Stock Code: 3689

U.D. ELECTRONIC CORP.

2025 Annual Report

Website: http://newmops.tse.com.tw
Printed on April 1, 2026

I. Name, title, phone number and email address of the spokesperson and deputy spokesperson:

Spokesperson

Name: Yung-Ming Li

Title: Chief Financial Officer

TEL: (03)324-2000

Email: [email protected]

Deputy Spokesperson

Name: Chang-Pu, Wu

Title: Head of the Management Center

TEL: (03)324-2000

Email: [email protected]

II. Address and phone number of headquarters, branch and factory:

III.

Headquarters:	2F., No. 13, Ln. 68, Neixi Rd., Luzhu Dist., Taoyuan City	TEL: (03)324-2000
Dongguan factory:	No. 1, Xinyuan Rd., Ludong Vil., Humen Town, Dongguan City, Guangdong Province	TEL: (0769)85162899
Zhong Jiang Factory:	No. 303, W. Sec. 4, Erhuan Rd., Nanhua Town, Zhongjiang County, Deyang City, Sichuan Province	TEL: (0838)7135678
Vietnam Factory:	Lot CN-01, Phase I, Tai Hoa Industrial Zone, Beilishe, Lý Nhân County, Hà Nam Province	TEL: 02437866777

IV. Name, address, website and phone number of stock transfer agent:

Name: Stock Transfer Department, Taishin Securities Co., Ltd.

Address: B1F., No. 96, Sec. 1, Jianguo N. Rd., Taipei City

Website: https://www.tssco.com.tw/

TEL: (02)2504-8125

V. Name, office name, address, website and phone number of financial statement CPA in the most recent year:

CPA: Accountant Meng-Kuei Yu and Chiang-Hsun Chen

Office: Deloitte Taiwan

Address: No. 100, Songren Rd., Xinyi Dist., Taipei City

Website: http://www.deloitte.com/tw

TEL: (02)2725-9988

VI. Name of any exchanges where the Company's securities are traded offshore and the method to access information on said offshore securities: None.

VII. Company website: http://www.ude-corp.com

Page

U.D. ELECTRONIC CORP.

2025 Annual Report Table of Contents

Page

One. Letter to Shareholders ... 5
I. 2025 Business Results ... 5
II. Overview of 2026 Business Plan ... 5
III. The Company’s future development strategy ... 6
IV. Impacts of the external competitive environment, regulatory environment and overall business environment ... 6

Two. Corporate Governance Report ... 7
I. Information about directors, supervisors, the General Manager, Assistant General Managers, deputy assistant general managers and the heads of departments and branches ... 7
II. Corporate governance implementation ... 24
III. Information about CPAs’ fees ... 63
IV. Information about the replacement of CPAs ... 63
V. For the Company’s Chairman, General Manager, or managerial officers responsible for handling financial or accounting affairs who held a position in the CPA firm or any of its affiliates in the most recent year, their names, titles and terms in the CPA firm or any of its affiliates shall be disclosed. The affiliates of the CPA firm mentioned refer to the companies or institutes to which the CPAs holds more than 50% shares, or that more than half of the directors are the CPAs, or are listed as affiliates in the CPA firm’s external publications and data ... 63
VI. Transfer of equity interests and changes in pledge of equity conducted by directors, supervisor, managerial officers, and shareholders having a shareholding ratio of more than 10% in the most recent year up to the publication date of this annual report ... 63
VII. Information on the Top 10 shareholders in shareholding ratio who are related parties to each other or have a spousal relationship or are relatives within the second degree of kinship ... 64
VIII. For the total number of shares held in any single invested business by the Company, its directors, supervisors, managerial officers, and any businesses controlled directly or indirectly by the Company, the comprehensive shareholding ratio is calculated in a consolidated manner ... 66

Three. Fundraising Overview ... 67
I. Capital and shares ... 67
II. Issuance of corporate bonds ... 73
III. Issuance of preferred stocks ... 74
IV. Issuance of overseas depository receipts ... 74
V. Issuance of employee stock option certificates and restricted employee shares ... 74

VI. Issuance of new shares in connection with mergers or acquisitions or with the acquisition of shares of another company 76
VII. Implementation of capital utilization plans 76

Four. Operation Overview 77

I. Business item 77
II. Overview of market and production & marketing 86
III. Data of employees in the most recent two years up to the publication date of this annual report 92
IV. Information on environmental expenditure 92
V. Labor-capital relations 92
VI. Summary of information security risk management framework 94
VII. Important contracts 96

Five. Review and Analysis of Financial Status and Financial Performance and Risk Issues 98

I. Financial status 98
II. Financial performance 99
III. Cash flow 100
IV. Effect of material capital expenditure in the most recent year on the financial and business status 100
V. The reinvestment policy in the most recent year, the main reasons for the gain or loss of the investment, the improvement plan and the investment plan for the coming year 100
VI. Risk item analysis and assessment should have regard to the following matters in the most recent year up to the publication date of this annual report 101
VII. Other important issues 106

Six. Special Items 107

I. Information on affiliates 107
II. Private placement of securities in the most recent year up to the publication date of this annual report 112
III. Shares of the Company held or disposed of by subsidiaries in the most recent year up to the publication date of this annual report 112
IV. Other necessary supplementary information 112

Seven. Any significant events materially affecting shareholders' equity or price of securities as defined in Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange Act in the most recent year up to the publication date of this annual report 113

One.Letter to Shareholders

Dear shareholders,

Thank you for coming to the 2026 Annual Shareholders’ Meeting of the U.D. ELECTRONIC CORP. despite your busy schedule. We as the representatives of the Company and all employees thank you for your support and care. The Company’s report on business results in 2025 and brief future operation plans is as follows:

I. 2025 Business Results

(I) Implementation of operational plan

The Company's net operating income for 2025 was NT$4,917,809 thousand on an individual basis, an increase of 18% from NT$4,159,878 thousand in 2024, and net income for the year was NT$652,156 thousand, an increase of 28% from NT$511,215 thousand in 2024.

(II) Budget Execution: No financial forecast was made public in 2025, so there is no budget execution matters to disclose.

(III) Financial income and expense and profitability analysis

Unit: %; NT$

Item			2024	2025
Financial structure	Ratio of liabilities to assets (%)		37.47	36.72
Solvency	Current ratio (%)		108.53	118.84
Profitability	As a percentage of paid-in capital (%)	Operating income (loss)	28.62	67.56
		Net income before tax	71.23	91.72
	Profit margin (%)		12.29	13.26
	EPS (NT$)		6.42	7.55

The Company’s financial structure in 2025 was better than that in 2024, mainly due to the decrease in liabilities as a result of the Company’s fourth CB conversion and the repayment of long-term loans in 2025. Due to the increasing demand and continuous improvement of gross profit after 2025, the profitability indicator has been improved from 2024.

(IV) Status of Research and Development

The Company continues to deepen its investments in technology related to high-frequency and high-speed magnetic materials to improve the transmission speed of products to meet market demand, and gradually streamlines product design and effectively simplifies the manufacturing process, as well as customize the efficiency and ability to continuously improve, to provide customers with enhanced services and solutions to build a long-term customer trust base.

II. Overview of 2026 Business Plan

(I) Management policy

Looking forward to 2026, China's position as the world's factory will be shaken due to the global geopolitical situation and the impact of the U.S. tariff policy. In addition to the Finlandization of the assembly line production capacity to diversify the risk of labor shortage in the coastal factories, and the redesign of the product structure and the introduction of intelligent and automated production processes to achieve the goals of reducing labor costs, shortening the delivery time, and lowering the inventory, we have diversified the risk by manufacturing our products in our Vietnam plant. In addition, products are also manufactured in Vietnam to diversify risks. In addition, we have continued to expand our high-end networking products this year, with the hope that our leading technology, solid production management foundation, and solid market position, along with the expansion of new high-end networking customers, will enable us to grow steadily.

(II) Expected Sales Volume and its Basis

Based on our consideration of actual figures for 2025, the recent order intake and the overall economic factors, the Company estimates that the sales volume for 2026 will be flat.

(III) Major Production and Marketing Policies

Production Policy

All of our factories are 100% indirectly invested companies with the following expected production policies:

(1) Introduce smart manufacturing operations with automated robot production to achieve the goal of reducing labor costs and shortening delivery time.

(2) Effective inventory reduction through product design adjustment and automated imports.

Marketing Policy

In response to the growth trajectory of new applications, we are supplementing our high-end product customer base and securing partnerships with major domestic and foreign customers.

III. The Company’s future development strategy

In view of future development needs, the Company will continue to deepen its high-frequency, high-speed, and magnetic material technologies and develop related products. An automated production factory has already been established in Vietnam. For directly or 100% indirectly reinvested factories, the Company will continue to promote the implementation of smart automation to enhance automation capabilities, reduce labor and inventory management costs, and achieve shorter delivery lead times. Externally, the Company is actively expanding into Southeast Asian and Vietnamese markets to create maximum profits.

IV. Impacts of the external competitive environment, regulatory environment and overall business environment

Due to the global geopolitical situation and the impact of the U.S. tariff policy, the production cost in Mainland China has been increasing year by year. In addition to improving factory costs, increasing the overall gross profit margin of our products, and maximizing profits through our product sales mix, we will establish a subsidiary in Vietnam by the end of 2022 to enhance our overall product competitiveness through the introduction of an intelligent automated plant and to focus on the production and marketing of a wide range of products, thereby effectively reducing the need for labor and diversifying our product risks to minimize the impact of the external competitive environment, regulatory environment, and overall operating environment. We will also diversify our product risks to minimize the impact of external competition, regulations, and the overall business environment.

Chairman: Po-Jung Chen

Managerial officer: Min-Che Chen

Accounting Officer: Yung-Ming Li

Two. Company Governance Report

I. Information about directors, supervisors, the General Manager, Assistant General Managers, deputy assistant general managers and the heads of departments and branches

(I) Data of the directors and supervisors (Note 2)

Directors and supervisors (Note 2) data sheet

March 29, 2026; Unit: share; %

Title	Nationality or country of registration	Name	Gender Age	Date elected (appointed)	Term (year)	Date first elected	Shares held when elected		Current shares held		Current shares held by spouse or minor children		Shares held in the names of others		Educational background and experience	Concurrent posts in the Company or other companies	Other executives, directors or supervisors in a spousal relationship or within the second degree of kinship
							Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio			Title	Name	Relations
Chairman and the CEO	Republic of China	Po-Jung Chen	Male 41-70 years old	2020.06.18	3 years	2007.08.07	1,886,299	2.44%	2,086,299	2.33%	316,556	0.35%	0	0	MBA, San Francisco State University Vice Chairman and General Manager of Speed Tech Corp.	Director of Global Connection (Samoa) Holding Inc. Director of Sunderland Inc. Director of San Francisco Inc. Director of All First Int'l Co., Ltd. Director of Morning Paragon Limited Director of Ta Yang UDE Limited Director (corporate representative) of CDE Corp. Director (corporate representative) of DYP Corp.	Nil	Nil	Nil
Director and General Manager	Republic of China	Min-Che Chen	Male 41-50 years old	2020.06.18	3 years	2007.08.07	1,887,559	2.44%	2,187,559	2.45%	0	0	4,648,561	5.20%	Master in Automatic Control, University of Sunderland, the UK Assistant General Manager of Speed Tech Corp.	General Manager of Dongguan Jian Guan P.E. Co., Ltd. Director and General Manager of Zhong Jiang U.D.E. Electronics Corp. Director (corporate representative) and General Manager of CDE Corp. Director of Continuous Growth Investment Co., Ltd. Director (corporate representative) of DYP Corp.	Director	Chi-Ling Chen	Sister and brother
Director	Republic of China	Chi-Ling Chen	Female 51-60 years old	2020.06.18	3 years	2007.08.07	1,210,489	1.56%	901,489	1.01%	0	0	0	0	Jen-Teh Junior College of Medicine, Nursing and Management Piano teacher	Nil	Director and General Manager	Min-Che Chen	Sister and brother
Director	Republic of China	Yu-Chan Shih	Male 51-60	2020.06.18	3 years	2015.06.17	734,006	0.95%	880,006	0.98%	38,204	0.04%	0	0	International Trade	Nil	Nil	Nil	Nil

Title	Nationality or country of registration	Name	Gender Age	Date elected (appointed)	Term (year)	Date first elected	Shares held when elected		Current shares held		Current shares held by spouse or minor children		Shares held in the names of others		Educational background and experience	Concurrent posts in the Company or other companies	Other executives, directors or supervisors in a spousal relationship or within the second degree of kinship
							Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio			Title	Name	Relations
			years old												Department, Fu Jen Catholic University Business Section Manager of Delta Electronics, Inc. Business Manager of Speed Tech Corp.
Director	Republic of China	Chang-Chun Chien	Male 61-70 years old	2020.06.18	3 years	1997.08.07	1,116,394	1.44%	1,116,394	1.25%	176,478	0.20%	0	0	Department of Auto Mechanics, Cheng-Kung Vocational Senior High School Assistant General Manager of Da Ming Paper Industry Co., Ltd. General Manager of Sheng Chang Rong Trading Co., Ltd.	Nil	Nil	Nil	Nil
Director	-	Chun Feng Investment Co., Ltd. (Note 1)	-	2020.06.18	3 years	2017.06.15	281,000	0.36%	281,000	0.31%	0	0	0	0	-	Director of Ledlink Optics Inc. Director of Hua Chen Investment Co., Ltd. Director of Success Innovation Management Consulting Co., Ltd.	Nil	Nil	Nil
	Republic of China	Te-Chang Yao	Male 51-60 years old				0	0.00%	183,900	0.21%	0	0	0	0	Master in Electrical Engineering, University of Southern California Master in Finance, National Taiwan University Assistant General Manager of Hsu Pang Management Consulting Co., Ltd. General Manager of Ta Ya Venture Capital Co., Ltd.	Chairman of Chun Feng Investment Co., Ltd. Chairman of Hua Chen Investment Co., Ltd. Chairman of Success Innovation Management Consulting Co., Ltd. Chairman of Yang Fu Investment Co., Ltd. Chairman (corporate representative) of Yang Chuang Investment Co., Ltd. Chairman (corporate representative) of Yang Da Investment	Nil	Nil	Nil

Title	Nationality or country of registration	Name	Gender Age	Date elected (appointed)	Term (year)	Date first elected	Shares held when elected		Current shares held		Current shares held by spouse or minor children		Shares held in the names of others		Educational background and experience	Concurrent posts in the Company or other companies	Other executives, directors or supervisors in a spousal relationship or within the second degree of kinship
							Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio			Title	Name	Relations
																Co., Ltd. Chairman (corporate representative) of Feng Huang Innovative Venture Capital Co., Ltd. Chairman (corporate representative) of Feng Huang Second Innovative Venture Capital Co., Ltd. Chairman (corporate representative) of Feng Huang Third Innovative Venture Capital Co., Ltd. Chairman (corporate representative) of Feng Huang Fourth Innovative Venture Capital Co., Ltd. Chairman (corporate representative) of Feng Huang Fifth Innovative Venture Capital Co., Ltd. Director of ASIX Electronics Corporation Director of Taitien Electronics Co., Ltd. Director of YoungTek Director (corporate representative) of ACTi Corporation Director of Gigastone Corporation Director of LEDIAMOND OPTO CORPORATION Director (corporate representative) of Onewave Technology Co., Ltd. Director (corporate representative) of IHI CO., LTD. Director of Sync-Tech System Corp. Director of LeRain Technology Co., Ltd.

Title	Nationality or country of registration	Name	Gender Age	Date elected (appointed)	Term (year)	Date first elected	Shares held when elected		Current shares held		Current shares held by spouse or minor children		Shares held in the names of others		Educational background and experience	Concurrent posts in the Company or other companies	Other executives, directors or supervisors in a spousal relationship or within the second degree of kinship
							Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio			Title	Name	Relations
																Director (corporate representative) of WishMobile, Inc. Director (corporate representative) of NCKU Venture Capital Co., Ltd. Independent Director of Syntec Technology Co., Ltd. Director of Sunrise Venture Capital Co., Ltd.
Independent director	Republic of China	Kuang-Chao Fan	Male 71-80 years old	2020.06.18	3 years	2011.11.17	0	0	0	0	0	0	0	0	PhD in Mechanical Engineering, University of Manchester Institute of Science and Technology Executive of the Tjing Ling Industrial Research Institute, National Taiwan University Chair of the Institute of Industrial Engineering, National Taiwan University Dean of the College of Engineering, National Taiwan University Director representative of juridical person of N.T.U. Innovation Incubation Center Professor of the Department of Mechanical Engineering, National Taiwan University	Chairman of Optodyne International Co., Ltd. Director of 3DFamily Technology Co., Ltd. Director of Test Research, Inc. Independent Director of Syntec Technology Co., Ltd. Director of Dawn Venture Capital Co., Ltd.	Nil	Nil	Nil
Independent director	Republic of China	Hsueh-Yu Liu	Male 61-70 years	2020.06.18	3 years	2011.11.17	0	0	0	0	0	0	0	0	Department of Electronic Engineering, Fu	Director (corporate representative) of Portal Co., Ltd.	Nil	Nil	Nil

Title	Nationality or country of registration	Name	Gender Age	Date elected (appointed)	Term (year)	Date first elected	Shares held when elected		Current shares held		Current shares held by spouse or minor children		Shares held in the names of others		Educational background and experience	Concurrent posts in the Company or other companies	Other executives, directors or supervisors in a spousal relationship or within the second degree of kinship
							Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio			Title	Name	Relations
			old												Jen Catholic University Manager of Manufacturing Business Department, HP Taiwan Information Technology Ltd. Assistant General Manager of WK Associates Ltd.	Director (corporate representative) of Portal International IPRs Service Co., Ltd. Director of ELTA Technology Co., Ltd. Independent Director of Wieson Technologies Co., Ltd. Independent Director of Filipower Integrated Technology Inc.
Independent director	Republic of China	Hsu-Ling Wang	Female 61-70 years old	2020.06.18	3 years	2011.11.17	0	0	0	0	0	0	0	0	Bachelor in Accounting, National Chengchi University Manager of Accounting Department, HP Taiwan Information Technology Ltd. Assistant General Manager and Chief Financial Officer of WK Associates Ltd.	Director of Po Chiang Co., Ltd. Supervisor of N.T.U. Innovation Incubation Center	Nil	Nil	Nil

Note 1: Chun Feng Investment Co., Ltd. had elected a juridical person as corporate director.
Note 2: The Company formed the Audit Committee on June 18, 2020 as a substitute for supervisors. Thus, no supervisor data was disclosed.

December 31, 2025

(II) Major shareholders of the corporate shareholder

Name of corporate shareholder	Major shareholders of the corporate shareholder
Chun Feng Investment Co., Ltd.	Te-Chang Yao (85.42%), Shu-Ching Chang (9.92%), Chun-Han Yao (2.33%), Chun-Chieh Yao (2.33%)

(iii) If major shareholders of corporate shareholders are corporate entities: None.
(IV) Information on the professional qualifications of directors and the independence of independent directors

Member type	Conditions Name	Professional qualifications and experiences (Note 1)	Independence (Note 2)	Number of other public companies where the member concurrently serves as a compensation committee member
Chairman and the CEO	Po-Jung Chen	MBA, San Francisco State University Vice Chairman and General Manager of Speed Tech Corp. The chairman does not meet any of the conditions specified in Article 30 of the Company Act.	-	-
Director and General Manager	Min-Che Chen	Master in Automatic Control, University of Sunderland, the UK Assistant General Manager of Speed Tech Corp. The chairman does not meet any of the conditions specified in Article 30 of the Company Act.	-	-
Director	Chi-Ling Chen	The chairman does not meet any of the conditions specified in Article 30 of the Company Act.	-	-
Director	Yu-Chan Shih	International Trade Department, Fu Jen Catholic University Business Section Manager of Delta Electronics, Inc. Business Manager of Speed Tech Corp. The chairman does not meet any of the conditions specified in Article 30 of the Company Act.	-	-
Director	Chang-Chun Chien	Assistant General Manager of Da Ming Paper Industry Co., Ltd. General Manager of Sheng Chang Rong Trading Co., Ltd. The chairman does not meet any of the conditions specified in Article 30 of the Company Act.	-	-

Member type	Name	Professional qualifications and experiences (Note 1)	Independence (Note 2)	Number of other public companies where the member concurrently serves as a compensation committee member
Director	Chun Feng Investment Co., Ltd. (Note 3) Representative: Te-Chang Yao	Master in Electrical Engineering, University of Southern California Master in Finance, National Taiwan University Assistant General Manager of Hsu Pang Management Consulting Co., Ltd. General Manager of Ta Ya Venture Capital Co., Ltd. The chairman does not meet any of the conditions specified in Article 30 of the Company Act.	-	2
Independent director	Hsueh-Yu Liu	Department of Electronic Engineering, Fu Jen Catholic University Manager of Manufacturing Business Department, HP Taiwan Information Technology Ltd. Assistant General Manager of WK Associates Ltd. The chairman does not meet any of the conditions specified in Article 30 of the Company Act.	1. The independent director, the spouse or any relative within the second degree of kinship does not act as a director, supervisor or employee of the Company or any of its affiliated companies. 2. The independent director, the spouse or any relative within the second degree of kinship (or in the name of others) does not hold any share. 3. They do not act as a director, supervisor or employees of the company having a specific relation with the Company (referring to Article 3, Paragraph 1, Subparagraph 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies). 4. They do not acquire the remuneration for providing the Company or any of its affiliated company with any commerce, law, finance and accounting services in the most recent two years.	2
Independent director	Kuang-Chao Fan	PhD in Mechanical Engineering, University of Manchester Institute of Science and Technology Executive of the Tjing Ling Industrial Research Institute, National Taiwan University Chair of the Institute of Industrial Engineering, National Taiwan University Associate Dean of the College of Engineering, National Taiwan University The chairman does not meet any of the conditions specified in Article 30 of the Company Act.	1. The independent director, the spouse or any relative within the second degree of kinship does not act as a director, supervisor or employee of the Company or any of its affiliated companies. 2. The independent director, the spouse or any relative within the second degree of kinship (or in the name of others) does not hold any share. 3. They do not act as a director, supervisor or employees of the company having a specific relation with the Company (referring to Article 3, Paragraph 1, Subparagraph 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies). 4. They do not acquire the remuneration for providing the Company or any of its affiliated company with any commerce, law, finance and accounting services in the most recent two years.	-

Member type	Name	Professional qualifications and experiences (Note 1)	Independence (Note 2)	Number of other public companies where the member concurrently serves as a compensation committee member
Independent director	Hsu-Ling Wang	Bachelor in Accounting, National Chengchi University Manager of Accounting Department, HP Taiwan Information Technology Ltd. Assistant General Manager and Chief Financial Officer of WK Associates Ltd. The chairman does not meet any of the conditions specified in Article 30 of the Company Act.	1. The independent director, the spouse or any relative within the second degree of kinship does not act as a director, supervisor or employee of the Company or any of its affiliated companies. 2. The independent director, the spouse or any relative within the second degree of kinship (or in the name of others) does not hold any share. 3. They do not act as a director, supervisor or employees of the company having a specific relation with the Company (referring to Article 3, Paragraph 1, Subparagraph 5-8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies). 4. They do not acquire the remuneration for providing the Company or any of its affiliated company with any commerce, law, finance and accounting services in the most recent two years.	-

Note 1: Professional qualifications and experiences: Describe the professional qualifications and experiences of individual directors. For the directors who are members of the Audit Committee and specialize in accounting or financial affairs, describe their accounting or financial background and work experience, including whether the matters referred to in Article 30 of the Company Act do not exist.

Note 2: As for the independent directors, describe the compliance with the independence requirements including but not limited to whether the independent director, the spouse or any relative within the second degree of kinship acts as a director, supervisor or employee of the Company or any of its affiliated companies; the number of shares held by the independent director, the spouse or any relative within the second degree of kinship (or in the name of others) and the percentage of the shareholding; whether any of them acts as a director, supervisor or employees of the company having a specific relation with the Company (refer to Article 3, Paragraph 1, Subparagraph 5~8 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies); the compensation for providing the Company or any of its affiliated company with any commerce, law, finance, accounting services in the most recent two years.

Note 3: Chun Feng Investment Co., Ltd. had elected a juridical person as corporate director. The information in this table was filled in the name of the representative, Te-Chang Yao.

(V) Information about the General Manager, Assistant General Managers, deputy assistant general managers and the heads of departments and branches

March 29, 2026 Unit: share; %

Title	Nationality	Name	Gender	Date appointed	Shareholding		Shares held by spouse and minor children		Shares held in the names of others		Educational background and experience	Concurrent posts in other companies	Managerial officers in a spousal relationship or within the second degree of kinship
					Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio			Title	Name
Chief executive officer (Note 1)	Republic of China	Po-Jung Chen	Male	2005.07.01	2,086,299	2.33%	316,556	0.35%	0	0	MBA, San Francisco State University Vice Chairman and General Manager of Speed Tech Corp.	Director of Global Connection (Samoa) Holding Inc. Director of Sunderland Inc. Director of San Francisco Inc. Director of All First Int'l Co., Ltd. Director of Morning Paragon Limited Director of Ta Yang UDE Limited Director (corporate representative) of CDE Corp. Director (corporate representative) of DYP Corp.	Nil	Nil

Title	Nationality	Name	Gender	Date appointed	Shareholding		Shares held by spouse and minor children		Shares held in the names of others		Educational background and experience	Concurrent posts in other companies	Managerial officers in a spousal relationship or within the second degree of kinship
					Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio			Title	Name
General Manager and Head of R&D Center (Note 2)	Republic of China	Min-Che Chen	Male	2007.07.01	2,187,559	2.45%	0	0	4,648,561	5.20%	Master in Automatic Control, University of Sunderland, the UK Assistant General Manager of Speed Tech Corp.	General Manager of Dongguan Jian Guan P.E. Co., Ltd. Director and General Manager of Zhong Jiang U.D.E. Electronics Corp. Director (corporate representative) and General Manager of CDE Corp. Director of Continuous Growth Investment Co., Ltd. Director (corporate representative) of DYP Corp.	Nil	Nil
Assistant General Manager, R&D Center (Note 2)	Republic of China	Feng-Kuang Li	Male	2024.08.02	514,000	0.58%	272,001	0.30%	0	0	MBA of Institute of Business Administration of Soochow University Researcher of Jih-Cheng Consulting Co., Ltd. Assistant Manager of Human Resources Dept. of Speed Tech Corp. Manager of Manufacturing Dept. of Speed Tech Corp.	Assistant General Manager of Dongguan Jian Guan P.E. Co., Ltd. Director and Assistant General Manager of Zhong Jiang U.D.E. Electronics Corp. Assistant General Manager of U.D. Electronic (VIETNAM) Corp.	Nil	Nil

Title	Nationality	Name	Gender	Date appointed	Shareholding		Shares held by spouse and minor children		Shares held in the names of others		Educational background and experience	Concurrent posts in other companies	Managerial officers in a spousal relationship or within the second degree of kinship
					Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio	Number of shares (share)	Shareholding ratio			Title	Name
Assistant General Manager, Sales Center	Republic of China	Yu-Chan Shih	Male	2005.07.16	880,006	0.90%	38,204	0.04%	0	0	International Trade Department, Fu Jen Catholic University Business Section Manager of Delta Electronics, Inc. Business Manager of Speed Tech Corp.	Nil	Nil	Nil
Assistant General Manager, the Management Center	Republic of China	Chang-Pu Wu	Male	2005.07.01	605,341	0.68%	7,350	0.01%	0	0	Department of Accounting, Tamkang University Accounting Manager of Delta Electronics, Inc. Director of Accounting Division, Speed Tech Corp.	Director of Zhong Jiang U.D.E. Electronics Corp.	Nil	Nil
CFO, Financial Center	Republic of China	Yung-Ming Li	Male	2025.01.23	41,000	0.05%	0	0	0	M.S. in Accounting, National Chengchi University Senior Consultant, PwC Taiwan Executive Vice President, Ta Yang Group Holdings Limited Financial Manager of U.D.E. Electronics Corp.	Director of DYP Corp. Director and General Manager of Dongguan of DYP P.E. Corp. Supervisor of CDE Corp.		Nil	Nil

Note 1: If the Chairman and the General Manager or any personnel with an equivalent position (any senior managerial officer) are the same person, have spouse relationship with each other, or are the relatives within the first degree of kinship of the Chairman, the reason, rationality, necessity and countermeasures thereof shall be explained:

The Chairman of the Company also serves as the CEO to improve operation efficiency and resolution execution, as well as enable the Board to better understand the Company's operation status.
The current concrete measures of the Company are as follows:

(1) The current three independent directors have the knowledge, skills and literacy necessary for executing business as well as the professionality of overall abilities, which makes them able to do their supervisory job effectively.

