环旭电子:2025可持续发展报告书（英文版）

Sustainability Report

Cover Story

Green City x Living with Nature

A bird takes flight tracing a green path into the distance.Below city and nature converge in everyday coexistence.Sustainability unfolds as a journey shaped through action.Driven by technology grounded in responsibility

USI charts a clear course ahead.Each step a promise forward.Table of Sustainability Value Chain Social Management 11 Management 76 Involvement　　　 151

Contents Realizing the Sustainable 12 Product Value Chain 78 Social Activities Overview 153Development Goals Customer Relations 79 Investing in Education 154

About this Report 4 Sustainability Committee 13 Supply Chain Management 83 Contributing to Society 157

Sustainability Strategy 15

About USI 5 Conserving the Environment 159

Sustainable Impact Environmental

Assessment 16 Promoting Arts and Culture 161Letter from the 7 Protection and Chairman and President Materiality Analysis 19 Occupational Safety 96 External Participation 162

Sustainable Performance Stakeholder Engagement 30

9 Climate Change Impact and Subsidiary Highlights Adaptation 99

Operations and Overview　　　　 163

Governance 33 Energy and Carbon Management 101 Asteelflash Suzhou Facility 164

Board Governance 35 Water Resources Management 107

Appendix　　　　 176

Financial Performance and Tax Waste Management 109

Governance 38 Air Pollution Control 111 Contributions to the SDGs 176

Enterprise Risk Management 39 Biodiversity 112 ESG Key Performance Data 178

Business Ethics and Compliance 46 Green Manufacturing and

Information Security Expenditures

113 Sustainability Data 185

Management 47 Occupational Health and Safety 114 GRI Index 199

SASB Index 204

Management Systems and

Green Products and Inclusive Certifications Table 205

Innovation 50 Workplace 123 Third-Party Verification

Statement 206

Green Products 52 Human Rights Protection 125

Innovation Management 69 Talent Attraction and Retention 131

Sustainable Production 72 Human Capital Development 145About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

About this Report

Since 2013 Universal Scientific Industrial (Shanghai) This report has been prepared with reference to the GRI Standards 2021 and the SASB Electronic

Co. Ltd. (USI Company We) has published annual Principles for Report Manufacturing Services & Original Design Manufacturing Standards. We also refer to the SSE Listed

Sustainability Reports in Traditional/Simplified Chinese Compilation Companies Self-Regulatory Guidelines No.14-Sustainability Report (Preliminary Version) providing

and English and is accessible on the USI Sustainability ESG data. Please refer to the Materiality Analysis section for material issues and report boundaries.Web. This report is the 14th Sustainability Report

published by USI and its subsidiaries (from 2010 to

2012 USI's former parent company now its subsidiary

Universal Scientific Industrial Co. Ltd. published The data in this report covers the period from 01/01/2025 to 12/31/2025 consistent with the 2025

3 Sustainability Reports) released in August 2026. Annual Report and monetary figures are presented in CNY. Environmental health and safety

Stakeholders could learn about USI's sustainability data are reported using internationally recognized units and indicators. The scope of this report

(1)

practices and our environmental social and governance encompasses approximately 82% of our consolidated revenue and covers the following facilities:

(ESG) target performances through this report. Zhangjiang Jinqiao Huizhou Kunshan Nantou (including Nantou-TT and Nantou-NK) Mexico and Vietnam. Where data falls outside this defined scope a note is provided to indicate the specific scope

applicable.Additionally this report separately discloses key ESG performance metrics for the Suzhou Facility of

Report Scope our subsidiary Asteelflash (AFG-SUZ) in the Subsidiary Overview section.and Boundaries ASE Technology Holding Co. Ltd. is the parent company of USI and is referred to as our "parent

company" or "ASEH" throughout this report.If you have any suggestions please

We follow the USI ESG Best Practice Principles in disclosing sustainability information. The data

Internal Review

and Board presented in this report was provided by members of the Sustainability Committee and AFG-SUZ and * Address: No.1558 Zhang Dong Rd. Pudong New Approval reviewed by respective department managers. The Executive Secretariat compiled the report and Area Shanghai 201203 submitted it to the Board for review and approval.* Tel: +86-21-5896-6996

* Email: csr@usiglobal.com

* Website: https://www.usiglobal.com

We annually conduct a third-party assurance for this report to ensure information transparency and

accountability. Deloitte & Touche provided third-party verification in accordance with ISAE 3000

* Address: No.141 Lane 351 Sec. 1 Taiping Road (Revised) for this report. For details please refer to the Third-Party Verification Statement.Tsaotuen Nantou County 542007 External USI manufacturing facilities have acquired and continuously updated various environmental social

* Tel: +886-49-235-0876 Assurance and governance management system certifications. For more information please refer to the

Management Systems and Certifications Table.Note:

1. For details on entities included in the financial statements and an overview of major subsidiaries and joint ventures please refer to Section 3.V(VI) Analysis of Major Business Operations in the 2025 Annual Report.

About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

About USI

Headquarters 2025 Revenue (CNY) Registered Capital (CNY) USI is a member of ASEH (TWSE: 3711 NYSE: ASX). We provide design

Pudong New Area 59.2 billion 2196393270 manufacturing miniaturization industrial software and hardware solutions and material procurement logistics and maintenance

Shanghai services of electronic devices/modules for brand owners. USI

leverages cutting-edge technologies and local talent across its

Area of Manufacturing Facilities (1) Chairman and CEO SSE Stock Number/Name global facilities to enhance service capabilities and better meet

585465 m2 Jeffrey Chen 601231/USI Shanghai customer needs. These efforts reflect the Company's sustainable strategic vision and commitment to regional growth. In August 2025

USI acquired a facility in the Taichung City Precision Machinery

Innovation Technology Park as part of its capacity expansion strategy

Global Total of Employees (2) President and COO Date of Stock Issue integrating Nantou Facility's resources to enhance overall efficiency.(as of 12/31/2025)

C.Y. Wei February 20 2012 The facility is scheduled to begin production in 2026. USI also signed 21726 a memorandum of understanding (MOU) with Saigon-Haiphong

Industrial Park Corporation (SHP) in December 2025 to support

the launch of its second facility in Vietnam. This project includes

Main Products and Services investment in additional optical module manufacturing capacity

Wireless Communication Computer and further strengthening USI's global manufacturing footprint.Storage Consumer Industrial Medical and

Automotive Electronics Note:

1. The area of manufacturing facilities only includes facilities in the scope of this report please

refer to Global Locations for more details.

2. The global total of employees includes the total number of USI and Asteelflash (AFG)

employees.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Global Locations

Supply chain with a global

mindset coupled with volume

purchasing capabilities

Germany

United Kingdom

Poland

France Czech Republic

Tunisia

Mainland China

USA Taiwan

Mexico

Vietnam

Operations span across Asia

Europe America and Africa

providing a complete range of

services

27 manufacturing locations

Manufacturing Locations (USI+AFG+Eugenlight Technologies)

Letter from the Chairman and President

In an era marked by accelerating sustainability regulations and reduction efforts can be integrated into operational efficiency and long-

rapidly evolving industrial dynamics sustainability has become term competitiveness.a fundamental foundation for building resilience and long-term As 2025 marks the tenth anniversary of the Paris Agreement expectations

competitiveness in an uncertain world. for climate action continue to rise. USI has established Green Product

The UN 17 Sustainable Development Goals (SDGs) call upon Specifications based on international green product regulations enabling

governments and industries alike to address persistent global the development of products and production solutions that meet both

challenges including poverty environmental degradation and customer requirements and sustainability standards while progressively

social inequality. However as highlighted in the UN SDGs Report building a structured green supply chain.

2025 progress toward these goals has fallen behind expectations We have also defined quantitative climate-related targets addressing

due to widening funding gaps intensifying climate risks and both mitigation and adaptation. Progress is disclosed annually to ensure

ongoing geopolitical uncertainties. At the same time sustainability accountability and transparency with measurable outcomes supporting

disclosure requirements are shifting from voluntary initiatives toward these commitments. Our renewable energy utilization has reached 88%

mandatory obligations across major economies. Sustainability reflecting a long-term perspective on transforming energy structures and

information now carries the same level of importance as financial manufacturing models.data in evaluating a company's governance effectiveness and long- At the same time we are advancing the deployment of AI-driven smart

term value creation. manufacturing. In 2025 we developed 10 AI-based automation modules

Against this backdrop USI recognizes the need to move beyond moving toward the realization of lights-out production. AI applications

regulatory compliance and focus on embedding sustainability as a have also been integrated into product testing and operational

core driver of long-term growth and operational resilience. Through management improving real-time responsiveness strengthening

disciplined risk management and forward-looking strategic planning manufacturing efficiency and reducing energy consumption.we continue to adapt to industry transformation strengthen

innovation capabilities and optimize our global footprint. Guided Promote Circularity and Save Environmental Resources

by our four sustainability pillars Low-Carbon Circular Inclusive Resource efficiency remains a key factor in sustaining long-term

and Collaborative we are committed to creating positive economic operational resilience. To reduce the environmental impact associated

environmental and social value while advancing our vision of with raw material extraction and carbon-intensive processes while

becoming the most reliable global partner. mitigating supply risks related to scarce materials USI aligns with the EU

Circular Economy Action Plan.Realize Low Carbon through Smart Manufacturing We are transitioning toward a circular model centered on reduction

We believe that the manufacturing sector plays a proactive role reuse and recycling supported by our Sustainable Materials Policy and

in the transition toward a low-carbon future. By strengthening Green Product Policy. These frameworks position resources as part of a

technological capabilities and management practices carbon continuous lifecycle rather than single-use inputs. In 2025 recyclable

Chairman Jeffrey Chen

materials accounted for 96% of mechanical component design and product quality.while our overall waste recycling rate reached 88%. These results Within our supply chain we support partners in strengthening carbon

reflect sustained efforts in system development and the cultivation of management capabilities. Key suppliers are required to obtain

environmental awareness across the organization. ISO 14064-1 and ISO 14067 third-party certifications. In addition

we encourage participation in the CDP Supply Chain Program

Enhance Inclusiveness through Diversity and Equality enabling transparent environmental data disclosure and structured

People are the foundation of sustainable growth. USI is committed improvement planning which strengthens long-term collaboration.to building a diverse and inclusive workplace by attracting and In 2025 USI was once again recognized with the Top 5% distinction

developing talent across global markets ensuring alignment between in the EEIC Industry and included in the S&P Global Sustainability

individual capabilities and organizational needs. We actively support Yearbook achieving top industry scores in environmental and

employees in enhancing their professional skills and qualifications social dimensions for three consecutive years. We also received ISS

while strengthening industry–academia collaboration to prepare future ESG Prime rating Sustainalytics Low Risk rating and a tenth "A"

talent. In 2025 129 students participated in internship programs disclosure rating from the Shanghai Stock Exchange achieving a

gaining practical industry experience. social contribution value (1) of CNY 3.33 per share reflecting our

At the same time we continue to deepen our engagement with commitment to creating shared value for society.local communities. Through financial contributions and employee

volunteerism we invest in social development and extend our Sustainability as a Foundation for Resilience and Growth

resources to areas of need. In 2025 USI contributed CNY 7.65 million For USI sustainability is not merely a strategic priority it is a long-

to social initiatives and external organizations with employees term commitment to the world. We will continue to work alongside

dedicating 6839 volunteer hours. our employees partners and stakeholders to navigate change with

resilience create shared value for society and contribute to lasting

Integrate Resources to Create Collaborative Value prosperity for future generations.USI advances sustainability through the integration of supply chain

systems green manufacturing and technological collaboration. In

response to increasing data transmission demands driven by the

expansion of AI models we are investing in high-speed computing and

AI data center applications including the expansion of optical module

capabilities.In 2025 we continued to advance our investment in Vietnam Note: 1. Social Contribution Value per Share = Basic Earnings per Share + (Taxes Paid +

leveraging a well-established supply chain ecosystem while accelerating Employee Compensation + Interest Expenses + Public Welfare Contributions) ÷

the development of a second production facility to enhance resilience Total Number of Outstanding Common Shares for the Year

