Walsin Lihwa upholds the goals of "Green Manufacturing, Happy Enterprise, Sustainable Operation". The Environmental Safety and Health Promotion Center (formerly the Environmental Safety and Health Management Committee) has complied with the Occupational Safety and Health Act (Mainland China: the Production Safety Law) to establish and promote the Occupational Safety and Health Management System, thereby providing safe and healthy working conditions, eliminating and reducing occupational safety and health risks, and promoting occupational safety for employees. The occupational safety and health policy is applicable to all employees and contractors, ensuring equal protection for all individuals working on-site. The Promotion Center regularly reviews the implementation status of occupational safety and health programs in each plant, and handles safety accidents as well as disaster analysis and prevention.

The Occupational Safety and Health management system (ISO 45001) is applicable to Taiwan plants (Hsinchuang, Yangmei, Taichung, Yenshui), Mainland China plants (Shanghai Walsin, Jiangyin Walsin (Specialty Alloy Materials), Changshu Walsin, Yantai Walsin), Indonesian plants (PT. Walsin Nickel Industrial, PT. Sunny Metal Industry), and all workers at CAS (employees, contractors, and visitors). The overall site coverage of internal and external audits was 83.97% for employees and 98.86% for non-employees (contractors) (Taipei Head Office, Indonesian plants, Nanjing Walsin (Real Estate), and Walsin Precision in Malaysia have not yet passed verifications). Occupational health and safety management, worker participation, consultation and communication, prevention and mitigation of occupational safety and health impacts directly related to the business, etc. at each production operation base shall be handled in accordance with the provisions of the Occupational Safety and Health Management System. Walsin Lihwa continues to apply the PDCA method to dynamically review management methods and make improvements as well as prevent recurrences, and conducts internal audit exercises, annual occupational safety and health performance indicator setting and tracking, and other management mechanisms to improve the work safety of colleagues.

Each plant has an Occupational Safety and Health Committee^Note1, with a certain proportion of labor representatives assigned by the Company's labor union to participate. Regular meetings are held (quarterly/monthly) to discuss regulations related to occupational safety and health (safe production), major safety and health issues, and safety and health management performance. The meeting minutes and occupational safety promotion messages are sent to Company colleagues.

Based on the ISO 45001 Occupational Safety Standard, occupational safety and health are implemented through the following mechanisms:

The goal of occupational safety management is to instill safety awareness and knowledge in the heart of every worker, creating an "occupational safety culture". In 2024, Walsin Lihwa used the 198 occupational accidents that occurred in Taiwan and Mainland China over the last 5 years as examples to help each unit propose systems and independent management activities, encouraging employees to improve their workplaces' facilities and operational procedures. The on-site Safe Job Procedures (SJP) are a joint review by operators and team members, in which the current 126 standard operating procedures are reviewed, and the SJP and risk assessments are aligned and revised after discussion. This process engages every worker in safety discussions and ensures they understand and follow the procedures. In 2024 the Frequency-Severity Indicator (FSI) rose, but detailed analysis showed that the FSI in the second half of the year was 0.796, a fall from the 1.270 of the first half of the year. This indicates that improvement projects have been clearly effective.

The improvement projects from 2024 are continuing in 2025, in which short videos serve as instructional material for high-risk operations, thereby raising employees' occupational safety awareness. Furthermore, safety training is strengthened to enhance the safety observational abilities of relevant personnel and managers. Multiple levels of inspections, from the basic level to high-level management, are conducted to comprehensively examine equipment, environments, and behavior, thereby ensuring that safety is implemented. In addition, the Company has introduced AI and IoT technologies to improve safety management efficiency and create safer work environments.

In addition to implementing training in accordance with laws and regulations, necessary training is also conducted according to department operations, on-site tasks, and the needs of the annual safety training program of the business unit. The Company has also established a comprehensive environmental safety license system to keep track of the changes and requirements for licenses at each site, in addition to regular training plans for safety and environmental responsibilities, fire escape drills, special operations personnel, and emergency response drills.

Regular self-inspections are conducted at each plant of the chemicals used in the entire plant, and chemical lists (for SDS control and GHS diagram maintenance) are established annually. The Company also conducts inspections and replacements of corresponding abnormal fire extinguishing equipment and holds relevant emergency response training on a regular basis to prevent disasters.

Walsin Lihwa's medical personnel, occupational safety and health personnel, dedicated HR persons, and staff from all departments work together to protect and promote the health of workers, and to regulate the implementation of health examinations for employees in accordance with regulations, so as to independently manage employees and workers and prevent them from engaging in unsuitable operations. There have been no deaths from occupational diseases or cases of occupational diseases confirmed by a specialist in occupational medicine in the past 8 years.