(2) More than half of the Board members do not serve as employees or managerial officers concurrently.

Note 2: The R & D supervisor, Min-Che Chen, was relieved of his duties on February 25, 2026 due to duty adjustment and was succeeded by Feng-Kuang Li as Head of the R & D Center.

(VI) Remuneration to directors, supervisors, the General Manager and Assistant General Managers in the most recent year

Remuneration to directors (including independent directors) in the most recent year

Title	Name	Remuneration of Directors							Ratio of sum of A, B, C and D to net income after tax	Remuneration to directors holding a concurrent position as employee										Ratio of sum of A, B, C, D, E, F and G to net income after tax	Whether there is remuneration from reinvested businesses
		Return (A)		Retirement pension (B)		Director remuneration (C)		Business execution fee (D)			Salaries, bonuses and special allowances (E)		Retirement pension (F)		Employee remuneration (G)				The number of shares subscribed to the Employee Stock Option Certificate (H)
		Company	All companies in the Company	The Company	All companies in the Company	The Company	All companies in the Company	The Company	All companies in the Company	The Company	All companies in the Company	The Company	All companies in the Company	The Company	Cash amount	Share amount	Cash amount	Share amount	The Company	All companies in the Company	All companies in the Company	All companies in the Company	All companies in the Company	All companies in the Company
Chairman and the CEO	Po-Jung Chen	0	0	0	0	8,610	8,610	390	390	1.38%	1.38%	8,441	10,559	0	0	7,040	0	7,040	0	600,000	600,000	3,75%	4.08%	Nil
Director and General Manager	Min-Che Chen
Director	Chi-Ling Chen
Director	Yu-Chan Shih
Director	Chang-Chun Chien
Director	Chun Feng Investment Co., Ltd.
Director	Te-Chang Yao (Note)
Independent director	Kuang-Chao Fan	0	0	0	0	3,690	3,690	180	180	0.59%	0.59%	0	0	0	0	0	0	0	0	0	0	0.59%	0.59%	Nil
Independent director	Hsueh-Yu Liu
Independent director	Hsu-Ling Wang

Note:Te-Chang Yao is the representative of Chun Feng Investment Co., Ltd.

Remuneration Grade Table

Unit: NT$ thousand

Remuneration range for the Director of the Company	Name of Directors
	Sum of the first 4 remuneration items (A+B+C+D)		Sum of the 7 remuneration items (A+B+C+D+E+F+G)
	The Company	All companies in the financial statements	The Company	All companies in the financial statements
Below NT$1,000,000	Nil	Nil	Nil	Nil
NT$1,000,000 (inclusive) - NT$2,000,000 (exclusive)	Min-Che Chen
Chi-Ling Chen
Yu-Chan Shih
Kuang-Chao Fan
Hsueh-Yu Liu
Hsu-Ling Wang
Chang-Chun Chien
Te-Chang Yao
Chun Feng Investment Co., Ltd.	Min-Che Chen
Chi-Ling Chen
Yu-Chan Shih
Kuang-Chao Fan
Hsueh-Yu Liu
Hsu-Ling Wang
Chang-Chun Chien
Te-Chang Yao
Chun Feng Investment Co., Ltd.	Chi-Ling Chen
Kuang-Chao Fan
Hsueh-Yu Liu
Hsu-Ling Wang
Chang-Chun Chien
Te-Chang Yao
Chun Feng Investment Co., Ltd.	Chi-Ling Chen
Kuang-Chao Fan
Hsueh-Yu Liu
Hsu-Ling Wang
Chang-Chun Chien
Chun Feng Investment Co., Ltd.
NT$2,000,000 (inclusive) - NT$3,500,000 (exclusive)	Po-Jung Chen	Po-Jung Chen	Nil	Nil
NT$3,500,000 (inclusive) - NT$5,000,000 (exclusive)	Nil	Nil	Nil	Nil
NT$5,000,000 (inclusive) - NT$10,000,000 (exclusive)	Nil	Nil	Yu-Chan Shih
Po-Jung Chen
Min-Che Chen	Yu-Chan Shih
Po-Jung Chen
Min-Che Chen
NT$10,000,000 (inclusive) - NT$15,000,000 (exclusive)	Nil	Nil	Nil	Nil
NT$15,000,000 (inclusive) - NT$30,000,000 (exclusive)	Nil	Nil	Nil	Nil
NT$30,000,000 (inclusive) - NT$50,000,000 (exclusive)	Nil	Nil	Nil	Nil
NT$50,000,000 (inclusive) - NT$100,000,000 (exclusive)	Nil	Nil	Nil	Nil
More than NT$100,000,000	Nil	Nil	Nil	Nil
Total	10 persons	10 persons	10 persons	10 persons

Remuneration to supervisors in the most recent year (Note)

Note: The Company formed the Audit Committee on June 18, 2020 as a substitute for supervisors. Thus, no data of supervisors' remuneration could be provided.

3. Remuneration to the General Manager and Assistant General Manager in the most recent year

Unit: NT$ thousand

Title	Name	Wage (A)		Retirement pension (B)		Bonuses and special allowances (C)		Employee remuneration (D)				Ratio of sum of A, B, C and D to net income after tax (%)		Number of acquired employee stock option certificates		Whether there is remuneration from reinvested businesses other than subsidiaries or from the parent company
		The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company	All companies in the financial statements	The Company		All companies in the financial statements		The Company	All companies in the financial statements	The Company	All companies in the financial statements
								Cash amount	Share amount	Cash amount	Share amount
Chief executive officer	Po-Jung Chen	13,354	15,970	0	0	1,876	2,312	12,980	0	12,980	0	4.33%	4.79%	1,120,000	1,120,000	Nil
General Manager	Min-Che Chen
Assistant General Manager	Yu-Chan Shih
Assistant General Manager	Feng-Kuang Li
Assistant General Manager	Chang-Pu Wu
Chief Financial Officer	Yung-Ming Li
Remuneration range for the General Manager and Assistant General Managers of the Company	Name of General Manager and Assistant General Manager
---	---	---
	The Company	All companies in the financial statements
Below NT$1,000,000	Nil	Nil
NT$1,000,000 (inclusive) - NT$2,000,000 (exclusive)	Nil	Nil
NT$2,000,000 (inclusive) - NT$3,500,000 (exclusive)	Yung-Ming Li	Yung-Ming Li
NT$3,500,000 (inclusive) - NT$5,000,000 (exclusive)	Chang-Pu Wu
Yu-Chan Shih	Chang-Pu Wu
Yu-Chan Shih
NT$5,000,000 (inclusive) - NT$10,000,000 (exclusive)	Po-Jung Chen
Min-Che Chen
Feng-Kuang Li	Po-Jung Chen
Min-Che Chen
Feng-Kuang Li
NT$10,000,000 (inclusive) - NT$15,000,000 (exclusive)	Nil	Nil
NT$15,000,000 (inclusive) - NT$30,000,000 (exclusive)	Nil	Nil
NT$30,000,000 (inclusive) - NT$50,000,000 (exclusive)	Nil	Nil
NT$50,000,000 (inclusive) - NT$100,000,000 (exclusive)	Nil	Nil
More than NT$100,000,000	Nil	Nil
Total	6 persons	6 persons

Names of the managerial officers receiving employee remuneration and the distribution thereof

Unit: NT$ thousand

	Title	Name	Share amount	Cash amount	Total	Ratio of total amount to net income after tax (%)
Managerial officer	Chief executive officer	Po-Jung Chen	0	12,980	12,980	1.99%
	General Manager	Min-Che Chen
	Assistant General Manager	Yu-Chan Shih
	Assistant General Manager	Feng-Kuang Li
	Assistant General Manager	Chang-Pu Wu
	Chief Financial Officer	Yung-Ming Li

~22~

Respective comparison and description of the analysis of the total remuneration paid by the Company and all the companies included in the consolidated financial statements to the Company's directors, supervisors, General Manager and Assistant General Managers in the most recent two years as a percentage of net income after tax stated in the individual or separate financial statements, and description of the policies, standards, and portfolios for paying the remuneration, the procedure for determining the remuneration, and their correlation with the operation performance and future risk exposure.

(1) Please refer to the following table for the total remuneration paid by the Company and all the companies included in the consolidated financial statements to the Company's directors, supervisors, General Manager and Assistant General Managers as a percentage of the net income after tax in the individual or separate financial statements:

Title	2024	2025
	Please refer to the following table for the total remuneration paid by the Company and all the companies included in the consolidated financial statements to the Company's directors, supervisors, General Manager and Assistant General Managers as a percentage of the net income after tax in the individual or separate financial statements	Please refer to the following table for the total remuneration paid by the Company and all the companies included in the consolidated financial statements to the Company's directors, supervisors, General Manager and Assistant General Managers as a percentage of the net income after tax in the individual or separate financial statements
Director	5.51%	4.67%
Supervisor	Not applicable.	Not applicable.
General Manager and Assistant General Managers	6.12%	4.79%

The total remuneration paid to directors, supervisors, general manager and assistant general managers as a percentage of after-tax net income for 2024 is 5.51%, N/A and 6.12%, respectively. The total remuneration paid to directors, supervisors, general manager and assistant general managers as a percentage of after-tax net income for 2025 is estimated to be 4.67%, N/A and 4.79%, respectively (as shown in the employee remuneration estimates). The difference in the proportion of directors, general manager and assistant general managers for the two years is mainly due to unresolved amount of employees' compensation to be allocated, so the resolved amount in 2024 is applied temporarily, while the net profit in 2025 grows, leading to decline of the proportion.

(2) Policies, standard and portfolios of remuneration payment

The remuneration payment to General Manager and Assistant General Managers mainly included salary, bonus and remuneration of employees. The number of payment was determined according to job positions, contributions to the Company, and with reference to the typical pay levels adopted by peer companies. The remuneration payment to directors mainly included travel allowances and director remuneration, which were paid according to the management guidelines on director remuneration and the Company's Articles of Incorporation respectively. The total distributed amount was approved by resolution at the Board of Directors meeting and reported at the shareholders' meeting.

(3) Remuneration determination procedure

According to the regulations, the remuneration to directors and managerial officers should be assessed and determined by the Company's Remuneration Committee in line with the management guidelines on director and managerial officers remuneration, be submitted to the Board of Directors, and be distributed after approval.

(4) Relationship with remuneration determination, operating performance and future risk

For performance evaluation of and remuneration to directors and managerial officers, the Company not only referred to the typical standards adopted by peer companies, but also considered operation results, involvement (including director attendance rate, communication frequency, suggestions provided, etc.), and contribution to the Company's performance (including financial indicators such as revenue and profit targets, and non-financial indicators such as compliance to legislation, internal control, or special performance). The amount of the remuneration, payment method, and future risks of the Company were also taken into consideration, and these were highly related to the director and managerial officer's operation responsibility to the Company and their overall performance.

II. Corporate governance implementation

(I) Operation of the Board of Directors

(1) In 2025, there were 7 Board of Directors meetings, and the attendance status of the directors is as follows:

Title	Name	Actual attendance (B)	Proxy attendance	Actual attendance rate (%) (B/A)
Chairman and the CEO	Po-Jung Chen	7	0	100%
Director and General Manager	Min-Che Chen	6	1	85.71%
Director	Chi-Ling Chen	7	0	100%
Director	Yu-Chan Shih	7	0	100%
Director	Chang-Chun Chien	6	0	85.71%
Director	Chun Feng Investment Co., Ltd. (Note 1)
Representative: Te-Chang Yao	7	0	100%
Independent director	Kuang-Chao Fan	7	0	100%
Independent director	Hsueh-Yu Liu	7	0	100%
Independent director	Hsu-Ling Wang	6	1	85.71%
Other particulars:
1. Where the operations of the Board of Directors meet any of the following circumstances, the meeting date, session, contents of proposals, and opinions of all independent directors, and the Company's action on the said opinions shall be specified:
(I) The matters referred to in Article 14-3 of the Securities and Exchange Act: Please refer to III(XI) “Major resolutions at shareholders’ meetings and Board of Directors meetings.”
(II) In addition to the aforesaid matters, the resolutions of the Board of Directors in which independent directors expressed dissent or reservation contained in the minutes or a written statement: The Company’s independent directors all provide adequate opinions with respect to the Board of Directors’ proposals, and they all support the Company’s proposal content. Please refer to III(XI) “Major resolutions at shareholders’ meetings and Board of Directors meetings.”

II. For directors' recusal from proposals involving any conflict of interest, the name of the director concerned, contents of the proposals, the reason of the recusal, and the director's participation in the voting shall be specified: None. III. TWSE/TPEx listed companies should disclose the interval, period, scope, method and item of the self-evaluation (or peer evaluation) of the Board of Directors, and specify the implementation status of this evaluation.
Interval	Period	Scope	Method	Item
Once a year	January 1 to December 31, 2025	Board of Directors	Internal self-evaluation of the Board of Directors	1. Involvement in the Company's operation 2. Improvement of the directors' decision quality 3. Formation and structure of the Board of Directors 4. Election and continuing education of the directors 5. Internal control
		Individual director members	Self-evaluation of the director	1. Understanding of the Company's direction 2. Knowledge of directors' duties 3. Involvement in the Company's operation 4. Management of internal relationships and communication; 5. Professionality and continuing education of the director 6. Internal control
		Functional committees	Internal self-evaluation of the Board of Directors	1. Involvement in the Company's operation 2. Awareness of the duties of the functional committees 3. Improvement of quality of decisions made by the functional committees 4. Makeup of the functional committees and election of its members 5. Internal control
Evaluation results: During the evaluation period, the evaluated and measured results of the performances of the Board of Directors and board members all reached the targets. The overall operation status remained well. III. Enhancement of the function of the Board of Directors in the current and the most recent year (e.g. establishment of the Audit Committee, improvement of information transparency, etc.) and the evaluation thereof. 1. The continuing education hours of the Company's directors and supervisors should meet the competent authority's requirements. The Company also encouraged relevant members of the Board of Directors to participate in all kinds of professional courses, and disseminates relevant regulations at the Board of Directors to comply with the laws and regulations. 2. The Company has appointed a spokesperson and a deputy spokesperson to provide a communication channel for stakeholders. In the annual shareholders' meeting, the Company would accept shareholders' proposals according to the schedule. Within the period for accepting the proposals, shareholders with the right to propose may file their application to the Company, and the Company will hold a Board of Directors meeting for review in line with related regulations.

Note 1: Chun Feng Investment Co., Ltd. had elected a juridical person as corporate director.

(II) Operation status of the Audit Committee

(1) The Company's Audit Committee is composed of three independent directors; it is designed to assist the Board of Directors in performing its supervision of the company in respect of quality and integrity in accounting, audit, financial reporting process, and financial control. Professional qualifications & experiences, and reasons for appointment of its members are as follows:

Position	Name	Education	Professional Qualifications and Experiences
Independent Director	Kuang-Chao Fan	PhD in Mechanical Engineering, University of Manchester Institute of Science and Technology	Executive of the Tjing Ling Industrial Research Institute, National Taiwan University / Chair of the Institute of Industrial Engineering, National Taiwan University / Associate Dean of the College of Engineering, National Taiwan University / Representative of Corporate Director of NTU Innovation & Incubation Center / Professor of Department of Mechanical Engineering, National Taiwan University
Independent Director	Hsueh-Yu Liu	Department of Electronic Engineering, Fu Jen Catholic University	Manager of Manufacturing Business Department, HP Taiwan Information Technology Ltd. Assistant General Manager of WK Associates Ltd.
Independent Director	Hsu-Ling Wang	Bachelor in Accounting, National Chengchi University	Manager of Accounting Department, HP Taiwan Information Technology Ltd. Assistant General Manager and Chief Financial Officer of WK Associates Ltd.

(2) In 2025, there were 7 Audit Committee meetings, in which matters for deliberation mainly included:

Financial statements audit and accounting policies & procedures
Internal control system and its related policies and procedures
Major assets and derivatives transactions
Major loaning of funds and endorsements/guarantees
Offering and issuance of securities
Financial derivatives and cash investment conditions
Compliance
Whether managers and directors involve transactions of related parties or possible conflict of interest
Information security
Corporate risk management
CPAs' qualifications, independence and performance assessment
CPAs' appointment, dismissal or remuneration
Appointment and dismissal of financial, accounting or internal audit managers
Annual ESG evaluation
Self-evaluation questionnaire of the Audit Committee's performance review
Review financial report

The Board of Directors prepares the proposals of the Company's 2025 business report, financial statements, earnings distribution, etc., among which the financial statements have been completely audited by Deloitte Taiwan with au audit report issued. The aforesaid proposals of business report, financial statements, earnings distribution, etc. have been audited by this Audit Committee, and no discrepancy is found.

Evaluate effectiveness of the internal control system

The Audit Committee assesses effectiveness of the policies and procedures in the company's internal control system (including control measures such as finance, operation, risk management, information security, outsourcing, compliance, etc.), and examines the regular reports of the company audit department, CPAs, and the management, covering risk management and legal compliance. By referring to the internal control system, released by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in 2013 – Internal Control – Integrated Framework), the Audit Committee believes the company's risk management and the internal control system are effective. The company has adopted necessary mechanism to supervise and correct violations.

CPAs' appointment

The Audit Committee is endowed with duties and responsibilities of supervising the accounting firm's independence in order to ensure fairness of financial statements. Generally speaking, except tax-related services or specially-approved items, the CPAs' firm shall not provide the Company with other services. All services offered by the CPAs' firm must be approved by the Audit Committee. In order to ensure independence of the CPAs'

firm, the Audit Committee refers to contents of Article 47 of the Certified Public Accountant Act, and "Integrity, Objectivity and Independence" in Article 10 of the Norm of Professional Ethics for Certified Public Accountants to formulate the independence assessment list for the purpose of assessing, in terms of CPAs' independence, professionalism, and competence, whether they are the related parties, have business or financial interest, and others with the Company. In the Audit Committee's $2^{\text{nd}}$ meeting on February 27, 2025 and the Board of Director's $2^{\text{nd}}$ meeting on February 27, 2025, approval after deliberation was granted, to the effect that CPA Meng-Kuei Yu and CPA Chiang-Hsun Chen of Deloitte Taiwan both met the independence assessment standard so as to be capable for serving as the Company's finance and tax certified public accountants.

(3) In 2025, there were 7 Audit Committee meetings, and the attendance status is as follows:

Title	Name	Actual attendance (B)	Proxy attendance	Actual attendance rate (%) (B/A)	Remarks
Independent director	Kuang-Chao Fan	7	0	100%
Independent director	Hsueh-Yu Liu	7	0	100%
Independent director	Hsu-Ling Wang	6	1	85.71%
Other particulars: I. Where the operations of the Audit Committee meet any of the following circumstances, the meeting date, session, contents of proposals, resolutions made by the Audit Committee, and the Company's action on the opinions of the audit members shall be specified: (I) The matters referred to in Article 14-5 of the Securities and Exchange Act:
Date of Audit Committee meeting		Proposal content		The matters referred to in Article 14-5 of the Securities and Exchange Act	The results of Audit Committee resolutions and follow-up actions
2025.01.23	1. Addition of the "Procedures for Preparation and Confirmation of Sustainability Report" internal control system of the Company		V	All members attended the meeting and passed the motions without objection.
		2. The Company's assistance to the capital loan case of U.D. Electronic (VIETNAM) Corp.			V
		3. Proposal to assist the Company's affiliate, U.D. Electronic Vietnam Co., Ltd., in a loan case by borrowing new funds to repay old ones upon maturity of the loan facility. 4. Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates.			V
2025.02.27	1. 2024 Business Report and financial statements		V	All members attended the meeting and passed the motions without objection.
		2. Independence and competency evaluation of the Company's CPAs for 2025			V
		3. Evaluation of the Company's 2024 Certified Public Accountants' Fees			V
		4. Proposal for 2024 earnings distribution			V
		5. Statement of the Company's internal control system			V
		6. Amendment of certain articles of the Company's Articles of Incorporation			V
		7. Proposal to assist the Company's affiliate, U.D. Electronic Vietnam Co., Ltd., in a loan case by borrowing new funds to repay old ones upon maturity of the loan facility. 8. Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates.			V

| 2025.05.08 | 1. The 2025 Q1 financial statements
2. Amendment of certain articles of the Company’s “Internal Control System”
3. Proposal to assist the Company’s affiliate, U.D. Electronic Vietnam Co., Ltd., in a loan case by borrowing new funds to repay old ones upon maturity of the loan facility.
4. The Company’s assistance to the capital loan case of U.D. Electronic (VIETNAM) Corp.
5. The Company intends to issue the 1^{st} employee stock option certificates with subscription plan in 2025.
6. Application by the Company to Chinatrust Commercial Bank for renewal of consolidated credit facilities and endorsement and guarantee
7. Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates | V
V
V
V
V
V | All members attended the meeting and passed the motions without objection. |
| --- | --- | --- | --- |
| 2025.05.29 | 1. Application by the Company to Chinatrust Commercial Bank for renewal of consolidated credit facilities and endorsement and guarantee by affiliated enterprises
2. The Company’s capital loan case of U.D. Electronic (VIETNAM) Corp. for its capital increase
3. Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates | V
V
V | All members attended the meeting and passed the motions without objection. |
| 2025.08.07 | 1. The Company’s consolidated financial statements for the second quarter of 2025
2. Evaluation of the Company’s 2024 Certified Public Accountants’ Fees
3. Application by the Company to First Commercial Bank for a Comprehensive Credit Line and Recognition of Endorsement and Guarantee by affiliated enterprises
4. Endorsement and guarantee provided by the Company to assist an affiliated company, ALL FIRST INT’L CO., LTD. in obtaining a derivative financial instrument credit line
5. Application for Renewal of the Company’s Comprehensive Credit Line from Taipei Fubon Commercial Bank Co., Ltd.
6. Application by the Company to Taipei Fubon Commercial Bank Co., Ltd. for an endorsement and guarantee by affiliated enterprises
7. Application by the Company to Taishin International Bank Co., Ltd. for an endorsement and guarantee by affiliated enterprises
8. Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates | V
V
V
V
V
V | All members attended the meeting and passed the motions without objection. |
| 2025.09.19 | 1. The Company intends to invest in Zhejiang Link Power Electronics Co., Ltd. via Zhongjiang U.D. Electronic Corp. | V | All members attended the meeting and passed the motions without objection. |
| 2025.11.06 | 1. The Company’s Consolidated Financial Statements for the Third Quarter of 2025.
2. The Company’s 2026 Audit Plan
3. Application for renewal of the Company’s comprehensive credit line with Yuanta | V
V
V | All members attended the meeting and passed the motions |

| | Commercial Bank, Ltd.
4. The Company applied for a comprehensive credit line from E.SUN Bank and agreed to provide an endorsement and guarantee for the related enterprises in the case of retroactive recognition
5. Recognition of cumulative endorsement/guarantee line provided by the Company to affiliated enterprises
6. Application by a subsidiary, Zhongjiang U.D. Electronic Corp., to Cathay United Bank (China) Limited, Shenzhen Branch, for a comprehensive credit line and endorsement and guarantee of affiliated enterprises.
7. Application by a subsidiary, Zhongjiang U.D. Electronic Corp., to Fubon Bank (China) Co., Ltd., Chengdu Branch, for a short-term mortgage loan credit and endorsement and guarantee of affiliated enterprises.
8. Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates | V | without objection. |
| --- | --- | --- | --- |

(II) In addition to the matters mentioned above, any resolution approved by more than two-thirds of all the directors but not approved by the Audit Committee: None.

II. Implementation of independent directors' recusal from interested motions shall be disclosed by the name of the independent director, the content of the motion, the reason for the recusal, and the voting status: None.

III. Communication of independent directors with the chief internal auditor and CPAs (including important matters, methods and results with respect to communication regarding the Company's financial and business statuses):

(I) Policies of communication of independent directors with the chief internal auditor and CPAs:

An individual meeting shall be held with CPAs and chief auditor at least once a year to discuss external audit opinions, completed by chief internal auditor and CPAs, and communication shall be conducted based on audit defects of the said year, on which communication opinions shall be recorded with a report submitted to the Board of Directors.
Chief internal auditor submits regular reports to the Audit Committee.

(1) Annual internal audit plan;
(2) Annual professional training planning of auditors;
(3) Submit regular reports to the Audit Committee on implementation status of internal audit business.

CPAs attend the Audit Committee meeting to report annual audit results at least once a year.
Others: In case of significant abnormal items, or matters in need of independent communication, as considered by independent directors, audit officers and CPAs, meetings shall be convened anytime for communication on an irregular basis.

(II) The items in communication between the independent directors and the audit supervisors and accountants in 2025:

Date	Attendees	Items in communication	Communication result
2025.02.27	Independent Director
Kuang-Chao Fan
Independent Director
Hsueh-Yu Liu
Independent Director
Hsu-Ling Wang
Chief Auditor Officer
Ping-Fu Wu
CPA Meng-Kuei Yu	1. The CPA explained the status and results of the 2024 financial report review and discussed the application of certain accounting principles and the impact of the newly amended Act.
2. The CPA discusses and communicates with the attendees on the issues raised by the attendees.
3. The chief internal auditor conducted an internal audit report.
4. Issuance of the Statement of the Internal Control System.	No comment

	2025.05.08	Independent Director Kuang-Chao Fan Independent Director Hsueh-Yu Liu Independent Director Hsu-Ling Wang Chief Auditor Officer Ping-Fu Wu CPA Meng-Kuei Yu	1. The CPA explained the review status and results of the Q1 2025 financial statements, and discussed the issues on the applicable accounting principles and the effects of the newly revised regulations. 2. The CPA discussed and communicated with the participants on the issues raised in the meeting. 3. Chief Internal Auditor conducted internal audit reports.	No comment
	2025.08.07	Independent Director Kuang-Chao Fan Independent Director Hsueh-Yu Liu Independent Director Hsu-Ling Wang Chief Auditor Officer Ping-Fu Wu CPA Meng-Kuei Yu	1. The CPA explained the review status and results of the Q2 2025 financial statements, and discussed the issues on the applicable accounting principles and the effects of the newly revised regulations. 2. The CPA discussed and communicated with the participants on the issues raised in the meeting. 3. Chief Internal Auditor conducted internal audit reports.	No comment
	2025.11.06	Independent Director Kuang-Chao Fan Independent Director Hsueh-Yu Liu Independent Director Hsu-Ling Wang Chief Auditor Officer Ping-Fu Wu CPA Meng-Kuei Yu	1. The CPA explained the review status and results of the Q3 2025 financial statements, and discussed the issues on the applicable accounting principles and the effects of the newly revised regulations. 2. The CPA discussed and communicated with the participants on the issues raised in the meeting. Chief Internal Auditor conducted internal audit reports. 3. Internal Audit Plan.	No comment

Results: The above items were all reviewed or approved by the Audit Committee with no objection from the independent directors.