President C.Y. Wei

Sustainable Performance Highlights

Industry Top 5% ISS "Prime" Status Dual CDP B Ratings

S&P Global Sustainability ISS ESG Corporate Rating Climate Change & Water Security

Yearbook Member (2022-2026)

ESG Rating AA Best Sustainable Practices Best ESG Report

Obtained ESG Rating AA from 2025 Best Sustainable 2025 Leading ESG Report of

Sino-Securities Index Development Practices Award Shanghai FIEs

ESG Governance Environmental

● Sustainalytics Low Risk ESG risk rating Zhangjiang Facility Zhangjiang Facility

SynTao Green Finance 2025 ESG Rating A ?2025 Best Practice Award for the Internal Control of ?2025 Zero Waste Factory Recognition●

Listed Companies ?2025 Shanghai Positive Environmental Monitoring

● 2025 Wind ESG Rating AA ?2025 Excellent Practice Award for the Board of Listed Enforcement

Companies ?2025 Shanghai Four Star Green Manufacturing

● Included in MSCI Sustainability and Climate Indexes ?2024 Outstanding Contributions to Scientific and ?2025 Shanghai Roots & Shoots Million Tree Project

Technological Innovation Sponsorship Award

?2024 Top 5 Sales in Shanghai Integrated Circuit

Packaging and Testing Industry Kunshan Facility

?2024 Nissan Best Purchasing Partner Award ?2025 Suzhou Net-Zero Factory

Social Jinqiao Facility Nantou Facility

?Authorized Economic Operator (AEO) Certification ?2025 Clean Air Leadership Award

Huizhou Facility Huizhou Facility

?AAA Level Huizhou Harmonious Labor Relations ?2025 Guangdong Top 500 Manufacturers

Enterprise ?2025 Lenovo Quality Benchmark Award

Kunshan Facility ?2025 Lenovo Outstanding Serviceability Award ?China Customs Economic Climate Benchmark

?Top 10 Enterprises with Harmonious Labor Relations Enterprises

Nantou Facility Kunshan Facility

?2025 Nantou County Top Cancer Screening ?2025 AUO Asia-Pacific Sustainability Partner Award

Workplace ?2024 Recognition for Outstanding Local Contribution

?2025-2027 Accredited Healthy Workplace-Health

Promotion Badge Nantou Facility

?2025 Workplace Health Promotion Self Assessment ?2025 AUO Supplier Quality 4.0 Award

Certificate

?2025-2028 Accredited Nantou County Breastfeeding Vietnam Facility

Room-Most Accommodating Room ?2024 Outstanding Contributions to High Export

Turnover

Sustainability

Management

USI integrates the core values of four sustainability strategies Low Carbon Circular Inclusive and Collaborative into

corporate policy and operational management.Sustainable development and balance between the environment society and governance benefit shareholders and

investors and engender social value that fosters the common good for all.We commit to

Providing a diversified inclusive Generating Contributing Deploying safe and

and stimulating working exceptional value for toward building adaptable solutions across

environment for employees stakeholders a better place to live our global operations

Realizing the Sustainable Development Goals

According to the identified material issues and annual sustainable goals USI focused on 6 SDGs to be key indicators of

sustainable development in 2025.Talent is a crucial factor in driving USI incorporates waste reduction USI effectively controls risks by

enterprise growth. USI has and reuse into corporate policy. To identifying assessing and responding

continuously sponsored education uphold policy principles of "Impact to them. We establish Information

to encourage students to pursue Mitigation & Continuous Improvement" Security Policy and Privacy Policy to

further studies while offering several industrial-academic and "Effective Reduction & Circular Reuse" in facilities ensure core systems' confidentiality integrity availability

partnerships and internship opportunities to enhance worldwide they have been set as annual key performance and compliance and secure the rights and interests of

youth employability and develop the next generation of indicators to strengthen the effective control of waste and data subject to reduce the occurrence of crises.technology talents and future human capital. promote resource circulation throughout the value chain.Facing global economic fluctuations Following our Low-Carbon strategy As a global corporate citizen USI

USI creates business growth through USI mitigates its environmental impact advocates industrial key issues

steady operation strategies to support and adapts low-carbon measures in to business partners through the

production and employment opportunities. We provide response to climate change. We use the organizations we joined increases the

employees with a safe working environment protect their Task Force on Climate-related Financial Disclosures (TCFD) influence of sustainable goals through daily operations

rights and plan competency training to enhance their framework to manage our carbon emissions throughout and strengthens global partnerships to achieve our

professional capability and achieve organizational targets. our products lifecycles from design and supply chain to sustainability vision.manufacturing and map our path to 2050 Net Zero Carbon

Emissions.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Sustainability Committee

To strengthen USI's core competitiveness enhance sustainable decision-making and optimize Senior managers serve as Leaders and Coordinators with departmental representatives

corporate governance the Strategy and Sustainability Committee was established under forming five dedicated taskforces: Corporate Governance Green Product & Innovation

the Board of Directors the highest authority in corporate sustainability. Chaired by Jeffrey Value Chain Management Employee & Society Well-being Engagement and Environmental

Chen the Board committee includes board members such as the Chairman and President and Protection & Occupational Safety.oversees strategic sustainability initiatives. A Chief Sustainability Officer is appointed from senior management to drive progress and

Each year the Sustainability Committee submits the annual Sustainability Report including track goals and performance through quarterly meetings. The Chairman and President

material issues assessment results to the Board for review guiding discussions and attend the Sustainability Committee Annual Meeting to oversee goal setting and ESG

implementation of corporate social responsibilities by the Board. In 2025 the Board approved implementation. In 2025 this meeting was held on December 18 featuring presentations of

the revised versions of USI's Group Tax Policy and Code of Business Conduct and Ethics laying sustainability achievements and insights from invited sustainability consultants.the foundation for the company's tax governance and ethical conduct. For detailed performance metrics and targets please refer to the Sustainable Issue

Reporting to the Strategy and Sustainability Committee the Sustainability Committee spans Performance and Targets section of the respective chapters.all manufacturing facilities and is chaired by USI President C.Y. Wei.Board of Directors

Strategy and Sustainability

Committee

Sustainability Committee Chief Sustainability Officer

Executive Secretariat

S&EHS Division

Corporate Governance Green Products & Innovation Value Chain Management Employee & Society Environmental Protection & Well-being Management Occupational Safety

Sustainable Promotion

USI holds various sustainable activities to enhance employees' sustainability capabilities each year. In 2025 we held sustainable activities with three major themes:

Capacity Building Knowledge Sharing

? Developed ESG e-learning materials to introduce ? S hared sustainability-related information and activities on the company's

Social Inclusive concepts to indirect employees SharePoint platform "ESG-ing".worldwide. ? P ublished 4 articles with Sustainability topics in the internal newsletter

usinsight under the "ESG 360" column:

? From "Globalization" to "Trustworthiness": Building and Addressing

Challenges in Supply Chain Security Management

? Aligning with International Standards to Create a Mentally Healthy and Safe

Workplace Culture

Seminar ? Companies Tackle Scope 3 Emissions Reduction Challenges

? USI Spark Philanthropic Library

? H eld seminars to share global sustainability trends including introductions to Critical

Raw Material Risks and New Opportunities for Category 3 Reduction.? Shared Human Rights and Forced Labor issues with the Sustainability Committee

members.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Sustainability Strategy

To accomplish ESG goals effectively and meet stakeholders' expectations USI sets a corporate sustainability. In 2025 we generated strategic approaches and long-term targets

Sustainability Policy to cover the issues of labor rights workplace safety and health according to key sustainable issues focused on the corresponding SDGs tracked the target

environmental protection and business ethics. And we develop four sustainability strategies achievements published sustainable issues and performances in the Sustainability Committee

Low Carbon Circular Collaborative and Inclusive to prioritize response SDGs based on the Annual Meeting. For strategic approaches and targets of key sustainable issues please refer

Company's core values. This enables the Company to take comprehensive actions concerning to the respective chapters and sections for more information.CSR/Sustainability

? Decarbonized Products and Services ? Circular Design

? Low-carbon Manufacturing Circular ? Energy Resources Recycling

? Adaptation and Resilience ? Waste as a Valuable Resource

? Green and Renewable Energy Investment ? Circular Economy in Value Chains

Low Carbon

Collaborative

? Environmental Conservation ? Smart Procurement

? Industry-academia Collaborations ? Strategic Partnership

? Community Engagement Inclusive ? Supply Chain Management Go High Tech

? Public Advocacy ? Environmental Education

Commitments/Value

Sustainable Impact Assessment

To implement sustainability strategies and monitor our progress toward goals USI introduced (TIMM) evaluation to assess the impacts and contributions to stakeholders from the

Social Return on Investment (SROI) and Environmental Profit and Loss (EP&L) in 2019 and Company's operations in Economic Social Environmental and Tax dimensions. USI created

2020 separately to manage social projects' performances and make effective decisions on positive contributions on economic and tax dimensions and invested in environmental and

environmental issues. In 2021 USI implemented Total Impact Measurement and Management social activities to bring contributions to stakeholders.Sustainability Value and Impacts

The scope of the TIMM assessment along with the analyses presented in Sections Environmental Profit & Loss and Social Impact includes AFG-SUZ. Based on the TIMM evaluation USI

generated CNY 26595 million in sustainability value for stakeholders in 2025 reflecting a 7% decrease in positive societal contributions compared to 2024 due to social dimension performance.Employee Employee

engagement & engagement &

Supplier development Supplier development

partnership 465.1 partnershipSocial 564.415420.4 Social17888.3 cohesion Employee cohesion36.6 health & safety 24.9

Employee

health & safety

153.6 152.7

Investment Investment

1630.5 ocial Impac GHG emissions

1647.3 ocial Impact GHG emissionsS t -51.2 S -46.2

omers Empl me

rs Emp

ust

oy lee Air pollution s

to ou yee Air pollutionC -2.2 C -2.4

Payroll Water Payroll Water

4414.8 2024 consumption 4383.6 2025 consumption

Sustainable Value -21.1 Sustainable Value -22.1

28672 Waste 26595 Waste

Profits -2.8 Profits

-2.7

1644.2 iers ol

1829.0 ie l

N reh Recycled water

rs NG areh

o Recycled water

GOs Sha 5.4 Os Sh 7.2

Intangible assets Tax act BiodiversityI Intangible assets Ta t

Biodiversity

1992.4 mp 4.3 1960.2

x Impac 4.8

Regulatory Regulatory

Compliance Compliance

-0.3 -2.1

Profit taxes Other taxes Profit taxes Other taxes

212.1 301.7 316.3 359.5

Unit: CNY million

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pAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Economic and Tax Dimensions Mainland China Mexico and Vietnam Facilities are using 100% renewable energy. As a result

USI's economic and tax-related value increased 3% in 2025 compared to 2024. The the renewable energy usage rate rose to 88% from 83% in 2025. To conserve water USI is

positive development of the economic dimension was mainly contributed by cost control enhancing equipment and technology to maximize recycling. The process water recycling

and gains from land disposal. In addition USI increased 32% of positive contribution in system achieved a 29% recycling rate in 2025. USI remains committed to advancing green

tax dimension compared to 2024 tax expenditures can help the government to promote initiatives and environmental protection for a more sustainable future.social welfare and develop public infrastructure. But due to geopolitics and the trend of Social Dimension

economic regionalization and the US's imposition of tariffs on multiple regions customers

have adjusted order demands and diversified supply chains to mitigate risks that makes the USI's social positive value decreased by 13% in 2025 compared to 2024 it was mainly

company's operating environment more challenging. Looking ahead to 2026 USI will actively impacted by supplier partnership and social cohesion. We support local suppliers to boost

introduce intelligent and automated production capabilities to reduce costs and improve employment stimulate regional economies and reduce transportation-related energy

production efficiency; deepen cooperation with customers and increase the added value of use. But the level of local procurement was reduced in 2025 due to customer requirements

products to stand out in the fierce market competition. mandating the use of designated sources for specific materials and components. We will

continue to expand decentralized production and onboard new suppliers while offering

Environmental Dimension training presentations and technical support to strengthen their sustainability capabilities.In 2025 USI reduced its environmental negative value by 9% compared to 2024 with Regarding social cohesion the reduction in industry-academia cooperation at Mexico facility

greenhouse gas (GHG) emissions and water consumption remaining the primary impact areas. resulted in a decrease in the overall contribution to social cohesion compared to 2024. Based

To address this USI continues to implement GHG reduction policies including emissions on the operating conditions of each facility we will continue to plan industry-academia

inventory and product carbon footprint (PCF) tracking. We set carbon reduction targets programs to cultivate students with both practical and theoretical knowledge.and implemented related actions to achieve our climate-related policies and goals. Our

Environmental Profit and Loss

To further create useful products and services by natural capital and reduce the direct or indirect impact on the environment we focus on major environmental issues related to operations

including GHG emissions air pollution emissions waste generation water resources use and biodiversity. We map out the impact event chain of environmental pollution emissions and resource

consumption and calculate the environmental cost of human health damage environmental resource reduction and ecosystem impact caused by these behaviors.The environmental impact of USI production operations in 2025 after value conversion was CNY 61.4 million. Compared with 2024 our external environmental costs reduced CNY 6.2 million a

decrease of 9% which proves the company's implementation on its environmental policy to reduce negative impacts significantly. After our further analysis the major reasons for GHG emissions

(the impact of GHG emissions is the result of offsetting the positive benefits of carbon capture from biodiversity) Scopes 1 and 2 (market-based) account for 68%; followed by water consumption

accounting for 24%. In addition to the continuous efforts in energy efficiency improvement and reduction in energy costs USI's environmentally friendly measures such as biodiversity and

recycled water respectively generated a positive value of CNY 4.8 million and CNY 7.2 million in 2025 signifying that USI's efforts in environmental protection were able to mitigate negative

impacts.Impact Driver 2025 Activity/Output Outcome/Impact (1)

? C ontinue to promote GHG reduction policies to reduce energy consumption. ?

