Implementation of Sustainable Developments

None.

In oreder to fulfill our commitment to stakeholders and respect and safeguard their interests, the Sustainable Development Committee and representatives from internal departments of our company jointly convened a meeting to identify and consider the scope and boundaries. The Company integrated the issues of concern raised through regular communication channels and assessed their impact on the company's operations. Subsequently, we prioritized and categorized them into significant consideration areas based on their high level of concern and impact, making them the substantive issues for primary communication.
Based on the assessed risks, the Company formulates relevant risk management policies or strategies as follows:

None.

3. Environmental issues

(1) Does the Company establish environmental management system designed to fit industry characteristics?

(1) Based on the ISO14001 environmental management system, the Company has established an environmental management standard to implement various environmental management requirements and push improvement continuously. The validity period of the best new certificate is from December 20, 2024 to December 19, 2027.

(1) None.

(2) Is the Company committed to improving the energy efficiency and utilizing renewable materials that have low environmental impact?

(2) The Company promotes various energy saving measures, and selects the equipment designed for high energy efficiency and energy saving. Setting environmental management objectives and countermeasures in order to reduce the usage of energy and water, and the energy consumption of enterprises and products, and takes appropriate procedures and measures to prevent or mitigate possible impacts on the environment.

(2) None.

(3) With countries worldwide strengthening their carbon reduction targets and policies, aiming for net zero emissions by 2050, there is increased pressure on business operations and customer demands for sustainable supply chains.

In response to the global trend towards low-carbon transformation amid climate change, the Company has been planning investments to reduce carbon emissions, aiming to mitigate the risks of future carbon taxes and rising energy costs.

When facing the impact of climate change, the Company's energy and environmental protection costs are gradually increasing. The Company internally responds to environmental impacts through the implementation of various projects. For issues related to climate change, the evaluation and implementation methods are as follows:

For detailed information, please refer to the Company's Sustainability Report and the Corporate Sustainability section on our official website: www.jihlin.com.tw.

None.

1. The carbon emissions in the past two years are as follows

Note: All greenhouse gas emission data have been independently verified by an accredited third-party organization.

2.The water consumption for water resource management in the past two years are as follows:

3.The waste management data in the past two years are as follows:

4.The Company's policies on energy conservation and carbon reduction, greenhouse gas reduction, water consumption reduction or other waste management are as follows:

(1)Energy consumption and reduction of greenhouse gas emissions：
The Company analyzes the electricity purchased from outside, which is the main source of greenhouse gas emissions in its operations. Because of production reduction, the carbon emissions decreased by 495 tons in 2024 compared to 2023. With the expansion of production capacity and equipment, carbon emissions increased relatively. In terms of power consumption reduction, it focuses on larger power consumption equipment, such as air-conditioning equipment. Through the adjustment of the temperature of the ice water outlet and timely parallel operation to increase the temperature of the indoor cooling room and other operations and management, the power consumption of the air conditioner is reduced to reduce greenhouse gas emissions, and the pressure of loading and unloading of the air compressor is adjusted to reduce power consumption.

(2)Water resource management：
The Company's water usage reduction measures: The Third Factory continues to utilize water recycling equipment for recycling process wastewater. The second factory in Nanzih also completed the installation of waste water recycling equipment in December 2024 to improve water use efficiency within the facility. In 2024, water consumption decreased by approximately 6,644 metric tons compared to 2023.

(3)Waste Management：
The Company's waste is cleared and disposed of by qualified institutions recognized by government agencies, and the flow of waste in the factory is strictly managed. Each factory continues to maintain the waste reduction measures previously implemented. Additionally, due to a decrease in overall production capacity in 2024, the total waste generated in 2024 showed a declining trend compared to 2023. The Company will continue to evaluate and the feasibility of waste reuse or waste reduction as well, and plan it.

None.

4. Social issues

(1) Does the Company formulate appropriate management policies and procedures according to related laws and regulations and the International Bill of Human Rights?

(1)    The Company recognizes and follows internationally recognized human rights standards such as “Universal Declaration of Human Rights”, “The United Nations Global Compact”, “United Nations Guiding Principles on Business and Human Rights”, “International Labor Organization.”

Each year, the Company regularly reviews its own operations, value chain, new business activities (such as mergers and acquisitions, joint ventures) and other related activities by paying attention to major social issues, data monitoring, and questionnaires in order to identify and evaluate the groups at risk and potential human rights risks, formulates a control plan for human rights issues based on potential risks, and continuously monitors and improves the implementation results of the plan.

