 59%, which has constantly injected new energy and vitality into Walsin Lihwa's innovative culture.

In 2024, the total employee turnover at Walsin Lihwa was 2,079 employees, and the turnover rate in each region was: 14.2% in Taiwan, 24% in Mainland China, 20.9% in Indonesia, 24.8% in Malaysia, and 9.4% in Italy. Due to the Company's policies in the previous year, the turnover rate in Mainland China and Indonesia increased, though the overall turnover rate in 2024 dropped significantly. In addition, since 2018, the Company's voluntary turnover rate has remained below 15%, fully demonstrating the Company's tangible results in talent retention. When an employee submits a resignation application, the Human Resources Department will confirm with the unit supervisor and arrange a resignation interview to understand the reason for the resignation and provide consultation. At the same time, based on the employee's expertise and willingness, the Human Resources Department will determine whether there are internal positions suitable for transfer. In addition, for employees who leave the Company involuntarily, the Company pays relevant fees and handles salary notification in accordance with the provisions of the Labor Standards Act and the Employment Service Act. The calculation of the severance pay is based on the number of years of service under the old system or the new system of the Labor Pension Act. The issuance of an Involuntary Separation Certificate enables involuntarily separated employees to apply for unemployment benefits from public employment service agencies.

Walsin Lihwa firmly believes that diversity is key to corporate sustainability and success. The Company is committed to creating an inclusive and respectful work environment. Every employee is given the environment to fully demonstrate their unique values and talents regardless of gender, nationality, age, or religious background.

In terms of gender diversity, despite the relatively low proportion of female employees caused by the nature of the industry, Walsin Lihwa still adheres to the principle of gender equality, provides equal job opportunities and treatment, and values the abilities and contributions of every employee, thereby encouraging employees to maximize their potential.

As the Company's global deployment continues to expand, Walsin Lihwa also deeply recognizes the diverse perspectives and innovative momentum brought by different countries and cultures. The Company not only actively recruits talent from all over the world, but also encourage employees to engage in cross-cultural dialogue and collaboration, working together toward a more diverse and inclusive corporate culture. The various manpower diversity indicators in 2024 are as follows:

Walsin Lihwa employs local employees in all regions, which not only provides more effective management of the local business and enhances the stability of the Company's operation, but also increases cost-effectiveness in the region as well as improves the local employment rate and standard of living. The Company has many different nationalities in the Italy region, resulting in more nationalities being represented in the management instead of being dominated by one single nationality. Therefore, the proportion of local residents in the management is relatively low. For other regions, such as Taiwan, Mainland China, Indonesia, and Malaysia, more than 70% of senior management are local employees.