GHG ? Scope 1 & 2 (location-based) GHG emissions totaled 170436.05 metric tonnes CO?e up 1% The impact value is CNY -46.2 million.?

Emissions from 2024. Please refer to the Carbon Management and Energy Management

100% renewable energy use in Mainland China Mexico and Vietnam facilities. sections for further details.?

Water Commit to water conservation and recycling through equipment and technology improvements.? The impact value is CNY -14.9 million.Resource ? Total water consumption was 1100.44 ML a decrease of 4% from 2024.? P lease refer to the Water Resources Management section for further

? Overall water recycling rate was 29% that increased 6% compared with 2024. details.Note:

1. AFG-SUZ environmental outcome/impact details are in Subsidiary Overview's Environmental Protection section.

Impact Driver 2025 Activity/Output Outcome/Impact

? Regularly monitor and manage regulated pollutants such as volatile organic compounds (VOCs)

Air Pollution nitrogen oxides (NO ) sulfur oxides (SO ) and fine suspended particulates. ? The impact value is CNY -2.4 million.X X

? Measured 42.40 metric tonnes of VOCs emissions an increase of 4% from 2024. ? P lease refer to the Air Pollution Control section for further details.? S trictly monitor and track waste usage and outputs through regular data recording.Waste ? Overall waste recycling rate was 88% a decrease of 3% from 2024. ? T he impact value is CNY -2.7 million.? Recycled 92% of non-hazardous waste a decrease of 2% from 2024. ? P lease refer to the Waste Management section for further details.? Enhance biodiversity and soil and water conservation through afforestation while preserving

ecosystem integrity.Biodiversity ? USI has planted 183517 trees covering 112.85 hectares. ? The impact value is CNY 4.8 million.? The latest ecological survey reports 49 species observed in Inner Mongolia and 8 species in Ningxia. ? P lease refer to the Conserving the Environment section for further details.? Conserved about 154830.2 metric tonnes of water a 7% increase from 2024 and captured 1449.95

metric tonnes CO?e a 36% increase from 2024.Social Impact

USI's business operations not only have direct financial impacts on stakeholders but also positive and negative social impacts including supplier partnership employee engagement &

development employee health & safety and social cohesion. In 2025 the total value of social impact was CNY 16162.4 million which was mainly contributed by supplier partnership. The impact

value of social dimension from direct operations (1) was CNY 16143.3 million CNY 2387.3 million lower than in 2024.Impact Driver 2025 Activity/Output Outcome/Impact (2)

? U SI conducted document reviews and on-site audits of 69 material suppliers and on-

site audits of 41 on-site service contractors audit results were 100% low-risk.Supplier ? U SI held Sustainable Supply Chain Webinar for the Greater China region at the Nantou ? T he impact value is CNY 15420.4 million.partnerships Facility. 388 supplier partners attended this webinar and 254 feedback surveys ? Please refer to the Supply Chain Management section for further details.conveyed they were "very satisfied".? Global local procurement reached 34% down 8% from 2024.Employee

Direct engagement & ? Carried out biennial employee engagement survey in 2025. The overall score was 83% ? The impact value is CNY 564.4 million.Operations development a 3% increase compared to 2023.? P lease refer to the Employee Engagement Survey section for further details.? USI goes beyond legal requirements and provides free employee physicals every year.Employee health Also specialized health exams are provided for employees who work in high-risk ? The impact value is CNY 152.7 million.& safety environments. ? Please refer to the Occupational Health and Safety section for further

? There were 12 occupational injuries. details.Social cohesion ? 3226 students participated in 76920 hours and built capacity in industrial-academic ? T he impact value is CNY 5.8 million.partnerships programs. ? P lease refer to the Investing in Education section for further details.Indirect Social cohesion ? USI engaged 1397 employees to volunteer 6975 hours of service in 2025 totally ? The impact value is CNY 19.1 million.Operations increased 392 employee volunteers and 1947 volunteer hours compared to 2024. ? Please refer to the Social Activities Overview section for further details.Note:

1. The social impact value directly related to operations is calculated by excluding charitable donations and non-industrial-academic educational programs.

2. AFG-SUZ social outcome/impact details are in Subsidiary Overview's Social section.

Materiality Analysis

Material Issues Identification

USI annually conducts a materiality analysis using the GRI Standards AA1000 Stakeholder

Engagement Standards and the AA1000 Accountability Principles of Inclusivity Materiality

Responsiveness and Impact as our framework to identify material issues for ESG disclosure.The assessment is conducted based on the Double Materiality principle referenced from GRI 3:

Material Topics 2021 the European Sustainability Reporting Standards (ESRS) under the EU

Corporate Sustainability Reporting Directive (CSRD). To evaluate and rank the significance of

sustainable issues across economic environment and people/human rights dimensions we

integrate the Value Balancing Alliance (VBA) methodology Harvard Business School Impact-

Weighted Accounts methodology London Benchmarking Group (LBG) framework and TIMM

Impact Evaluation framework.In 2025 in response to global trends and stakeholder expectations we refined our list of

sustainability issues. By aligning our materiality assessment with external developments

based on investor concerns climate risks international regulations and global political and

economic changes we re-evaluated our long-term internal sustainability goals. Following

consultations with external experts scholars and the Sustainability Committee Data Privacy

and Air Pollution Control were elevated as material issues while Innovation Management

Diversity & Inclusion and Social Involvement were reclassified as non-material. Regulatory

Compliance and Business Ethics were classified as general outcome-oriented disclosures and

excluded from the list of material issues.Although Innovation Management Diversity & Inclusion and Social Involvement are not

material issues they are still part of USI's long-term sustainability management and their

performance results are also disclosed in this report. Final material issues are then prioritized

and ranked according to their significance presented to the Sustainability Committee and

incorporated into our enterprise risk management (ERM) process to serve as a reference for

setting our long-term sustainability goals and strategies. For more details please refer to the

Enterprise Risk Management section. Our materiality assessment process content and data

are independently verified by a third-party assurance provider and disclosed in the Third-Party

Verification Statement.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Process to Determine Material Issues

Phase I. Phase II.Inclusivity Materiality

The Sustainability Committee following ASEH's guidelines reviewed our In 2025 we collected 1591 Stakeholder Concern Surveys from external and internal stakeholders.stakeholder relationships and identified 7 most significant stakeholder groups: Respondents include shareholders/investors/banks (26) customers (25) employees (803)

shareholders/investors/banks employees customers suppliers/contractors suppliers/contractors (569) schools/academic institutions (79) government/industry unions/

schools/academic institutions governments/industry unions/associations and associations (28) and communities (including NGOs and the media) (61). We analyzed the surveys

communities (including NGOs and the media). and identified issues of high stakeholder concern.We integrated the SDGs GRI Standards SASB Standards TCFD and Taskforce Taking the EU concept of double materiality into consideration USI assessed the Financial

on Nature-related Financial Disclosures (TNFD) frameworks CDP disclosures Materiality of sustainability issues by measuring their impact on revenue risk management

S&P Global Corporate Sustainability Assessment indicators and Morgan Stanley customer satisfaction and employee engagement. A total of 95 senior executives and

Capital International (MSCI) ESG Rating indicators and SSE No.14-Sustainability Sustainability Committee members completed the Operational Impact Survey while 32 employees

Report (Preliminary Version) indicators with our industry specific characteristics from across functions evaluated the financial implications of sustainability risks and opportunities

and ASEH's requirements and compiled them into 9 governance issues 7 identified through peer benchmarking. This dual approach incorporated both strategic and

environmental issues and 6 social issues 22 issues in total. operational perspectives providing a comprehensive assessment of the financial significance of

each sustainability issue.For Significance Materiality apart from incorporating TIMM impact evaluation results 57

managers and colleagues filled an External Sustainability Impact Survey that includes 13

positive impacts and 7 negative impacts on the economy environment people/human rights

and assessed the severity (1) and likelihood (2) of actual and potential impacts. The survey results

identified 8 significant impacts including 2 positive economic impacts 1 positive and 4 negative

environmental impacts and 1 negative social impact.Double Materiality Impact Analysis

1 Identify Stakeholders 2 Design Sustainability Investigate Stakeholder

? 95 Operational Impact Surveys

? 7 stakeholders ? 32 Financial Risk Impact SurveysStep Step Surveys? 22 issues summarized Step 3 Concerns? 1591 feedback surveys Step 4 ? 57 External Sustainability Impact

Surveys

Design Materiality Surveys and Set Scope Selection Principle 1

Note:

1. Severity: an actual or potential negative impact is determined by the - Scope: how widespread the impact is for example the number of individuals 2. Likelihood: a potential negative impact refers to the chance/probability of

following characteristics: affected or the extent of environmental damage. the impact happening.- Scale: how grave the impact is. - Irremediable character: how hard it is to counteract or make good the

resulting harm.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Phase III. Phase IV.Responsiveness Impact

We assessed the significance of the issues by cross analyzing the Stakeholder Concern USI's five Sustainability Taskforces have disclosed management approaches short-

Survey Operational Impact Survey Financial Risk Impact Survey and External Sustainability and long-term goals and strategies for each material issue according to their

Impact Survey then mapped it to previous material issues and those with long-term goals requirements formulating 32 long-term goals.and consulted external experts and the Sustainability Committee to determine 14 material In addition to quarterly Executive Team meetings the Sustainability Taskforces also

issues. The materiality assessment results were then reviewed and approved by the Board of meet semiannually to review the progress of each goal. At the annual Sustainability

Directors. We mapped each material issue's impact boundaries in USI's value chain and aligned

(1) Committee meeting we review our achievements make rolling adjustments it with 15 GRI topic standards and 7 USI specific topics that respond to the material issues track sustainability trends and manage the impact of our sustainability goals. We

identified. Non-material issues are also disclosed in this report as they remain relevant in USI's publicly disclose the direction progress and performance of our sustainability

sustainable development. goals in our annual Sustainability Report.Scope and Structure of the Report: Following the principle of comparability our 2025

Sustainability Report covers the material issues of the previous year. The structure of this

report is based on collecting internal data and management approaches following indicator

reporting requirements and fully disclosing USI's current policy and plans for fulfilling ESG

sustainability development.Define Topic Disclosures

5 Identify Material Issues 6 ? 15 topic standards 7 Formulate Long-term Goals 8 Evaluate ImpactStep ? 14 material issues Step ? 7 USI specific topics Step ? 32 long-term goals Step ? 7 regular meetings

Selection Principle 2 + Expert Engagement & Consensus Material Issues Management

Note:

1. USI specific topics include Customer Relations Risk & Crisis Management Sustainable Supply Chain Sustainable Production Data Privacy Information Security Management and Green Products.