Forklifts are important and frequently-used pieces of equipment for moving objects at Walsin Lihwa plants, but they may cause serious personal injuries when driven at high speed, or when they back up or turn around. Therefore, the safety management of forklifts is an important issue that affects production safety.

To reduce the risk of accidents, Walsin Lihwa's Changshu Plant has implemented a smart forklift system promoted by the competent authority, thereby achieving digital transformation while also comprehensively improving forklift management. The system covers prevention, incident management, and post-incident tracking, strengthening driver safety and monitoring during operations, thus protecting safety during the Company's production processes. In the future, Walsin Lihwa will share its experience in testing the system, and will help all plants in Mainland China introduce the system, thereby further reducing risks in forklift operations.

Occupational accidents were reduced between 2021 and 2024 via measures such as project inventories, systematic categorization of disasters, risk assessments, and safe job procedures (SJP). Although the number of accidents increased in 2024, the overall severity of the accidents decreased. In 2025, the Company will continue to make improvements and reduce occupational accidents via ISO 45001 regulations, contractor management systems, and the newly-developed mobile phone app inspection and feedback mechanism.

In 2024, there were a total of 109 occupational injuries (including 1 fatal occupational injury at PT. Walsin Nickel Industrial Indonesia, but excluding 160 minor injuries). The ratio of recordable disasters among employees was 1.02%. The overall frequency of disasters was higher than that in 2023. Based on analysis, the highest incidence rate was 85% for entry-level technical operators (this analysis does not include CAS in Europe), and the main types of disaster were 20% for crush injuries, followed by 15% for cuts and 15% for hit by vehicle. There were 13 non-employee occupational injuries (including 2 fatal injuries but excluding 13 minor injuries). The main types of disaster were 31% for hit by vehicle injuries, followed by 23% for falls. All related disaster accident risks and deficiencies were corrected in a timely manner through physical protective equipment and management measures. In 2024, there were no fires, chemical leaks, or fatal occupational injuries in the Company.

In 2024, there were 5 cases of major penalties (penalties exceeding NT$700,000) for violations of the occupational safety and health laws in Taiwan, and they are listed below. There were no violations exceeding NT$100,000 in the Mainland China, Southeast Asia, and Europe regions. Regarding the violations, Walsin Lihwa will continue reviewing every accident and penalty to focus on high-risk hazardous operations, highly frequent false alarms, and potential threats. Setting up relevant projects and leveraging information technologies will also help gradually strengthen employees' safety awareness, ensure that the status of machines and equipment are known at all times, and effectively control raw material and chemicals. The compliance cloud information system will also gradually be implemented, thereby optimizing the management systems for occupational safety and health.

All Walsin Lihwa factories in the Taiwan and Mainland China regions implement the Walsin Lihwa Contractor Management Principles. All contractors must sign the Environmental Safety and Health Commitment Agreement and abide by the Contracting Instructions (100% coverage), and start-up meetings as well as meetings with the contractors are held regularly. Contractors must receive relevant training before being qualified to enter plants. The contractors' entry information is managed through the Contract Management System. In 2024, contractors entered the plant 7,822 times. Each plant continues to implement the Walsin Lihwa Contractor Safety and Health Management Blue Book, Standardization of Contractor Safety and Health Management Regulations, Contractor Insurance Regulations, and access control, etc. A total of 704 notification of deficiencies and improvement orders and 131 violation tickets were issued. In 2024, among contractors, there were a total of 2 fatal occupational injuries (1 in Yantai and 1 in Yenshui), 11 occupational injuries (CAS), 13 minor injuries (5 in Yantai, 2 in Yenshui, and 6 in CAS in Europe), and 3 false alarm incidents (CAS in Europe). Relevant deficiencies have been immediately corrected, and key issues of concern have been communicated. In 2024, no contractors had fire emergencies in the working environment of the Walsin plants.

Each year, Walsin Lihwa designs feasible employee health promotion plans, conducts health inspections, and analyzes the results based on risk management and the plant's hazardous operations and special operation groups (noise, ionizing radiation, dust, high temperatures, lead, manganese, nickel, and n-hexane operations), and establishes a health protection plan for the hazardous operations to ensure a good workplace environment and to prevent the emergence of occupational illnesses. No work-related health abnormalities were found in 2024.

Through health promotion lectures and activities in 2024, the Company improved employees' health awareness and guided employees to adopt healthy behaviors and habits and obtain the correct knowledge on hygiene. A total of 151 health education lectures were held in 2024, with 5,562 participants. Furthermore, 12 female employees received maternal labor health protection.