(III) Implementation of corporate governance, differences with the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, and reasons thereof

Assessment item	Operation status			Differences with the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary description
I. Does the Company establish and disclose its corporate governance principles pursuant to the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” and disclose them?	V		The Company has established its corporate governance principles pursuant to the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies.”	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”
II. Shareholding structure and shareholders’ equity
(I) Does the Company have an internal procedure in place and handle shareholders’ suggestions, doubts, disputes, and lawsuits accordingly?	V		The internal regulations established by the Company have been announced in the exclusive stakeholder section on the Company’s website. The Company has also set up a spokesperson system to explicitly respond to shareholders’ suggestions, doubts, disputes, and lawsuits.	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”
(II) Does the Company have a list of major shareholders who actually control the Company and the persons who have ultimate control over the major shareholders?	V		The Company is currently in good relationship with major shareholders and able to obtain the list of major shareholders and ultimate controlling party anytime.	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”
(III) Does the Company establish or implement any risk control measures and firewall mechanisms between the Company and its affiliates?	V		The Company has established subsidiary management operations and appointed personnel to deal with affiliate related notices.	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”
(IV) Does the Company have internal regulations to prohibit insiders of the Company from using undisclosed information in the market to trade securities?	V		The Company has established the “Insider Trading Prevention Procedure” to prohibit insiders of the Company from using undisclosed information in the market to trade securities.	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”
III. Formation and responsibilities of the Board of Directors
(I) Does the Board of Directors formulate policies of diversification for its formation and implement the policies?	V		Diversification Policy of the Board of Directors Article 20 of the Company’s “Corporate Governance Best Practice Principles”: It is stipulated that the composition of members of the Board of Directors should take diversification into consideration; the number of directors who concurrently serve as managers shall be less than one-third of all	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”

		director; in addition, the Company shall map out the appropriate diversification policy in terms of the company’s operation, the operational pattern and the development needs, including but not limited to the following standards of two aspects: Basic criteria and value: gender, age, nationality, culture, etc.) Professional knowledge and skill: Professional background (e.g. law, accounting, industry, finance, marketing or technology), expertise, industrial experience, etc. The members of the Board of Directors should possess the knowledge, skill and competence, which is required for performing the job duties. In order to attain to the corporate governance goal, the abilities the Board of Directors should have as a whole include as follows: Operation judgment ability Accounting & financial analysis ability Business management ability Crisis management ability Industry knowledge International market vision Leadership, and Decision-making ability. Concrete management goal and current achievement status of the diversification policy Currently, there are 9 members in the Board of Directors, among whom three are independent directors, accounting for 33% with more than 9 years term of office for all of them. The Company puts emphasis on gender equality for members of the Board of Directors, and aims to increase the number of female directors by one-third or more. At present, male directors of the Board of Directors represents 78% (7 directors), and female 22% (2 directors). In the future, we will make our efforts in increasing the number of female directors in order to

| | | | achieve the goal.
Implementation status of diversification of the Board of Directors members
The current Board of Directors is composed of 9 members, who have practical business management experience in TWSE/TPEx listed companies. In addition to being possessed of leadership in decision-making, crisis management, and international market perspectives, they all have professionalism in legal practices, finance & accounting, and industry knowledge as well as operation judgement, etc. Directors Fan and Liu have operation management, and industry knowledge, while Director Wang has work experience in finance and strategy management, and expertise; consequently, we implement the diversification policy of the Board of Directors members.
The diversification policy of the Company’s Board of Directors members and the implementation status of individual members of the Board of Directors have been disclosed on the company’s website. The implementation status of individual members of the Board of Directors is shown as per attached table 1. | |
| --- | --- | --- | --- | --- |
| (II) Does the Company voluntarily establish any functional committees other than the Remuneration Committee and Audit Committee set up pursuant to laws? | | V | The Company has not established any other functional committee other than the Remuneration Committee and Audit Committee. | The Company will establish other functional committees according to actual needs. |
| (III) Does the Company establish regulations and methods for evaluating the performance of the Board of Directors, conduct regular performance evaluations every year, and report the results to the Board of Directors? Are the results utilized as the basis for the remuneration and nomination for re-election of individual directors? | V | | According to the “Rules and Procedures for Performance Evaluation of Board of Directors” approved by the Board of Directors of the Company, the criteria for evaluating the performance of the Board of Directors should cover the following five aspects:
(1)Involvement in the Company’s operation
(2)Improvement of the quality of the Board of Directors’ decision making; | Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” |

| | | (3) Composition and structure of the Board of Directors;
(4) Election and continuing education of the directors; and
(5) Internal control.
The criteria for evaluating the performance of the Board members should cover the following aspects:
(1) Alignment of the goals and missions of the Company;
(2) Knowledge of directors’ duties
(3) Involvement in the Company’s operation
(4) Management of internal relationships and communication;
(5) The director’s professionalism and continuing education; and
(6) Internal control
The evaluation method adopts the internal evaluation, implemented by the financial department on the basis of internal questionnaire, which is divided into four parts of the board operation, directors’ participation, the remuneration committee operation, and the audit committee, covering directors’ evaluation of the board operation, directors’ evaluation of their own participation, evaluation of the remuneration committee operation, and the audit committee members’ evaluation of the committee operation.
The Company completed the performance evaluation of the Board of Directors, Board members, the Remuneration Committee, and the Audit Committee in February 2026. The score of this year’s evaluation ranges from 4.81 to 5.00, which has been considered good. The following are recommendations and improvement measures for the Board of Directors and functional committees:
(1) Board of Directors: Score of 4.87; none.
(2) Individual Board Members: Score of 4.91; no |
| --- | --- | --- |

| | | | recommendations.
(3)Functional Committees:
Score of 4.93; no
recommendations. | |
| --- | --- | --- | --- | --- |
| (IV) Does the Company assess the independence of the CPAs on a regular basis? | V | | The Audit Committee of the Company assesses the independence of the CPAs annually and submits the results of its assessment to the Board of Directors. The latest evaluation was approved by the Audit Committee on February 25, 2026 and submitted it to the Board of Directors for approval on February 25, 2026.

The evaluation mechanism is as follows:
(1)Confirm that the CPAs of the Company are not related parties to the Company and the Board of Directors.
(2)Comply with the provisions of the Corporate Governance Best Practice Principles to replace CPAs.
(3)Pursuant to the Sarbanes-Oxley Act, the Audit Committee’s pre-approval is required prior to the appointment of the accounting firm for annual audits and all other engagements.
(4)Pursuant to the Sarbanes-Oxley Act, the CPAs are required to report to the Audit Committee on a quarterly basis on compliance with the content and independence of the audit/review engagement.
(5)Obtain an independent statement from the CPAs periodically.
(6)Obtain information on the 13 AQIs provided by the accounting firm.
Additionally, assess the audit quality of the accounting firm and the audit team based on the “Guidance for Audit Committees on Interpreting the Audit Quality Indicators” issued by the competent authority.

Result of the Assessment:
(1)The independence between the certified public | Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies” |

		accountants and the Company is in accordance with the Certified Public Accountants Act, the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and the relevant regulations issued by the SEC and the PCAOB.
IV. Does the TWSE/TPEx-listed company designate competent corporate governance personnel in an appropriate number along with a chief corporate governance officer responsible for related matters (including but not limited to providing information required for directors and supervisors to perform their duties, ensuring that directors and supervisors follow laws and regulations, handling matters related to the Board of Directors and shareholders’ meetings, and preparing minutes of the Board of Directors and shareholders’ meetings)?	V	On May 4, 2023, the Company established the role of Corporate Governance Officer, who concurrently serves as the Company's chief financial officer.	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”
V. Does the Company establish a channel for communication with stakeholders (including but not limited to shareholders, employees, customers, and suppliers), design a stakeholder section on the Company’s website, and appropriately respond to important CSR issues for which the stakeholders are concerned?	V	The Company has appointed personnel to collect and announce all information. The Company has also set up an exclusive stakeholder section on the Company’s website, and appropriately respond to material issues on corporation social responsibility that concerns the stakeholders through the spokesperson system.	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”
VI. Does the Company commission a professional registrar to deal with matters related to shareholders’ meetings?	V	The Company authorizes the Stock Transfer Department of Taishin Securities Co., Ltd. to handle shareholders’ meeting affairs.	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”
VII. Information disclosure
(I) Does the Company establish a website to disclose information concerning financial affairs and corporate governance?	V	The Company has established a website to disclose information concerning financial affairs and corporate governance.	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”
(II) Does the Company use other information disclosure methods (such as building an English website, assigning dedicated personnel for collection and disclosure of information, implementing a spokesperson	V	The Company has set up an English website, appointed personnel to collect and announce all information, and implemented the spokesperson system. The Company’s website contains	Compliant to the provisions of the “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”

system, and publishing the process of investor conferences on the website)?			all information related to the announcement of investor conferences.
(III) Does the Company publish and file its annual financial statements within two months after the close of the fiscal year? Does the Company publish and file the Q1, Q2 and Q3 financial statements and monthly operational performance prior to the required deadline?		V	The Company did not publish and files our annual financial statements within two months after the close of the fiscal year, as well as the Q1, Q2 and Q3 financial statements and monthly operating status prior to the required deadline.	The Company will consider whether to announce and report in advance depending on its actual operational needs.

VIII. Does the Company have other important information that are helpful to understand the implementation of the corporate governance (including but not limited to the interests and care of employees, investor relationship, supplier relationship, rights of stakeholders, continuing education of directors and supervisors, implementation of risk management policies and risk assessment standards, implementation of customer policies, and liability insurance coverage for directors and supervisors)?

(I) Protection of employee rights and employee care: The Company has established job rules, including explicit regulations with respect to the protection of human and employee rights, according to laws and regulations. In order to protect employee rights, the Company has taken out labor, health and group insurance for all employees, provided all insurance benefits and interests, set up the Employee Welfare Committee, and appropriate employee welfare funds in compliance with the law.
(II) Investor relationship: The Company has appointed personnel to address investors and shareholders related issues.
(III) Supplier relationship: The Company irregularly negotiates and exchanges opinions with suppliers via emails, phone calls and meetings to maintain stable and sound relationships.
(IV) Rights of Stakeholders: It is a basic consensus that the Company's directors voluntarily avoid proposals that involve any conflict of interest. The Company's directors also comply to the ethical principles, faithfully execute their business, and perform the duty of care as prudent managerial officers when exercising their powers.
(V) Continuing education of directors

Title	Name	Course date	Organizer	Name of course	Continuing education hours
Director	Po-Jung Chen	2025/11/06	Taiwan Corporate Governance Association	Performance Evaluation Practices Related to Enterprise “ESG Sustainability” and “Risk Management” Share of Practices in Anti-corruption and Anti-bribe Risk Management Mechanism	3
Director	Min-Che Chen
Director	Chi-Ling Chen
Director	Yu-Chan Shih
Director	Kuang-Chao Fan
Director	Hsu-Ling Wang
Director	Chang-Chun Chien
Director	Hsueh-Yu Liu	2025/07/09	Taiwan Stock Exchange	Cathay Sustainable Finance and Climate Change Summit	6
Director	Te-Chang Yao (Note)	2025/07/23	Importers and Exporters of Taipei	Challenges and Response of New Situation of Global Economy and Trade
A Comprehensive View of Importation of Emerging Technology – New Opportunities of AI, Robot, Space Application, Precision Health, etc. for Enterprises	3

| Note: Chun Feng Investment Co., Ltd. appointed Te-Chang Yao as its representative.
(VI) Risk management policy and risk assessment standards: The Company has defined approval authority to review all forms in internal control operations. Each department has been compliant with the rules. The Company has also set up an audit unit to audit the Company’s internal control system regularly and irregularly and make audit reports.
(VII) Implementation of customer policies: The Company has established the internal control system, audit system and self-evaluation. The financial and audit units are responsible for controlling and managing the execution of customer policies.
(VIII) Liability insurance coverage for directors and supervisors: The Company has taken out liability insurance for the directors and supervisors, and submitted related reports to the Board of Directors. |
| --- |
| IX. On the basis of the result of corporate governance evaluation released by TWSE’s Corporate Governance Center in the most recent year, please describe the matters to which improvements have been made. Regarding the matters to which improvements have yet to be made, please list those which have been selected as priorities and the measures to be taken.
(I) Disclosure of ESG-related climate information
Improvement: On the Company’s website, we have disclosed Scope 1 and Scope 2 annual greenhouse gas emissions with external verification obtained for the past two years. |

Annex 1: Implementation of Board Member Diversification

Name of director	Nationality	Gender Age	Concurrently serving as employee	Term as independent director		Ability to make judgments about operations	Accounting and financial analysis ability	Business management ability	Crisis handling procedure	Knowledge of the industry	International market perspective	Leadership ability	Decision-making ability
				Under 9 years	Over 9 years
Po-Jung Chen	Republic of China	Male 61-70 years old	V			V	V	V	V	V	V	V	V
Min-Che Chen	Republic of China	Male 41-50 years old	V			V	V	V	V	V	V	V	V
Chi-Ling Chen	Republic of China	Female 51-60 years old							V		V		V
Chang-Chun Chien	Republic of China	Male 61-70 years old				V		V	V		V		V
Yu-Chan Shih	Republic of China	Male 51-60 years old	V			V	V	V	V	V	V	V	V
Chun Feng Investment Co., Ltd. Representative: Te-Chang Yao	Republic of China	Male 51-60 years old				V		V	V	V	V
Kuang-Chao Fan	Republic of China	Male 71-80 years old			V	V		V	V	V	V	V	V
Hsueh-Yu Liu	Republic of China	Male 61-70 years old			V	V		V	V	V	V	V	V
Hsu-Ling Wang	Republic of China	Female 61-70 years old			V	V	V	V	V	V	V	V	V

(IV) If there is a Remuneration Committee, its formation, duty, and operation status should be disclosed.

Information of the Remuneration Committee members

| Member type
(Note 1) | Name | Profession qualifications and experiences (Note 2) | Independence (Note 3) | Number of other public companies where the member concurrently serves as a compensation committee member |
| --- | --- | --- | --- | --- |
| Independent director
(convenor) | Hsueh-Yu Liu | Department of Electronic Engineering, Fu Jen Catholic University
Manager of Manufacturing Business Department, HP Taiwan Information Technology Ltd.
Assistant General Manager of WK Associates Ltd. | 1. The independent director, the spouse or any relative within the second degree of kinship does not act as a director, supervisor or employee of the Company or any of its affiliated companies.
2. The independent director, the spouse or any relative within the second degree of kinship (or in the name of others) does not hold any share.
3. They do not act as directors, supervisors or employees of the companies that have specific relations with the Company (please refer to Article 6, Paragraph 1, Subparagraph 5-8 of the Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange).
4. They do not acquire the remuneration for providing the Company or any of its affiliated company with any commerce, law, finance and accounting services in the most recent two years. | 2 |
| Independent director | Kuang-Chao Fan | PhD in Mechanical Engineering, University of Manchester Institute of Science and Technology
Executive of the Tjing Ling Industrial Research Institute, National Taiwan University
Chair of the Institute of Industrial Engineering, National Taiwan University
Dean of the College of Engineering, National Taiwan University | 1. The independent director, the spouse or any relative within the second degree of kinship does not act as a director, supervisor or employee of the Company or any of its affiliated companies.
2. The independent director, the spouse or any relative within the second degree of kinship (or in the name of others) does not hold any share.
3. They do not act as directors, supervisors or employees of the companies that have specific relations with the Company (please refer to Article 6, Paragraph 1, Subparagraph 5-8 of the Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange).
4. They do not acquire the remuneration for providing the Company or any of its affiliated company with any commerce, law, finance and accounting services in the most recent two years. | 0 |
| Independent director | Hsu-Ling Wang | Bachelor in Accounting, National Chengchi University
Manager of Accounting Department, HP Taiwan Information Technology Ltd.
Assistant General Manager and Chief Financial Officer of WK Associates Ltd. | 1. The independent director, the spouse or any relative within the second degree of kinship does not act as a director, supervisor or employee of the Company or any of its affiliated companies.
2. The independent director, the spouse or any relative within the second degree of kinship (or in the name of others) does not hold any share.
3. They do not act as directors, supervisors or employees of the companies that have specific relations with the Company (please refer to Article 6, Paragraph 1, Subparagraph 5-8 of the Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange).
4. They do not acquire the remuneration for providing the Company or any of its affiliated company with any commerce, law, finance and accounting services in the most recent two years. | 0 |

Note 1: Please fill out the form with a concrete description of the years of service, professional qualifications, experiences, and independence status of each Compensation Committee member. For independent directors, it is allowed to give a reference to Table 1 on Page 11 on the information about the directors and supervisors (1). Please specify that the member is an independent director or others in the "Member type" field. (Add a note for the convener.)

Note 2: Professional qualifications and experiences: Describe the professional qualifications and experience of each Remuneration Committee member.

Note 3: Independence: Describe the compliance of the Remuneration Committee members with the independence requirements, including but not limited to whether the member, the spouse or any relative within the second degree of kinship acts as a director, supervisor or employee of the Company or any of its affiliated companies; the number of shares held by the member, the spouse or any relative within the second degree of kinship (or in the name of others) and the percentage of the shareholding; whether any of them acts as a director, supervisor or employees of companies having specific relations with the Company (please refer to Article 6, Paragraph 1, Subparagraph 5-8 of the Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange); the remuneration for providing the Company or any of its affiliated company with any commerce, law, finance, accounting services in the most recent two years.

2. Information on the operation of the Remuneration Committee

(1) The Company's Remuneration Committee consists of 3 members.

(2) The term of current Remuneration Committee members: June 26, 2023-June 25, 2026

The Remuneration Committee has held 3 (A) meetings in 2025. The qualification and attendance of the members is described below:

Title	Name	Actual attendance (B)	Proxy attendance	Actual attendance rate (%) (B/A)	Remarks
Convener	Hsueh-Yu Liu	2	0	100%	2023.06.26 (Reelected)
Committee member	Kuang-Chao Fan	2	0	100%	2023.06.26 (Reelected)
Committee member	Hsu-Ling Wang	2	0	100%	2023.06.26 (Reelected)
Other particulars:
I. If the Board of Directors does not adopt or revise the suggestions of the Remuneration Committee, the date and session of the Board of Directors meeting, contents of the proposals, meeting resolutions, and the Company’s action on the opinions of the Remuneration Committee shall be specified (If the remuneration resolved by the Board of Directors is higher than that suggested by the Remuneration Committee, the differences and the reason thereof shall be specified.): None.
II. In the event that any member of the Remuneration Committee has expressed dissent or reservation over the Committee’s resolutions, and that the dissent or reservation has been recorded or delivered in writing, the date and session of the Remuneration Committee meeting, contents of the proposals, opinions of all the members, and the action on such opinions shall be specified: None.
• Operation in the current year:
Remuneration Committee	Content of Proposals and Subsequent Management		Resolution Results		The Company’s response to the Remuneration Committee’s opinions
2025.02.27	1. The Company’s allocation of compensation for employees and directors in 2024.
2. Remuneration of the Company’s chief financial officer.		The proposals are agreed upon and approved by all committee members.		The proposals are submitted to the Board of Directors, agreed upon, and approved by all attending directors.
2025.05.08	1. The Company’s allocation of compensation for directors in 2024.
2. The Company’s allocation of compensation for managerial employees in 2024.
3. Proposal of issuing employee stock option certificates in 2025 with subscribed amount and roster for managers in the capacity of subscribers.		The proposals are agreed upon and approved by all committee members.		The proposals are submitted to the Board of Directors, agreed upon, and approved by all attending directors.

The responsibility of the Company's Remuneration Committee is as follows:

(1) Regularly review this regulation and make suggestions for amendment.
(2) Establish and regularly review the policy, system, standard and structure of annual and long-term performance goals for and remuneration to directors and managerial officers.
(3) Regularly evaluate the achievement status of performance goals for directors and managerial officers, and establish the scope and amount of remuneration to individual members; Establish and regularly review the policy, system, standard and structure of performance evaluation for and remuneration to directors and managerial officers.

Professional qualifications and experiences of members of the Remuneration Committee

Position	Name	Education	Professional Qualifications and Experiences
Independent Director	Kuang-Chao Fan	PhD in Mechanical Engineering, University of Manchester Institute of Science and Technology	Executive of the Tjing Ling Industrial Research Institute, National Taiwan University / Chair of the Institute of Industrial Engineering, National Taiwan University / Associate Dean of the College of Engineering, National Taiwan University / Representative of Corporate Director of NTU Innovation & Incubation Center / Professor of Department of Mechanical Engineering, National Taiwan University
Independent Director	Hsueh-Yu Liu	Department of Electronic Engineering, Fu Jen Catholic University	Manager of Manufacturing Business Department, HP Taiwan Information Technology Ltd. Assistant General Manager of WK Associates Ltd.
Independent Director	Hsu-Ling Wang	Bachelor in Accounting, National Chengchi University	Manager of Accounting Department, HP Taiwan Information Technology Ltd. Assistant General Manager and Chief Financial Officer of WK Associates Ltd.

To sum up, the Company set up the Remuneration Committee on December 8, 2011 after being approved by resolution at a Board of Directors meeting. The organizational regulations of the Remuneration Committee were also established, and 3 independent directors of the Company were designated as members of the Committee. The formation of the Committee was basically sound, and it also complied to qualifications and conditions established in the Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Stock Exchange or the Taipei Exchange, so that the meetings held by the Committee should be effective. The Remuneration Committee's suggestions submitted to the Board of Directors were reasonable, and the Board of Directors has made enough discussions on the suggested matters before providing the resolutions. Thus, the operation of the Remuneration Committee set up by the Company has been compliant to the securities related laws and regulations in Taiwan.

(V) Implementation status of sustainable development, differences from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, and the reasons thereof

Assessment item	Operation status			Deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor
		Yes	No		Summary description
I.	Has the Company established a governance framework for the promotion of sustainable development and set up a dedicated (concurrent) unit for sustainable development? Does the Board of Directors authorize the top management to deal with the sustainable development and how is the supervision status of the Board of Directors?	✓		Adhering to the vision and mission of the Company's ESG policy, a Sustainability Promotion Team was established in 2024. This team, concurrently served by the Chairman's Office and chaired by the Chairman, collaborates with senior managers across different fields to review the Company's core operational ability and formulate medium and long-term sustainable development plans.The "Sustainability Promotion Team" serves as a platform for cross-departmental communication, facilitating both vertical integration and horizontal connection. It conducts relevant meetings to identify sustainability issues crucial to the Company's operations and of interest to stakeholders. The team formulates responsive strategies and guidelines, allocates budgets related to sustainable development across units, and plans and implements annual programs. Additionally, it tracks the results of these implementations to ensure the full implementation of the sustainable development strategy among the Company's daily operations.The "Sustainable Development Promotion Team" reports annually to the Board of Directors on the implementation results of sustainable development and future work plans. Proposals are required to include (1) identification of sustainability issues that require attention and formulation of corresponding action plans; (2) establishment of goals and policies for sustainability-related issues; (3) supervision over the implementation of sustainability matters and evaluation of implementation.The Board of Directors receives the reports (including the ESG report) of the management team on a regular basis every year. The management must propose the Company's strategies to the Board of Directors, and the Board of Directors must evaluate the likelihood of success of these strategies, review the progress of these strategies frequently, and urge the management teams to make adjustments when necessary. Annual implementation of the Sustainability Advancement Team was reported by the Board of Directors on August 7, 2025	No material difference currently.
II.	Does the Company, based on the principle of materiality, conduct an assessment on environmental, social, and corporate governance risks related to its operation and establish relevant risk management policies or strategies?	✓		This disclosure covers the Company's sustainability performance from January 2025 to December 2025 in its key locations. The risk assessment boundary is based on the Taiwan parent company.The Sustainability Promotion Team analyzed the materiality principle of the sustainability report, communicated with internal and external stakeholders, reviewed domestic and international research reports and literature, and consolidated the assessment data from various departments and subsidiaries to assess the materiality of the ESG issues, and formulated risk management policies that effectively identify, measure, assess, monitor, and control the risks as well as specific action plans to reduce the impact of the related risks.	No material difference currently.
III.	Environmental issue(1)Does the Company establish environmental management systems suitable for the Company's industrial characteristics?	✓		The Company's production base is located in mainland China. To make the best use of all resources, the subsidiaries in mainland China have obtained the IECQ QC080000 (valid from December 11, 2024 to May 16,	No material difference currently.
	the production base)		and the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG	the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG report of the ESG

Assessment item	Operation status
	Yes	No	Summary description
(II) Does the Company endeavor to improve the efficiency of resource usage and use recycled materials which have a low impact on the environmental load?
(III) Does the Company assess the current and future risks and opportunities which climate change potentially brings to the Company and take measures in response to climate-related issues?
(IV) Does the Company make statistics of its greenhouse gas emission, water consumption and total waste weight in the previous two years and establish policies for energy saving, carbon reduction, reduction of greenhouse gas emission and water consumption, or management of other waste?			2028) Hazardous Substance Process Management System certification, established and implemented relevant management system, and further reduced the impact on the environment.
The Company’s subsidiaries in mainland China have also obtained ISO 14001 (valid from December 27, 2023 to December 26, 2026) environmental management system certification, established and implemented relevant management system.
The Company’s subsidiaries in mainland China have complied to local regulations in terms of environmental impact indicators, such as effluent, exhaust, and noise emissions.
The Company has disclosed the greenhouse gas emissions, water consumption and total weight of waste for the past two years in the sustainability report, and has formulated relevant policies to control them.
IV. Social issue
(I) Does the Company develop management policies and procedures in accordance with the relevant regulations and international human rights conventions?
(II) Does the Company establish and implement proper employee welfare measures (including remuneration, leaves and other welfare) and reflect its business performance or results in the employee remuneration?	✓		The Company follows the Labor Standards Act and other labor-related regulations to protect the employees’ legal rights, and disseminates occupational safety to facilitate the elimination or reduction of risks in the employees’ working hours.
Workplace diversification and equality:
The Company strives to provide employees with a respectful and safe working environment. We carry out diversification of employment and fairness of salary and promotion opportunities in order to ensure employees will not be discriminated, harassed or treated unequally due to race, gender, sexual orientation, religious belief, age, political leanings, birthplace, disabilities, and any other circumstances under protection of applicable regulations. The Company offers full-time jobs to persons with disabilities. As of 2025, one disabled person was hired.
Remuneration Policy:
In accordance with the Articles of Incorporation, if the Company gains profit at the end of each fiscal year, 3% - 15% of profit shall be allocated as employees’ compensation; in the preceding compensation for employees, no less than 30% shall be distributed to non-executive employees. However, in case of accumulated losses, the make-up amount should be reserved in advance, and then compensation for employees and directors shall be allocated as per the preceding ratio.
• Performance bonus: Performance review will be conducted to evaluate employees’ work achievements in the current year.
Employees’ welfare facilities:
• Provide a comfortable, bright and stylish working space and environment, and create a happy enterprise.
• Birthday gift money, three festival bonus, Labor Day’s gift money, maternity benefit, wedding gift money, funeral grant for employees and their dependents, lucky draw benefit at the year-end party.
• Free supply of freshly ground and stewed coffee, tea, instant noodles, and snacks with irregular replacement of items and diversified choices.
• Provide a variety of regularly-updated newspaper, magazines and books for reading so as to be kept posted of newest information.
• Make irregular arrangements for thanksgiving gifts on Father’s Day and Mother’s Day to extend	No material difference currently.