Impact Evaluation - Monetization Model (TIMM)

Dimension Impact Driver Type of Cause of Stakeholder/ MonetizationImpact Impact Impact Area Output Metric Impact Valuation (M CNY) Impacted Sustainable Issue

Investments Positive Operations Shareholders/investors/banks Capital expenditure Asset depreciation repair expenses 1647.3 Sustainable Production

Payroll Positive Operations Employees Payroll and benefits given Employee salary social insurance pension funds 4383.6 Talent Attraction & Retention

Profits Positive Products/ Shareholders/ Financial Performance;Services investors/banks Profit distribution Net profit reported 1829.0 Customer Relations

Economic Intangible

assets Positive Operations

Shareholders/ R&D investment and intellectual Amortization of intangible assets R&D Green Products; Innovation

investors/banks property acquisition expenses 1960.2 Mgmt.Shareholders/ Business Ethics; Customer

Regulatory investors/banks Relations; Information Security

compliance Negative Operations Governments Litigation and arbitration costs fines Litigation costs legal advisor fees fines -2.1 Mgmt.; Data Privacy; Risk & Customers Crisis Mgmt.; Talent Attraction &

Employees Retention

GHG Negative Operations Environment GHG emissions Social cost of carbon -46.2 Climate Strategy; Energy Mgmt.Air pollution Negative Operations Environment Pollutant emissions Natural capital cost -2.4 Air Pollution Control

Water use Negative Operations Environment Water consumption Natural capital cost -22.1 Water Resources Management

Waste Negative Operations Environment Hazardous and non-hazardous waste Natural capital cost -2.7 Waste Management

Environmental Recycled water Positive Operations Environment Reduced water consumption Natural capital cost 7.2 Water Resources Management

Water conservation

Biodiversity Positive Operations Environment Reduced soil erosion Ecological benefits of vegetation Carbon sequestration and air restoration 4.8 Biodiversity; Climate Strategy

purification

Supply Market price valuation:

Supplier chain Suppliers Supplier sustainability audit Property losses or external training feesPositive Supplier training Perceived value according to supplier 15420.4 Sustainable Supply Chain; partnerships Business Customers Customer Relations

activities Local procurement surveyLocal procurement value

Market price valuation:

Employee Employee career development Mental well-being courses Talent Attraction & Retention;

Social engagement & Positive Operations Employees Work environment Company benefits and subsidies 564.4

Human Capital Development;

development Employee care Training and development expenses Diversity & Inclusion; Human

Team-building motivational course fees Rights

Society Occupational trainingSocial cohesion Positive Operations (1)Environment Arts & culture sponsorship Value transfer valuation 24.9 Social InvolvementDisadvantaged groups support

Employee health Number of occupational injuries

& safety Positive Operations Employees Employee physicals Health and safety expenses 152.7 Occupational Health & SafetyHealth insurance expenses

Profit taxes Positive Operations Governments Taxes paid Income tax 316.3 Regulatory Compliance;

Tax Business Ethics

Other taxes Positive Operations Governments Taxes paid Real estate taxes other taxes and fees 359.5 Regulatory Compliance; Business Ethics

Note:

1. Based on the value transfer model described in the Social Capital Protocol we referenced Taiwan SROI reports certified by Social Value International on similar topics mapped and matched impact paths with USI activities to calculate the social

value.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Impact Evaluation - Prioritizing Significant Impacts/Quantitative Data Model

Identifying Actual & Defining Significance Impact Significance Sustainable Issues Prioritized

Potential Impacts Assessment by Significance

20 Impacts 8 Significant Impacts Material Issues Impact Degree

Impact Positive Negative ＋ Innovating products that advance industrial Energy Managementdevelopment

Air Pollution Control Primary

Economy 4 1 ＋ Supporting infrastructure and welfare Impactthrough taxes Waste Management

Environment 2 4 ＋ Using renewable energy to avoid external

Sustainable Supply Secondary

impact Chain Impact

People/

Human 7 2 － Resource consumption affecting humans

Customer Relations

Rights and the ecosystem Risk & Crisis

Management

－ Non-renewable resource consumption

Severity Innovation Management

－ GHG emissions affecting climate change Sustainable

Low

Sources: Severity = (1) + (2) + (3) Production

－ Procurement demand affecting the Impact(1) VBA methodology (1) Scale environment Green Products

(2) Harvard Business School (2) Scope Human rights risks rising from production Climate Strategy－

Impact-Weighted Accounts (3) Irremediability and procurement Water Management

(3) LBG framework Human Rights

(4) USI Social Involvement

Economic Impact ＋ Positive

Environmental Impact － Negative

People/Human Rights Impact

LikelihoodAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Double Materiality Assessment Results

Operational Impact

(Financial Materiality) External Sustainability Impact (Significance Materiality)

Dimension Material Issue Innovating Supporting Using Consumption Non-renewable Emissions Procurement Human

Customer Employee Industrial Welfare Renewable Affecting Resource Affecting Demand Rights Revenue Risks Satisfaction Engagement Development through Resources Humans & the Taxes Ecosystem Consumption

Climate Affecting the Risks from

(+ Positive) Change Environment Operations(+ Positive) (+ Positive) (- Negative) (- Negative) (- Negative) (- Negative) (- Negative)

Customer

Relations

Risk & Crisis

Mgmt.Sustainable

Supply Chain

Governance/ Sustainable

Economic Production

Information

Security Mgmt.Data Privacy

Green Products

Climate Strategy

Energy

Environmental Management

Waste

Management

Air Pollution

Control

Occupational

Health & Safety

Talent Attraction

Social & Retention

Human Capital

Development

Financial (1) Impact (2) Materiality Matrix

USI evaluated and ranked material issues by integrating stakeholder input and expert assessments constructing a double materiality matrix based on their significance to financial performance

and sustainability impact.Air Pollution Control Sustainable Supply Chain

Energy Mgmt.Occupational

Waste Mgmt. Health & Safety

Information Security Mgmt.Data Privacy

Risk & Crisis Mgmt.Human Rights

Sustainable Production

Human Capital Development

Customer Relations

Social Green Products G Governance/Economic

Water Mgmt. Involvement Talent Attraction

& Retention

Diversity & Inclusion Climate Strategy E Environmental

Biodiversity

S Social

Innovation Mgmt.Non-Material Issues

Low Financial Materiality High

Note:

1. Financial Materiality: defined financial materiality through a combined analysis of our Operational Impact and Financial Risk Impact Surveys.

2. Impact Materiality: defined impact materiality through a blended assessment of our Stakeholder Concerns and External Sustainability Impact Surveys.

Low Impact Materiality HighAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

We identified 3 financially material issues (including those with double materiality) and present key disclosures on governance strategy impact/risk and opportunity management and metric

targets:

Financial

Materiality Issue Governance Strategy Impact/Risk and Opportunity Management Metrics and Targets

USI integrates sustainability into business USI applies multi-scenario analysis USI integrates climate- and nature- ? Reduce GHG emissions

decision-making and operations with the Board (e.g. 1.5°C 2°C market trends) related dependencies and impact into its ? Scope 1&2 (market-based): 58.8% by 2030

of Directors and senior management holding to assess the financial impacts of ERM framework identifying and assessing (base year: 2016)

overall accountability. The Board-level Strategy carbon pricing CBAM energy costs value chain risks and opportunities ? Scope 3: 25% by 2030

and Sustainability Committee provides oversight and demand shifts integrating through cross-functional collaboration. (base year 2020)

Climate and strategic direction while a management- results into investment and product Financial impacts are evaluated and ? Increase renewable energy use: 90% by 2040

Strategy level Sustainability Committee is responsible for strategies. We address climate and managed through mitigation and ? On-site low-carbon transportation: 100% by

implementation coordination and reporting; nature dependencies across the adaptation actions to strengthen 2040

aligned with TCFD and TNFD this structure value chain and adapt actions over resilience and support decision-making. ? Upstream & downstream low-carbon

ensures effective oversight and escalation of short- medium- and long-term transportation: 100% by 2045

climate- and nature-related risks strategies and horizons. ? Low-carbon key materials: 100% by 2045

performance to the Board. ? N et Zero Carbon Emissions: 100% by 2050

USI establishes its OHS management framework USI prioritizes engineering controls We conduct job hazard analyses across ? M ajor occupational diseases: 0 cases

under the EHS & Energy Policy with performance in high-risk processes and critical key risk areas (e.g. chemical handling ? Major infectious diseases: 0 cases

regularly reported through the Sustainability areas including automation working at height confined spaces) ? Major employee occupational injuries: 0 cases

Committee to the Board. Aligned with ISO 45001 isolation enhanced protection and using a risk matrix to identify and assess ? M ajor contractor occupational injuries: 0 cases

the framework covers hazard identification real-time monitoring to reduce risks OHS risks. Control measures follow the

Occupational risk assessment training audits and corrective at the source and prevent accidents. hierarchy of elimination substitution

Health & actions to systematically enhance safety These measures aim to improve engineering administrative controls

Safety performance. At the facility level Safety and operational reliability while lowering and PPE with key risk indicators and

Health Production Committees meet quarterly incident rates downtime insurance emergency response plans established for

to support employee engagement and grievance costs and regulatory exposure major hazards. Continuous improvement

mechanisms while contractors are managed thereby strengthening customer is ensured through audits contractor

under the same standards to ensure consistent confidence. management and incident investigations.risk oversight.USI's supply chain management is overseen USI implements diversified USI operates a standardized supplier ? Global local procurement: 32% by 2030

by the Board-level Strategy and Sustainability sourcing quality-first procurement evaluation and performance management ? Responsible minerals sourcing: 100% conflict-

Committee to ensure alignment with sustainable sourcing responsible system assessing suppliers across free by 2030

sustainability policies and long-term objectives. minerals management and low- quality environmental compliance and ? S ustainability risk assessment: 75% of Tier 1

A management-level Sustainability Committee carbon supply chain initiatives to sustainability risks. Based on procurement suppliers by 2030

Sustainable reviews supply chain performance every six reduce operational and compliance criticality and ESG risk levels we apply ? GHG emissions verification (key suppliers for

Supply Chain months including supplier incentives and exits risks. Through supplier engagement tiered management conduct risk decarbonization engagement): 100% by 2030risk classification audits and capability-building efficiency improvements and assessments and audits and engage ? PCF verification (key material suppliers for

initiatives to drive systematic management and decarbonization measures we suppliers through training and technical decarbonization engagement): 80% by 2030

green supply chain transformation. enhance customer competitiveness support to strengthen compliance reduce ? CDP supply chain program: 100% key suppliers

while supporting long-term disruption risks and improve overall completed by 2030

cost optimization and growth supply chain resilience and efficiency.opportunities.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Material Issues Risk Impact Management

Material Issues Prioritization Ranking & Impact Boundaries Impact: Causes Contributes to

Influence Boundaries (1)

Rank Material Issue GRI SASB SSE No.14

Suppliers USI (2) Customers Society

TC-ES-440a.1

204 Procurement Practices Materials Sourcing 13. Supply Chain Safety

1 Sustainable Supply Chain 308 Supplier Environmental Assessment TC-ES-320a.2414 Supplier Social Assessment Workforce Conditions Health & Safety 14. Fair Treatment of

USI Specific Topic TC-ES-320a.3 SMEs

Workforce Conditions Health & Safety

2 Energy Management 302 Energy - 6. Energy

3 Occupational Health & Safety 403 Occupational Health and Safety TC-ES-320a.1Workforce Conditions Health & Safety 17. Employees

4 Waste Management 306 Waste TC-ES-150a.1 3. Waste ManagementWaste Management 8. Circular Economy

5 Data Privacy 418 Customer Privacy - 16. Data Security & USI Specific Topic Customer Privacy

6 Green Products 416 Customer Health and SafetyUSI Specific Topic - -

7 Customer Relations USI Specific Topic - 15. Product & Services Quality and Safety

7 Sustainable Production USI Specific Topic - -

201 Economic Performance

202 Market Presence

7 Talent Attraction & Retention 401 Employment TC-ES-000.CActivity Metrics 17. Employees402 Labor/Management Relations

405 Diversity and Equal Opportunity

10 Risk & Crisis Management USI Specific Topic - -

11 Human Capital Development 404 Training and Education - 17. Employees

12 Information Security Mgmt. USI Specific Topic - -

13 Air Pollution Control 305 Emissions - 2. Emissions

1. Climate Change

14 Climate Strategy 201 Economic Performance305 Emissions - 5. Environmental Compliance Mgmt.

Note:

