In 2025, Walsin Lihwa continued to follow the Company's existing sustainable development strategy blueprint, focusing on the three major areas of environment, society, and governance, and deeply embedding sustainability concepts in the Company's decision-making and daily operations. In the face of rapidly changing markets and global challenges, the Company actively evaluated the risks and opportunities brought by climate, energy, technology, and social trends, and incorporated them into strategic planning and resource allocation. The Company also strengthened key capabilities such as low-carbon, digitalization, and supply chain partnerships to promote transformation through process improvements and value chain collaborations. Through cross-departmental collaboration and the joint efforts of global partners, Walsin Lihwa has strengthened operational resilience while pursuing the creation of long-term value in technological innovation, energy transition, and social inclusion, thus demonstrating the Company's key role as a corporate citizen in society.

Extreme weather events were very frequent in 2025, posing great challenges to the operations of Walsin Lihwa as well as other enterprises across Taiwan. This was a reminder to companies that they must strengthen their ability to respond to climate risks, once again highlighting the necessity and urgency of carbon reduction action. Furthermore, global regulations and customer requirements are both growing more stringent, so carbon reduction and energy management have become an important foundation for companies to maintain their competitiveness and value chain partnerships. To realize Walsin Lihwa's vision of Net Zero by 2050, the Company began planning and implementing a Group-wide carbon management pathway in 2021. This involved establishing annual carbon reduction targets, achieving the reduction of GHG emissions by 1.5% at sites worldwide every year, and continuously evaluating the effectiveness of the Company's various strategies. Furthermore, Walsin Lihwa has launched independent emissions reduction plans based on industries in which the Company is active, with the Yenshui Plant and Taichung Plant having received approval from the Energy Administration. In addition to pursuing these carbon reduction targets, the Company is also actively promoting the use of green electricity. Additionally, we are gradually promoting the collection and management of supplier carbon emission data, building a supplier Low Carbon Alliance, sharing the latest global trends, and cooperating with government policies to promote carbon reductions throughout the value chain.

Walsin Lihwa believes that the key to enhancing the competitiveness of the supply chain lies in the optimization of production efficiency and distribution channels. Competitiveness depends not on the efficiency of a single node, but on the overall collaborative performance of the entire value chain. Therefore, the promotion of a sustainable value chain ecosystem must be built on a foundation of joint improvements and collaboration mechanisms with supply chain partners. We have sought out the best cable distribution models by accumulating experience from different construction projects, thereby reducing customer waiting time and energy consumption in the logistics process, while also promoting low-carbon transitions and performance upgrades in supply chains. Higher efficiency in production leads to higher efficiency in all operations. Furthermore, it also reduces energy consumption and carbon emissions during processes, which in turn lowers the damage to the environment. This showcases Walsin Lihwa's strategic thinking when it comes to integrating environmental sustainability into daily operations. Furthermore, Walsin Lihwa has also completed the construction of a submarine cable plant in Kaohsiung, which will support the delivery of energy generated by offshore wind power, forming a synergistic effect with green power development in Taiwan and the upgrade of the Company's products. This is a demonstration of Walsin Lihwa's forward-looking deployment in energy transition and climate action.

Walsin Lihwa has always adopted a "people-oriented" core philosophy. We attach importance to the integration of different expertise and backgrounds, and view cross-domain collaboration and inclusion as an important driving force for innovation and growth. By providing diverse avenues for learning and exchanges, we can expand the careers and horizons of our employees, attract professional talent from different fields and locations, continuously optimize our talent management and retention strategies, enhance the Company's overall competitiveness, and leverage the synergies of a multinational group. In a world where work environments are growing more diverse, and in response to the global trend of digital transformation, we are actively promoting the introduction of artificial intelligence (AI) and digital tools, encouraging employees to explore different digital resources. Employees are also actively participating in innovative activities such as generative AI hackathons, because the promotion of digitization must encompass more than the introduction of new tools, it must also include the realization of employees' digital capabilities in their daily process improvements and cross-departmental collaboration, thus improving operational efficiency and management quality. As an international company, Walsin Lihwa is actively fulfilling its corporate social responsibility, strengthening exchanges with local communities, and playing the role of a sustainable member of the global citizenry. In Indonesia, Walsin Lihwa has collaborated with Indonesia Morowali Industrial Park (IMIP), the Bahodopi District Government, and several companies in the IMIP to organize environmental charity activities, working with local communities to together build a sustainable homeland. Walsin Lihwa is committed to creating a friendly environment that takes into account professional achievements as well as quality of life. The Company encourages deeper connections between colleagues through diverse communication platforms and volunteer activities, thereby fulfilling the Company's social responsibility. As for industry-academia collaborations, we have supported the NTU Dean's Award for CoE Graduate Students for six consecutive years, enabling postgraduate students to focus on their research and pursue innovation and breakthroughs. Through this, we promote the sustainable development of talent cultivation and academic research.

Walsin Lihwa started implementing the IFRS Sustainability Disclosure Standards in 2024, and continued to deepen cross-departmental collaborations in 2025 in order to identify and analyze the risks and opportunities related to the IFRS and sustainability. Moreover, the material risks and opportunities identified have been incorporated into the Company's considerations for business strategies and resource allocation, thereby further supporting long-term sustainable development and strategic decisions. This ensures that the Company will remain resilient and forward-looking in a rapidly changing environment. In terms of the market and supply chains, the Company has continued to pay close attention to high-value product opportunities, especially the European high-value-added markets. We are also committed to enhancing the Company's competitiveness and strengthening the implementation and operational efficiency of market channels through diversified global deployment approaches and the introduction of smart manufacturing. Through smart manufacturing, production efficiency is enhanced and waste is reduced in all business areas, and operational and management experience as well as technical expertise from around the world can be integrated. This means that the strengths of different areas can complement each other, thereby enhancing the production resilience and overall operational performance of each plant. At the same time, Walsin Lihwa has strengthened information transparency and communication through supplier conferences and the Procurement Network for suppliers, and promotes upstream and downstream cooperation and cross-industry collaboration to further strengthen connections throughout the overall value chain.

Looking to the future, Walsin Lihwa will continue to promote various developments with a steady and practical attitude, uphold the Company's pursuit of excellence, and focus on business growth, technological innovation, energy efficiency improvement, and social responsibility. In an era of geopolitical chaos, rapid technological changes, and extreme climate conditions, Walsin Lihwa believes that having the courage to take on challenges, strengthening the Company's fundamental capacities, and fully realizing the Company's execution capabilities are crucial to continuing to create outstanding value in the midst of upheavals.