Assessment item	Yes	No	Operating status	Deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor
			gratitude to parents or partner.
• Depending on the achievement status of operational goals, sponsor domestic and overseas trips for promotion of interactive relationship, and in-depth understanding of beauty in trips.
• Host, on an irregular basis, lunch party, teatime, department dinner, and seasonable special events to enhance interpersonal relationship among coworkers.
• Fuel expenses for business trips can be subsidized (adjusted subject to fluctuation of oil price in the current month).
In accordance with the Company’s “Welfare Measures Management Regulations”, employees’ welfare fund is allocated, along with some benefits. In terms of insurance payment, we offer each insurance payment right to employees pursuant to relevant laws and regulations; mandatory insurance: labor insurance, national health insurance, together with the company’s additional group insurance.
Healthcare for employees: Hire in-factory registered nurse according to the law to provide colleagues with most prompt nursing resources with weekly physician’s on-site service for those employees in need who can file an application by themselves; make active calls to give concerns to those injured or sick employees; conduct work resumption assessment in due course; offer one free-of-charge labor medical examination per year to ensure employees’ health conditions; provide employees and their dependents with comprehensive eye exam by appointment.
The Company has combined remuneration with the employees’ performance evaluation, and developed an explicit, effective reward and punishment system.
Employee pension:
Planning of the pension system is subject to the “Labor Standards Act” and the “Labor Pension Act” for the purpose of protecting employees’ rights in applying for pension payment in the future.
Retirement requirements: Those employees who meet one of the following criteria can apply for retirement by their own.
(1) Those who have worked for over 15 years and reached the age of 55 or more.
(2) Those who have worked for over 25 years.
(3) Those who have worked for over 10 years and reached the age of 60 or more.
The Company shall force the retirement of those employees who has met any of the following conditions:
(1) Those who are aged 65 or more.
(2) Those employees who are physically and mentally disable and ineligible for work.
Payment time: Pension will be paid in lump sum to those retirees who meet requirements of voluntary retirement within 30 days from their retirement date. If any, failure in making lump-sum payment, pension shall be paid in installments only after reported to and approved by the competent authority.

Other regulations: Voluntary retirees should prepare a retirement application for approval. Those employees who are forced to retire mandatorily shall be notified of proceeding with the procedure by each unit which shall first make a report for approval. Employees’ right to | |

Assessment item	Operation status	Deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor
Yes	No	Summary description

(III) Does the Company provide its employees with a safe and healthy work environment, and provide safety and health education to its employees regularly?	✓
Type of Training	Class No.	No. of Person
Safety and health training for newcomers (Internal)	30	30
Safety and health training for in-active employees (Internal)	2	20
Emergency response educational training (Internal)	-	-
Resumed training for employees who have obtained certificates related to safety and health (External)	1	1
Total	-	-
Average hour no. of annual training	3.5 HR
The Company attaches importance to causes of

Assessment item	Operation status			Deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor
	Yes	No	Summary description
			occurrence of each occupational disaster. In view of conduction of effective management, we set up the environment safety and health abnormality handling procedure. Once incidents occur, the unit should report and handle the same in accordance with the procedure, and the safety & health room, the unit labor representative and its supervisor shall jointly work on investigation and analysis in terms of incidents with a view to reviewing the root causes of occurrences, clarifying relevance between cases and work contents, and developing corrective and preventive measures; in case of recurrence, it is necessary to repeatedly review its countermeasures of effectiveness. In 2025, no occupational disaster was reported.
(IV) Does the Company have effective programs for development and training regarding employees’ career skills?	✓		The Company adheres to the purpose of TPS (Lean), and create an UDE-belonged corporate culture of UDPS. Talent cultivation is an important basis for business sustainable development. UDPS spirit not only plays a huge role in manufacturing site, but can be applied to talent cultivation. UDPS spirit puts emphasis on “ongoing improvement” of the process. In aspect of talent cultivation, we continue to conduct evaluation and reflection to find weakness, and continuously improve & optimize the talent cultivation process. Only in this way, we can create a group of talents who can really meet business needs with continuous development of abilities. UDPS spirit requires “participation and contribution of all employees”. The Company enables every employee to participate in talent incubation, and to actively make contributions and suggestions for talent incubation. As such, we are able to create an environment of total involvement and effective cultivation. UDPS spirit focuses on “cultivation of problem-solving ability”. We regard each employee as an expert who can cultivate him/herself to master work details and processes, and share his/her own problem-solving experience with others. The training system includes newcomer training, general education training, professional courses training, management courses training, etc.; the courses include company history, organization, business philosophy, corporate culture, code of ethics, labor and human rights laws and regulations, rules and systems, policies, quality systems, occupational safety and health, introduction to manufacturing processes, company environment and welfare, etc. We assist staff in familiarizing themselves in the environment and systems; when staff are admitted, we will set up required courses in general knowledge and professional capability, based on different duties and job level, in order to improve competence development of employees in each level. We make use training systems to track, manage, and grasp execution progress of training courses, create concrete training benefits, and cultivate talents who meet requirements for organization development for the purpose of ensuring business sustainable growth.	No material difference currently.

Assessment item	Operation status	Deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor
Yes	No	Summary description

Training Topic	Training Course	Trainee
Newcomer Training	Introduction to company products	Training for Newcomes
Company profile/system/welfare/safety & health
Educational training course on sexual harassment
MIS newcomer training
Seminar for newcomers
Business trip advances and reimbursements
Sea and air freight import scheduling and delivery time
Export shipment
Safety and Health	Fire drills	Training for strategic talents
Initial training class for fire safety managers
Production Quality Control	To know and apply AI - Share of cases from daily life to work integration	Training for strategic talents
Three-day training course for emerging AI talents in the industry
NC1 Shortcoming improvement educational training (Management process of management review)
NC2 Defective products management procedure
NC3 Shortcoming improvement educational training (Measuring instruments management procedure)

Operation status
Yes	No	Summary description
			NC4 Corrective and continuous improvement management procedure
		Finance and Accounting	"Corporate Governance" capability in internal audit competence and financial statements risk assessment practices
			Continuing study class (bestseller pack) for principal accounting officers of issuers, securities firms, and stock exchanges
			Legal liability of enterprises in preparing "sustainability report" and interpretation of practice cases
			Business intelligence and data analysis methods
			Focus of operational systems audit, and integration of across-cycles and operations
			Workshop on Cradle-to-Gate product carbon footprint calculation and exchange
			Seminar on key points of legal liability of "employee fraud" and internal control & internal audit practices
			Seminar on promotion of ESG evaluation in 2026
			Seminar on key points of "sustainable information management" and internal

Operation status
Yes	No	Summary description
		control & internal audit practices
		How to apply big data to strengthen audit operations
		Latest development of corporate governance and sustainable development and recent precautions for board of directors and shareholders' meeting
		Introduction to response of TWSE/TPEx listed companies to sustainable information – sustainability standards and report
	Business Internal Control and Internal Audit	Workshop on Excel VBA macro applications
	Operation & Management	Workshop on Toyota TPS	Training for executives	50	830
		Talent recruitment and resignation management
		Process design and interdepartmental communication (Train game)
		AI-driven enterprise evolution
		Path of intelligent transformation – from points to lines to areas

Assessment item	Operation status	Deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor
Yes	No	Summary description
(V) Does the Company develop management policies and procedures in accordance with the relevant regulations and international human rights conventions? (VI) Does the Company establish and implement proper employee welfare measures (including remuneration, leaves and other welfare) and reflect its business performance or results in the employee remuneration?	✓
Type	Cooperative Education
Organizer	Lunghwa University of Science and Technology
Collaborative School	Lunghwa University of Science and Technology
No. of Personnel	8
Period	2023.8.1-2028.6.30
V. Does the Company prepare the sustainable development report or other reports that disclose non-financial information of the Company with reference to internationally accepted report preparation guidelines or guides? Is any third-party verification or assurance opinion acquired for the above-mentioned reports?	✓
VI. If the Company has established its own sustainable development best practice principles based on the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”, please describe any difference between the implementation and its sustainable development best practice principles: The Company has established the sustainable development best practice principles, and the actual operations have had no apparent difference with the principles.
VII. Other material information that helps understand the implementation status of sustainable development: To implement and promote environmental protection activities, the Company saves all kinds of resources and complies to the regulations established by the competent authority, hoping to reach the target of controlling environmental pollution in terms of management. The Company also ensures safety in work environment in the aspect of safety and health.

(VI) Climate-Related Information of TWSE/TPEx Listed Company

Item	Implementation
I. Describe the board of directors' and management's oversight and governance of climate-related risks and opportunities.	UDE actively strengthens its corporate governance function concerning sustainable operation and sustainable environment. It has established a Sustainable Development Promotion Team as the highest guiding body for its sustainable governance operations. With the Company's Chairman serving as the person in charge of the team, it comprises senior managers across different fields. Its responsibilities include formulating the annual corporate social responsibility goals in economic, environmental, and social aspects, regularly monitoring implementation, and leading our sustainable development to improve and achieve short-term, medium-term, and long-term goals.The team reports the implementation plan and results to the Board of Directors on a regular basis.The 2025 report had been submitted to the board of directors on August 7, 2025.
II. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the business (short, medium, and long term).	Please refer to Table 1 for details.
III. Describe the financial impact of extreme weather events and transformative actions.	Please refer to Table 1 for details.
IV. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.	Identification of risks and opportunities:Risks and opportunities arising from internal and external factors in the environment where the Company operates are identified under the leadership of the Company's senior management and managed in accordance with the internal regulations. Risks and opportunities within the Company's management system are identified and evaluated on a regular basis, in principle, scheduled based on the annual plan.UDE has integrated the risk management of relevant management systems, such as quality management system (ISO9001, IATF16949, and QC080000) and social responsibility management system (ISO14001 and ISO45001). All responsible units regularly identify risks and then uniformly enter the assessment and analysis process.The corresponding integration flow chart is shown in the figure below:
V. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors, and major financial impacts used should be described.	Rather than assessing climate risks through scenario analysis, UDE conducts climate risk assessment based on environmental impact, frequency of occurrence, timing of occurrence, risk evaluation of existing measures, and risk evaluation after improvement.

Item	Implementation
VI. If there is a transition plan for managing climate-related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.	There is currently no specific transition plan in response to climate-related risks.
VII. If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.	At present, the Company does not use internal carbon pricing as a planning tool.
VIII. If climate-related targets have been set, the activities covered, the scope of greenhouse gas emissions, the planning horizon, and the progress achieved each year should be specified. If carbon credits or renewable energy certificates (RECs) are used to achieve relevant targets, the source and quantity of carbon credits or RECs to be offset should be specified.	The Company's current climate-related targets are primarily set to complete the group greenhouse gas inventory. The planning schedule is to complete the group greenhouse gas inventory (Scope 1 and Scope 2) and obtain assurance by 2028.
IX. Greenhouse gas inventory and assurance status and reduction targets, strategy, and concrete action plan (separately fill out in points 1-1 and 1-2).	Please refer to 1-1-1 for greenhouse gas inventory information and the Sustainability Report for the assurance status.

1-1. Greenhouse Gas Inventory and Assurance Status for the Most Recent 2 Fiscal Years

1-1-1 Greenhouse Gas Inventory Information

Describe the emission volume (metric tons CO2e), intensity (metric tons CO2e/NT$ million), and data coverage of greenhouse gases in the most recent 2 fiscal years.

Year	Emissions (metric tons CO2e)	Intensity (metric tons CO2e/NT$ million)	Scope of data
2024	35,373.17	6.87	Zhong Jiang Factory
2025	46,764.26	7.53	Zhong Jiang Factory

Note 1. Zhong Jiang Factory is the main production site of UDE. Therefore, the greenhouse gas emissions inventory and verification are first conducted at Zhong Jiang Factory.

Emission volume in 2024 has been reviewed by the third-party institution to pass the requirements of ISO14064-1:2018.
Self-inventory applied in 2025.

1-1-2 Greenhouse Gas Assurance Information

Describe the status of assurance for the most recent 2 fiscal years as of the printing date of the annual report, including the scope of assurance, assurance institutions, assurance standards, and assurance opinion: The complete assurance information will be disclosed in the Sustainability Report.

1-2 Greenhouse Gas Reduction Targets, Strategy, and Concrete Action Plan

Specify the greenhouse gas reduction base year and its data, the reduction targets, strategy and concrete action plan, and the status of achievement of the reduction targets.

The base year for GHG reduction is 2017. With reference to this base year, a three-year emission reduction plan was implemented from 2025 to 2027, aiming for a targeted annual reduction of GHG emissions by $\leq 0.14$ (t) of annual carbon emissions / million revenue.

Remarks:

The greenhouse gas emissions per unit of output are defined as the amount of greenhouse gas emissions (metric tons CO2e) generated per 1,000 network interface products (K port).

Annex 1:

Risk type			Risk factor	Impacts on business/finance and opportunities	Adaptation method
Physical risk	Short-term	Immediacy	Drought - impacts on operations imposed by unstable water supply	· Impact on production capacity and declined revenue	· Establish robust water resource regulations
· Strengthen the implementation of green facilities related to energy and water conservation
	Short-term		High temperature - rising electricity costs due to rising electricity prices	· Increased operating costs	· Promote the concept of energy conservation
· Manage equipment utilization to improve power efficiency
	Short-term		High temperature - impacts on production due to unstable power supply (power trip)	· Impact on production capacity and declined revenue	· Equip IT facilities with UPS to support the electricity supply
· Supply oil for the emergency generator available for support
Transition risk	Mid-term	Policies and regulations	Carbon tax	· Increased operating costs	· Conduct annual carbon inventory for carbon emission management
· Update regulatory requirements and adopt countermeasures in advance
	Mid-term		Carbon Emission Control	· Impact on production capacity and declined revenue	· Conduct annual carbon inventory for carbon emission management
· Update regulatory requirements and adopt countermeasures in advance
	Mid-term		Increase in climate-related litigation	· Fines for violation of laws and regulations	· Conduct annual carbon inventory for carbon emission management
· Update stakeholder needs and adopt countermeasures in advance.
	Mid-term		Increase in requirements for corporate climate information disclosure	· Negative feedback from stakeholders regarding the Company	· Update stakeholder needs and adopt countermeasures in advance
	Long-term	Goodwill	Increase in demand for sustainability verification from future customers	· Negative feedback from stakeholders regarding the Company	· Update stakeholder needs and adopt countermeasures in advance

(VII) The Company's implementation of ethical management and any deviation from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons therefor

Assessment item	Operation status			Deviation from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor
	Yes	No	Summary description
I. Establishment of ethical management policies and programs(I) Does the Company establish ethical corporate management policies that are adopted by the Board of Directors and explicitly state such policies and the practice thereof in its Articles of Incorporation and external documents? Do the Board of Directors and top management actively fulfill their commitments to implementing the management policies?(II) Does the Company establish a risk assessment mechanism against unethical conduct, analyze and assess on a regular basis business activities within their business scope which are at a higher risk of being involved in unethical conduct, and establish prevention programs accordingly with the inclusion of the prevention measures against each behavior specified in Article7, Paragraph 2 of the “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies”?(III) Does the Company specify the operating procedures, behavior guidelines, discipline of violation and complaint system in the prevention program for unethical conduct, and implement the program accordingly? Does the Company regular review and modify the program mentioned above?	✓		(I) The Company has developed “work rules” for employees; employees must not directly or indirectly offer/accept any inappropriate benefit. Moreover, the board members and management all exercise the duty of their position and of care as prudent managerial officers, and exercise their powers with a high level of self-discipline and a cautious attitude.(II) The Company complies to the Company Act, the Securities and Exchange Act, the Business Entity Accounting Act, and any laws that pertain to business conduct of TWSE/TPEX listed companies. These regulations shall provide the foundation for the Company’s implementation of ethical management.(III) When the Company signed any contract with others, the content was always in line with the ethical management policy. If the trading counterpart is discovered to be engaged in unethical conduct, the Company may terminate or rescind the contract at any time.	No material difference.
II. Implementation of ethical management(I) Does the Company have the integrity record of the trading counterparty assessed and the clauses of ethical conduct expressed in the contract signed between them?(II) (II) Does the Company establish a specific unit for the Board of Directors to promote corporate ethical management and regularly (at least once a year) report the ethical management policy, prevention program of unethical conduct and implementation status of supervision to	✓		(I) The Company conducts all commercial activities in a fair and transparent manner, and includes non-disclosure of commercial data in the contracts signed with others. The Company respects the commercial assets and intellectual property of customers and partners.(II) The Company has not established any dedicated (concurrent) unit for the Board of Directors to promote corporate ethical management. However, the audit unit is responsible for monitoring the implementation of ethical management and reporting to the Board of Directors irregularly.	No material difference.

Assessment item	Operation status
	Yes	No	Summary description
the Board of Directors?
(III) Does the Company have policies against conflicts of interest, provide appropriate reporting channels, and implement them?

(IV) Does the Company establish an effective accounting system and internal control system to implement ethical management? Does the internal audit unit draft relevant audit plans base on the results of the unethical conduct risk assessment? Is the compliance of the prevention program for the unethical conduct audited accordingly by the internal audit unit or committed accountants?
(V) Does the Company regularly organize internal and external training regarding ethical management? | | | (III) A system for avoiding conflict of interest of directors has been specified in the Company’s “Rules and Procedures of Board of Directors Meetings.” If a party or any of the corporate entities it represents is considered a stakeholder to a topic discussed in the Board of Directors meeting, the party may state its opinion and answer or ask questions, and shall disassociate from all discussions and voting if the stakes are in conflict against the Company’s interests. In addition, the concerned party may not exercise voting rights on behalf of other directors.

(IV) To ensure the implementation of ethical management, the Company has developed effective accounting and internal control systems and appointed internal audit personnel to review the compliance status to the systems.

(V) The Company provides internal and external educational training related to issues of ethical management (including relevant courses such as compliance of ethical management, insider trading, introduction to the company’s information security policy, etc.) for a total of 60 person-times and 171 man-hours. | |
| III. Operation of the Company’s whistleblowing system
(I) Does the Company establish a specific whistleblowing and rewarding system, and provide convenient reporting channels, and have competent personnel assigned to deal with such issues?
(II) Does the Company establish standard operating procedures for investigation of matters reported by whistleblowers, measures to be taken following the conclusion of the investigation, and relevant mechanisms for confidentiality?
(III)
(IV) Does the Company take any measures to protect whistleblowers from | ☑ | | The Company has set up a complaint box for employees to report illegal conduct. If employees are found non-compliant with ethical management, the Company shall inflict punishments according to the rules. | No material difference. |

Assessment item	Operation status			Deviation from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and the reasons therefor
	Yes	No	Summary description
improper treatment as a result of their whistleblowing? .
IV. Enhancing information disclosure(I) Does the Company have the contents of its ethical management best practice principles and the implementation thereof disclosed on its website and MOPS?	✓		(I) The Company's website is linked to the MOPS, and ethical management relevant information are disclosed on both websites.(II) The Company uploads announcements and material messages to the websites for investors to keep an eye on our material messages. Investors may refer to the MOPS and the Company website.	No material difference.
V. If the Company has established its own ethical management best practice principles based on the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies", please describe any difference between the implementation and its ethical management best practice principles: The Company has established the ethical management best practice principles, and the actual operations have had no apparent difference with the principles.
VI. Other important information useful to the understanding of the Company's implementation of ethical management (conditions such as review and amendment of the ethical management best practice principles established thereby): A system for avoidance of conflict of interest of directors has been specified in the Company's "Rules and Procedures of Board of Directors Meetings." The directors should hold a high level of self-discipline; if a party or any of the corporate entities it represents is considered a stakeholder to a topic discussed in the Board of Directors meeting, the party may state its opinion and answer or ask questions, and shall disassociate from all discussions and voting if the stakes are in conflict against the Company's interests. In addition, the concerned party may not exercise voting rights on behalf of other directors. The directors must also exercise self-discipline and refrain from backing up each other. The Company has also established the "Insider Trading Prevention Procedure." It explicitly stated that the directors, supervisors, managerial officers and employees who learned about the Company's internal material information must not disclose the information to others, and others must not inquire or collect the Company's undisclosed internal material information irrelevant to their jobs from those who learned about the information. If a person learns about the Company's undisclosed internal material information in conditions other than executing his/her business, he/she must not disclose the information to others.

(VIII) Query methods of the Company's corporate governance principles and related rules (if any): The Company has established the corporate governance principles pursuant to the "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies," and relevant principles have been uploaded to the Company's website.

(IX) Other information that is useful for understanding more about the implementation status of corporate governance: None.

(X) Implementation of the internal control system

Declaration of Internal Control

U.D. ELECTRONIC CORP.

Internal Control System Declaration

Date: February 25, 2026

Based on the result of self-inspection of the Company’s internal control system in 2025, we hereby declare the following:

I. The Company acknowledges and understands that the establishment, implementation and maintenance of the internal control system are the responsibility of the Board of the Directors and managerial officers. Such a system has been established. The purpose of this system is to provide reasonable assurance in terms of business performance, efficiency (including profitability, performance, and asset security), reliable, timely and transparent financial reporting, and compliance with relevant regulations and laws.

II. There are inherent limitations to even the most well-designed internal control system. Therefore, an effective internal control system can only reasonably assure achievement of the three goals mentioned above. Furthermore, changes in the environment and circumstances may all affect the effectiveness of the internal control system. However, the internal control system of the Company features a self-monitoring mechanism that allows us to immediately take corrective actions upon identification of any deficiencies.

III. The Company has assessed the effectiveness of the design and implementation of the internal control system based on the criteria for examining the effectiveness of internal control systems specified in the “Regulations Governing Establishment of Internal Control Systems by Public Companies” (hereinafter referred to as the “Regulations”). The criteria for examining the effectiveness of internal control systems in the “Regulations” divide an internal control system into five components based on the processes of management and control: 1. control environment, 2. risk assessment, 3. control activities, 4. information and communication, and 5. monitoring operation. Each component elements includes several items. Please see “Regulations” for the aforementioned items.

IV. The Company has adopted the aforementioned criteria to examine the effectiveness of the design and implementation of the internal control system.

V. Based on the result of the assessment described above, the Company considers the design and implementation of the internal control system to be effective as at December 31, 2025. This system (including the supervision and management of subsidiaries) has provided reasonable assurance with regard to the Company’s business results, target accomplishments, reliability, timeliness and transparency of reported financial information, and compliance with relevant laws and regulations.

VI. This declaration constitutes part of the Company’s annual report and prospectus, and shall be disclosed to the public. Any illegal misrepresentation or concealment in the public statement above is subject to the legal consequences described in Articles 20, 32, 171, and 174 of the Securities and Exchange Act.

VII. This declaration was adopted by the Board of Directors on February 25, 2026 without any objections from the 9 attending directors. The contents of the declaration were unanimously agreed by the directors.

U.D. ELECTRONIC CORP.

Chairman: Po-Jung Chen

signature

General Manager: Min-Che Chen

signature

If a CPA is entrusted to perform a special audit on the internal control system, the CPA's audit report shall be disclosed: None.

(XI) Significant Resolutions of Shareholders' Meetings and Board of Directors' Meetings for the most recent year and up to the date of publication of the annual report

Major items in resolutions at shareholders' meetings and their implementation status in 2025 up to the publication date of this annual report

Date of shareholders’ meeting	Material resolution and implementation status
2025.05.29	(1) 2024 Business Report and financial statements.
Implementation:
The future direction of operations is determined based on the summary of the future operating plan in the Business Report.

(2) 2024 Earnings Distribution.
Implementation:
The cash dividends of NT$253,001,202 (NT$2.44582910 per share) were distributed on August 28, 2025.