1. Grievance Mechanism: stakeholders can report grievances and provide 2. USI's seven major manufacturing boundaries cover Zhangjiang Facility Jinqiao Facility Huizhou Facility Kunshan Facility (collectively called Mainland China

feedback through channels provided in the Business Ethics section. Facilities) Nantou Facility Mexico Facility Vietnam Facility and USI subsidiary AFG-SUZ.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Material Issues Risk Management Risk Type: Strategic ? Operational ★ Hazards

Material Issue Risk Factor Risk

Mitigation/

Type Risk Impact Evaluation Likelihood

(1) Severity Management

Approach

Supply chain activities may create economic environmental and human rights

Sustainable Supplier non-compliance with impacts. We conduct supplier sustainability assessments and audits to mitigate

Supply Chain USI or regulatory requirements ★ supply disruptions component shortages conflict minerals risks and adverse 3 3

Value Chain

human rights impacts while collaborating with suppliers to support environmental Management

protection labor rights and social well-being to maintain our commitments.Power shortages and disruptions may cause operational losses and delivery Environmental

Energy Excessive energy consumption ★ delays affecting customer confidence and USI's reputation. To reduce the actual

Management in operations and potential impact on the economy and the environment we improve energy 3 4

Protection &

efficiency and replace aging equipment to reduce GHG emissions and operational Occupational

risks. Safety

Natural disasters and workplace incidents may impact people the environment Environmental

Occupational Natural or man-made disasters and business continuity. Through robust safety management and contractor 3 2 Protection & Health & Safety engagement we strengthen safety culture prevent incidents and enhance Occupational

operational resilience. Safety

Waste Improper waste disposal and Improper waste handling may cause environmental pollution and reputational

Environmental

Management pollution damage. We work with qualified treatment providers and promote resource reuse 3 2

Protection &

and recycling to reduce waste generation and environmental impacts. Occupational Safety

Improper collection or processing of personal data may result in legal financial

Data Privacy Improper handling of personal and reputational risks potentially causing significant negative economic Operations & or sensitive data ★ and people impact. Our Privacy Policy and data protection controls safeguard 2 5 Governance

individual privacy rights and support compliance management.Increasingly stringent environmental regulations and customer expectations may

Green Products Failure to meet demand for ? affect market competitiveness. We develop low-carbon products improve energy Green Products green products ★ efficiency and strengthen eco-design capabilities to create sustainable business 3 4 & Innovation

opportunities.Note:

1. On a scale of 1 to 5 higher scores indicate greater likelihood or severity defined as follows: - 3: moderate impact on the environment people/human rights or corporate economy; occurrence is occasional

- 1: minimal/insignificant impact on the environment people/human rights or corporate economy; occurrence is rare - 4: major impact on the environment people/human rights or corporate economy; occurrence is likely

- 2: minor impact on the environment people/human rights or corporate economy; occurrence is unlikely - 5: catastrophic impact on the environment people/human rights or corporate economy; occurrence is almost certain

Risk Type: Strategic ? Operational★ Hazards

Mitigation/

Material Issue Risk Factor RiskType Risk Impact Evaluation Likelihood Severity Management Approach

Customer Failure to meet customer Failure to meet evolving customer needs may result in lost business opportunities.Relations needs ★ We focus on delivering quality products and professional services to enhance 1 3

Value Chain

customer satisfaction loyalty and long-term value creation. Management

Advanced manufacturing technologies require significant investment and

Sustainable Failure to adapt to industry ? technical capability and potentially creating a negative economic impact. We Green Products

Production trends ★ continue to invest in automation and smart manufacturing while fostering 2 3 & Innovation

continuous improvement to strengthen competitiveness.Inadequate compensation and benefits may hinder our ability to attract and

Talent Inability to attract and retain retain talent. This may limit our capacity to develop new markets and affect our Attraction & Inclusive

Retention diverse talent

★ business. We strive to be an attractive employer by offering competitive salaries 3 1

and benefits and maintaining positive labor relations to create positive economic Workplace

benefits.Ineffective risk control will cause failure to recognize and respond to risks

Risk & Crisis Ineffective risk identification ? potentially causing multiple negative economic environmental and people Operations &

Management and control ★ impacts. To mitigate this we adopted the Three Lines of Defense model in our 2 2 Governance

internal control to turn risks into opportunities and ensure sustainable operations.Skills gaps may affect long-term growth and competitiveness and has a potential

Human Capital Insufficient workforce ★ human and economic impact. With suitable training knowledge sharing and Inclusive Development capability development learning mechanisms we can develop employees' abilities to help achieve 1 1 Workplace

business objectives.Information

Security Cyberattacks and security

Weak cybersecurity awareness may result in data breaches and financial losses.★ Implementing training and a holistic information security system can lower risks 3 5 Operations &

Management breaches increase customer confidence and generate positive economic benefits. Governance

Excessive emissions or chemical leaks may result in regulatory penalties Environmental

Air Pollution Air pollution incidents and reputational damage and health impacts. We continuously monitor regulatory Protection &

Control regulatory sanctions requirements and conduct regular third-party testing and reporting to mitigate 3 4 Occupational

risks. Safety

Climate-related operational ? Rising stakeholders' expectations for renewable energy adoption may increase Environmental Climate disruption; GHG regulatory ★ operating costs while failure to meet these expectations could affect business Protection & Strategy compliance risks opportunities. We continue expanding renewable energy use to reduce

3 4 Occupational

environmental impacts and support stakeholder expectations. Safety

Stakeholder Engagement

To respond to issues (1) that are high stakeholder concern we communicate with our stakeholders through various platforms on our sustainable development strategies and progress to maintain

and strengthen our relationships. Issues identified as non-material will also be disclosed in their respective chapters to maintain report continuity.Communication Channel (Frequency) 2025 Performance

Shareholders/Investors/Banks Focus Issues: Risk & Crisis Management Sustainable Supply Chain Innovation Management Data Privacy Green Products

Occupational Health & Safety

?H eld quarterly online investor briefings to explain USI's overall business operation status and strategies.? Investor briefings (quarterly) ? Held 6 board meetings.? Board meetings (semiannually/non-periodic) ? Held 2 shareholders' meetings to explain our performance investment plans and respond to investors' concerns.? Annual general meeting (yearly/non-periodic) ? P ublished quarterly/semi-annual/annual financial reports that analyze USI's business performance on the SSE website.? Quarterly/semiannual/annual report (periodic) ? Joined broker strategy meetings and hosted investor visits.? I nvestor Relations on USI website (all the time) ? Signed a MOU with SHP launching USI Vietnam Phase 2 expansion that includes a full production line (100000 units/month) for

? S SE e-interaction (all the time)

(2) 800G/1.6T silicon photonics optical modules encompassing optical engine manufacturing module assembly and end-of-line ? Receptions visits and roadshows (non-periodic) testing capabilities.

? O ther interim announcements (non-periodic) ? A cquired new facility in the Taichung Precision Machinery Park to expand Nantou Facility's production capacity and enhance

customer service coverage.Customers Focus Issues: Customer Relations Sustainable Supply Chain Sustainable Production Risk & Crisis Management Information

Security Management Occupational Health & Safety

C ustomer satisfaction questionnaire (quarterly) Conducted quarterly customer satisfaction surveys reaching an average satisfaction score of 86.3.? ?

O nline platform (all the time) Reported Self-Assessment Questionnaire (SAQ) assessment results through an online platform.? ?

After-sales service system (all the time) Constantly monitored product Return Merchandise Authorization (RMA) status through the eRMA system.? ?

Mailbox (all the time) N o product recalls and 100% customer complaints resolution rate.? ? R esponded to customers' green product needs and requirements with 100% compliance with international safety standards/

environmental regulations or energy-saving requirements.? E nhanced customer confidence through continuous implementation of NIST CSF (3) maturity assessments and strengthened

cybersecurity management capabilities.? Continued cybersecurity awareness training to strengthen employees' information security awareness. In 2025 the information

security training completion rate reached 100%.? P artnered with global customers to co-develop solutions for emerging AI-era miniaturized manufacturing challenges

demonstrating cross-disciplinary system-level miniaturized packaging capabilities with tangible results. USI integrated vacuum

printing encapsulation with high–aspect ratio (>1: 3) copper pillar mass transfer and applied these innovations to capsule

endoscopy modules and high heat-dissipation power modules for mobile devices.Note:

1. Top five issues for each key stakeholder were identified and disclosed from the 2025 Stakeholder Concerns Survey. 3. NIST CSF US National Institute of Standards and Technology Cybersecurity

2. Roadshows securities issuers' promotional activities targeting institutional investors before the issuance of securities that focuses on full communication Framework

between investors and financiers.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Communication Channel (Frequency) 2025 Performance

Employees Focus Issues: Occupational Health & Safety Data Privacy Human Rights Customer Relations Talent Attraction & Retention

? Convened regular labor–management meetings to co-plan welfare programs and initiatives. Organized 316 employee activities and

? Employee Welfare Committee/labor– 371 occupational health & safety training sessions during the year integrating employee well-being and professional health support.management meetings (quarterly) ? Communicated benefits and activities through the Employee Relations Network on the company intranet and enabled feedback

? General Manager Symposium (quarterly) through a digital Employee Suggestion Box. Received 6516 submissions with 99.9% resolved and effectively addressed.? Internal publications (quarterly) ? Hosted General Manager Symposiums where executive management shared corporate vision and addressed employee concerns

? Staff congress (yearly) complemented with internal departmental meetings to ensure effective feedback. 140 communication sessions were conducted

? Employee engagement survey (biennial) throughout the year.? Official social media accounts (all the time) ? P ublished usinsight quarterly newsletter and leveraged internal platforms to share management insights and industry trends

? Company Intranet (all the time) strengthening alignment with company vision.? Announcement (all the time) ? Conducted periodic anonymous engagement surveys to capture authentic feedback and optimize talent development and retention

? Training programs (non-periodic) strategy. In 2025 the survey achieved a 96% valid response rate and an 83% engagement score.? Implemented annual salary adjustments aligned with USI's compensation framework referencing regional salary surveys and living

wage standards to ensure compensation exceeded regulatory minimums while providing equity incentive schemes to reward high-

performing employees. In 2025 USI introduced differentiated salary increases across global facilities (Vietnam: 7.0% Mexico:

4.0%~15.0% Nantou: 3.0%~4.2% Mainland China: 0.1%~10.3%) to maintain market competitiveness and talent retention.

? Offered a wide range of periodic training programs to enhance employee professional skills and employability reaching an average of

43.8 training hours per employee.

