Walsin values employee welfare and upholds the principle of profit-sharing with employees. Through regular market salary surveys, the Company aims to attract outstanding talent to join Walsin by offering competitive overall compensation and benefits packages. The Company's compensation policy is formulated based on the following principles:

• Compliance with relevant local laws and regulations to foster harmonious labor-management relations within the legal framework.
• Starting salary standards for new graduates and foreign workers comply with local legal requirements.
• Reasonable and competitive overall compensation is provided based on the market value of each professional function and the employee's responsibilities and contributions.
• Bonuses are distributed based on the Company's operational performance, team goal achievement, and individual employee contributions and performance.
• Employee salaries and compensation are determined based on academic and professional background, professional knowledge and technical competence, professional experience, and individual performance, without discrimination based on gender, race, religion, political affiliation, marital status, or union membership.
• Annual salary adjustment planning is conducted based on the Company's profitability and market salary survey comparison results.
• Annual promotion or transfer planning is conducted based on employees' performance and development potential, organizational needs, employee suitability, and career development intentions.

Walsin complies with relevant retirement regulations and systems in each jurisdiction to safeguard employees' retirement rights, ensuring that all employees can enjoy a secure life after retirement. For employee retirement or termination of employment, the Company provides legally compliant transition assistance. A consultant re-employment system is in place for key senior management upon retirement to mitigate the impact on the individual and on Company management.

The retirement system applicable to Taiwan region employees under the "Labor Pension Act" is a government-managed defined contribution retirement plan, with 6% of monthly salary contributed to the individual accounts at the Bureau of Labor Insurance.

Subsidiaries in Mainland China, in accordance with local government regulations, contribute pension insurance funds monthly at a specified percentage (13%~18%) of total employee salaries to the relevant government authorities, deposited in individual accounts for each employee. Retirement wages are managed by the local social insurance center where the subsidiary is located, with retirement pay provided according to local regulations. Employees who reach the statutory retirement age and have accumulated at least 15 years of contribution are entitled to basic pension insurance benefits.

Subsidiaries in Malaysia, in accordance with Malaysian government regulations, contribute 12%~13% of employee salaries monthly to the Employees Provident Fund (EPF), providing protection for old-age retirement.

The amounts required to be contributed under the defined contribution plan for fiscal years 2024 and 2025 have been recognized in the consolidated statements of comprehensive income, with expenses of NT$ 325,361 thousand and NT$ 379,389 thousand respectively.

The retirement system for Taiwan region employees under the "Labor Standards Act" is a government-managed defined benefit retirement plan. Retirement payments are calculated based on years of service and the average monthly salary for the six months prior to the approved retirement date.

The Company contributes 2% of the total monthly salary of all employees retaining seniority under the old system to a retirement fund, deposited under the name of the Labor Retirement Reserve Supervision Committee in a dedicated account at Taiwan Bank. Before the end of the fiscal year, if the estimated balance in the dedicated account is insufficient to cover estimated retirement payments for employees expected to become eligible for retirement in the following year, the shortfall shall be contributed in a lump sum before the end of March of the following year. The defined benefit plan amounts recorded in the consolidated balance sheets for fiscal years 2024 and 2025 are as follows:

In accordance with the "Labor Standards Act", Walsin does not terminate employment contracts during maternity leave. Female employees are provided with 56 days of maternity leave before and after childbirth. Employees may apply for 7 days of paternity leave when accompanying their spouse for prenatal checkups or childbirth, with regular wages paid during paternity leave. For employees requiring infant care, the Company also complies with the "Act of Gender Equality in Employment", allowing employees with at least six months of service who need to care for children under three years of age to apply for unpaid parental leave.

There were 55 newborns in 2024 and 37 newborns in 2025, with a birth rate of 2.7%, a slight decrease from the previous year. In 2025, 126 employees were eligible to apply for unpaid parental leave, of whom 22 applied; the return rate was 77.27% and the retention rate was 91%. Some employees who did not return were primarily due to continuing family care needs. For returning employees, the Company arranges return-to-work matters in advance, including internal departmental training to help shorten the adjustment period and enable them to re-familiarize with work content efficiently and return to the workplace smoothly.

For major operational changes affecting employee rights and related response measures, the Company communicates through trade unions or labor-management meetings before implementation, and provides advance notice to affected employees in accordance with legal requirements. In addition, the Company provides supporting measures such as assisting with transfers to other internal units or providing employees with relevant information to assist in applying for government subsidies. In the Taiwan region, for example, the Company provides advance notice of 10 to 30 days depending on the employee's years of service, as required by the "Labor Standards Act".

Since 2023, the employee opinion survey has been conducted every two years. In 2025, the Company commissioned a third-party professional institution to conduct an anonymous employee engagement survey, ensuring employees can express their opinions freely. This survey covered professional-level employees at Taipei Headquarters and all Taiwan plants, with a coverage rate of 85%. The survey covered employee experience dimensions including engagement, satisfaction, work environment, management support, communication and collaboration, and career development, aiming to understand employees' expectations and actual feelings about the workplace as an important reference for the Company's continuous improvement.

Survey results indicate that as the organization's business scope continues to expand, professional specialization within each unit deepens, and the frequency of cross-domain, cross-departmental, and even cross-cultural collaboration increases accordingly. Achieving effective communication and strengthening psychological safety are the most critical goals requiring reinforcement. Based on the survey results and analysis findings, the following improvement plans are proposed:

1. Designing Training Programs Tailored to Different Job Categories: For management-level employees, the focus is on strengthening performance feedback and people-management capabilities. Starting in 2025, core management training programs such as effective coaching and feedback and situational leadership have been progressively introduced. For professional-level employees, the focus is on "effective expression of perspectives", through presentation skills courses offered at the Walsin Lihwa Academy and the hosting of a "Storytelling Competition", encouraging employees to share daily work in a relaxed and engaging manner to enhance cross-departmental understanding and exchange.
2. Providing Onboarding Support for New Employees: Based on onboarding-related feedback from the survey, starting from 2026, the Company is planning various forms of organizational support mechanisms for new employees. The HR project team will undertake overall planning, using lively and engaging interaction methods to help new employees familiarize themselves with the Company's business philosophy and industry trends, enhance cross-departmental understanding, and increase their sense of identification and belonging. The Company will also continue to help employees deepen their communication skills and improve work efficiency and psychological safety.
3. Optimizing the Performance Feedback Mechanism: Regarding the twice-yearly performance feedback mechanism, to improve the fairness and objectivity of performance assessments, the system now allows employees to invite supervisors from other departments and peers to provide work performance feedback. By aggregating multi-perspective and multi-dimensional assessment input, this approach more accurately reflects employees' actual performance in daily work and cross-departmental collaboration, and also helps promote self-awareness and professional growth.

This is the first time Walsin has encouraged employees to express their genuine opinions anonymously. The HR department has been communicating with key units in succession based on survey results, continuing to assist in formulating improvement plans and ensuring the implementation of follow-up tracking mechanisms, committed to creating a more diverse, inclusive, passionate, and vibrant workplace environment.