In order to protect the employees’ right, the Company firmly believes that every employee should be treated fairly. Sexual harassment prevention measures, complaints and punishments are stipulated in Chapter 11 of the Personnel Management Measures to protect the rights and interests of employees. The human rights protection education and publicity will be given to the new employees by the HR department in the pre-employment training every year. In 2024, a total of 440 hours of education and publicity is conducted for total 55 new employees. The course content includes anti-discrimination, anti-discipline, forced labor, freedom of association, and explanation of religious beliefs.

The Company's human rights management policies and specific plans are summarized as follows:

We will continue to pay attention to human rights protection issues and promote relevant education and training in the future to raise awareness of human rights protection and reduce the possibility of related risks.

None.

(2) Does the Company formulate and execute reasonable employee welfare measures (including compensation, leaves and other benefits), and have the operating performance or results properly reflected in employee compensation?

Employees' compensation
The Company's year-end bonus system is to distribute the Company's after-tax operating benefits to all employees after considering their seniority and annual performance appraisal, so as to motivate all employees to work together for the Company's goals. Employees' compensation is calculated according to the regulations of the Company's articles, and it shall not be less than 2% of the Company's profit for the year.

Employees' welfare
The Company has established Employee Welfare Committee and provides employees with welfare funds, and plans and provides various high-quality benefits for employees, e.g. employee travel allowances, birthday voucher, marriage allowances, maternity allowances, funeral condolences, hospitalization condolences etc. In addition, a free health check-up plan for employees is provided.
In terms of the leave system, on the basis of a fixed two-day week off, if an employ has to take a longer leave due to the situation of baby care, serious injury or major accident, etc., he or she can also apply unpaid leave, so as to take into account personal and family care needs.

Workplace Diversity and Equality

Equal remuneration for work and equal opportunities for promotion for men and women are implemented, and more than 32% of senior positions are retained for female employee to facilitate sustainable and inclusive economic growth. In 2024, female employees accounted for 44.76% of the entire workforce while 36.00% of the supervisory positions were held by female employees, increasing to 1.35% and 3.35% compared to last year, respectively.
The Company attaches great importance to the rights and welfare of employees, and shares profit with employees, and strives to maintain a sound working environment including all-round body and mind care and friendly workplace of female empowerment for different gender of employee to work with peace of mind.

Business performance is reflected on employee compensation
Article 19 of The Articles of Incorporation：
The Company should allocate 2% to 10% of profit as employee compensation and no more than 2% of profit as directors’ compensation if it has a profit in the year. However, the Company should reserve the amount to be compensated in advance if there is accumulated losses. Employee compensation is paid to the Group employees who meet certain conditions.
The Company participates in market salary surveys every year and makes adjustment according to the salary levels in market, economic trends and personal performance to maintain overall salary competitiveness.

(2) None.

(3) Does the Company provide a safe and healthy work environment and provide safety and health training regularly?

(3) None.

(4) Has the Company established effective career development training programs for employees?

(4) None.

(5) Has the Company complied with related regulations and international standards for issues of customer health and safety, customer privacy, marketing and labeling of products and services, and formulated relevant consumer or customer protection policies and complaint procedures?

The Company sets up a standard screening process for raw material suppliers who have to sign quality agreement, and continues to track the update of SDS, RoHS and EMRT. All of them must meet relevant requirements and specifications for the commitment to product safety.

The trust of customers has always been one of the Company's core values. Therefore, the Company has established a system and policy about customer data secrecy management, and sets up a customer data secrecy team to manage and protect the privacy of customer-related confidential information. The Company insists on giving the highest level of protection and protects the confidential information of customers through the internal audit on personal information, external verification, crisis prevention and training.

The Company always adheres to the cooperating with customers in ISO, IATF and RBA auditing, and can also deal with customer complaints within the deadline to protect customers' rights and interests.

(5) None.

(6) Has the Company formulated supplier management policies that require suppliers to follow relevant regulations on issues such as environmental protection, OSH, or labor rights, and the implementation results?

The Company adheres to the “Guidelines for Supplier Management” and sets out selection criteria of environmental protection, human rights protection, safety, health and sustainable development for suppliers as well as requirements and expectations in aspects of environment, safety and health risks, ban on child labor, labor management, zero breaches on the fundamental rights of workers, ethical standards and business ethics. The Company has set up the supplier counselling project. Through supplier selection, performance evaluation, training, based on collaboration, our sustainability requirements are carried out in the daily management of supply chain on the basis of cooperation. The Company stipulates that suppliers must fully comply with the following requirements:

(6) None.

5. Has the Company referred to the internationally accepted report preparation standards or guidelines for its preparation of sustainability report or other reports which disclose the Company's non-financial information? Do the aforementioned reports obtain a third-party assurance or verification statement?