(3) Amendments to certain provisions of the "Articles of Incorporation".
Implementation: The Company shall comply with the amended procedures in the future. |

Material resolutions of the Board of Directors

| 2025.01.23
2025
1st meeting | (1) The Company’s 2025 Business Plan and Budget Plan
(2) Addition of the “Procedures for Preparation and Confirmation of Sustainability Report” internal control system of the Company
(3) Changes in the Company's head of accounting and finance department
(4) Change in the Company's head of corporate governance
(5) Change in the Company's Spokesperson and Acting Spokesperson
(6) Proposal to assist the Company’s affiliate, U.D. Electronic Vietnam Co., Ltd., with fund loaning
(7) Proposal to assist the Company’s affiliate, U.D. Electronic Vietnam Co., Ltd., in a loan case by borrowing new funds to repay old ones upon maturity of the loan facility.
(8) Application for a Consolidated Credit Line from the Bank of Taiwan by the Company
(9) Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates |
| --- | --- |
| 2025.02.27
2025
2nd meeting | (1) Distribution of employees’ and directors’ remuneration in 2024
(2) 2024 Business Report and financial statements
(3) Independence and competency evaluation of the Company’s CPAs for 2025
(4) Evaluation of the Company's 2025 Certified Public Accountants' Fees
(5) Proposal for 2024 earnings distribution
(6) Statement of the Company's internal control system
(7) Establishment of the capital increase date for the conversion and issuance of new shares of the Company's “Fourth Domestic Unsecured Convertible Bonds” in the fourth quarter of 2024
(8) Amendment of certain articles of the Company's Articles of Incorporation
(9) Proposal to assist the Company’s affiliate, U.D. Electronic Vietnam Co., Ltd., with fund loaning
(10) Remuneration of the Company's Chief Financial Officer
(11) Settlement of matters relating to the 2025 Annual General Meeting of Shareholders
(12) Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates |

| 2025.05.08
2005
3^{rd} meeting | (1) The 2025 Q1 financial statements
(2) The Company’s “planning of non-audit service provided by CPAs for 2025”
(3) Amendment of certain articles of the Company’s “Internal Control System”
(4) Proposal to assist the Company’s affiliate, U.D. Electronic Vietnam Co., Ltd., in a loan case by borrowing new funds to repay old ones upon maturity of the loan facility.
(5) The Company's assistance to the capital loan case of U.D. Electronic (VIETNAM) Corp.
(6) The Company intends to issue the 1^{st} employee stock option certificates with subscription plan in 2025.
(7) Application by the Company to Chinatrust Commercial Bank for renewal of consolidated credit facilities and endorsement and guarantee
(8) Establishment of the record date for the conversion of the Company’s “Employee Stock Option Certificate” to new shares in the Q1 of 2025.
(9) Establishment of the record date for the conversion of the Company’s “Third Domestic Secured Convertible Bonds” to new shares in the Q1 of 2025.
(10) Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates |
| --- | --- |
| 2025.05.29
2025
4^{th} meeting | (1) Distribution of 2024 remuneration to directors
(2) Distribution of 2024 employee compensation to managers
(3) Application by the Company to Taishin for endorsement and guarantee by affiliated enterprises
(4) The Company's capital loan case of U.D. Electronic (VIETNAM) Corp. for its capital increase
(5) Change in the Company's head of research and development center
(6) Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates |
| 2025.08.07
2025
5^{th} meeting | (1) The Company's consolidated financial statements for the second quarter of 2025
(2) The Company’s 2024 sustainability report
(3) The Company’s amendment of the first employee stock option certificate and reconfirmation of its subscription plan in 2025
(4) Establishment of the record date for the conversion of the Company’s “Employee Stock Option Certificate” to new shares in the Q2 of 2025.
(5) Establishment of the record date for the conversion of the Company’s “Fourth Domestic Unsecured Convertible Bonds” to new shares in the Q2 of 2025.
(6) Proposal to assist the Company’s affiliate, U.D. Electronic Vietnam Co., Ltd., with fund loaning
(7) Application by the Company to First Commercial Bank for a Comprehensive Credit Line and Recognition of Endorsement and Guarantee by affiliated enterprises
(8) Endorsement and guarantee provided by the Company to assist an affiliated company, ALL FIRST INT'L CO., LTD. in obtaining a derivative financial instrument credit line
(9) Application for Renewal of the Company's Comprehensive Credit Line from Taipei Fubon Commercial Bank Co., Ltd.
(10) Application by the Company to Taipei Fubon Commercial Bank Co., Ltd. for an endorsement and guarantee by affiliated enterprises
(11) Application by the Company to Taishin International Bank Co., Ltd. for |

| | comprehensive credit line and recognition of agreement to provide endorsement and guarantee to affiliated enterprises
(12) Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates |
| --- | --- |
| 2025.09.19
2025
6^{th} meeting | The Company intends to invest in Zhejiang Link Power Electronics Co., Ltd. via Zhongjiang U.D. Electronic Corp. |
| 2025.11.06
2025
7^{th} meeting | (1) The Company's Consolidated Financial Statements for the Third Quarter of 2025
(2) Establishment of the record date for the conversion of the Company’s “Employee Stock Option Certificate” to new shares in the Q3 of 2025.
(3) Establishment of the record date for the conversion of the Company’s “Fourth Domestic Unsecured Convertible Bonds” to new shares in the Q3 of 2025.
(4) Proposal to assist the Company’s affiliate, U.D. Electronic Vietnam Co., Ltd., in a loan case by borrowing new funds to repay old ones upon maturity of the loan facility.
(5) Application for renewal of the Company's comprehensive credit line with Yuanta Commercial Bank, Ltd.
(6) The Company applied for a comprehensive credit line from Taishin International Bank Co., Ltd. and agreed to provide an endorsement and guarantee for the affiliated enterprises in the case of retroactive recognition.
(7) The Company applied for a comprehensive credit line from E.SUN Bank and agreed to provide an endorsement and guarantee for the affiliated enterprises in the case of retroactive recognition.
(8) Application by a subsidiary, Zhongjiang U.D. Electronic Corp., to Cathay United Bank (China) Limited, Shenzhen Branch, for a comprehensive credit line and endorsement and guarantee of affiliated enterprises.
(9) Application by a subsidiary, Zhongjiang U.D. Electronic Corp., to Fubon Bank (China) Co., Ltd., Chengdu Branch, for a short-term mortgage loan credit and endorsement and guarantee of affiliated enterprises.
(10) Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates |
| 2026.01.28
2026
1^{st} meeting | (1) 2026 Business Plan and Budget of the Company
(2) Proposal to assist the Company’s affiliate, U.D. Electronic Vietnam Co., Ltd., with fund loaning
(3) Proposal to assist the Company’s affiliate, U.D. Electronic Vietnam Co., Ltd., in a loan case by borrowing new funds to repay old ones upon maturity of the loan facility.
(4) The Company intends to establish a subsidiary in Vietnam.
(5) Supplement of the Company’s “Regulations for Defining and Managing the Scope of Rand-and-File Employees”
(6) Application for the Company's comprehensive credit line with Bank of Taiwan
(7) Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates |
| 2026.02.25
2026
2^{nd} meeting | (1) Distribution of employees’ and directors’ remuneration in 2025
(2) 2025 Business Report and financial statements
(3) Independence and Suitability evaluation of the CPAs for 2026
(4) Evaluation of the CPAs’ fee for 2026
(5) 2025 Earnings Distribution
(6) Reelection of directors |

| | (7) Nomination of director and independent director candidates
(8) Proposal to lift the non-competition restrictions on newly elected directors and their representatives
(9) Appointment of the Company’s new head of research and development
(10) Appointment of the Company’s new head of audit
(11) The Company’s Statement of Internal Control System
(12) Establishment of the record date for the conversion of the Company’s “Employee Stock Option Certificate” to new shares in the Q4 of 2025.
(13) Establishment of the record date for the conversion of the Company’s “Fourth Domestic Unsecured Convertible Bonds” to new shares in the Q4 of 2025.
(14) Proposal to assist the Company’s affiliate, U.D. Electronic Vietnam Co., Ltd., in a loan case by borrowing new funds to repay old ones upon maturity of the loan facility.
(15) Settlement of matters relating to the 2026 Annual General Meeting of Shareholders
(16) The Company applied for a comprehensive credit line from Mega International Bank Co., Ltd. and agreed to provide an endorsement and guarantee for the affiliated enterprises in the case of retroactive recognition.
(17) Reconfirmation of accumulated endorsements and guarantees provided by the Company to its affiliates |
| --- | --- |

(XII) If any directors or supervisors express dissent or reservation, which has been recorded or is delivered in writing, over any resolutions made by the Board of Directors in the most recent year up to the publication date of this annual report: None.

III. Information about CPAs' fees

Information of CPAs (External Auditor):

Unit: NT$ Thousands

Name of CPA firm	Name of CPA		Audit period	Audit fee	Non-audit fee	Remarks
Deloitte Taiwan	MENG-KUEI YU	Chiang-Hsun Chen	2025/10/01~2025/12/31	4,720	650	Non-audit services include transfer pricing and master file.

(I) If fees paid to the CPAs, CPA firm or its affiliated company for non-audit services account for a proportion equal to one-quarter or more of the fees paid for the audit service, the fee for audit and non-audit services as well as the contents of the non-audit service shall be disclosed:

The fees paid to the CPAs, CPA firm or its affiliated company for non-audit services for the Company in 2025 accounted for a proportion less than one-quarter of the fees paid for the audit service. A total of NT$650 thousand of non-audit fees were paid for the transfer pricing reports and the Group master file.

(II) If the CPA firm has been changed and the audit fee paid to the new CPA firm in the year is less than the previous year, the amounts before and after the replacement as well as the reasons thereof shall be disclosed: Not applicable.

(III) If the audit fee decreases by more than 10% YoY, the decreased amount, percentage and reason for the decrease shall be disclosed:

Not applicable.

IV. Information about the replacement of CPAs

(I) About the former CPA: Not applicable.

(II) About the succeeding CPA: Not applicable.

(III) Reply of the former CPA: Not applicable.

V. For the Company's Chairman, General Manager, or managerial officers responsible for handling financial or accounting affairs who held a position in the CPA firm or any of its affiliates in the most recent year, their names, titles and terms in the CPA firm or any of its affiliates shall be disclosed. The affiliates of the CPA firm mentioned refer to the companies or institutes to which the CPAs holds more than 50% shares, or that more than half of the directors are the CPAs, or are listed as affiliates in the CPA firm's external publications and data: None.

VI. Transfer of equity interests and changes in pledge of equity conducted by directors, supervisor, managerial officers, and shareholders having a shareholding ratio of more than 10% in the most recent year up to the publication date of this annual report

(I) Changes in equity of directors, supervisors (Note 2), managerial officers, and major shareholders

Unit: share

Title	Name	2025		As of March 29, 2026
		Increase (decrease) of shares held	Increase (decrease) of shares pledged	Increase (decrease) of shares held	Increase (decrease) of shares pledged
Chairman and the CEO	Po-Jung Chen	100,000	0	100,000	0
Director and General Manager	Min-Che Chen	300,000	0	0	0
Director	Chi-Ling Chen	0	0	0	0
Director	Yu-Chan Shih	100,000	0	100,000	0
Independent director	Kuang-Chao Fan	0	0	0	0
Independent director	Hsueh-Yu Liu	0	0	0	0
Independent director	Hsu-Ling Wang	0	0	0	0
Director	Chang-Chun Chien	0	0	0	0
Director	Chun Feng Investment Co., Ltd. Representative: Te-Chang Yao (Note 1)	0	0	0	0
		0	0	0	0
Assistant General Manager	Feng-Kuang Li	300,000	0	0	0
Assistant General Manager	Chang-Pu Wu	6,000	0	90,000	0
Assistant General Manager	Chih-Ching Yu (Dismissal date: 20250529)	90,000	0	N/A	N/A
Assistant General Manager	Yu-Chan Shih	100,000	0	0	0
Chief Financial Officer	Yung-Ming Li	4,000	0	0	0

Note 1: Chun Feng Investment Co., Ltd. had elected a juridical person as corporate director.
Note 2: The Company formed the Audit Committee on June 18, 2020 as a substitute for supervisors.

(II) Counterpart that is a related party with respect to the transfer of equity interests conducted by directors, supervisors, managerial officers, and major shareholders in the most recent year: None.
(III) Counterpart that is a related party with respect to the pledge of equity made by directors, supervisors, managerial officers, and major shareholders in the most recent year: None.

VII. Information on the Top 10 shareholders in shareholding ratio who are related parties to each other or have a spousal relationship or are relatives within the second degree of kinship

March 29, 2026

Name	Shareholding of the individual		Shares held by spouse and minor children		Total shares held in the name of others		The title or name and relationship of the Top 10 shareholders who are related parties to each other or have a spousal relationship or are relatives within the second degree of kinship as referred to in ROC GAAP N. 6.		Remarks
	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Title (or name)	Relation	Nil
Continuous Growth Investment Co., Ltd.	4,648,561	5.20%	0	0.00%	0	0.00%	Min-Che Chen	Min-Che Chen is the corporate representative of the company.
Continuous Growth Investment Co., Ltd. Representative: Min-Che Chen	2,187,559	2.45%	0	0.00%	4,648,561	5.20%
Min-Che Chen	2,187,559	2.45%	0	0.00%	4,648,561	5.20%	Continuous Growth Investment Co., Ltd.	Min-Che Chen is the corporate representative of the company.
Po-Jung Chen	2,086,299	2.33%	316,556	0.35%	0	0.00%
Wang-Sen Lin	1,880,000	2.10%	0	0.00%	0	0.00%
Ming-Kuo Wei	1,291,000	1.44%	0	0.00%	0	0.00%
Chang-Chun Chien	1,116,394	1.25%	176,478	0.20%	0	0.00%
Chi-Ling Chen	901,489	1.01%	0	0.00%	0	0.00%
Yu-Chan Shih	880,006	0.98%	38,204	0.04%	0	0.00%
Citibank (Taiwan) Commercial Bank, Custody Account for UBS Europe SE Investment Account	701,000	0.78%	0	0.00%	0	0.00%
Hsiao-Chin Chou	687,000	0.77%	0	0.00%	0	0.00%

VIII. For the total number of shares held in any single invested business by the Company, its directors, supervisors, managerial officers, and any businesses controlled directly or indirectly by the Company, the comprehensive shareholding ratio is calculated in a consolidated manner

December 31, 2025; Unit: thousand shares; %

Reinvested business	Investment of the Company		Investment by directors, supervisors, managerial officers, and directly or indirectly controlled businesses		Aggregate investment
	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio
GLOBAL CONNECTION (SAMOA)HOLDING INC.	51,089	100 %	0	0	51,089	100 %
CDE Corp.	15,000	100 %	0	0	15,000	100 %
DYP Corp.	11,220	51%	858	3.9%	12,078	54.90%
U.D.ELECTRONIC VIETNAM COMPANY LIMITED	0	100 %	0	0	0	100 %
SUNDERLAND INC.	0	0	14,064	100 %	14,064	100 %
SAN FRANCISCO INC.	0	0	27,536	100 %	27,536	100 %
ALL FIRST INT'L CO., LTD.	0	0	10,000	100 %	10,000	100 %
Ta Yang UDE Limited.	0	0	4,438	51%	4,438	51%
MORNING PARAGON LIMITED	0	0	1,500	51%	1,500	51%
Dongguan Jian Guan P.E. Co., Ltd.	0	0	0	100 %	0	100 %
Zhong Jiang U.D.E. Electronics Corp.	0	0	0	100 %	0	100 %
Zhong Jiang U.D.E. Networking Electronics Corp.	0	0	0	100 %	0	100 %
Dongguan De Yang Precision Rubber Plastic Co., Ltd.	0	0	0	51%	0	51%
Dongguan Yongde Electronic Technology Co., Ltd.	0	0	0	100%	0	100%
Dongguan Artegen Intellectual Technology Co., Ltd. (Note 2)	0	0	0	0%	0	0%
Dongguan Han Lian Technology Co., Ltd.	0	0	0	85%	0	85%
Shenzhen Deshenglong Electronics Co., Ltd.	0	40%	0	0	0	40%

Note 1: The Company adopts the equity method for investments.
Note 2: Dongguan Artegen Intellectual Technology Co., Ltd. filed an application for registration cancellation procedure in March 2025.

Three. Fundraising Overview

I. Capital and shares

(I) Source

Date	Issue price (dollar)	Approved capital		Paid-in capital		Remarks
		Number of shares (thousand shares)	Amount (NT$ thousand)	Number of shares (thousand shares)	Amount (NT$ thousand)	Source of capital	Investment by property other than cash	Others
2005/03	10	1,000	10,000	1,000	10,000	Established capital at NT$10,000 thousand	Nil	Nil
2007/04	12	40,000	400,000	6,417	64,167	Capital increase in cash valued at NT$54,167 thousand	Nil	Note 1
2007/05	12	40,000	400,000	13,864	138,637	Capital increase in cash valued at NT$74,470 thousand	Nil	Note 2
2007/05	12	40,000	400,000	19,136	191,357	Capital increase in cash valued at NT$52,720 thousand	Nil	Note 3
2007/07	12	40,000	400,000	24,035	240,347	Capital increase in cash valued at NT$48,990 thousand	Nil	Note 4
2007/08	12	40,000	400,000	26,311	263,107	Capital increase in cash valued at NT$22,760 thousand	Nil	Note 5
2007/10	11	40,000	400,000	30,450	304,497	Capital increase in cash valued at NT$41,390 thousand	Nil	Note 6
2008/01	10	40,000	400,000	36,319	363,187	Capital increase in cash valued at NT$58,690 thousand	Nil	Note 7
2008/01	10	40,000	400,000	38,644	386,437	Capital increase in cash valued at NT$23,250 thousand	Nil	Note 8
2008/06	15	40,000	400,000	39,844	398,437	Capital increase in cash valued at NT$12,000 thousand	Nil	Note 9
2008/08	20	60,000	600,000	42,144	421,437	Capital increase in cash valued at NT$23,000 thousand	Nil	Note 10
2008/08	10	60,000	600,000	48,286	482,858	Capitalization of earnings, capital reserves and employee bonus valued at NT$61,421 thousand	Nil	Note 10
2009/08	32	60,000	600,000	51,286	512,858	Capital increase in cash valued at NT$30,000 thousand	Nil	Note 11
2009/08	10	60,000	600,000	52,711	527,115	Capitalization of earnings and employee bonus valued at NT$14,257 thousand	Nil	Note 11
2010/10	11.7	60,000	600,000	53,211	532,115	Capitalization of employee stock option valued at NT$5,000 thousand	Nil	Note 12
2011/04	11.7	60,000	600,000	53,711	537,115	Capitalization of employee stock option valued at NT$5,000 thousand	Nil	Note 13
2011/09	10	100,000	1,000,000	57,397	573,971	Capitalization of earnings and employee bonus	Nil	Note 14
2011/10	60	100,000	1,000,000	61,397	613,971	Capital increase in cash valued at NT$40,000 thousand	Nil	Note 15
2012/10	50	100,000	1,000,000	67,597	675,971	Capital increase in cash valued at NT$62,000 thousand	Nil	Note 16
2014/05	85.4	100,000	1,000,000	68,595	685,958	Convertible bonds valued at NT$9,987 thousand	Nil	Note 17
2014/09	85.4	100,000	1,000,000	68,746	687,468	Convertible bonds valued at NT$1,510 thousand	Nil	Note 18
2014/11	81.7	100,000	1,000,000	69,675	696,758	Convertible bonds valued at NT$9,289 thousand	Nil	Note 19
2021/12	35	100,000	1,000,000	74,241	742,418	Convertible bonds valued at NT$45,660 thousand	Nil	Note 20
2022/03	35	100,000	1,000,000	76,666	766,664	Convertible bonds valued at NT$24,246 thousand	Nil	Note 21
2022/05	35	100,000	1,000,000	77,110	771,108	Convertible bonds valued at NT$4,443 thousand	Nil	Note 22
2022/09	35	100,000	1,000,000	77,230	772,301	Convertible bonds valued at NT$1,192 thousand	Nil	Note 23
2023/09	35	100,000	1,000,000	77,413	774,130	Convertible bonds valued at NT$1,828 thousand	Nil	Note 24
2023/11	35	100,000	1,000,000	78,484	784,837	Convertible bonds valued at	Nil	Note 25

Date	Issue price (dollar)	Approved capital		Paid-in capital		Remarks
		Number of shares (thousand shares)	Amount (NT$ thousand)	Number of shares (thousand shares)	Amount (NT$ thousand)	Source of capital	Investment by property other than cash	Others
						NT$10,707 thousand
2024/03	35	100,000	1,000,000	78,725	787,250	Convertible bonds valued at NT$2,413 thousand	Nil	Note 26
2024/09	63.7	100,000	1,000,000	79,378	793,780	Employee stock options conversion of NT$6,530 thousand	Nil	Note 27
2024/12	63.7	100,000	1,000,000	80,285	802,847	Convertible bonds valued at NT$7,566 thousand Employee stock options conversion of NT$1,500 thousand	Nil	Note 28
2025/03	63.7	100,000	1,000,000	83,570	835,704	Convertible bonds valued at NT$32,857 thousand	Nil	Note 29
2025/06	63.7	100,000	1,000,000	85,226	852,257	Convertible bonds valued at NT$10,753 thousand Employee stock options conversion of NT$5,800 thousand	Nil	Note 30
2025/11	63.7	100,000	1,000,000	86,397	863,965	Convertible bonds valued at NT$8,618 thousand Employee stock options conversion of NT$3,090 thousand	Nil	Note 31
2025/11	63.7	100,000	1,000,000	87,412	874,116	Convertible bonds valued at NT$8,421 thousand Employee stock options conversion of NT$1,730 thousand	Nil	Note 32

Note: 1. Approved at Jing-Shou-Zhong-Tzu No. 09631982900 on April 18, 2007
2. Approved at Jing-Shou-Zhong-Tzu No. 09632057900 on May 3, 2007
3. Approved at Jing-Shou-Zhong-Tzu No. 09632142650 on May 22, 2007
4. Approved at Jing-Shou-Zhong-Tzu No. 09632447500 on July 18, 2007
5. Approved at Jing-Shou-Zhong-Tzu No. 09632607730 on August 14, 2007
6. Approved at Jing-Shou-Zhong-Tzu No. 09632825910 on October 2, 2007
7. Approved at Jing-Shou-Zhong-Tzu No. 09633366220 on January 2, 2008
8. Approved at Jing-Shou-Zhong-Tzu No. 09731516670 on January 4, 2008
9. Approved at Jing-Shou-Zhong-Tzu No. 09732361210 on June 3, 2008
10. Approved at Jing-Shou-Zhong-Tzu No. 09732829060 on August 8, 2008
11. Approved at Jing-Shou-Zhong-Tzu No. 09801189160 on August 24, 2009
12. Approved at Jing-Shou-Zhong-Tzu No. 09901233890 on October 18, 2010
13. Approved at Jing-Shou-Shang-Tzu No. 10001085070 on April 29, 2011
14. Approved at Jing-Shou-Shang-Tzu No. 10001220050 on September 27, 2011
15. Approved at Jing-Shou-Shang-Tzu No. 10001233380 on October 12, 2011
16. Approved at Jing-Shou-Shang-Tzu No. 10101219610 on October 18, 2012
17. Approved at Jing-Shou-Shang-Tzu No. 10301091680 on May 23, 2014
18. Approved at Jing-Shou-Shang-Tzu No. 10301178110 on September 4, 2014
19. Approved at Jing-Shou-Shang-Tzu No. 10301242260 on November 20, 2014
20. Approved at Jing-Shou-Shang-Tzu No. 11001211700 on December 2, 2021
21. Approved at Jing-Shou-Shang-Tzu No. 11101043280 on March 15, 2022

Approved at Jing-Shou-Shang-Tzu No. 11101083440 on May 17, 2022
Approved at Jing-Shou-Shang-Tzu No. 11101161220 on September 6, 2022
Approved at Jing-Shou-Shang-Tzu No. 11230158590 on September 13, 2023
Approved at Jing-Shou-Shang-Tzu No. 11230218200 on November 27, 2023
Approved at Jing-Shou-Shang-Tzu No. 11330026610 on March 6, 2024
Approved at Jing-Shou-Shang-Tzu No. 11330155910 on September 9, 2024
Approved at Jing-Shou-Shang-Tzu No. 11330206230 on December 12, 2024
Approved at Jing-Shou-Shang-Tzu No. 11430034010 on March 26, 2025
Approved at Jing-Shou-Shang-Tzu No. 114300372360 on June 16, 2025
Approved at Jing-Shou-Shang-Tzu No. 11430140910 on November 17, 2025
Approved at Jing-Shou-Shang-Tzu No. 11430188400 on November 28, 2025

(II) Type of shares
Unit: share; March 29, 2026

Share type	Approved capital			Remark s
	Outstanding shares (Note)	Number of shares unissued	Total
Ordinary share	89,390,991	10,609,009	100,000,000	Nil
Total	89,390,991	10,609,009	100,000,000	Nil

Note: TPEx-listed companies' stock

(III) Structure of shareholders
Unit: person; share; $\%$ ; March 29, 2026

Structure of shareholders Number of shares	Government	Financial institution	Other corporate shareholders	Individuals	Foreign corporation and individual	Total
Number of people (person)	2	12	208	35,658	78	35,958
Number of shares held (share)	66,800	766,016	6,029,663	76,752,592	5,775,920	89,390,991
Shareholding ratio (%)	0.07%	0.86%	6.75%	85.86%	6.46%	100.00%

(IV) Ownership dispersal

Unit: person; share; %; March 29, 2026

Shareholding range	Number of shareholders	Shareholding	Shareholding ratio (%)
1 ~ 999	20,246	792,181	0.89%
1,000 ~5,000	13,656	23,995,390	26.84%
5,001 ~10,000	1,107	9,005,752	10.07%
10,001 ~15,000	319	4,127,657	4.62%
15,001 ~20,000	176	3,269,979	3.66%
20,001 ~30,000	170	4,473,847	5.00%
30,001 ~40,000	73	2,647,204	2.96%
40,001 ~50,000	46	2,149,635	2.40%
50,001 ~100,000	89	6,289,003	7.04%
100,001 ~200,000	34	4,767,288	5.33%
200,001 ~400,000	21	5,605,309	6.27%
400,001 ~600,000	9	4,679,097	5.23%
600,001 ~800,000	4	2,597,341	2.91%
800,001 ~1,000,000	2	1,781,495	1.99%
1,000,001 or more	6	13,209,813	14.78%
Total	35,958	89,390,991	100.00%

(V) List of major shareholders

Name, number and percentage of shares held by the Top 10 shareholders (by shareholding ratio) of the Company are as follows:

Unit: share; %; March 29, 2026

Names of Major Shareholders	Number of shares held	Percentage of shares held
Continuous Growth Investment Co., Ltd.	4,648,561	5.20%
Min-Che Chen	2,187,559	2.45%
Po-Jung Chen	2,086,299	2.33%
Wang-Sen Lin	1,880,000	2.10%
Ming-Kuo Wei	1,291,000	1.44%
Chang-Chun Chien	1,116,394	1.25%
Chi-Ling Chen	901,489	1.01%
Yu-Chan Shih	880,006	0.98%
Citibank (Taiwan) Commercial Bank, Custody Account for UBS Europe SE Investment Account	701,000	0.78%
Hsiao-Chin Chou	687,000	0.77%

(VI) Description of the Company's dividend policies and their implementation

Dividend policies established in the Articles of Incorporation

The content of dividend policies established in the Articles of Incorporation is: If the Company has current profit after tax, it shall first make up cumulative losses, and then make a 10% contribution of the balance to the legal reserve (unless the legal reserve reaches the amount of the Company paid-in capital), and also make provision/reversal of special reserves pursuant to laws. The residual balance shall be added to accumulated undistributed earnings as earnings to be allocated, and after the approval of bonus allocation for shareholders by resolution at a Board of Directors meeting, the above condition shall be reported at a shareholders' meeting. In terms of dividend policies, the Company considers about the environment in which the Company belongs, future fund demands, long-term financial plans and the shareholders' needs for cash inflow. Following the principle of not distributing dividends lower than 10% of earnings after tax in current year, the Company may distribute dividends in shares or in cash, and the cash dividends cannot be lower than 10% of total shareholder bonus.

Dividend distribution proposed at the current shareholders' meeting:

(1) For distribution of earnings for 2025, the Company proposed to distribute cash dividend of NT$3.66 per share. The calculation of current cash dividend distribution was rounded to dollars; the total amount of fractional money less than one dollar was adjusted from the biggest to the smallest decimal number, and from the first to the last account number, until the total number met with the total cash dividend distribution amount. After this shareholders' meeting, the Chairman will be authorized to set the ex-dividend date and dividend distribution date.

(2) If changes in share capital occurred later and affected the Company's outstanding shares, and further resulted in the change and amendment of the payout ratio, the Company should propose at the shareholders' meeting that the Chairman be fully authorized to address the issues.

(3) The Company distributes earnings in 2025 first.

(4) The 2025 earnings distribution table is presented below:

Item	Unit: NT$ Amount
Undistributed earnings in the previous period	1,346,910,958
Add: Net profit after tax in 2025	652,155,881
Less: Legal reserves appropriated	(65,215,588)
Less: Allocation for Reversal of special reserve	(60,562,095)
Distributable net profit in current period	1,873,289,156
Shareholder bonus - cash dividend (NT$3.66/share)	(326,563,859)
Undistributed earnings at the end of the period	1,546,725,297

(VII) The impact of issuance of bonus shares proposed at the shareholders' meeting on the Company's business performance and EPS

The 2025 earnings distribution proposed at this shareholders' meeting did not include issuance of bonus shares; thus, there was no impact on the Company's business performance and EPS.

(VIII) Remuneration to employees, directors

The percentage or scope of remuneration to employees and directors specified in the Articles of Incorporation

The percentage or scope of remuneration to employees and directors established according to the Articles of Incorporation is: If the Company gains profit in the year (“profit” refers to income before tax before deducting employee remuneration distribution and director remuneration), 3% to 15% of the profit shall be allocated as employee remuneration, which may be distributed in shares or in cash depending on the resolution made by the Board of Directors. Such employee remuneration may be distributed to the employees of affiliated companies that meet certain requirements. Subject to the resolution made by the Board of Directors, director remuneration may be provided up to 3% of the above-mentioned annual profits. However, profits must first be taken to offset cumulative losses, if any, before being distributed to employees and directors as remuneration at the percentages mentioned above.

The basis for estimating the remuneration to employees and directors, basis for calculating the number of shares to be distributed as employee remuneration, and accounting treatment of any difference between the distributed and estimated amounts, in the current period

(1) The basis for estimating the remuneration to employees and directors was the Company’s Articles of Incorporation.

(2) The established employee remuneration was distributed in cash; there was no share distribution.

(3) If the actual distribution amount determined by resolution at the shareholders’ meeting had a difference with the estimated amount, the different part would be counted as profit/loss for the next year.

Distribution of the remuneration adopted by the Board of Directors

(1) If remuneration to employees, directors and supervisors is distributed in cash or shares, and the distributed amount is different from the estimated amount of recognized expenses, the difference, reason and action therefor shall be disclosed

On February 25, 2026, the remuneration committee recommended by the Board of Directors and approved by the Board of Directors that the employees' cash compensation of NT$53,200 thousand and the directors' remuneration of NT$16,600 thousand should be paid in cash, and in addition, the amount should be related to the estimated.