Suppliers/Contractors Focus Issues: Occupational Health & Safety Customer Relations Risk & Crisis Management Data Privacy Information Security

Management

? Quarterly business review (quarterly) ? Held 25 Executive Business Reviews with material suppliers and hosted 25 new product and technology presentations.? S upplier evaluation (yearly) ? E valuated 39 new suppliers with a 95% approval rate onboarding them as approved vendors.? Q uestionnaire investigation for suppliers ? Surveyed suppliers to assess status and perspectives and collected 495 supplier responses.(yearly) ? Hosted Sustainable Supply Chain Webinar (Greater China) to promote ESG supplier requirements and share future goals. Engaged 388

? Supplier sustainability conferences (yearly) supplier partners in the webinar.? P urchase contracts/Conducts (in contract ? R equired suppliers to sign the Supplier Code of Business Integrity and Supplier's Commitment to Corporate Social Responsibilities in

period) addition to business contracts. Utilized Green Parts Aggregations & Reporting System to drive green sourcing responsible sourcing of

? Training of suppliers (non-periodic) raw materials and ensure compliance with product regulations.? On-site audit for suppliers (non-periodic) ? Trained 1091 contractors on occupational health & safety.? Business meetings (non-periodic) ? Selected 110 suppliers for document review and on-site sustainability audits.?M entored 1 supplier to establish GHG and PCF systems (ISO 14064-1 and ISO 14067).About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Communication Channel (Frequency) 2025 Performance

Schools/Academic Institutions Focus Issues: Human Rights Occupational Health & Safety Talent Attraction & Retention Human Capital Development Green

Products Waste Management

Briefings/seminars/forum/project ? P ? artnered with Soochow University to establish the USI (Kunshan) Intelligent Manufacturing Innovation Center driving smart upgrades

collaboration (non-periodic) in communications and automotive electronics.? D elivered 28 talks through USI University (USIU) internal lecturers to share expertise industry trends and insights with universities and

industry peers.? P rovided internships to 129 students to bridge academic learning and practical experience and conducted 2 research projects in

collaboration with university professors.Government & Industry Unions/

Associations Focus Issues: Occupational Health & Safety Water Management Waste Management Energy Management Social Involvement

? Complied with all local regulations with no major violations. Disclosed operational performance and strategic direction from time to

??O f 說fic明ial會 do/c研um討en會t (/n論on壇-pe/r專iod案ic合) 作 time.? Br(ie不fin定gs期/pu) blic hearings/seminars/forum ? I nvested in R&D talent to advance energy-saving and carbon reduction innovations. Offset emissions via green energy certificates

(non-periodic) achieving 88% renewable energy usage across our operations.? Industry conferences/member meeting ? I mplemented Reduce Reuse Recycle practices to minimize waste and achieved 92% non-hazardous waste recycling rate.(non-periodic) ? I ncreased process water recycling to lower consumption and mitigate water risks. Reached 65% recycling rate.? E ngaged with regulators and industry associations through briefings hearings and forums. Participated in 48 external organizations

and events.Communities (NGOs and the Media) Focus Issues: Social Involvement Data Privacy Occupational Health & Safety Human Rights Sustainable Supply Chain Air

Pollution Control

說明會研討會論壇專案合作 ? ?? US I Websi/te/Email/Phone//Press release Reviewed and implemented environmental protection occupational health & safety SOP to minimize negative environmental impact.(al(l 不th定e t期im)e) Maintain strong community relations with local residents through established communication channels.?

? Community activities (non-periodic) Reduced emissions through continuous improvement initiatives. USI has not been sanctioned for any significant air pollution.? Conducted 100 philanthropic activities to strengthen engagement and relationships with local communities.Operations and

Governance

USI's vision is to be the most reliable global

partner leveraging our capabilities and

technologies to serve all stakeholders and the

planet better. Through the collective contribution

of employer and employees we established

effective governance mechanisms with respective 100 % 10 Times 0

responsibilities and accountabilities. We strive to Board Meeting A-level SSE Information Major Information

generate exceptional rewards for stakeholders and Attendance Disclosure Ratingbuild a better place to live. Security Incidents

Key Stakeholders:

Shareholders/Investors/Banks Governments

108.5 Hrs. Obtained Statement of Nantou Facility Obtained

SDGs Continuous Education for

ISO 31000 TISAX

Board Members Conformity Certification

Sustainable Issue Performance and Targets Material Issue Achieved Not Achieved

Management Purpose KPI 2025 Target 2025 Performance Status 2026 Target 2030 Target

Management Approach: Identify risk events and factors evaluate and adopt proper countermeasures control or reduce risks to ensure sustainable

Enterprise Risk Management management and achieve business operational goals.Evaluation Mechanism: Ensure compliance through Risk Management Committee's annual review of USI internal control and audit system and

conduct annual risk drills by business continuity management mechanism.Follow ISO 31000

management Obtain ISO 31000 Obtained ISO 31000 Integrate IFRS S1/S2 Introduce a risk

principles and statement of conformity statement of conformity assessments into the risk management mechanism

guidelines management system to Europe Facilities

Achieve sustainable business

continuity through risk management

Follow ISO 22301 Finish 100% of business Finished 100% of business

management continuity testing in continuity testing in Implement business More than 10 employees

principles and Mainland China Nantou Mainland China Nantou continuity mechanism in qualified as ISO 22301:

guidelines and Vietnam Facilities and Vietnam Facilities Mexico Facility 2019 Lead Auditor

Management Approach: Strengthen employee awareness of the Company's and customer's information asset protection responsibilities construct

Information Security a safe and convenient information network environment to protect employees from internal and external cybersecurity threats.Management Evaluation Mechanism: Grade information security incidents according to tolerable downtime of critical systems through the Information Security

Steering Committee and adopt countermeasures to avoid damage expansion.Establish a holistic information

security system and ensure its Major information No major information 0 major information No major information No major information (1)

effectiveness security incidents security incidents security incidents security incidents security incidents

Management Approach: Establish a privacy policy in accordance with the transparency framework of the Personal Data Protection Act and

Data Privacy implement sensitive information protection through risk assessment and compliance audits.Evaluation Mechanism: Classify personal data according to risk assessment results and establish appropriate management procedures to define the

security levels to mitigate potential risks.Implement compliance management Major violations of

to secure the rights and interests of data privacy or data No major violations 0 major violations No major violations No major violations

data subject breaches (2)

Note:

1. Major information security incidents: the cybersecurity incident results in daily operation and production disruption over 6 hours.

2. Major violations of data privacy or data breach: violating data privacy laws and regulations or infringing on the rights of data subjects that resulted in a significant penalty of over USD 10000 (CNY 71440).

Board Governance

Board Structure

USI's Board of Directors has four special committees that report directly to it: the Strategy Independent directors constitute a majority on the Audit Nomination and Remuneration

and Sustainability Committee the Nomination Committee the Remuneration Committee Committees and serve as conveners of these committees ensuring independent oversight in

and the Audit Committee. Directors are appointed to these committees based on their key governance areas. The Audit Committee exercises the powers and duties of the Board of

expertise to enhance the Company's core competitiveness and formulate Board procedures. Supervisors as stipulated in the Company Law and its convener is an independent director

Each committee operates under its own charter and proposals from these committees must with accounting expertise. The Company holds at least two Board meetings annually with a

be reviewed and approved by the Board. Committee membership is limited to Board directors. minimum 80% attendance requirement. In 2025 the Board convened 6 meetings achieving a

100% attendance rate.

General Meeting of

Shareholders USI Sustainability

Committee

Strategy and

Sustainability Committee

Information Security

Steering Committee

Nomination Committee

Board of

Directors

Remuneration Committee

Audit Committee Audit Center

President Office President

Manufacturing Sites Business Units Function Units

Board Nomination and Responsibilities

USI adheres to its Board Diversity Policy selecting director candidates based on a broad range regulations and the Company's Articles. Major decisions require thorough discussion and

of criteria including gender age nationality culture ethnicity and industry background. formal voting by the Board. Matters beyond the Board's authority must be submitted to the

Nominations follow the procedures outlined in USI's Articles of Association and are approved Shareholders' Meeting for approval. In 2025 USI held 2 Shareholders' Meetings during which

by the Shareholders' Meeting. Each director serves a three-year term and directors may be resolutions on directors supervisors and financial proposals were passed in compliance with

re-elected upon expiration of their term. The Board of Directors comprises 9 to 11 members legal requirements. For a full list of Board members please visit the USI website.including one employee director. Candidates for independent director roles must demonstrate Per the Company's Articles any corporation with a conflict of interest in a resolution may not

a strong commitment to independence. And the Board of Directors shall annually assess the vote or represent other directors in that vote. The Company shall establish a special meeting

independence of serving independent directors issue a special opinion thereon and disclose mechanism attended exclusively by independent directors. Matters such as connected

it together with the annual report. Jeffrey Chen currently serves as Chairman of the Board transactions to be deliberated by the Board of Directors shall obtain prior approval from

overseeing the implementation of Board resolutions and acting as the Company's legal the special meeting of independent directors. For details on related party relationships and

representative. The Board exercises its authority in accordance with laws administrative transactions refer to Section 8 of the 2025 Annual Report.Board Diversity

Gender Distribution Age Distribution Industrial Experience

% % %

Female Male 30-50 years old Over 50 years old Information Technology Finance Education Law

Board Performance and Remuneration

USI has established the Remuneration Policy for Directors and Senior Management Category Indicator

to perfect the remuneration mechanism of directors and senior management. The

Remuneration Committee is authorized by Board of Directors to be responsible for ? Senior management base salary based on job responsibilities and individual

formulating performance appraisal standards and conducting appraisals developing Base Salary capabilities taking into account industry compensation benchmarks

and reviewing the compensation policies and proposals for directors and senior

management. The compensation proposals shall refer to the industry benchmarks of Financial ? R evenue operating profit earnings per share (EPS) return on

similar listed companies in the same region and align executive pay with company's Metrics equity (ROE) return on invested capital (ROIC) etc

operating performance long-term benefits and performance appraisal system 60%

including but not limited to equity stock options employee stock ownership plans Variable ? Centered on four core sustainability strategies―Low Carbon

and other medium- to long-term incentives or bonuses formulated by USI. We Compensation Circular Inclusive and Collaborative―the company advances

conduct performance evaluations based on audited financial data and a portion (including Strategic Metrics modularization globalization vertical integration and of performance-based salary shall be paid after the annual report disclosure and performance-

20% smart manufacturing; fosters a diverse and inclusive work performance evaluation. In addition directors conduct annual self-assessments and based environment; strengthens value chain partnerships; and

submit working reports to the Shareholders' Meeting. compensation contributes to environmental sustainability.To improve corporate governance and ensure the reliability of the company's and mid- to long-

financial results USI rules clawback provision. If directors or senior management term incentive ? I nclusion in the S&P Global Sustainability Yearbook

cause losses to the company due to illegal and non-compliant behaviors USI has income) Sustainability ? A chievement of sustainability targets by each business unit

the right to reclaim full or partial performance compensation and medium- to long- Metrics aligned with material issues

term incentive previously paid during the period of the behavior occurred. 20% ? Climate strategy-related performance including GHG

emissions renewable energy utilization energy intensity etc.Remuneration Composition for Senior Management

The remuneration package for senior management (including the CEO) consists of a

fixed base salary and variable compensation. Variable compensation is determined Continuous Education for Board Members

based on financial strategic and sustainability performance metrics with To expand board members' competencies USI arranges training courses that cover corporate

sustainability indicators accounting for 20% of the overall performance assessment. governance and sustainability for board members in hopes that they will incorporate the spirit of

Sustainability indicators include material issues identified through the annual sustainability in steering USI corporate policy enhance risk awareness and thus improve corporate

materiality assessment such as key talent retention and local procurement and resilience. In 2025 board members completed 108.5 hours of training.their target achievements as well as climate strategy-related performance such as

GHG emissions. Performance against these indicators is incorporated into executive

evaluations and directly influences variable compensation outcomes aligning Course Name Hours

business operational goals with long-term sustainable goals. 2025 Training Program of Compliance in Duty Performance for Directors Supervisors

In accordance with the Remuneration Policy for Directors and Senior Management and Senior Executives of Listed Companies (including Shareholding Change 45

excluding the fixed Board Director allowance the remuneration of USI Chairman Management and Illegal Cases)

and CEO Jeffrey Chen follows the same remuneration structure and performance

evaluation framework applicable to executive management. For details please refer Third Follow-up Training Session of 2025 for Independent Directors of Listed

to Section 4 of the 2025 Annual Report. Companies (including Key points for Fulfilling Anti-Fraud Performance)

2025 Training Program for Directors and Senior Executives of Listed Companies

(including Legal and Compliance) 31.5

Financial Performance and Tax Governance

Financial Performance

USI has established an effective communication platform to strengthen direct engagement with investors. We maintain this platform by providing regular and transparent updates on business

operations through our Investor Services website supporting a long-term and stable relationship with stakeholders. In 2025 USI reported consolidated sales revenue of CNY 59.2 billion

representing a slight decrease of 2.46% compared with 2024. Earnings per share amounted to CNY 0.85 and dividend payments totaled CNY 503587677 accounting for 0.85% of revenue.The data scope for this section covers USI's global operations. For more details please refer to the ESG Key Performance Data – Governance: Financial Performance or the Financial Information

available on the USI website.Tax Governance

USI's Tax Policy outlines the Company's principles of tax governance and ensures compliance Please refer to the charts below for the 2025 income tax expenses (benefits) and income

with applicable tax laws across all jurisdictions in which it operates. The Policy has been tax paid by operating regions. (2)

approved by the Board of Directors with the Chief Financial Officer responsible for overseeing its

implementation and compliance. We are committed to maintaining compliance transparency Income Tax Expenses (Benefits) Income Tax Paid

and effective tax management practices. Acting as a responsible and trustworthy taxpayer we (CNY million) 0.44%

contribute to economic development while supporting long-term business sustainability and

creating lasting value for stakeholders. We emphasize tax risk management through conducting

regular reviews and timely reporting of risks related to income tax assets and liabilities. In 164.88 12.41%

addition finance personnel are required to participate in taxation training to address potential

risks arising from evolving tax regulations. USI received a standard unqualified audit report for