The Company compiles the Annual Corporate Sustainability Report in accordance with the GRI guidelines issued by the Global Reporting Initiative (GRI), and referring to SASB standards for disclosing relevant indicators and ESG information. The Company compiles the 2023 Annual Corporate Sustainability Report in 2024 and published it on the MOPS and the Company's website. The Company will consider obtaining the assurance or assured opinion of the third-party verification body for the previous disclosure report in the future.

None.

6. If the Company has established its sustainable principles according to “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”, please specify any discrepancy between the policies and their implementation:

The Company has established “Code of Practice for Corporate Social Responsibility “and implemented corporate social responsibility, and shall take notice of the rights and interests of interested parties. The Company attaches focus on environmental, social and corporate governance factors and incorporates them into the Company's management policies and operational activities while pursuing sustainable development and profitability. Please refer to (5) Implementation of Sustainable Developments and Non-compliance under III. Corporate Governance (page 57 to 86) of this Annual Report or Annual Corporate Sustainability Report.

7. Other important information to facilitate better understanding of the Company's sustainable practices:

1. Environmental protection:
   1. The Company has earned the ISO14001 international certification, and has a perfect operation process for industrial environmental impact assessment, business waste classification, management and reuse.
   2. The residual scraps (iron filings) produced during the Company's parts processing are handed over to the manufacturer for resource recovery in which the revenue is increased, at the same time, we actively implement the recycling of recycled paper and promote the activities of turning off the unused light, etc.
   3. The Company supports the promotion of local economic growth, as far as possible to give priority to local suppliers, which can reduce the cost of both parties and fully achieve the result of energy conservation and carbon reduction.
   4. The Company has earned ISO14001 environmental certification to integrate system specifications into factory operations, and effectively reduced carbon emissions per unit of product through the management system.
2. Community participation, contribution to society, service to society, social and public interests:
   1. (1) The Company responds to the charitable activities from time to time and actively participates in related activities such as neighbourly activity.
         The social activities in 2024 are described as follows:
        -1. Sponsorship the 2024 NCKU Badminton Open: The National Cheng Kung University Badminton Open has reached its 31st edition, with over 2,000 athletes participating in this event. In support of sports activities and to encourage an active lifestyle for better health, our company has sponsored NTD 30,000.
        -2. Organizing an employee blood donation drive: Win a certificate of appreciation from the Kaohsiung Blood Donation Center for enthusiastic participation in blood donation efforts to save lives. 
   2. The implementation effectiveness of public welfare activities is listed as follows:

      Item		Result
      Blood Donation Event	Number of participants	About 60 people
      	Number of beneficiaries	57 people
      Exercise Events	Sponsorship	NTD 30 thousand

3. Consumer rights and interests:
   The Company puts emphasis on product quality, safety, innovation and customer complaints handling immediately, and provides customers with complete product information to protect the rights and interests of customers.
4. Human rights:
   1. The relevant personnel regulations of the Company are in accordance with the provisions of the Labor Standards Act, and the relevant matters are handled by appointed personnel in order to protect the basic rights and interests of employees.
   2. The Company shall not discriminate against the job seekers or employees in recruitment, screening, promotion, performance appraisal because of his/her gender.
   3. In order to maintain gender equality in work and provide a safe environment in which employees and customers are free from sexual harassment, the measures of workplace sexual harassment prevention, complaints and disciplining are formulated to safeguard the rights and privacy of the parties.
5. Safety and Health:
   1. The Company implements 5S activities in the workplace to maintain the cleanliness of the workplace and equipment safety protection measures, and provides necessary training about safety and health and disaster prevention according to the work of employees to ensure the safety of the working environment.
   2. The Company has certified by ISO45001 occupational safety and health management system, and implemented internal and external audits to ensure that the system is functioning well.
6. Supplier:
   The EICC notes that some of the metal minerals have become a major source of revenue for armed rebel groups in the Democratic Republic of the Congo, Africa. Those metal are used to exchange arms and perpetuate their bloody conflicts with policies, and ravage local civilians, thus causing international controversy. As a global citizen, we declare that we do not accept the metals from conflict mining areas, and also requires the Group's suppliers to comply with the followings：
   1. To cultivate the sustainable competitiveness of enterprises and improve corporate governance and social responsibility in order to implement ESG actions and management.
   2. To ensure that "conflict minerals" from Congo and its neighboring countries and regions are not used in their product.
   3. To trace those materials from problematic designated minerals including gold (Au), tantalum (Ta), tin (Sn) and tungsten (W) contained in the product. All suppliers should complete the questionnaire and conduct the investigation in accordance with OECD guidelines to avoid direct or indirect funding of armed conflict groups.
   4. To communicate this requirement to its upstream suppliers and construct a highly transparent supply chain.
7. Labor:
   Based on the social responsibility of protecting the physical and mental development of children, the Company clearly prohibits the employment of child labor in the employment policy.
8. Other: None