(2) The amount of stock distributed as employee remuneration and the ratio thereof to the total of net income after tax and employee remuneration stated in the individual or separate financial statements in the current period

The employee remuneration determined by resolution at the Company’s Board of Directors meeting on February 25, 2026 was distributed in cash; no employee remuneration was distributed in shares.

Actual distribution of the remuneration to employees and directors in the previous year

Unit: NT$ thousand/share

	Previous Year (distributed in 2025)
	Distribution amount by resolution at the shareholders’ meeting	Remuneration estimated in 2024	Difference	Reason of difference
1. Distribution status:
1. Employee remuneration in cash	38,900	38,900	0	Nil
2. Employee remuneration in shares	0	0	0	Nil
3. Directors’ remuneration	12,300	12,300	0	Nil

(IX) Repurchase of the Company’s shares: None.

II. Issuance of corporate bonds:

Corporate bond type	4th domestic unsecured convertible corporate bonds
Issue date	March 5, 2024
Face value	NT$ a hundred thousand
Issuance and transaction location	Taipei Exchange, ROC
Issue Price	Issued at 100.5% of the par value
Total	NT$ five hundred million
Interest rate	Coupon rate 0%
Duration	Three years. Deadline: March 5, 2027
Guarantee institution	Nil
Trustee	Taishin International Bank Co. Ltd.
Underwriter	IBF Securities Co., Ltd.
Bond attorney	Far East Law Offices
Attorney Ya-Wen Chiu
CPA	Deloitte Taiwan
Accountant Cheng-Chuan Yu and Chiang-Hsun Chen
Repayment method	When meeting the deadline, repay at a single time according to the face value of the bond
Amount not repaid	NT$500,000,000
Redeemed or prepaid provision	Please refer to the Company’s guideline for the issuance and conversion of the 4th domestic unsecured convertible corporate bonds
Restrictive clauses	Nil
Name of credit-rating agency, date of rating, and results of corporate bond rating	Nil
Amount of converted (exchanged or subscribed) common shares, overseas depositary receipts or other securities up to the publication date of the annual report	Nil
Issuance and conversion (exchange or subscription) method	Please refer to the Company’s guideline for the issuance and conversion of the 4th domestic unsecured convertible corporate bonds
Possible equity dilution due to the regulations governing the issuance, conversion, exchange or subscription as well as the issuance terms and conditions, and the impact on the equity of the existing shareholders	The current converted price was NT$61.70. Based on the number of outstanding common shares on December 31, 2025, if all of the remaining corporate bonds were converted into common shares of the Company, the highest dilution rate would be 2.16%. Thus, the impact on the existing shareholders is still limited.
Name of depository enterprise for the underlying shares	Not applicable.

(I) Converted corporate bond data

Corporate bond type		4th domestic secured convertible corporate bonds
Year Item		2025	As of March 29, 2026
Market Price of Convertible Corporate Bonds	Maximum	189.00	209.00
	Minimum	122.10	172.00
	Average	156.11	190.10
Conversion Price		61.7	61.7
Issue date and converted price when issued		Issue date: March 5, 2024
Converted price when issued: NT$65.70
Method for carrying out conversion obligation		Issuance of new shares

(II)Exchanged corporate bond data: None.
(III) Data of shelf registration to issue corporate bonds: None.

III. Issuance of preferred stocks: None.
IV. Issuance of overseas depository receipts: None.
V. Issuance of employee stock option certificates and restricted employee shares

(I)Unexpired employee subscription warrants issued by the Company in existence:

Type of Employee Share Subscription Warrants	The First of Employee Share Subscription Warrants
Effective Registration Date	April 1, 2022
Issue (handling) Date	May 5, 2022
Total Number of Units Issued	3,655 units
Ratio of the Number of Issued Subscribable Shares to the Total Number of Issued Shares (Note)	4.37%
Duration	6 years
Exercise Method	Issuance of new shares by the Company
Vesting Period and Percentage (%)	The stock option holder may exercise the warrant after two years from the date of granting the employee share warrant according to the following schedule:
After two years from the date of granting:50%
After three years from the date of granting:100%
Number of Shares Subscribed Through Exercise of the Warrants	1,383,000 shares
Amount of the Shares Subscribed Through Exercise of the Warrants	NT$52,895,500
Number of Unexercised Shares	2,272,000 shares
Subscription Price per Share of the Unexercised Shares	NT$37.60
Ratio of the Number of Unexercised Shares to the Total Number of Issued Shares (Note)	2.72%
The Effect on Shareholders’ Equity	These warrants are exercisable after two years from the date of issuance. The ratio of the maximum shares subscribed through exercise is 50% after two years and 100% after three years, respectively. The effect on the original shareholders’ equity is limited because it is diluted year by year.

Note: It is calculated based on the 83,570,352 total outstanding shares registered in the Ministry of Economic Affairs on March 26, 2025.

(II) Names of managers who have obtained employee stock warrants and the top ten employees with the most employee stock warrants up to the publication date of this annual report as well as their acquisition and subscription:

March 31, 2026

	Title (Note 1)	Name	Number of Shares Granted (in thousands)	Ratio of the Number of Shares Granted to the Total Number of Issued Shares (Note)	Exercised				Unexercised
					Number of Shares Subscribed (in thousands)	Subscription Price	Subscription Amount (NT$ thousand)	Ratio of the Number of Shares Granted to the Total Number of Issued Shares	Subscription Amount (NT$ thousand)	Subscription Price	Subscription Amount (NT$ thousand)	Ratio of the Number of Shares Granted to the Total Number of Issued Shares (Note)
Managerial officer	Chief executive officer	Po-Jung Chen	1,460	1.67%	1,170	37.04	42,966	1.33%	300	36.4	34,968	0.34
	General Manager	Min-Che Chen
	Assistant General Manager	Yu-Chan Shih
	Assistant General Manager	Chang-Pu Wu
	Assistant General Manager	Feng-Kuang Li
	Chief Financial Officer	Yung-Ming Li
Employee	Assistant General Manager	Chien-Hsiang Chang	1,210	1.38%	940	37.73	35,466	1.08%	270	36.4	9,828	0.31%
	Assistant General Manager	Chih-Ching Yu
	Assistant General Manager	Chih-Kai Chang
	Senior Manager	Huang-Ching Chen
	Division Director	Chun-Tsai Hsiao
	Division Director	Jen-Chia Huang
	Manager	Hsu-Hui Lai
	Division Director	Wen-Yu Huang
	Manager	Kuo-Yu Tseng
	Manager	Chao-Ming Yu

Note: It is calculated based on the 87,411,585 total outstanding shares registered in the Ministry of Economic Affairs on November 28, 2025.

(III) The issuance of restricted employee shares that have not met all the vesting conditions as of the publication date of this annual report and the impact thereof on shareholders' equity: None.

(IV) The names and status of acquisition of managerial officers and top 10 employees who have acquired restricted employee shares as of the publication date of this annual report: None.

VI. Issuance of new shares in connection with mergers or acquisitions or with the acquisition of shares of another company

(I) Issuance of new shares in connection with mergers or acquisitions or with the acquisition of shares of others in the most recent year up to the publication date of this annual report: None.

(II) Issuance of new shares in connection with mergers or acquisitions approved by resolution at the Board of Directors meeting, or with the acquisition of shares of another company in the most recent year up to the publication date of this annual report: None.

VII. Implementation of capital utilization plans

(I) Plan

Analysis on any incomplete plans for private placement of securities or completed plan within the most recent three years with unrealized benefit up to the quarter prior to the publication date of this annual report: None.

(II) Implementation

Analysis of the implementation of the plans mentioned in the preceding item by each purpose, and comparison with estimated benefits up to the quarter prior to the publication date of this annual report: None.

Four. Operation Overview

I. Business item

(I) Business scope

The main content of the Company's business is as follows:

(1) Retail Sale of Electronic Materials.
(2) International Trade.
(3) All business activities that are not prohibited or restricted by law, except those that are subject to special approval.

2. Revenue proportion

Unit: NT$ thousand

Item/Year	2024		2025
		Amount	Proportion (%)	Amount	Proportion (%)
Integrated signal connectors	Information product	830,805	16.13	1,144,768	18.44
	Network and communication product	2,609,705	50.67	3,404,480	54.85
	Consumer electronic product	740,804	14.38	623,348	10.04
Power and LED lighting		0	0	143,229	2.31
Others		969,166	18.82	891,159	14.36
Total		5,150,480	100.00	6,206,984	100.00

3. The products (services) provided by the Company

The Company focuses on the electrical and mechanical integrated signal connectors to provide customized integrated connector products to satisfy customer needs. Moreover, the Company has started to expand its business by providing a comprehensive service to all kinds of products including mechanical connectors and related parts and components. We are planning to improve the performance of our products to support high-speed transmission applications. SFF connectors have been shipped and the Company will continue to design related equipment in data centers including servers and storage.

The Company also continues to support products of its subsidiaries including silicon wearable devices and Bluetooth wireless headset products through its integrated smart manufacturing service platform.

(II) Overview of the Industry

1. Current status and development of the industry

Electronic connectors (cables) refer to all components and accessories used in connecting electronic signals and power sources. The main function is to provide a discrete interface that connects two subsystems within an electronic system, allowing them to transmit signals or power smoothly. Therefore, it is considered as the bridge between all signals, and its quality can affect the reliability of signal transmission, which in turn affects the entire electronic machine's operation quality. The electronic connector categories include board-to-board connectors, PCB connectors, card connectors, communication connectors, mobile phone connectors, FPC connectors, HDMI connectors, and automobile connectors. The connectors and cables are highly similar to each other and their appearance is not easy to distinguish. Therefore, the main products of electronic connectors (cables) are mostly distinguished by market applications, including computers and peripherals, network equipment, automobiles, and consumer electronics. In the high-speed transmission industry, connectors are also used to convert telecommunication signals, optical signals, and masks.

Global Connector Output (US$ billion) and Annual Growth Rate

According to statistics, the global connector market scale in 2025 amounted to US$96 billion and the future compound growth rate is $6\% - 8\%$ .

As we are entering the big data era, the amount of data and applications that enterprises need to process simultaneously is increasing. Together with the increasing demand for audio and video from ordinary consumers, the amount of data that needs to be processed in the cloud has increased dramatically, which in turn has caused a rapid increase in the flow of data centers. At present, the external transmission connectors used in data centers are SFF connectors, mainly with QSFP28 100Gbps, as shown in the diagram below, which cannot accommodate the future high-speed data transmissions under the same number of interfaces. Therefore, the data capacity required for the connectors will need to be further upgraded to 400Gbps QSFP-DD to support the future transmission capacity. However, the current leading suppliers in the connector protocol organization (e.g., Molex, Amphenol, Tyco Electronic, etc.) have been working on the design of the QSPF-DD as well as the patent layout and technology development, and have started to launch their products in the market.

The demand for each kind of speed transmission connector shows that the mainstream product is QSFP28 100Gbps.

SFF connectors are mainly used in network communication and data center related hardware devices, including servers, storage, and switches. Among them, the most popular device is Switch, as shown in the diagram below.

(a)

Unit:Millionsports Connectors		Y2017	Y2018	Y2019	Y2020
Application
Patch Panel	SFP	60	70	71	72
	SFP+	10	12	13	13
Switches	SFP	158	186	189	191
	SFP+	78	92	98	103
	QSFP	26	30	32	34
Servers & Storage Devices	SFP	68	80	81	82
	SFP+	19	22	23	25
Routers / Hubs	SFP	55	64	65	66
	SFP+	17	20	21	22
Network Interface Card & Others	SFP	34	40	41	41
	SFP+	19	22	23	25
Total	SFP	375	440	447	452
	SFP+	143	168	178	188
	QSFP	26	30	32	34

(a) The most used device among different product categories in SFF connector application is the Switch;
(b) The data center is organized into different levels, with the bottom edge layer having a single connection with low transmission speed requirements but the most nodes, for the purpose of immediate response and feedback; the top cloud layer has fewer nodes but high transmission speed requirements.

The data transmission speed requirement varies according to the data center level. Demand for the cloud layer is the highest and the edge layer is the lowest, as shown in the diagram (b) above. The data transmission requirements for future applications will increase significantly, so the transmission devices from the edge layer to the cloud layer have to be replaced by devices with higher transmission speeds.

2. The relations between the up-, mid-, and downstream industries

Industry Structure of Electronic Connectors

Source: ITIS Project, ITRI

(1) Upstream

The upstream materials used in electronic connectors include metal materials such as phosphor bronze, brass and beryllium copper, plastic materials such as liquid crystal polymer (LCP), polyphenylene sulfide (PPS) and polycarbonate (PC), electroplating materials such as gold, silver, nickel, tin, lead, and other materials such as ceramics and glass. Among them, metal materials account for the largest proportion of the cost, followed by electroplating materials, and then plastic materials. Metal materials are used to make connector terminals. In order to prevent the electronic signal from being blocked or degraded during the transmission process, the connector terminals are mostly made from brass or phosphor bronze, which is used as the raw material to make copper alloy sheets. The plastic part of the connector is molded by plastic injection, while the metal part is stamped and then plated. The most common materials used for electroplating are gold plating and tin plating. The plastic materials used for connector cases include polybutylene terephthalate (PBT), polysulfide xylene (PPS), polyamide (Nylon), and liquid crystal polymerization (LCP) resins.

(2) Downstream

For downstream applications, the electronic connector (wire) mainly provides a detachable interface to connect two subsystems inside a system for transmitting signals or power, so the downstream market has a wide range of applications, including computers and peripherals, communication networks, consumer electronics, information appliances, automotive, medical equipment, aerospace and military, and others. In the early days when Taiwan benefited from the boom of PCs, most manufacturers were active in developing PCs and related peripherals and applications. As the global PC market gradually reached saturation and the technology for related electronic connector (wire) products matured, the price of all kinds of PC products declined as well as the low price competition in the China market, which led to the decrease in the price of electronic connector (wire) products required for PC and peripheral applications that lowered the gross profit of industry manufacturers. Therefore, manufacturers are turning to develop high-margin and niche products for non-PC peripherals such as automotive, servers, networking, and other consumer electronics, and are always ready to catch up with the changing trends of the downstream markets in order to timely enter each product market to maintain competitive advantages.

2025 Sales in Connector Application Market

Terminal Application Field	Estimated Sales Percentage
Telecom/Datacom	24% - 30%
Automotive	22% - 25%
Industrial	13% - 15%
Aerospace & Defense	6%
Consumer Electronics	4% - 5%
Medical Equipment	3%
Others (Including Computers & Peripherals, Energy & Power Grid, etc.)	12% - 18%

Product Type

In terms of the types of connectors (wires), the products produced by Taiwan's connector manufacturers can be roughly divided into printed circuit board connectors (board-to-board, board-to-wire, FPC connectors), angular I/O connectors (e.g. D-Sub, SCSI series), circular connectors, coaxial connectors (e.g. RF connectors), optical connectors, card connectors (e.g. PCMCIA cards, small memory card connectors, and so on), IC sockets (e.g. SIMM/DIMM sockets, CPU sockets, and so on), and other connectors.

Competition

The Company specializes in the research and development, manufacturing, and sale of integrated signal connectors (RJ45), discrete signal connectors (Pure RJ, Filter, SPT), and automobile connectors. The application of these products covers the products for information, network, and consumer electronics, including motherboards, industrial computers, servers, hubs, switches, routers, gateways, cable modems, game consoles, smart TVs, printers, and digital set-top boxes. The main domestic competitors are Hon Hai and Speed Tech. Our overseas competitors are Bel Fuse, Pulse Engineering, Molex, and others. When compared with our competitors, the Company has the comprehensive process technology capability, advanced electromechanical integration design ability, to keep in touch with market trends. The Company's research and development focus is on innovation and marketability. Therefore, in response to customers' needs, the Company is utilizing its own automated production technology and implementing the Toyota Production System to significantly improve product yields. The Company will continue to develop competitive integrated connectors, and will further research on the magnetic materials used in magnetic components and high-frequency electrical characteristics in order to improve product quality. In addition to integrated connectors, the Company plans to establish signal integrity design, analysis, and measurement technologies for high-speed connector development, and to develop products related to high-speed SFF series to make the product line more complete to satisfy demands from networking customers.

(III) Technology and R&D

Technological Capabilities:

(1) Comprehensive Full-process Technical Capability

The Company has the ability to manufacture the entire integrated signal connector; from plastic parts injection molding, iron parts stamping molding, PCB layout, SMT lamination process, mold design, product assembly to product inspection. We have accumulated extensive experience in each process stage and have extended our existing manufacturing technology to continuously improve and refine our processes to gradually improve product quality and production efficiency.

In terms of Cable Assembly field, the Company boasts of the PCBA assembly technology in high-precision automated welding and AEC (Active Electrical Cable) to ensure retention high consistency and signal integrity of high-frequency products from 800G to next-generation 1.6T during the mass production process.

(2) Leading E&M Integration Design Capability

The Company strives to train excellent R&D talents in mechanism and electronics, and to effectively integrate mechanism and electronics technology abilities to establish the industry's outstanding leading technology skills in electromechanical integration. Through the foundation of vertical production technology capability in mechanical parts, supplemented by the close integration of precise electronic functions, the Company has revolutionized the traditional connector product type which is dominated by mechanical parts. Currently, it has developed into a mainstream integrated signal connector with a filtering function, which can be used in all kinds of electronic devices

of ethernet transmission, including PCs, NBs, switches, IPCs, servers, game consoles, TVs, STBs, printers, and more.

In response to market trends, the Company has advanced to involve active transmission and photoelectric conversion field. Our research and development focus covers DAC (Direct Attach Copper), AEC (Active Electrical Cable), and AOC (Active Optical Cable), and we are committed to development of the coupling technology of Optical Transceiver, as well as promotion of transformation of products from pure mechanical parts to system-level solutions with functions of signal modulation and photoelectric conversion.

(3) Ability to Extend the Productization Technology to Meet the Market Demand

The Company is well aware of the market dynamics and focuses on both innovation and marketability. Therefore, in response to customers' needs, and utilizing our own automated production technology, we have extended our signal connectors with higher integration to make our product line more complete to suit customers' needs.

Accompanied with surging demands for AI computing and massive data transmission, the Company has further extended our technologies from traditional connectors to high-speed cable assembly and photoelectric conversion fields. Currently, we have successfully input into research and development of AEC (Active Electrical Cable), AOC (Active Optical Cable), and Optical Transceiver. The Company can provide complete Interconnect solutions with longer distance and active signal compensation capability to ensure that our products can fully meet demands in the future high-performance computing market.

Research development (milestones and organization of the R&D department)

The Company aims for establishing self-owned core technology and focuses on developing the electromechanical integration of connectors and the R&D of new manufacturing process. Currently, both the Company and the subsidiary, Dongguan Yongde Electronic Technology Co., Ltd. (hereafter referred to as Dongguan Yongde), which is our production base in mainland China, have set up R&D departments. The Chairman of the Company has set up a "R&D Engineering Department," and Dongguan Yongde is a dedicated R&D unit. The list of R&D departments, units and their work content are described below:

Company	Unit	Work content
UDE CORP.	R&D Center	Address all testing issues of electronic devices during the product development and application phase.Cooperate with salespersons and recommend new products.Solve all issues related to products in terms of system and application.Assist in CQA and solve all quality abnormality issues.
Dongguan Yongde	Product R&D Department	Design and develop new and extended products (mechanical/electronic).Improve the structural design of existing products.Develop new function for products and new technologies.Determine all product specifications and draw up relevant documents of products.Assess product demands - simulate costs, manufacturing process and conceptual design.Propose product development projects and control the progress of improvement projects.Develop new technologies and manufacturing process, and verify trial-production of products.

Research development personnel and their educational experience

Year	2024		2025
		Number of personnel	Ratio (%)	Number of personnel	Ratio (%)
R&D personnel	Master or above	6	2.38%	6	2.38%
	University/college	153	60.71%	153	60.71%
	High (vocational) school	93	36.90%	93	36.90%
	Total	252	100.00%	252	100.00%
Total number of personnel in the Company		2,582		2,582
Percentage of R&D personnel		9.76%		9.76%

The R&D expenses in the most recent year up to the publication date of this annual report

Unit: NT$ thousand

Item	2025
R&D expenses	281,856
Operating revenue	6,206,984
Ratio to operating revenue	4.54%

Technologies and Products Successfully Developed During the Most Recent Fiscal Year or During the Current Fiscal Year up to the Date of Publication of the Annual Report

Year	R&D Results	Summary of R&D Results
2023 - 2024	Series of DAC high-speed transmission cable assembly from 10G to 400G	Build complete product lines such as SFP+, SFP28, QSFP28, QSFP-DD, etc., with supports up to transmission of 400G (QSFP112), which can be widely applied to switches for enterprises.
2025	800G QSFP-DD / OSFP DAC, and AEC high-speed cable assembly
Series of product lines of MCIO high-speed cable assembly (PCIe Gen 5)	Adopt 112G PAM4 technology to successfully develop, mass-produce DAC and AEC, and import into the AI server supply chain.
Acquire Amphenol patent licensing, research and develop a full series of MCIO 4X/8X ST/RA cable assembly with supports of 32 G/s, and solve the high-density cabling demands inside the server.

(IV) Long-term and Short-term Business Development Plans

Short-term Development Plan

(1) Marketing Strategy

A. Utilize the Company's current product lines and offer comprehensive after-sales services to gain more orders from major manufacturers worldwide to increase market share.

B. Actively establish strategic marketing alliances or partnerships with key accounts in order to obtain sufficient market information to respond to customers' diversified product needs promptly.

C. Strengthen the overall image and visibility through product catalogs, company profiles, quality certifications, and other campaigns to increase the Company's visibility and secure a marketing niche.

(2) Production Strategy

A. A UDE smart manufacturing service platform is built with a fast and flexible line change to satisfy customers' quick-delivery requirements.

B. Enhance the Toyota Production System in order to shorten the delivery time and reduce the work-in-process inventory.

(3) Business Management Strategy

Improve operational efficiency by promoting full connectivity between Taiwanese, Chinese, and Vietnamese subsidiaries

(4) Product R&D Direction

A. Improve process yields and shorten production cycles to reduce costs and time-to-market.

B. Continuously develop connector products with electromechanical integration.

C. Cooperate actively with domestic and foreign high-tech companies in order to understand the latest market trends and introduce technical support.

D. Accelerate the high-speed transmission product development in response to the demand for high-speed transmission arising from the Internet of Things and 5G.

(5) Financial Strategy

The Company utilizes various fundraising sources and financial instruments in the capital market to optimize the use of funds and to achieve the financial soundness of the Company through prudent and stable operations.

Long-term Development Plan

(1) Marketing Strategy

A. The Company integrates the distributor system with its competitive advantages in product diversification and complete specifications of integrated signal connectors to improve its brand reputation worldwide.

B. Develop the market for non-integrated signal connectors to increase the market share.

C. Establish long-term strategic alliances with major international manufacturers to expand the global marketing territory.

(2) Production Strategy

A. Manage production locally, build a talent development system, and reduce employee turnover.

B. Refine and implement the Toyota Production System, develop an innovative and smart automatic production system, and build a highly efficient and smart automation factory by introducing robots and self-developed production equipment, which can not only improve product delivery and reliability, but also reduce the number of operators as well as change the production labor structure.

C. Gradually move the production sites back to Taiwan by constructing an innovative

smart automation platform to effectively reduce manufacturing manpower.

(3) Business Management Strategy

A. Develop non-integrated signal connector products based on our superior process management.
B. Strengthen systems' integration of finance, sales, production, and procurement, and provide smart operation analysis, decision support, and information sharing management systems to establish a flexible and effective management system within the Company.

(4) Product R&D Direction

A. Continuously develop and apply for patents to protect R&D results and give the Company the best patent protection.
B. Deeply engaged in high-frequency and high-speed key technologies, the Company is actively developing more advanced and higher precision products to increase its market share and become a market leader.

(5) Financial Strategy

The Company utilizes various fundraising sources and financial instruments in the capital market to build a sound financial structure.

II. Overview of market and production & marketing

(I) Market analysis

Sales (serving) region for major products (services)

Unit: NT$ thousand

Year Region	2024		2025
		Sales amount	Ratio %	Sales amount	Ratio %
Domestic sales		2,375,498	46.12	2,996,969	48.28
Export	Europe	3,529	0.06	23,942	0.39
	Americas	236,114	4.58	304,556	4.91
	Asia	2,535,339	49.24	2,881,517	46.42
Total		5,150,480	100.00	6,206,984	100.00

Market Share

The Company's main product is an integrated RJ45 connector, for which no market information is available. Based on our estimation, the annual demand of the RJ45 market is about 2.5 billion ports, and our market share is about $8\% -10\%$ .

Supply and demand and growth potential of the market in the future

According to Bishop & Associates, the global connector market scale in 2021 amounted to US$77.9 billion, up 24.3% from 2020. In the high-speed transmission generation, connectors are also responsible for converting telecommunication signals, optical signals, and masks, and the market is expected to grow steadily.

Competitive niche

(1) Comprehensive Full-process Technical Capability

The Company has the ability to manufacture the entire integrated signal connector; from plastic parts injection molding, iron parts stamping and molding, PCB layout, SMT lamination process, mold design, product assembly to product inspection. We have accumulated extensive experience in each process stage and have extended our existing manufacturing technology to continuously improve and refine our processes to gradually improve product quality and production efficiency. We have successfully obtained several patents in Taiwan, Japan, the United States, Korea, and China.

(2) Leading E&M Integration Design Capability

The Company strives to train excellent R&D talents in mechanisms and electronics, and to effectively integrate mechanisms and electronics technology abilities to establish the industry's outstanding leading technology skills in electromechanical integration. Through the foundation of vertical production technology capability in mechanical parts, supplemented by the close integration of precise electronic functions, the Company has revolutionized the traditional connector product type which is dominated by mechanical parts. Currently, it has developed into a mainstream integrated signal connector with a filtering function, which can be used in all kinds of electronic devices of ethernet transmission.

(3) Ability to Extend the Productization Technology to Meet the Market Demand

The Company is well aware of the market dynamics and focuses on both innovation and marketability. Therefore, in response to customers' needs, and utilizing our own automated production technology, we have extended other connector products to make our product line more complete to suit customers' needs. Our product applications have transitioned from motherboards to networking and consumer electronics.

(4) A Professional and Experienced Management Team

The management team of the Company has accumulated many years of experience in connector operations, and has fully mastered the market trends and met the needs of our customers. We have the best talents in R&D, business, and production so that we can maintain our leading position in the market in the highly competitive environment.

The favorable and unfavorable factors for future development and countermeasures

(1) Favorable Factors

A. Wide Range of End-use Products and Continuous Growth in Demand Industry Prospects

As technology continues to advance, the rapid development of information, communication and consumer electronics products worldwide will drive the market demand for electronic parts and components to grow, and new products will be introduced continuously. Connectors are one of the most important components for all electronic products and are widely used in 3Cs, therefore, connectors will continue to grow in line with the growth in downstream demand. With our excellent product quality and competitive advantages, we have been developing products in networking and consumer electronics applications, including integrated signal connectors for network sharers, network hubs, connected TVs, digital set-top boxes, etc., to fully grasp the market trends and unlimited business opportunities. In the high-speed transmission industry, connectors are also used to convert telecommunication signals, optical signals, and masks. The connector industry, to which the Company belongs, still has potential for future growth.