2025. Please refer to the Important Notices section of the 2025 Annual Report for further details.

USI's principal operating facilities and offices are in Mainland China and Taiwan which together 19.82%

accounted for approximately 76% of income tax expense and over 80% of income tax paid in 88.52 CNY

2025. The statutory tax rates in Mainland China and Taiwan are 25% and 20% respectively. 415 million

Certain Mainland China facilities qualified as high-tech enterprises and were therefore eligible 47.91

for a preferential tax rate of 15% as well as additional deductions for research and development 67.33%

expenses. Nantou Facility also qualified for pre-tax deductions related to research and 9.20

development expenses under industrial innovation incentives. In 2025 the effective tax rates in

Mainland China and Taiwan were 10.11% and 13.80% respectively.USI effective tax rate and cash tax rate for the last two fiscal years (1) Mainland APAC Europe Others Mainland China APACUnit: CNY China Europe Others

Financial Reporting 2024 2025 Calculated Average Rate

Earnings before tax 1853816573.41 2139493055.52 1996654814.47

Reported taxes 209647374.75 310523233.88 260085304.32

Effective tax rate (%) 11.31 14.51 13.03 Note:

1. The major reason of calculated average rates lower than the industry group averages is because USI enjoys tax

Cash taxes paid 255258202.48 184587009.54 219922606.01 incentives in mainland China and Taiwan.Cash tax rate (%) 13.77 8.63 11.01 2. APAC: includes Taiwan Hong Kong Vietnam and Japan; Europe: includes France Germany UK Czech Poland and Tunisia; Others: includes Mexico and the U.S.A.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Enterprise Risk Management

Risk Management Committee and Framework

The USI Audit Committee comprises five directors with more than half being independent First line of defense (operational risk ownership) ?

directors. To meet internal control and audit requirements and ensure sustainable business manufacturing sites functional units and business units

achievements USI follows internal audit mechanism to organize a Risk Management

Committee and applies ISO 31000 Risk Management-Principles and Guidelines to execute The operating units of Risk Management Committee are responsible for the

annual risk management activities according to business environment industrial trend and first line risks management to identify the internal and external risk factors

company operations. The COO acts as the Chair committee members are representatives evaluate the risk levels and inspect the effectiveness of activities. According

chosen from Vice Presidents of business units functional units and manufacturing sites. to evaluation of risk level the committee takes responsibility to adopt

countermeasures and ensure the risk management policy can be executed by

each operation unit.Risk Management Committee Second line of defense (risk management and compliance

oversight) ? Risk Management Committee

The Risk Management Committee takes the second line responsibility;

Secretariat committee secretariat will track the targets of risk management activities

from each operating unit. And the achievements will be presented to Vice

President of the Risk Management unit.Operating Units

Risk Management Units Third line of defense (independent audit unit) ? Audit Center

The Audit Center is subordinate to the Audit Committee. The employment

of the head of auditing must be approved by half of the board members. A

full-time head auditor is established and auditors are established in major

facilities as well. Group Internal Audit establishes a risk-based internal audit

Business Function Manufacturing system and performs internal audit activities in accordance with the annual

Units Units Sites audit plan approved by the board of directors.? Range of audit: All operations and management of finance and business

are included. According to related regulations there are eight divided

USI determines risk appetite based on its internal control and audit framework and circles plus an information circle and financial reporting flow responsible

Enterprise Risk Management (ERM) is established as an important part of the internal control for respective audits.system and incorporated into the corporate governance structure. The Risk Management ? Object of audit: All institutes and legal branches around the world of USI.Committee is responsible for identifying and defining USI's top risks based on enterprise ? Audit strategy: The regular audit is practiced based on the annual audit

risk assessments business operations and strategic objectives. These identified risk items project decided by the board of directors; a special case audit will be

reflect the company's overall risk appetite and management priorities. All business units practiced if needed. The goal is to prevent possible shortages from the

functional units and manufacturing sites are required to assess and implement appropriate internal control system and present improving suggestions. Besides the

risk mitigation actions according to the defined risk priorities. Audit Center urges all departments to practice self-examination and

Audit Center conducts periodically auditing activities to review the overall risk framework assessment to evaluate the rationality and effectiveness of the outcomes.(including top risks and related management measures) and makes necessary adjustments The Audit Center will produce an auditing report after the auditing activity

and enhancements to reflect changes in the business and operating environment. is performed. The compiled report will be submitted to the board of

directors as the realization of the Company's governance spirits.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Risk Governance Policy

Risk Management Framework USI implements an ERM framework across its global manufacturing sites business units and

functional units to identify assess and mitigate enterprise risks. Risk mitigation plans are

Board of Directors Audit Committee regularly monitored to ensure effective risk control and to integrate risk management into

strategic decision-making supporting sustainable operations and business objectives.Report Supervise and guide USI's business

once a year activities internal controls and financial The Risk Management Committee reviews the Company's risk exposure twice annually. A top-

information. And monitor ERM mechanism down assessment is conducted mid-year to identify key risks arising from macroeconomic

and activities conditions and global operational developments. A bottom-up assessment is conducted at

year-end to review operational risks identified by business units manufacturing sites and

Instruction Report every quarter functional units.Third line of defense (Audit Center) To validate the effectiveness of its ERM framework USI engaged an independent third party

(1)

to conduct a verification against the ISO 31000 Risk Management Principles and Guidelines

Establish a risk-based internal audit system and perform internal audit and successfully obtained a Statement of Conformity.activities in accordance with the annual audit plan approved by the board of

directors 1 Identify focus items through corporate risk management

Audit once a year by senior management and apply Risk Evaluation

Second line of defense (Risk Management Committee) Questionnaire to collect feedback from each operation unit. Manage risks by Top-down and Bottom-up models

1. Promote and implement USI's risk management decisions to identify the risk factors of impact on USI sustainable

2. Establish risk management standards development

3. Approve risk response strategy action plans and risk appetite

4. Integrate and review risk management reports from manufacturing sites

functional units and business units

Risk 2 1. Evaluate the risk levels from two aspects5. Define USI's top risks and reflect the risk tolerances

Governance ? The possibility of occurrence

Process ? The negative impacts on financereputation and Instruction Report every half-year/irregular continuing operations

First line of defense 2. Inspect the effectiveness of existing activities and

(manufacturing sites functional units and business units) evaluate residual risk after control activities

1. Identify internal and external risk factors evaluate the risk levels and

inspect the effectiveness of activities

2. According to evaluation of risk level to adopt countermeasures and ensure 3 Find and evaluate countermeasures and corrective actions

the risk management policy can be executed by each operation unit to control risks that include:

3. Assess and implement countermeasures for top risks ? Implementation cost and resources

? Feasibility and possible benefits

? Proposal lead time and schedule planning

Note:

1. ISO 31000 was certified by Wanhung Information Consulting Co. Ltd.

Identification Risk Risk Assessment Response

External audit of ERM process every two-yearAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Build an Effective Risk Culture

To cultivate risk awareness we arrange annual training Risk Management Education

courses for employees hold business continuity exercise and Besides arranging risk-related courses for directors USI held Risk Management Introduction for Mainland China Taiwan

emergency escape drill and build an incentive mechanism Mexico and Vietnam employees by online courses in 2025. It is expected to reduce crisis through risk prevention and

based on risk prevention performance. monitoring process.Incentives

According to operational risks USI has established the

Golden Ring Award which is linked to risk management. By Total

analyzing risk factors that may have a significant impact on Trainee Number of Trainees Training

Course

Illustration

operations and production the business units and functional Hours (2)

units of each manufacturing site will conduct risk control

evaluation every month and provide incentives to the units

with excellent performances. ERM plays a key role in sustainable operations. Each

year USI arranges corporate governance and sustainable

Risk Control of Product Development Board of 11 108.5

Directors operation related courses for directors to improve In response to international environmental regulations directors' risk governance awareness. Please refer to

for green products in the planning stages of product Continuous Education for Board Members for 2025

development we follow green management and product training courses.eco-design strategies to introduce a professional green value

chain management platform the Green Parts Aggregations

& Reporting System (GPARS) to build Green Parts (GP) To improve all employees' understanding about the

database and take necessary control measures. Each year meaning and basic principles of risk management USI

we conduct management system verification and inventory designs regular training courses based on ISO 31000

through third-party and integrate and stipulate Standards framework and spirit. The training courses focus on

for Green Environmental Protection Products. Please refer general concepts of risk management including common

to Green Products Design and Management for details. risk types the basic logic of risk analysis and assessment

and conceptual introduction of risk response and

Employees 4205 (1) 23600 monitoring.In addition we also promote risk management and

compliance awareness through the training courses of

anti-corruption and ethical corporate management

confidential document control and information security

factory access control trade secrets and intellectual

property protection. It is expected to strengthen

employees' ability to identify and prevent potential risks

through organizational culture.Note:

1. Number of Trainees: the maximum number of trainees among the listed training courses.

2. Total Training Hours = the number of trainees who passed the training courses × training hours

Risk Assessment Matrix

? Economic Situation/Industrial Trends

H ? Operational Scenario Simulation

? Fraud

? Financial Disclosure

? Geopolitics

? Investment/Mergers/Acquisitions/

Divestment

? Performance/Talent Management and

Compensation

M ? Information Security ? Manufacturing Labor Shortage

? Innovation Research and Development

? Business Continuity Management

? Cross-Departmental/Group/Regional

Collaboration

? Business Concentration

? Risk Monitoring ? Financial Plan/Budget

? Natural Disaster ? Competition

? Biodiversity ? Digital Transformation

? Corporate Development ? Finished Goods Inventory Management

L Key Technical Talents ? Business Model?

Global Talent Management ? Smart Manufacturing Facility?

Climate Change ? Succession Plan?

Eco-design ? Talent Retention?

