Walsin Lihwa actively engages in the development of CleanTech products, such as "wind power cables", "lightweight cables for heavy machinery" and "DC fast charging plugs," providing solutions for the renewable energy and electric vehicle industries. We began our deployments in the solar power transmission cable market in 2016, secured an indicative project order in 2018, and consistently enhanced our engineering services at the project site. By 2022, the Company became one of the leading companies in Taiwan in terms of market share. In the development of wind turbine tower cables, the initial research and development focused on torsion-resistant power cables in the wind turbine tower for onshore applications. In 2020, we started the development of DC & HV cables for offshore wind turbine towers, and in 2023, we delivered 9.5MW high-voltage cables for offshore wind turbine towers. The torsion-resistant high voltage cables in wind turbine towers of 14MW or more started the Production Part Approval Process (PPAP) document review and mass production preparation in 2024. The first round of production was completed successfully in Q4 and we expect to begin formal shipments in Q1 of 2025, demonstrating Walsin Lihwa's determination and efforts in developing wind turbine cables. Walsin Lihwa not only produces customer and third-party certified high voltage torsion-resistant cables for wind turbine towers, but also provides a full range of services for cable assembly and high voltage connections. In addition, Walsin Lihwa's 14MW wind turbine tower cables have a finished outer diameter of more than 100mm, which is the largest for this type of cable in Taiwan. The Wire and Cable Business Group focuses on developing charging cable sets in response to the burgeoning global electric vehicle industry. In 2023, we completed the development and certification of the CCS1/CCS2 series of DC fast charging plugs, applicable to mainstream charger cable set products ranging from 80A to 300A. In 2024, we officially obtained VPC certification for the CCS1/CCS2 series, bringing us fully in line with the government's safety regulations for charging cable sets for domestic electric vehicles. An assembly plant with comprehensive experimental equipment was established this year to provide customized services for electric vehicle charging cable sets and ensure the quality of future R&D products. In line with global developments for sustainable transportation, Walsin Lihwa will continue to research and develop high-voltage charging cables for electric vehicles to meet different market needs.

Walsin Lihwa examines and manages the environmental impact of products from the aspects of raw material use, energy use, and greenhouse gas emissions, etc. Use a high ratio of "recycled and reusable" raw materials to effectively utilize natural resources; In the production process, we are improving the production process of our plants based on "energy saving and carbon emission reduction" and continuously optimized. In terms of products, we aim to develop high-performance green products that are "net zero and sustainable". We are committed to helping our customers and end-users achieve more energy-efficient and carbon-reducing products. Taking the Stainless Steel Business Group as an example:

Adhering to the concept of a "circular economy," Walsin Lihwa continues to optimize its production processes and technologies while reducing raw material consumption and increasing recycling rates. Highly recyclable pure copper is used as the main material in the production of copper wires and cables. As part of the active development of green products, recyclable TPE and PVC materials are partially utilized to replace non-renewable PE pellets and plastics. In 2024, the proportion of reusable raw materials used reached 90.83%, and this is because Walsin Lihwa exclusively uses high-purity copper to ensure high product quality. At the same time, the Company has responded to international manufacturers' efforts to mandate a certain percentage of copper content in products to come from recycled copper by developing a copper recycling process for high-quality copper waste generated in the manufacturing process. We are ISO 14021 certified to fully utilize the reuse value of resources and comply with international standards, in order to provide the best quality products and assist our customers in jointly achieving the goal of ESG sustainable development.

We plan suitable packing materials and methods for wire and cable products based on product type, customer requirements, transportation needs, etc., prioritizing the utilization of recycled packaging materials (including but not limited to pallets, iron frames, iron shafts, wooden shafts, sealing boards, etc.) and lightweight packaging materials (such as lightweight steel plates) to achieve waste reduction and minimize our environmental impact. In 2024, the utilization rate of recycled packaging materials reached 53.28%.

Stainless steel is produced using the electric furnace steelmaking method, and a high percentage of recycled steel is used, including scrap stainless steel, scrap carbon steel, ferrochrome, ferronickel, etc. Scrap stainless steel and carbon steel are both recycled raw materials. In 2024, recycled raw materials accounted for 52.92% of the total raw materials.

To fulfill the commitment of "environmental sustainability development, we focus on process and technology improvement, with the core strategy of "developing and innovating green technologies to enhance process energy efficiency, product performance, and industry advancement." The focus is on future expansions in "process and material", where we are committed to "resource saving", "water saving", "electricity saving", and "energy saving" as the long-term goal of green process development. The Insulated Wire and Cable Business Group achieved outstanding results in carbon reduction, achieving 114% of its carbon reduction target with its overall energy saving and carbon reduction plan.