B. Good Customer Relationships

The Company is a professional manufacturer specialized in integrated signal connectors for information products, network products, and consumer electronics. We have established a good business relationship with domestic and foreign customers for many years and have kept a stable order volume for a long time. The Company's major products in information products are motherboards, servers, and industrial computers. The main customers include domestic and foreign motherboard brands and manufacturers. For networking products, the Company's major customers are well-known brands or manufacturers of networking products in Taiwan, the United States, Korea, and Japan. Among the major consumer electronics customers, Japanese, Korean, and local and foreign EMS major manufacturers are gradually choosing the Company as their main supplier for integrated signal connectors, which shows that the Company has a deep and good customer relationship with its customers, and its product quality is also recognized by downstream application manufacturers. In the future, we will continue to collaborate with them in research and development, which will strengthen the business relationship between the Company our partners and will help us to develop new products and expand our business in the future.

C. Expand Production Bases

The impact of the trade war between the US and China has led to a restructuring of the global supply chain, forcing Taiwanese manufacturers to adjust their production bases. In addition to our China plants (Zhongjiang and Dongguan) and Taiwan plants, we also added a new Vietnam plant at the end of 2022. This will allow us to make flexible adjustments to our production bases to obtain the advantages brought by order transfer, to diversify risks, and to develop market cooperation in other regions.

(2) Negative Factors and Countermeasures

A. Product Price Competition is Severe and Gross Profit is Decreasing

The rapid growth in demand for integrated signal connectors in recent years driven by network and consumer electronics products has created many competitors and the competition has become more intense, resulting in increased price pressure and a possible decline in profits.

Countermeasures:

We continue to devote ourselves to the research and development of new products in order to improve product quality. We also provide integrated and high value-added products to make our products more competitive. In addition, we continue to expand production capacity and improve yield to achieve economic scale of production and lower unit production costs.

B. Short Product Life Cycle

As the 3C electronic industry is developing vigorously, related electronic products are changing day by day. In order to meet the diverse consumer demand for products, new products have to be introduced continuously. However, the life cycle of 3C electronic products is short. If we fail to launch new products in time, we will not be able to capture market opportunities and will lose our competitiveness in the market.

Countermeasures:

We continue to develop and improve existing products, maintain good relationships with major professional manufacturers, improve market sensitivity, fully capture product trends, and conduct research and development on niche products in response to the growing market trend for information, communication, and consumer electronics.

C. The War Between Russia and Ukraine Has Affected the Stability of the Supply Chain and Overall Economic Demand

The war between Russia and Ukraine has had a significant impact on overall economic demand, and it was impossible to effectively control demand visibility.

Countermeasures:

a. Build up the weighting of the revenue in high speed transmission products through high precision mold design and production technology.
b. Build a UDE Smart Manufacturing Service Platform to accelerate process diagnosis, predictive maintenance, and enhance process activation.

D. High Raw Material Costs

The key raw materials for our integrated signal connectors are copper, steel, and plastic, so the rising price of raw materials is a challenge for the connector industry.

Countermeasures:

a. Increase the Company's production capacity through highly automated equipment to double the average output per person so that the Company can avoid the gross margin loss risk.
b. Actively collect relevant information on raw materials and keep an eye on changes in their trend in order to keep the cost stable and continue to be competitive to make a profit.
c. Strengthen vertical production integration, production management, and procurement abilities to enhance product quality stability.

(II) Important Functions and Production Processes of Main Products

Important Functions and Production Processes of Main Products

Main product	Usage and Function
Integrated signal connectors	Provides a discrete interface to connect two subsystems inside an electronic system to allow smooth signal transmission or power transfer.

Production processes of main products

Production Processes of the Connector:

(III) Supply status of main materials

Major materials	Source	Provision status
Copper sheet	Company B	Good
Stainless steel strip	Company G	Good
Plastic	Company E and Company D	Good
Iron ring core	Company C	Good
Electronic material	Company I and J	Good

Note The Company had signed non-disclosure contracts with the suppliers. Therefore, the suppliers were mentioned in codes.

(IV) Names of customers that accounted for more than 10% of the total purchase (sales) in any of the most recent two years and the amount and proportion of the purchase (sales)

Main suppliers in the most recent two years

The Company and its subsidiaries' integrated signal connectors are used in a wide range of applications. With the benefits of expanding the development of network communications and consumer products, the effect of diversification of imports has been demonstrated, and from the fiscal year of 2022 onwards, there will be no single customer whose imports account for more than 10% of the total imports, which indicates that there is no significant risk of concentration of imports for the Company and its subsidiaries.

Main customers to which goods were sold in the most recent two years

Analysis and description of changes in main sales customers:

The integrated signal connectors of the Company and our subsidiaries can be widely applied. Due to the revenue growth and benefits of expanding the development of network, communication and customers of consumer products, the effect of customer dispersal has occurred. Since 2017, not a single customer has represented more than 10% in the Company's revenue. This suggests that the Company and our subsidiaries have no material risk of the concentration of sales.

III. Data of employees in the most recent two years up to the publication date of this annual report

Year		2024	2025	As of March 31, 2026
Number of employees	Direct labor	1,370	1,370	1,344
	Indirect labor	1,220	1,220	1,245
	Total	2,590	2,590	2,589
Average age		36,35	36.35	37.35
Average years of service		5.68	5.68	5.87
Distribution of education attainment	Doctoral Degree	2	2	2
	Master’s Degree	23	23	24
	University/college	455	455	470
	Senior High School	762	762	766
	Below senior high school	1,348	1,348	1,316

IV. Information on environmental expenditure

Losses arising as a result of environmental pollution incidents in the most recent year and up to the publication date of the annual report (including any remuneration paid and any violations of environmental protection laws or regulations found in environmental inspection; the disciplinary date, number of the disciplinary letter, articles violated, provisions violated and disciplinary actions shall be specified), estimated amount of losses that may incur currently or in the future, and responsive actions being or to be taken.

In the most recent two years and up to the publication date of this annual report, the Company and our subsidiaries had not caused environmental pollution incidents.

V. Labor-capital relations

(I) Listing various employee welfare measures, continuous education, training, retirement systems of the Company and their implementation status, agreements between employers and employees, and various measures for protecting the interests of employees. Also describing losses arising as a result of employment disputes in the most recent year up to the publication date of this annual report (including any violations of the Labor Standards Act found in labor inspection; the disciplinary date, the number of the disciplinary letter, articles violated, provisions violated and disciplinary actions shall be specified), the estimated amount of losses that may incur currently or in the future and responsive actions taken.

Employee welfare measures and their implementation status

Since the foundation of the Company, we have been actively promoting harmonious labor-capital relations based on the cognition of working and enjoying benefits with the employees. The Company values employee welfare and health, and assists employees on their work and life to help them grow with the Company.

(1) Got labor, health and group insurance.
(2) Provide full subsidy for domestic and international travels.
(3) Provide employees with share options as well as capital increase in cash for employees' shares.
(4) Contribute bonus and remuneration for employees according the Company's profitability.

(5) Distribute pension according to the new worker retirement regulations.
(6) Provide subsidy for all club activities.
(7) Provide full subsidy for educational training.
(8) Provide full subsidy for annual medical check-ups.

Employee education, training and implementation status

The Company has established skills and knowledge needed for every employee position. If new employees or those in service have insufficient professional knowledge, the Company provides different phases of proper internal training, or arranges courses and sessions held by external professional institutions for employees to participate to fulfill or improve the skills and knowledge of relevant employees. Moreover, the Management Department is responsible for arranging comprehensive education courses according to the Company's development goals and needs, ensuring that all employees grow with the Company and march toward our development goals.

Employee retirement system and its implementation

The Company adopts affirmed pension distribution for the employee retirement system in accordance with the Labor Pension Act. For employees applicable to the Act, the Company shall make distributions every month and contribute no less than 6% of the employee's monthly wage as a pension reserve fund. In addition, for employees of overseas subsidiaries, the Company shall comply with local labor-related laws and regulations.

Protection measures for employees' work environment and personal safety

The Company highly values the protection of employees' work environment and personal safety. The parent company and all subsidiaries shall provide comfortable work environment and personal safety protection in accordance with operational features.

| Access control and safety | 1. Access control and monitoring systems are set night and day.
2. For the Taiwan factory, the Company has signed contracts with security companies; for mainland China factories, internal security personnel shall work in shifts to maintain and secure the environment and equipment. |
| --- | --- |
| Maintenance and examination of each equipment | 1. The Company maintains and examines electric devices, air conditioners, water dispensers, fire extinguishing equipment on a regular basis.
2. To ensure personnel safety in using water, the filters of water dispensers are replaced periodically and the quality of water is inspected. |
| Physical health | 1. Health check-ups: The Company provides free check-ups regularly according to local labor safety and health regulations.
2. Work environment sanitation: Complying with the regulations, the Company bans smoking, irregularly holds health lectures and CPR first-aid training, and regularly cleans and sterilizes the factory environments every month.
3. Work environment maintenance: The Company cleans the office environment daily.
4. The Company provides comfortable and diverse office environment as well as multi-functional classrooms. |

Mental health

1. Educational training: (1) Overseas learning and training: Enrich international vision and improve professional knowledge. (2) Internal training: Provide courses in with internal lecturers act as teachers and trainers. (3) External participation and training: Participate in external training courses and conferences related to work. 2. Human-based management and focus of employees’ demands and development.

Insurance and medical care

1. The Company gets labor insurance (including occupational accident insurance) and national health insurance for Taiwanese employees as well as all insurance benefits and interests in accordance with the law. 2. For the employees in mainland China factories, the Company gets them social insurance according to their will, and provides the Housing Provident Fund. 3. The Company provides free health check-ups in Taiwan annually to establish the best health management and plans for employees. 4. The mainland China factories have set up medical offices to provide employees with basic medical conditions.

Labor-capital agreement status

The Company has a harmonious labor-capital relationship. The communication channels remain smooth, and the employees' opinion can always be valued and promptly addressed by the management. There has been no material labor-capital dispute since the foundation of the Company.

All measures for protecting the interests of employees

To protect the interests of employees, the Company has established complete management guidelines in written form, which contain items related to employee interests, obligations and welfare.

(II) Any loss of the Company incurred due to labor-capital disputes in the most recent two years up to the publication date of this annual report and any current and future possible estimates and response measures

The labor-capital relationship has been harmonious since the foundation of the Company. No loss has incurred due to labor-capital disputes, and the possibility of it happening in the future is expected to be extremely low.

VI. Cyber security management strategy and framework

(I) Describe the cyber security risk management framework, cyber security policies, concrete management programs, and investments in resources for cyber security management.

Cyber security risk management framework and security policies

The Company's Administration Center has established the Information Department as an independent department not affiliated to the user unit. It is responsible for coordinating and implementing information security policies, promoting information security, enhancing employees' information security awareness, and collecting and improving technologies, products, or procedures for the performance and effectiveness of the organization's information security management system. The Audit Office conducts information security audits on the internal control system annually to assess the effectiveness of the Company's internal control over information operations.

To implement information security management, the Company has established an internal control system - the computer information processing management system. Through the joint efforts of all colleagues, we aim to achieve the following policy goals:

Ensure the confidentiality and integrity of information assets.
Ensure that data access is regulated according to departmental functions.
Ensure the continuous operation of the information system.
Prevent unauthorized modification or use of data and systems.
Regularly conduct information security audits to ensure the implementation of information security.

Specific plan for cyber management

A. System security monitoring

The Company shall have professionals responsible for handling matters related to information system security prevention and crisis management, in order to prevent cybercrimes and crises, as well as to maintain information system security.
A security control mechanism for computer network system should be established to ensure the security of data transmission over the network, protect network operations, and prevent unauthorized access leading to the leakage of confidential information.
For the computer network systems across the Company, the network security management shall be strengthened. Anti-virus software shall be installed internally, while network firewalls shall be set up externally to prevent intrusion by computer viruses and offensive malware causing crashes of the Company's network system.
The Company should educate employees on the concepts of proper use of lawful software and encourage them to recognize the threat of computer viruses, further raising their awareness of information security.

B. Segregation of duties and authority

The highest level of access right within the information system shall be approved by the manager in charge before activation, aiming to prevent unrelated personnel from accessing the system information.
User accounts and access rights of personnel shall be set up according to their respective business scopes and responsibilities. Access rights shall be activated after the application is submitted for review by the IT department and shall not be altered without permission. When a user leaves their original position, their user account and access rights shall be revoked immediately.
As for the user accounts and passwords, users shall avoid using easily identifiable or guessable passwords and shall change their passwords regularly.

C. Data backup and maintenance method

The Information Department shall be responsible for formulating the regulations for network security and implementing setup and operation of network management tools to ensure the security and integrity of the system and data.
Personal computers and network servers should be equipped with computer virus scanning tools to regularly scan for computer viruses and update virus signature.
Important files and data on the network system shall be backed up on a daily basis, in case of emergency; PC users shall be notified regularly to backup important files and data.
The declaration data shall be stored in a computer and backed up by magnetic tapes. For the convenience of management, the data shall be sorted by date, file, and department.
The firewall setup shall be examined regularly, and the firewall software shall be enhanced after receiving the appropriate approval. The firewall inspection records shall be reviewed by the appropriate supervisor.
The Company's network services shall be used in accordance with the "Regulations and Policy for Information Security," and unnecessary network services shall be shut down. Any necessary acquisition of network facilities or network services shall be applied for and approved according to the approval authority.
There shall be appropriate application procedures for the use of e-mail, and employees shall be informed of the regulations regarding its use.
The System Log of each network service item shall be reviewed regularly to track the abnormalities.
Appropriate approvals shall be obtained for non-IT personnel who need to remotely log in to the management information system.

(II) List any losses suffered by the company in the most recent fiscal year and up to the annual report publication date due to significant cyber security incidents, the possible impacts therefrom, and measures being or to be taken. If a reasonable estimate cannot be made, an explanation of the facts of why it cannot be made shall be provided: None.

VII. Important contracts

The following are supply and sales contracts, technical cooperation contracts, engineering contracts, long-term loan contracts, and other important contracts that may affect shareholders' equity that remain effective currently and will expire within a year:

Nature of contracts	Parties involved	Start and end dates	Main contents	Restrictive clauses
Loan contract	CTBC Bank Co., Ltd.	2025/05/31~2026/05/31	Terms and conditions related to credit lines	Nil
	Mega International Commercial Bank Co., Ltd.	2025/10/06~2026/10/05	Terms and conditions related to credit lines	Nil
	First Commercial Bank	2025/07/21~2026/07/21	Terms and conditions related to credit lines	Nil
	Taipei Fubon Commercial Bank Co., Ltd.	2025/09/09~2026/09/09	Terms and conditions related to credit lines	Nil
	Yuanta Commercial Bank Co., Ltd.	2025/11/25~2026/11/25	Terms and conditions related to credit lines	Nil
	Bank of Taiwan Co., Ltd.	2025/01/22~2026/01/22	Terms and conditions related to credit lines	Nil
	Taishin International Bank Co., Ltd.	2025/08/31~2026/04/30	Terms and conditions related to credit lines	Nil
	E.SUN Commercial Bank, Ltd.	2025/08/01~2026/08/01	Terms and conditions related to credit lines	Nil
Sales contract	Company A	From 2008/11/25 to present	Product sales	Confidential clause

Note: The Company signed non-disclosure contracts with customers. Therefore, the customers were mentioned in codes.

Five. Review and Analysis of Financial Status and Financial Performance and Risk Issues

I. Financial status

Table of financial status comparison and analysis
Unit: NT$ thousand; %

Year Item	2024	2025	Difference
			Amount	%
Current asset	4,095,530	4,782,636	687,106	14
Property, Plant and Equipment	1,277,015	1,726,995	449,980	26
Intangible Assets	29,901	691,019	661,118	96
Other assets	370,209	472,016	101,807	22
Total assets	5,772,655	7,672,666	1,900,011	25
Current liabilities	1,335,066	2,555,482	1,220,416	48
Non-current liabilities	258,782	176,633	(82,149)	(47)
Total liabilities	1,593,848	2,732,115	1,138,267	42
Equity attributable to the owner of the parent company	4,149,847	4,806,116	656,269	14
Share capital	835,703	891,427	55,724	6
Additional paid-in capital	1,240,807	1,502,759	261,952	17
Retained earnings	2,137,905	2,537,060	399,155	16
Other equity	(64,568)	(125,130)	(60,562)	48
Treasury stocks	—		—	—
Non-controlling interest	28,960	134,435	105,475	78
Total shareholders’ equity	4,178,807	4,940,551	761,744	15
For the increase/decrease ratio reaching more than 20% and the amount of change reaching more than NT$10 million, the main reasons and effects are analyzed and described below: 1. The main reason is due to acquisition of Zhejiang Link Power Electronics Co., Ltd., leading to simultaneous increase of assets and liabilities in 2025. 2. Decrease in current liabilities: Mainly due to reclassification of non-current bonds Payable to Current Liabilities.

Note: The table was made according to the International Accounting Standard.

II. Financial performance

(I) Table of financial performance comparison and analysis

Unit: NT$ thousand; %

Item\Year	2024	2025	Increased (decreased) amount	Increase/decrease ratio %
Operating revenue	5,150,480	6,206,984	1,056,504	21
Gross profit	1,397,334	1,857,835	460,501	33
Operating profit or loss	521,358	826,080	304,722	58
Non-operating revenue and expense	134,941	65,480	(69,461)	(51)
Income before income tax	656,299	891,560	235,261	36
Net profit of continuing operations for the current period	514,789	671,153	156,364	30
Loss of discontinuing operation	—	—
Current period net profit	514,789	671,153	156,364	30
Other comprehensive income (net after tax) for the period	139,357	(60,040)	(199,397)	(143)
Total consolidated income for the current period	654,146	611,113	(43,033)	(7)
Net profit attributable to the owner of the parent company	511,215	652,156	15,423	432
Net profit attributable to non-controlling equity	3,574	18,997	15,423	432
Total comprehensive income attributable to the owner of the parent company	650,562	591,594	(58,968)	(9)
Total comprehensive income attributable to non-controlling equity	3,584	19,519	15,935	445
Earnings per Share	6.42	7.55	1.13	18
For the increase/decrease ratio reaching more than 20% and the amount of change reaching more than NT$10 million, the main reasons and effects are analyzed and described below: The two main reasons of the increase in profitability-related numbers in 2025 are as follows: 1. Mainly due to acquisition of Zhejiang Link Power Electronics Co., Ltd., resulting in expansion of product portfolios, increase of revenue, and increase in gross profit as well. 2. Mainly due to the gradual realization of the benefits of automation in the production process, the increase in gross profit, good control of operating expenses, and the increase in foreign currency exchange gain.

Note: The table was made according to the International Accounting Standard.

(II) If there are incurred or expected significant changes in operational policy, market status, economic environment or other internal/external factors, please describe the reasons for the changes in the Company's main operating content, as well as their possible impact on the Company's future financial and business status and countermeasures: No significant change.
(III) The expected sales number of the coming year, its basis, and the main factors that impact the continuous increase or decrease in the Company's sales number: The Company will adjust the product portfolios for integrated signal connectors in the coming year, and the sales number is expected to be in line with the business scale and be roughly the same with previous years.

III. Cash flow

(I) Analysis of changes in cash flow in the most recent two years

Unit: %

Item\Year	2024	2025	Increase (decrease) ratio
Cash flow ratio	54.02	44.49	(9.53)
Cash flow adequacy ratio	99.4	108.72	9.32
Cash reinvestment ratio	13.68	16.44	2.76
Decline in cash flow ratio: Mainly due to an increase in current liabilities in 2025 by about NT$1.22 billion compared with 2024.

Note: The table was made according to the International Accounting Standard.

(II) Improvement plan for the lack of liquidity: None.
(III) Analysis of the liquidity of cash for the coming year

Unit: NT$ thousand

Cash balance at the beginning of the year (1)	Expected annual net cash flow from operating activities (2)	Expected annual cash outflow (3)	Expected cash surplus (deficit) amount (1)+(2)+(3)	Remedy for expected cash deficit
				Investment plan	Financial management plan
1,356,264	1,279,692	(82,301)	2,553,655	—	—
Analysis of changes in cash flow in the coming year: A. The main reason for net cash inflow from operating activities is expected to be the operating profits of the Company in the coming year. The net cash inflow amount is expected to be NT$1,279,692 thousand. B. The net cash outflow from investing and financing activities is expected to be NT$82,301 thousand, and the main reasons for it shall be the capital expenditure of machine and equipment purchases and cash dividend distribution. Remedy for expected cash deficit and liquidity analysis: Not applicable.

Note: The table was made according to the International Accounting Standard.

IV. Effect of material capital expenditure in the most recent year on the financial and business status: None.
V. The reinvestment policy in the most recent year, the main reasons for the gain or loss of the investment, the improvement plan and the investment plan for the coming year

(I) Reinvestment policy

As of December 31, 2025, except for $82.75\%$ of Zhejiang Link Power Electronics Co., Ltd., $51\%$ of DYP Corp., and $40\%$ of Deshenglong Electronics Co., Ltd. the rest of the reinvested businesses are $100\%$ directly or indirectly invested subsidiaries, and the supervisory and management operations of the subsidiaries have been set up in the internal management system to monitor the operation of the subsidiaries on a regular basis.

(II) Main reason and improvement plan for reinvestment profit or loss

December 31, 2025

Unit: NT$ thousand

Item/description	Investment amount	Policy	Benefits (losses) of investment in 2025	Main reason for profit or loss	Improvement plan
Global Connection (Samoa) Holding Inc.	1,674,953	Supervision and management of subsidiaries	213,526	The main reason is due to the benefits arising from the investment in automation production in China.	Nil
CDE Corp.	150,000	Supervision and management of subsidiaries	33,566	Changes in product demand.	Nil
DYP Corp.	112,200	Supervision and management of subsidiaries	13,846	The main reason is due to the benefits arising from the investment in automation production.	Nil
U.D.ELECTRONIC VIETNAM COMPANY LIMITED	153,557	Supervision and management of subsidiaries	(116,183)	Starting at the investment stage, it has neither achieved mass production nor received official orders.	Note 1

Note 1 and 2: It is expected to improve the financial structure in 2026, aiming to achieve break-even.

(III) Investment plans for the coming year

The Company expects to purchase new automatic equipment and will continue to invest capital expenditure in fixed assets. We also take the fund requirements of other reinvested companies into consideration, and will gradually add investment amount after conducting proper assessment procedures.

VI. Risk item analysis and assessment should have regard to the following matters in the most recent year up to the publication date of this annual report

(I) Impact of interest and exchange rate changes and inflation on the profit or loss of the Company, and future countermeasures

Interest rate: The Company's interest expense amount in 2024 and 2025 were NT$13,100 thousand and NT$11,297 thousand respectively, which accounted for 0.25% and 0.18% of net operating revenue of the year (NT$5,150,480 thousand in 2024 and NT$6,206,984 thousand in 2025). Thus, the interest expenses had little impact on the Company. In the future, the Company will continue to regularly assess the interest rate of bank loans and maintain good relationships with banks to acquire better interest rates.
Exchange rate: The amount of net exchange gains (losses) of the Company in 2024 and 2025 were NT$35,598 thousand and NT$(31,883) thousand respectively, which accounted for 0.69% and (0.51%) of net operating revenue of the year (NT$5,150,480 thousand in 2024 and NT$6,206,984 thousand in 2025). The Company mainly does export trading, and the main currency of income is the USD. The Company's material purchases are also priced in the USD, which means that exchange rate changes have a certain impact on the Company's gains and losses. To reduce the impact of exchange rate

changes, the Company has adopted natural hedging for income and costs. Moreover, the Company fully understands the exchange rate changes, and adjusts the position of foreign currency held appropriately to reduce exchange rate risks. However, the production bases of the Company are all located in the mainland China, and certain amount of importation and other fees priced in the RMB need to be paid. The Company shall undertake forward currency hedging to reduce exchange losses and impact on profits.

Inflation: There has no significant impact caused by inflation on the Company's gains and losses, but the Company will pay attention to the inflation status in a timely and appropriate manner.

(II) Policies regarding high-risk and high-leverage investments, loaning of funds to others, endorsement/guarantee as well as derivatives trading, main reasons for gains or losses, and future countermeasures:

The Company has established guidelines such as “Procedure for Acquisition or Disposition of Assets,” “Procedure for Financing Provided to Others,” and “Procedure for Endorsement and Guarantee” as a basis for relevant behaviors. As of the publication date of this annual report, the Company had not engaged in high-risk/high-leverage investments and derivatives trading.

In addition, for financing provided to others and endorsements/guarantees, the Company follows our policies and countermeasures established in “Procedure for Financing Provided to Others” and “Procedure for Endorsement and Guarantee.” The Company has taken risks into consideration for all relevant operations and conducted them carefully according with related regulations.

(III) Future R&D plan and estimated R&D expenses

Research and Development Work to be Carried Out in the Future

In face of rapid changes of AI computing demands and data center architecture, the Company has been fully transformed from a developer of single connector components to a provider of “high-speed interconnect system solutions”.

Based on edges of high-precision molds, automated processes and SI simulation technology, the Company has founded a basis to stabilize the market. In the future, we will continue to further develop 1.6T (224G PAM4) high-speed transmission standards, and simultaneously make arrangements for prospective product lines such as AEC/AOC, optical transceiver modules, PCIe Gen 6 MCIO, etc.

By deepening technical cooperation with major international manufacturers and patent licensing, the Company strives to offer complete photoelectric transmission solutions with low power consumption and high performance, and consolidate our core position in the global high-speed interconnect industry supply chain.

(1) Development of 1.6T (224G PAM4) ultra high-speed transmission system interfaces and active electrical cable (AEC)

Develop high-transmission solutions with a single-lane rate of 224G PAM4 to meet urgent demands for 1.6T bandwidth in hyperscale data centers and AI computing clusters. Focus on development of 1.6T OSFP-XD and QSFP224 high-speed connectors, optimizing their high-density housing thermal management and electromagnetic interference (EMI) shielding design; utilize precision stamping and injection molding technologies to ensure signal integrity of the pins in ultra-high-frequency environments. Simultaneously, develop 1.6T AEC (Active Electrical Cables) integrating advanced Retimer chips. Through signal regeneration and jitter compensation technologies, overcome the physical bottlenecks of copper cable transmission distance limitations at high frequencies, providing high-speed connection solutions with longer distance, low-power consumption, and low-bit-error-rate (BER) between cabinets.

102

(2) Development project of high-density internal interconnect cable assembly and connectors in PCIe Gen 6 (64GT/s) specification.

In coordination with the shift of server processor platforms towards the PCIe 6.0 specification, our R&D focus is put on overcoming the severe signal attenuation challenges when data rates increase to 64 GT/s.

The Company will develop MCIO (Mini Cool Edge IO) high-speed connectors and Multi-track parallel cables that support the Gen 6 standard. By optimizing impedance matching and crosstalk suppression technologies, we ensure signal integrity. Concurrently, to address the complex and narrow cabling spaces within servers, we will develop highly flexible and bend-resistant PCIe Riser Card Cable to ensure system operating stability under ultra high-speed data exchange.

(3) 800G and 1.6T high-speed Optical Transceiver and Active Optical Cable (AOC) technology

We are comprehensively positioning ourselves for the technological transformation from "electrical" to "optical" transmission with research and development of OSFP-DD800 and OSFP packaged optical transceivers that support 800G and 1.6T standards. Our R&D focus covers silicon photonics packaging processes, high-precision optical coupling technology, and low-power optoelectronic circuit design; we simultaneously develop AOC (Active Optical Cable) product lines featuring high bandwidth and resistance against electromagnetic interference (EMI). We provide these solutions with long distance, lightweight, and high reliability for interconnects between cabinets of massive AI computing clusters in order to meet diverse needs of the future optical communications market.

