Walsin Lihwa attaches importance to employee benefits and upholds the concept of employee profit sharing. The Company conducts regular market surveys in hopes of providing employees with competitive salaries and benefits, so that it can attract outstanding talent to join the team at Walsin Lihwa. The Company's remuneration policies are based on the following principles:

• The Company complies with relevant local laws and regulations, and strive to establish harmonious labor/management relations within the scope of the law.
• Starting salaries for fresh graduates and foreign workers are in compliance with local laws and regulations.
• The Company pays reasonable and competitive salaries based on the market value of professional functions as well as the contributions of employees in their positions.
• Employees are rewarded with bonuses based on the Company's business performance, team goal attainment and effectiveness, and individual contributions and performance.
• Employees' salaries and bonuses are determined by their education, knowledge, skills, professional experience, and individual performance. In no way does gender, race, religious belief, political affiliation, marital status, or membership in a union play a part in these decisions.
• Raises are planned each year based on the Company's profitability and comparisons with the results of the salary survey.
• Promotions are planned each year based on considerations such as employees' performance and development potential, organizational requirements, and employees' aptitude and career advancement or transfer intentions.

At the beginning of each year, managers and employees discuss work objectives and jointly set the work objectives for the year. Employees and managers communicate with each other regularly and discuss the implementation status of objectives in a timely manner, and provide updates on work progress. Performance evaluations for the year are conducted once every 6 months. Supervisors at all levels conduct performance interviews and evaluations with employees. The evaluation items are as follows:

• General Employees: Performance assessments and functional assessments
• Senior Management: Performance assessments and management assessments, which include policies and plans, operational capabilities, management capabilities, and sustainable development

Variable rewards will be issued based on the above performance measurement results and are applicable to 100% of full-time employees.

In order to ensure that the managerial officers' performance is closely linked to the Company's strategy and operational performance, the Company has formulated the Regulations for the Evaluation of Managerial Performance and Compensation, which covers managerial officers' performance evaluations and salary remuneration policies. The remuneration standards shall be reviewed by the Remuneration Committee and then submitted to the Board of Directors for decision. Managerial officer remuneration includes the salary and bonuses. The salary is based on the Company's business strategy and profitability, as well as factors such as the managerial officer's personal professional ability, scope of responsibilities, and market remuneration standards. Bonuses will take into account factors such as the results of individual performance evaluations, the Company's operating performance, and the correlation with future operational risks, etc. However, if there are major risk events that can affect the Company's goodwill, internal management misconduct, personnel malpractice, or other risk events, bonus will be reduced or not be issued.

Walsin Lihwa complies with the retirement laws, regulations, and systems in the markets where it has a presence in order to protect employees' rights after retirement, allowing retired employees to lead a worry-free life. For employees who retire or terminate the employment relationship, the Company will assist in the transition in accordance with the law. There is also a consultant re-employment system for key executives who retire, to reduce the impact on employees and the Company's management.

The pension system for employees in Taiwan is set forth in the Labor Pension Act, and is a defined contribution plan managed by the government; 6% of employees' monthly salaries is contributed to a personal account at the Bureau of Labor Insurance. The contribution amounts of the 2023 and 2024 defined contribution plans are listed as expenses in the consolidated statement of comprehensive income as NT$293,302 thousand and NT$325,361 thousand.

Subsidiaries located in Mainland China set aside a certain percentage (13%-18%) of individual employees' monthly salary as retirement pension, which is deposited by the relevant competent authority in employees' independent savings accounts, in accordance with the local governing laws. The salaries of retired employees are managed by the local social security bureau where the Company is located, and employees enjoy retirement pensions according to local regulations. When employees reach the statutory age of retirement and have made payments for a cumulative 15 years, they will enjoy basic retirement insurance benefits. Subsidiaries in Malaysia make monthly payments of 12%-13% of employees' salary to the EPF according to regulations of Malaysia's government, providing security after retirement.

The pension system for employees in Taiwan is set forth in the Labor Standards Act, and is a defined benefit pension plan managed by the government. Pension payments are calculated based on the employee's years of employment and average monthly salary for the last 6 months before retirement.

The Company makes monthly payments equal to 2% of the total salary of employees who retained their seniority in the old system to their retirement fund, and the Supervisory Committee of Workers' Retirement Preparation Fund deposits the funds into a dedicated account at the Bank of Taiwan under its name. Before the end of the year, if the account's balance is determined to be insufficient to pay workers that reach requirement conditions the following year, then the difference will be deposited into the account before the end of March the following year. The amount of defined benefit plans on the 2023 and 2024 consolidated balance sheets are as follows:

Walsin Lihwa, in accordance with the Labor Standards Act, stipulates that the Company shall not terminate the labor contract of employees during maternity leave, and provides female employees with 56 days of maternity leave before and after childbirth. When employees accompany their spouses for pregnancy check-ups or when their spouses give birth, they can choose to take 7 days of leave. During the paternity leave, wages will be paid as usual. In addition, for employees with childcare needs, the Company also follows the provisions of the Gender Equality in Employment Act. Employees who have been employed for more than 6 months can apply for unpaid parental leave if they need to take care of young children under 3 years old.

There were 44 newborns in 2023 and 55 newborns in 2024, representing a fertility rate of 3.9%. The number of newborns increased compared to the previous year. A total of 182 employees qualified for unpaid parental leave in 2024. Among them, 20 of the employees applied for unpaid parental leave, with a reinstatement rate of 84.6% and retention rate of 50%, showing noticeable growth compared to the previous year. Among the employees who were not reinstated, for some it was mainly due to the subsequent need to take care of their families. For those who were reinstated, the Company has also arranged for reinstatement-related matters in advance, including internal departmental education and training, which can help shorten the period of adjustment and integration for reinstated employees from parental leaves and help them familiarize themselves with their work contents more effectively and quickly, so that they can return to their workplaces efficiently.

For major operational changes that affect employees' rights and interests and related response measures, the Company will communicate through labor unions or labor-management communication meetings before implementation, and will notify affected employees in advance in accordance with legal requirements. In addition, the Company also offers relevant measures, such as providing assistance in transferring to other internal units, or providing employees with relevant materials to help them apply for relevant government subsidies. Taking the Taiwan region as an example, the Company complies with the Labor Standards Act and provide notices 10 to 30 days in advance depending on the employee's seniority.

The Employee Questionnaire has been conducted once every 2 years since 2023. The results of the 2023 questionnaire have helped the Company understand employees' views on the Company's operations, compensation, benefits, and work environment, and propose improvement plans. The primary directions for improvement are as follows:

• Clarify the employee rotation mechanism and strengthen the concept of employee development through rotation to help employees plan their career development paths in advance.
• Assist supervisors in conducting performance interviews with employees, and improve the methods and frequency of communication so that employees can more clearly understand their position in the company.
• Organize sports and fitness activities and physical fitness evaluation consultations, and arrange physicians on-site to help care for employees' physical and mental well-being.
• Continue to promote the learning and application of M365 tools and promote automation and real-time exchanges of information.

The Company began collecting data for the Employee Questionnaire in the second half of 2024, and the next Questionnaire will be conducted in 2025.