(4) Build a UDE Smart Manufacturing Platform and Support the Products of Reinvestment Companies

Based on the automated production line structure developed by the Company since 2012, the concept is derived from the Toyota Production System, which constructs a sophisticated production system through modularization, visualization, just in time (JIT), and standardization. As production changes, the concept of a transparent production process and information flow integration is introduced into the production line, allowing management behavior to expand down to the front-line personnel, which shortens the response time for abnormalities and accelerates decision making and handling processes. To achieve this goal, other than ERP and MES systems that support production management, the integration of CPS and IoT concepts with artificial intelligence (AI) technology allow for collecting production line information to diagnose or predict production abnormalities and waste, becoming the most important goal of the new generation manufacturing model. The Company continues to strengthen the competitiveness of silicon wearable and wireless Bluetooth headset products that the Company has invested in through the establishment of the "UDE Smart Manufacturing Platform".

R&D expenses to be invested

For the R&D expenses, the Company will continue making investments according to the development progress of the products in the future. The R&D expenses of 2026 was expected to be NT$310,000 thousand.

103

(IV) The influence of the changes in important policies and regulatory environment at home or abroad on the Company's financial business, and countermeasures

During the recent year and up to the publication date of the annual report, the Company has been affected by significant domestic and international policy and legal changes, mainly due to geopolitical risks, which resulted in an increase in production costs. The Company will continue to pay attention to the global situation, improve itself, and take the initiative to propose countermeasures in a timely manner.

(V) Effect on the Company's Financial Operations of Developments in Science and Technology As Well As Industrial Change, and Measures to be Taken in Response

The Company's initial business focus was on integrated signal connectors for PC applications, which will be decreasing with the PC business development. However, the Company has developed many new products and has gradually entered into home appliance/networking/consumer electronics applications, and has continued to reduce production costs. Therefore, the change in technology will not have a material impact on the Company.

(VI) Impact of the changes in the Company's image on the risk management and countermeasures

The Company has been operating with the spirit of steadiness and practicality and maintains good image; thus, there has had no change in the Company's image that requires risk management.

(VII) Expected benefits and possible risks associated with any merger and acquisitions, and mitigation measures being or to be taken

As of the publication date of this annual report, the Company had no plan for merger and acquisitions. If there are assessments and execution of relevant plans in the future, the Company will comply to related laws and regulations and the Company's management guidelines.

(VIII) Expected Benefits, Possible Risks and Countermeasures of Plant Expansion

As of the publication date of the annual report, the Company is in the process of purchasing additional automated machinery and equipment for the Vietnam Plant, and the expected benefits, possible risks and countermeasures related to the expansion of the plant are summarized as follows, in case the Company engages in the evaluation and implementation of the related plan in the future, it will be handled in accordance with the relevant laws and regulations and the relevant management rules formulated by the Company.

Item	Expected benefits	Possible risks	Countermeasures
Automation equipment for Vietnam factory	Increase in manufacturing capacity	Factory idle due to insufficient orders	Expansion of production based on projected order demand

(IX) Risk of concentrated sales or purchases, and mitigation measures being or to be taken

Description of purchase status

The integrated signal connectors of the Company and its subsidiaries were products produced with the integration of mechanical and electronic technologies, so there was a demand for purchasing more electronic parts. Starting from 2023, there are no vendors that have no other suppliers of purchases amounting to more than 10% of the consolidated net purchases of the Company and its subsidiaries, indicating that the Company and its subsidiaries do not have any significant risk of concentration of purchases.

104

Description of sales status

The integrated signal connectors of the Company and our subsidiaries can be widely applied. Due to the revenue growth and benefits of expanding the development of network, communication and customers of consumer products, the effect of customer dispersal has occurred. Since 2017, not a single customer has represented more than 10% in the Company’s revenue. This suggests that the Company and our subsidiaries have no material risk of the concentration of sales.

(X) Impact on and risk to the Company with regard to any major transfer or change of equities by directors, supervisors, or major shareholders holding more than 10% of the Company’s shares, and mitigation measures being or to be taken

In the most recent year up to the publication date of this annual report, there was no major transfer or change of equities by the Company’s directors, supervisors, or major shareholders holding more than 10% of the Company’s shares.

(XI) Impact on and risk to the Company with regard to any change in management rights, and mitigation measures being or to be taken

In the most recent year up to the publication date of this annual report, there was no change in management rights.

(XII) In case of any litigious and non-litigious matters, material litigious, non-litigious or administrative disputes that involve the Company and/or any director, supervisor, the General Manager, de facto responsible person, major shareholder holding a stake of more than 10% of the Company or subordinate company thereof, and that were finalized or remained pending, shall be listed; if these disputes may eventually cause a substantial impact on shareholders’ equity or the price of securities, the nature of the disputes, the amount involved, the date on which the litigation first started, the main parties involved and the progress as of the publication of this annual report shall be disclosed

In the most recent two years up to the publication date of this annual report, material litigious, non-litigious or administrative disputes that involved the Company and were finalized or remained pending that might eventually cause a substantial impact on shareholders’ equity or the price of securities: None.
List major litigious, non-litigious, or administrative disputes that: (1) involve the Company and/or any Company director, any Company supervisor, the general manager, any person with actual responsibility for the firm, any major shareholder holding a stake of greater than 10 percent, and/or any company or companies controlled by the Company; and (2) have been concluded by means of a final and unappealable judgment, or are still under litigation in the most recent two years and as of the publication date of the Annual Report, where such a dispute could materially affect shareholders’ equity or the prices of the Company’s securities: None.
Matters stipulated in Article 157 of the Securities and Exchange Act that have occurred in the past two years and as of the publication date of the Annual Report for any Company director, any Company supervisor, the general manager, any major shareholder holding a stake of greater than 10 percent and the Company’s handling status: None.

(XIII) Other significant risks and countermeasures

Intellectual property management plan

In order to protect the Company’s intellectual property rights, we map out the intellectual property strategy in combination with the company’s operational goals and research & development resources.

105

Patent protection measures

The Company’s intellectual property management strategies mainly include patent application, patent proofreading and compilation, and protection of the company’s research and development results as well as technical leadership. We build up a systematized management system of intellectual property right of patents with a view to improving examination efficiency, and acquiring high-quality patent protection.

Execution status

The Company reports, on a regular basis, matters related to intellectual property to the Board of Directors in the Q2 of each year. The recent report was submitted on August 7, 2025.

Currently, the list and results of intellectual property obtained are as follows:

Patent: As of the end of June 2025, the Company has filed a total of 620 applications for patents in the world with 598 applications approved; from July 2024 to June 2025, we totally acquired 4 foreign patents and 5 ones in Taiwan. In terms of patent quality, we enjoy a patent approval rate as high as 97%.

Risk assessment of information security and its countermeasures:

(1) Information security operations:

The Company has established a complete structure of information network, and data back-up and computer security systems, including but not limited to anti-virus systems, data back-up systems, and hardware firewall systems. The Company uses the information control and protection systems to manage information security, back up files, control account verification, and protect computers from virus. This way, we can prevent internal data leakage and maintain the Company’s operational functions.

(2) Information security and Internet risk control:

The information technologies have been ever-changing, and the innovation of cyber technology has resulted in the constant change and sharp increase of cyber attacks. As a result, the information security systems cannot provide 100% guarantee for the safety of systems. However, the Company has adopted active enhancement on information security and reduced information security risks via firewall and antivirus engine updates, centralized control and automatic updates on virus patterns, and operation system updates.

(3) Education and training on information security for employees:

The Company regularly provides educational dissemination on information security risks for employees to avoid them negligently opening malicious emails or viewing unsafe sites, and further incurring cyber attacks. For external storage media, the Company has introduced controls on general employee access. When the authorized employees are accessing to external files, the files also need to be examined by the Information Department to make sure that they are safe and to avoid files with malicious codes entering the Company’s systems. This way, we are able to ensure information security.

(4) From 2025 to the publication date of this annual report, there was no significant cyber attack or information security incidents in the Company.

VII. Other important issues: None.

Six.Special Items

I. Information on affiliates

(I) Consolidated business report of affiliated companies

Organizational chart of affiliates

Relations between affiliates and their mutual shareholding ratio, shares held and actual invested amount

December 31, 2025; Unit: NT$ thousand; thousand shares

Name of affiliated company	Relationship with the Company	Shares held by the Company and shareholding ratio		Actual invested amount	Shares held and shareholding ratio of the Company's shares
		Share	Ratio (%)		Share	Ratio (%)
GLOBAL CONNECTION (SAMOA) HOLDING INC. (GCH)	Subsidiaries	51,089	100%	1,605,727	-	-
CDE Corp.	Subsidiaries	15,000	100%	150,000	-	-
DYP Corp.	Subsidiaries	11,220	51%	112,200
U.D.ELECTRONIC VIETNAM COMPANY LIMITED	Subsidiaries	Note	100%	154,622	-	-
Jin Yue Investment Co., Ltd.	Subsidiaries	3,000	100%	30,000	-	-
SUNDERLAND INC. (SDI)	Second-tier subsidiary	14,064	100%	442,032	-	-
SAN FRANCISCO INC. (SFI)	Second-tier subsidiary	27,536	100%	865,456	-	-
ALL FIRST INT'L CO.,LTD.(AFI)	Second-tier subsidiary	10,000	100%	314,300	-	-
Ta Yang UDE Limited (Note 1)	Second-tier subsidiary	4,438	51%	116,637	-	-
Dongguan Jian Guan P.E. Co., Ltd.	Third-tier subsidiary	Note	100%	405,981	-	-
Zhong Jiang U.D.E. Electronics Corp.	Third-tier subsidiary	Note	100%	833,835	-	-
Dongguan De Yang Precision Rubber Plastic Co., Ltd.	Third-tier subsidiary	Note	51%	70,734	-	-
Dongguan Yongde Electronic Technology Co., Ltd.	Third-tier subsidiary	Note	100%	15,871	-	-
Zhong Jiang U.D.E. Networking Electronics Corp.	Fourth-tier subsidiary	Note	100%	Note 2	-	-
MORNING PARAGON LIMITED	Third-tier subsidiary	1,939	51%	60,933	-	-
Dongguan Artegen Intellectual Technology Co., Ltd.	Fourth-tier subsidiary	Note	60%	Note 3	-	-
Dongguan Han Lian Technology Co., Ltd.	Fourth-tier subsidiary	Note	85%	Note 3	-	-
Shenzhen Deshenglong Electronics Co., Ltd.	Fourth-tier subsidiary	Note	40%	Note 3	-	-
Zhejiang Link Power Electronics Co., Ltd.	Fourth-tier subsidiary	Note	82.75%	Note 4	-	-
Huangshan Yuhao Electronic Co., Ltd.	Fifth-tier subsidiary	Note	82.75%	Note 4	-	-
Hangzhou Qigu Techno logy Co., Ltd.	Fifth-tier subsidiary	Note	82.75%	Note 4	-	-
NOBELSTYLE ELECTRONICS (HK) CO., LIMITED	Fifth-tier subsidiary	Note	82.75%	Note 4	-	-

Note: No issued shares.
Note 1: The Company have directly invested in the DYP Corp. and held $51\%$ of shares, and have reinvested in Ta Yang UDE Limited and held $100\%$ of shares. Thus, the indirect shareholding ratio has been converted.
Note 2: Zhong Jiang U.D.E. Networking Electronics Corp. is directly invested by Zhong Jiang U.D.E. Electronics Corp., and the investment amount is not remitted from Taiwan.
Note 3: Dongguan Artegen Intellectual Technology Co., Ltd., Dongguan Han Lian Technology Co., Ltd., and Shenzhen Deshenglong Electronics Co., Ltd. are directly invested by Dongguan Jian Guan P.E. Co., Ltd., and the investment amount is not remitted from Taiwan.
Note 4: Zhong Jiang U.D.E. Networking Electronics Corp., and Zhejiang Link Power Electronics Co., Ltd. are directly invested by the Zhong Jiang U.D.E. Electronics Corp., and the investment amount is not remitted from Taiwan; Huangshan Yuhao Electronic Co., Ltd., and Hangzhou Qigu Technology Co., Ltd. are directly invested by Zhejiang Link Power Electronics Co., Ltd., and the investment amount is not remitted from Taiwan.

Name, date of incorporation, address, paid-in capital and main business items of affiliates

December 31, 2025; Unit: NT$ thousand

Company name	Date of incorporation	Address	Currency	Registered capital	Paid-in capital	Main business
GLOBAL CONNECTION(SAMOA) HOLDING INC.(GCH)	2007.11.12	Equity Trust Chambers, P.O. Box 3269, Apia, Samoa	USD	100,000	51,089	Holding
CDE Corp.	2011.05.25	1F., No. 13, Neixi Rd., Luzhu Dist., Taoyuan City	NTD	200,000	150,000	Manufacturing and sales of electronic materials
DYP Corp.	2017.08.18	2F., No. 13, Neixi Rd., Luzhu Dist., Taoyuan City	NTD	300,000	220,000	Purchase and sales of electronic components
U.D.ELECTRONIC VIETNAM COMPANY LIMITED	2022.12.06	Lot CN-01, Phase I, Tai Hoa Industrial Zone, Beilshe, Lý Nhân County, Hà Nam Province, Vietnam	USD	5,000,000	5,000,000	Manufacturing and sales of electronic components
SUNDERLAND INC. (SDI)	2007.11.22	2nd Floor, Felix House, 24 DR.Joseph Riviere Street, Port Louis, Republic of Mauritius	USD	—	14,064	Holding
SAN FRANCISCO INC. (SFI)	2007.11.22	2nd Floor, Felix House, 24 DR.Joseph Riviere Street, Port Louis, Republic of Mauritius	USD	—	27,536	Holding
ALL FIRST INT'L CO.,LTD. (AFI)	2008.03.04	Equity Trust Chambers, P.O. Box 3269, Apia, Samoa	USD	10,000	10,000	Trading/order taking
Ta Yang UDE Limited.	2015.02.12	Vistra Corporate Services Centre, Ground Floor NPF Building, Beach Road, Apia, Samoa	USD	10,000	4,438	Holding
MORNING PARAGON LTD	2017.09.05	Vistra Corporate Services Centre, Ground Floor NPF Building, Beach Road, Apia, Samoa	USD	10,000	1,500	Trading/order taking
Dongguan Jian Guan P.E. Co., Ltd.	2004.07.20	No. 1, Xinyuan Rd., Ludong Vil., Humen Town, Dongguan City, Guangdong Province	HKD	100,932	100,932	Manufacturing and sales of electronic components
Zhong Jiang U.D.E. Electronics Corp.	2005.09.19	No. 303, W. Sec. 4, Erhuan Rd., Nanhua Town, Zhongjiang County, Deyang City, Sichuan Province	RMB	187,785	187,785	Manufacturing and sales of electronic components
Dongguan De Yang Precision Rubber Plastic Co., Ltd.	2016.03.25	Ludong Cnty., Humen Town, Dongguan City, Guangdong Province	USD	2,500	2,500	Manufacturing and sales of electronic components
Dongguan Yongde Electronic Technology Co., Ltd.	2016.08.22	No. 1, Xinyuan Rd., Ludong Vil., Humen Town, Dongguan City, Guangdong Province	USD	1,000	500	R&D and sales of electronic components
Zhong Jiang U.D.E. Networking Electronics Corp.	2014.02.28	No. 303, W. Sec. 4, Erhuan Rd., Nanhua Town, Zhongjiang County, Deyang City, Sichuan Province	RMB	2,000	500	Purchase and sales of electronic components
Dongguan Artegen Intellectual Technology Co., Ltd.	2017.11.24	No. 58, Xinan Rd., Ludong Cnty., Humen Town, Dongguan City, Guangdong Province	RMB	10,000	10,000	Development and sales of automatic equipment
Dongguan Han Lian Technology Co., Ltd.	2018.08.15	Rm. 501, Building 1, No. 8, Xinyuanan Rd., Ludong, Humen Town, Dongguan City, Guangdong	RMB	8,400	8,400	Manufacturing and sales of electronic connecting lines
Shenzhen Deshenglong Electronics Co., Ltd.	2024.07.09	B101, Factory Building No.1, No.62 Gaoke Avenue, Nanyue Community, Baolong Street, Longgang District, Shenzhen	RMB	10,000	1,200	Manufacture of computer hardware, software and peripherals

110

Company name	Date of incorporation	Address	Currency	Registered capital	Paid-in capital	Main business
Zhejiang Link Power Electronics Co., Ltd.	2010.06.23	No. 656, Tongde Rd., Tongxiang Economic Development Zone, Tongxiang City, Jiaxing City, Zhejiang Province	RMB	26,000	26,000	Power supply, and manufacturing and sales of LED lighting products
Huangshan Yuhao Electronic Co., Ltd.	2020.07.12	Workshop 9, Phase II Business Incubation Base, Shexian Economic Development Zone, Huangshan City, Anhui Province	RMB	5,000	5,000	Manufacture of electronic components
Hangzhou Qigu Techno logy Co., Ltd.	2014.05.23	Room 305, Door 2, Building 9, Qianjiang Fushan Commercial Center, Zhuantang Street, Xihu District, Hangzhou City, Zhejiang Province	RMB	10,000	10,000	Real estate investment business
NOBELSTYLE ELECTRONICS (HK) CO., LIMITED	2015.08.06	THE BELGIAN BANK BUILDING NOS.721-725 NATHAN ROAD MONGKOK	HKD	100	100	Trading and order taking

Entities presumed to have a controlling and subordinate relationship according to Article 369-2 of the Company Act: None.
Data of all affiliated companies

(1) Industries covered by the business of all affiliated companies:

(I) F119010 Wholesale of Electronic Materials
(II) F219010 Retail Sale of Electronic Materials
(III)F401010 International Trade
(IV)CC01080 Electronics Components Manufacturing
(V) All business activities that are not prohibited or restricted by law, except those that are subject to special approval

(2) Correlation and division of work between the business of affiliated companies: As described in (1) above.

Name of directors, supervisors and the General Manager, and their shareholding or contribution status

December 31, 2025; Unit: Thousand shares/NT$ thousand

Company name	Title	Name	Shareholding
			Number of shares/amount of contribution	Shareholding ratio (%)
GLOBAL CONNECTION(SAMOA) HOLDING INC.	Director	Po-Jung Chen	U.D. ELECTRONIC CORP. 51,089/USD 51,089	100%
CDE Corp.	Chairman General Manager	Po-Jung Chen Min-Che Chen	U.D. ELECTRONIC CORP. 15,000/NTD150,000	100%

Company name	Title	Name	Shareholding
			Number of shares/amount of contribution	Shareholding ratio (%)
DYP Corp.	Chairman General Manager	Po-Jung Chen Min-Che Chen	U.D. ELECTRONIC CORP. 11,220/NTD112,200	51%
U.D.ELECTRONIC VIETNAM COMPANY LIMITED	General Manager	Min-Che Chen	U.D. ELECTRONIC CORP. VND 118,944,535	100%
SUNDERLAND INC.	Director	Po-Jung Chen	GLOBAL CONNECTION(SAMOA) HOLDING INC. 14,064/USD14,064	100%
SAN FRANCISCO INC.	Director	Po-Jung Chen	GLOBAL CONNECTION(SAMOA) HOLDING INC. 27,536/USD 27,536	100%
ALL FIRST INT'L CO.,LTD.	Director	Po-Jung Chen	GLOBAL CONNECTION(SAMOA) HOLDING INC. 10,000/USD10,000	100%
Ta Yang UDE Limited.	Director	Po-Jung Chen	DYP Corp. 4,438/USD3,711	100%
MORNING PARAGON LTD	Director	Po-Jung Chen	Ta Yang UDE Limited. 1,939/USD1,939	100%
Dongguan Jian Guan P.E. Co., Ltd.	Chairman	Chien-Hsiang Chang	SUNDERLAND INC. HKD 12,647 USD12,000	100%
Zhong Jiang U.D.E. Electronics Corp.	Chairman General Manager	Min-Che Chen Min-Che Chen	SAN FRANCISCO INC. USD 27,603	100%
Dongguan De Yang Precision Rubber Plastic Co., Ltd.	Chairman General Manager	Yung-Ming Li Yung-Ming Li	Ta Yang UDE Limited. USD2,342	100%
Dongguan Yongde Electronic Technology Co., Ltd.	Chairman	Feng-Kuang Li	SUNDERLAND INC. USD 502	100%
Zhong Jiang U.D.E. Networking Electronics Corp.	Director	Feng-Kuang Li	Zhong Jiang U.D.E. Electronics Corp.(Note 1)	100%
Dongguan Artegen Intellectual Technology Co., Ltd.	Director	Tao Kuo	Dongguan Jian Guan P.E. Co., Ltd.(Note 2)	60%
Dongguan Han Lian Technology Co., Ltd.	Director	Chun-Sheng Lai	Dongguan Jian Guan P.E. Co., Ltd.(Note 2)	85%
Shenzhen Deshenglong Electronics Co., Ltd.	Director	Lung-Cheng Ku	Dongguan Jian Guan P.E. Co., Ltd.(Note 2)	40%
Zhejiang Link Power Electronics Co., Ltd.	Chairman	Min-Che Chen	Zhong Jiang U.D.E. Electronics Corp.	82.75%
Huangshan Yuhao Electronic Co., Ltd.	Director	Cheng-Lin Wang	Zhejiang Link Power Electronics Co., Ltd.	100%
Hangzhou Qigu Technology Co., Ltd.	Director	Cheng-Lin Wang	Zhejiang Link Power Electronics Co., Ltd.	100%
NOBELSTYLE ELECTRONICS (HK) CO., LIMITED	Director	Min-Che Chen	Zhejiang Link Power Electronics Co., Ltd.	100%

Note 1: Zhong Jiang U.D.E. Networking Electronics Corp., and Zhejiang Link Power Electronics Co., Ltd. are directly invested by the Zhong Jiang U.D.E. Electronics Corp.; Huangshan Yuhao Electronic Co., Ltd., and Hangzhou Qigu Technology Co., Ltd. are directly invested by Zhejiang Link Power Electronics Co., Ltd., and the investment amount is not remitted from Taiwan.
Note 2: Dongguan Artegen Intellectual Technology Co., Ltd., Dongguan Han Lian Technology Co., Ltd. and Shenzhen Deshenglong Electronics Co., Ltd. are directly invested by Dongguan Jian Guan P.E. Co., Ltd., and the investment amount is not remitted from Taiwan.

(II) Consolidated financial statements of affiliated companies: In accordance with the "Criteria Governing the Preparation of Consolidated Statements of Operations, Consolidated Financial Statements and Reports by Affiliates", the companies that should be included in the preparation of consolidated financial statements of affiliates for fiscal year 2025 (from January 1, 2025 to December 31, 2025) are the same as those that should be included in the preparation of consolidated financial statements of parents and subsidiaries in accordance with IAS 10, and the relevant information to be disclosed in the consolidated financial statements of affiliates has already been disclosed in the previously disclosed consolidated financial statements of parents and subsidiaries. The information required to be disclosed in the consolidated financial statements has already been disclosed in the previously disclosed consolidated financial statements of the parent-subsidiary company, so we do not prepare the consolidated financial statements of the affiliated companies separately.

(III) Affiliation report: Not applicable.

I. Private placement of securities in the most recent year up to the publication date of this annual report: None.

II. Shares of the Company held or disposed of by subsidiaries in the most recent year up to the publication date of this annual report: None.

III. Other necessary supplementary information

For our commitments made at the time of TPEx listing, the Company will further disclose the unfulfilled commitments in the annual report, as we've been doing since 2013, according to the instructions specified in Jheng-Guei-Jian-Zi No. 1020200236 on March 21, 2013.

Commitments made at the time of TPEx listing

Commitments fulfillment status

Addition in the Procedures for Acquisition or Disposition of Assets: U.D. ELECTRONIC CORP. may not quit capital increase in Global Connection (Samoa) Holding Inc. (hereinafter referred to as GCH) in future years; GCH may not quit capital increase in Sunderland Inc. (hereinafter referred to as SDI), San Francisco Inc. (hereinafter referred to as SFI), Orient Express Int'l Co., Ltd. (hereinafter referred to as OEI) and All First Int'l Co., Ltd. (hereinafter referred to as AFI) in future years; SDI and SFI may not quit capital increase in Dongguan Jian Guan P.E. Co., Ltd. (hereinafter referred to as Dongguan Jian Guan) and Zhong Jiang U.D.E. Electronics Corp. (hereinafter referred to as Zhong Jiang U.D.E.) respectively in future years. In the future, if U.D. ELECTRONIC CORP. has to quit capital increase in the above companies or dispose shareholdings of the above companies due to strategic alliance related considerations or with the approval of the TPEx, the actions will need to be approved by a special resolution at the Board of Directors meetings of U.D. ELECTRONIC CORP. If this guideline is amended in the future, it shall be disclosed on MOPS as a material message and be submitted to the TPEx for future reference.

The Company has provided a commitment letter and disclosed it in the prospectus. Moreover, the additions of relevant contents were established in the “Procedures for Acquisition or Disposition of Assets” and were discussed and approved by resolutions at the Board of Directors meeting on October 25, 2012 and the shareholders’ meeting on June 20, 2013.

113

AI assistant

湧德 Annual Report 2025

73275_rns_2026-06-09_d6b32826-eb7e-4c6d-94fc-6669d2712da3.pdf

U.D. ELECTRONIC CORP.

U.D. ELECTRONIC CORP.

2025 Annual Report Table of Contents

One.Letter to Shareholders

Two. Company Governance Report

3. Remuneration to the General Manager and Assistant General Manager in the most recent year

(II) Operation status of the Audit Committee

2. Information on the operation of the Remuneration Committee

1-1. Greenhouse Gas Inventory and Assurance Status for the Most Recent 2 Fiscal Years

1-1-1 Greenhouse Gas Inventory Information

1-1-2 Greenhouse Gas Assurance Information

1-2 Greenhouse Gas Reduction Targets, Strategy, and Concrete Action Plan

Three. Fundraising Overview

Four. Operation Overview

I. Business item

(I) Business scope

2. Revenue proportion

3. The products (services) provided by the Company

(II) Overview of the Industry

1. Current status and development of the industry

2. The relations between the up-, mid-, and downstream industries

Countermeasures:

Countermeasures:

Countermeasures:

Five. Review and Analysis of Financial Status and Financial Performance and Risk Issues

II. Financial performance

(I) Table of financial performance comparison and analysis

III. Cash flow

Six.Special Items

I. Information on affiliates

AI assistant

湧德 — Annual Report 2025

73275_rns_2026-06-09_d6b32826-eb7e-4c6d-94fc-6669d2712da3.pdf

U.D. ELECTRONIC CORP.

U.D. ELECTRONIC CORP.

2025 Annual Report Table of Contents

One.Letter to Shareholders

Two. Company Governance Report

3. Remuneration to the General Manager and Assistant General Manager in the most recent year

(II) Operation status of the Audit Committee

2. Information on the operation of the Remuneration Committee

1-1. Greenhouse Gas Inventory and Assurance Status for the Most Recent 2 Fiscal Years

1-1-1 Greenhouse Gas Inventory Information

1-1-2 Greenhouse Gas Assurance Information

1-2 Greenhouse Gas Reduction Targets, Strategy, and Concrete Action Plan

Three. Fundraising Overview

Four. Operation Overview

I. Business item

(I) Business scope

2. Revenue proportion

3. The products (services) provided by the Company

(II) Overview of the Industry

1. Current status and development of the industry

2. The relations between the up-, mid-, and downstream industries

Countermeasures:

Countermeasures:

Countermeasures:

Five. Review and Analysis of Financial Status and Financial Performance and Risk Issues

II. Financial performance

(I) Table of financial performance comparison and analysis

III. Cash flow

Six.Special Items

I. Information on affiliates

More from 湧德

湧德 Annual Report 2025