? Artificial Intelligence Applications

Yes Partial No

Control Eectiveness

Risk LevelAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

In the risk assessment phase USI requires each business unit to identify the risk level by Risk Tolerance Level of Human Resources

occurrence frequency and possibility according to different business relevance and facility's USI continues to promote overseas investment and global strategies. The impacts of stability

location and evaluate the enterprise significant risk impact levels from the dimensions of continuity and internationalization of human resources are significant to operational

finance reputation and continuing operations. Comprehensive both of risk possibility and development. Therefore the risk level of human resources was identified by high and

significance of impact we will refer to the control effectiveness criteria to scale our existing adopted low risk tolerance principle: we do not accept our global operation or organizational

controls and countermeasures and decide whether an action plan needs to be developed. experience transfer affected by insufficient key successors or imbalances in the development

allocation and management of global talents. We support global operations and

organizational long-term resilience through systematic succession planning global talent

Risk Level Action Plan development and diversified learning and development mechanisms.Risk Tolerance Level of External Factors

Low This level falls under the risk appetite scope; we will keep tracking the control effectiveness Geopolitics may cause operational disruption supply chain concentration or manufacturing and delivery disruption which will impact operational stability supply chain resilience or

This is the company's risk tolerance level; we need improve the long-term competitiveness. Thus the risk level of geopolitical impacts was identified as high. Moderate controls or countermeasures USI adopts low risk tolerance principle: we actively develop local suppliers adjust purchasing

and manufacturing footprints and improve operational efficiency and energy use through

High Take immediate action confirm the action owner and schedule to automation technologies intelligent and low-carbon product designs to strengthen overall track the improvement progress periodically operational resilience and support sustainable development.Risk Tolerance Level of Strategies

Every year USI reviews company's exposure to the major operational risks. We also conduct Corporate growth involves strategic planning and resource allocation it is the strategic risk of

sensitivity analysis on financial risks that include interest/exchange rates and credit risks. promoting long-term competitiveness and sustainable development. USI identified corporate

Please refer to Section 8 of the 2025 Annual Report for details. growth as a major strategic risk we adopt a prudent management principle with a moderately

low risk tolerance: we accept the uncertainty from reasonable strategic adjustments and

Risk Tolerance Level of Product Development market changes but we do not accept the insufficient information disclosure lack of

Innovation and R&D are keys for the company's product development and market communication with stakeholders or failure strategies to respond market and industry trends

competitiveness but with uncertainty. Therefore we identified Innovation and R&D as major timely affect operational transparency resource allocation or long-term competitiveness.risk of product development and adopted prudent management approach with moderate risk

tolerance: we accept reasonable technological and innovative practices during R&D phase but

we do not accept the R&D directions out of market or customers' needs for a long time or the

technological gaps and product development delays caused by the loss of key R&D personnel

which impact business growth and technological competitiveness. So USI strengthens its

R&D capabilities through market-oriented R&D plannings continuous technical knowledge

exchanges and talent incentive mechanisms to align product technology development with

market demands.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

2025 USI Risk Assessment & Countermeasures Table (1)

Operation &

Infrastructure Risk Risk Scenario Countermeasure

Enhance R&D and innovation capabilities through technological sharing strategic planning and talent

1. Failure to develop technologies and products that meet motivation

Innovation and market demand may reduce competitiveness market 1. Establish customer-aligned technology roadmaps and annual development plans in line with market

R&D share and returns on innovation investments. trends.2. Loss of key R&D talent may weaken innovation 2. Promote participation in industry exchanges exhibitions and technical learning activities.capabilities and delay product development. 3. Hold technology forums and invite external experts to share emerging trends.

4. Encourage innovation through R&D competitions and recognition programs.

Inadequate succession planning and talent pipeline Safeguard leadership continuity through succession planning and targeted talent development

Succession development may result in capability gaps operational 1. Maintain a succession planning framework for key positions and regularly assess successor readiness.Planning disruption and knowledge loss during personnel 2. Develop and evaluate potential successors through talent assessment programs. Provide job rotation

transitions. cross-functional assignments expanded responsibilities and strategic projects to strengthen leadership capabilities.Build a globally capable workforce through structured talent development and cross-border learning

Global talent development may fail to support overseas programs

Global Talent expansion and operational needs resulting in talent 1. Integrate global learning resources and maintain dual career paths for managerial and professional talent.Management shortages and delayed execution of globalization 2. Provide role-based development programs and diverse learning opportunities through USIU to strengthen

strategies. professional and leadership capabilities. Extend global learning initiatives across subsidiaries to support

multicultural collaboration and globalization efforts.Strategy &

Planning Risks Risk Scenario Countermeasure

Bolster operational resilience through market monitoring business diversification and supply chain risk

management

Geopolitical tensions trade restrictions sanctions and 1. Monitor macroeconomic developments industry trends and emerging geopolitical risks while maintaining

Geopolitics regional conflicts may disrupt operations increase costs stakeholder engagement.and affect supply chain stability. 2. Optimize manufacturing footprint and business allocation to enhance regional diversification.

3. Strengthen supply chain risk management through supplier monitoring corrective actions and

procurement strategy adjustments.Drive sustainable growth through stakeholder engagement market intelligence and strategic planning

Failure to adapt growth strategies to market conditions 1. Conduct quarterly investor conferences to enhance transparency regarding business performance and

Corporate Growth and stakeholder expectations may result in inefficient

development strategies.resource allocation reduced competitiveness and 2. Monitor market developments and communicate significant business impacts to investors in a timely

constrained long-term growth. manner.3. Benchmark industry and competitor trends to support strategic adjustments and resource allocation

decisions.Note:

1. The focus items are risk factors integrated by ASEH. Please refer to the 2025 Annual Report Risk Management: Section 3: VI. (IV) Possible Risks.

Emerging Risks Risk Scenarios Countermeasures

Enhance talent retention and incentive mechanism

Global shortages of highly skilled talent may create gaps 1. Conduct regular salary surveys review and adjust salary structure based on performance and market Talent and/or in critical technical and IT positions delaying innovation trends. Implement annual salary adjustment to maintain market competitiveness.Labor Shortage digital transformation and business growth. 2. Plan and implement attractive retention and incentives to enhance pay equity and incentive effectiveness improve employee satisfaction and loyalty.

3. Offer additional job allowance to strengthen retention and career commitment for key talents.

Fortify information security and operational resilience through governance technology controls and

employee awareness

1. Maintain ISO 27001 certification and continuously improve information security management practices.

Increasing digitalization and adoption of generative AI 2. Operate an Information Security Steering Committee and regularly update information security policies

Online Harms may heighten cybersecurity data privacy and AI misuse

and procedures.risks potentially disrupting operations and undermining 3. Implement access controls data protection measures and multi-factor authentication to safeguard

stakeholder trust. systems and sensitive information.4. Conduct regular cybersecurity awareness training and phishing simulation exercises.

5. Maintain document classification and access management mechanisms.

6. Conduct periodic cybersecurity assessments vulnerability scanning malware monitoring and security

testing.Preserve business resilience through supply chain diversification workforce flexibility automation and

crisis preparedness

Disease outbreaks or pandemics may result in labor 1. Establish alternative suppliers across multiple regions and evaluate localization opportunities to improve

Infectious Disease shortages supply chain disruptions logistics constraints supply chain resilience.and production delays affecting operational continuity 2. Maintain flexible workforce arrangements including shift scheduling and remote work where applicable.and product delivery. 3. Expand automation and smart manufacturing to reduce dependence on labor-intensive operations.

4. Maintain crisis communication and response mechanisms and regularly review emergency response plans.

5. Incorporate infectious disease risks into business continuity planning and conduct related exercises.

Business Ethics and Compliance

Business Ethics

USI strives to foster a culture of integrity and accountability; we adopt a zero-tolerance Conduct and Ethics with due diligence applied to investigations. Reporter confidentiality is

policy for any violations of business ethics. To prevent fraudulent behavior or illicit profit strictly maintained in compliance with legal requirements to ensure safety and protect their

exchanges with affiliated entities employees are expected to uphold the highest standards rights. In 2025 five harassment cases were reported. For more details please refer to the

of integrity. Company regulations strictly prohibit the use of authority for personal gain. USI Human Rights Risk Assessment Results section.has established a Code of Business Conduct and Ethics to serve as the standard for ethical

business practices across all employees business partners and stakeholders. 2025 Code of Business Conduct and Ethics violations:

Promotion and Training Reporting areas Substantiated cases

To ensure that employees understand and comply with the USI Employee Code of Conduct Corruption or Bribery 0

Code of Business Conduct and Ethics Anti-Bribery Policy Anti-Fraud Policy Sunshine Conduct

Policies and the reporting process. Except the newcomers are given related training courses Discrimination or Harassment 5

all employees need to finish the required reading and pass the quiz every year. All records Customer Privacy Data 0

are listed as tracking lists to ensure the courses have been finished by each employee. For Conflicts of Interest 0

the number of employees who accepted the Business Ethics Anti-Corruption training course

please refer to the Sustainability Data - Governance A. 2025 Business Ethics Anti-Bribery & Money Laundering or Insider Trading 0

Anti-Corruption Training.Furthermore the Sunshine Conduct Policies and reporting process have been conducted to Regulatory Compliance

employees quarterly to remind them of relevant corporate regulations and strict observance USI is committed to upholding its corporate image through strict compliance with national or

of rules. And Sunshine Conduct is also announced to suppliers every year. Once the violations international laws and regulations. This includes governance finance taxation intellectual

of the Sunshine Conduct Policies have been verified to be true the punished personnel must property environmental protection workplace safety labor rights and fair competition. We

depending on the severity of the case return unjustified enrichment to compensate for the value and protect customers' rights and interests and actively monitor legal updates across

company's losses and accept dismissal. Those involved in illegal activities will be transferred all facilities to ensure compliance. In the event of any legal violation or reputational risk USI

to the judicial authorities for handling. In addition USI has established relevant regulations promptly forms a task force to implement corrective actions. By the end of 2025 there were

for the stock option incentive plan to prevent insider trading: before the company's no violations nor significant penalties (over USD 10000) related to insider trading corruption

performance or financial report is announced the incentive targets will be notified of the bribery or antitrust laws and regulations. However a tax compliance matter was raised by the

blackout period during which they are prohibited from exercising their options. local authorities resulting in an administrative fine of over USD 12855 (CNY 92872). The

Risk Assessment company has taken corrective actions and enhanced its compliance management practices.Based on the risk management assessments conducted across facilities within the reporting Protection of Privacy and Personal Data

scope in 2025 the inherent risk of fraud was assessed as high but remains controllable We value the importance of privacy and personal data protection. USI adopts the Policy

through existing control measures. We will continue to implement and regularly review these on the Protection of Privacy and Personal Data to guide and manage the compliance and

controls to ensure their effectiveness. protection of stakeholder personal data. If employees or external stakeholders discover any

Grievance Mechanism and Whistleblowing Protection violations of privacy laws or regulations they can appeal or report through e-mail and the

Legal Compliance & IP Division will organize relevant parties to investigate and respond

Stakeholders can Contact USI to give feedback or appeal through various channels such as to incidents. By the end of 2025 we did not use collected personal data for any secondary

meetings or e-mail. The Company provides a mailbox for all internal and external stakeholders purposes other than the specific purposes for which the personal data was first collected and

to report any corruption and fraud cases. Other integrity-related improper or suspected illegal there were no incidents of infringement of privacy rights and no incidents of data leakage

practices may be reported to local HR Employee Relations contacts. Anonymous or named and losses.reporting are both accepted. All reports are handled in accordance with the Code of Business

Information Security Management

USI believes effective information security management is fundamental to all operations and has been devoted to a holistic cybersecurity system enhancement through resources investment.We formulate Information Security Policy to ensure the preservation of Confidentiality Integrity Availability and Compliance of the core systems. In addition with the rapid development and

extensive application of AI technologies we realize"responsible AI" through our AI Policy and implement related Responsible AI training to all global IDL employees to strengthen corporate

cybersecurity resilience and reduce new cybersecurity risks and ensure stakeholders trust in USI.Information Security Steering Committee

USI Strategy and Sustainability Committee under the Board of Directors responsible for Officer) has role in the USI board and Information Security Steering Committee member. He

overseeing information security issues. Under the Strategy and Sustainability Committee joins strategy meetings to achieve cybersecurity targets. The Information Security Division

USI sets up Information Security Steering Committee to complete information security is responsible for the planning construction operation and maintenance of information

management. The committee members are composed of the CIO CFO GISO Vice Presidents security. The committee holds semi-annual meetings information security representative

or Division heads level above. The CIO reports to the Senior Vice President of the reports cybersecurity status to committee management team and provides guidance for

Administration Group. Under the committee there are information security representatives cybersecurity strategies and implementation.who implement cybersecurity affairs. Dtuang Wang ASEH CISO (Chief of Information Security

Information Technology VP & CIO

Information Security Information Security Division

Steering Committee Global Information Security Officer

Security GRC (1) Identity Governance Security (3)

and Administration Architecture & SOC (2) BISO Asia BISO America BISO EMEA

Note:

1. GRC Governance/Risk/Compliance

2. SOC Security Operation Center

3. BISO Business Information Security Officer

Information Security Measures

USI builds a comprehensive management system to enhance employees' information security awareness and knowledge. Through internal independent audit mechanism to ensure the company's

continuous and stable operation. In 2025 USI had no major cybersecurity incidents.Category Measures Actions

Management USI establishes a consistent cybersecurity management framework for worldwide facilities to clearly define cybersecurity targets principles

Framework organization structure responsibilities and management process to ensure the specifications can be effective developed.System Criteria The criteria of cybersecurity system provide the security personnel a practical guidance which includes security principles management system

Cybersecurity technical specifications and operation instructions.System International USI has maintained its ISO 27001 certification (1) annually since 2020 and passed TISAX (2) certification (3) in Zhangjiang Facility Kunshan Facility

Certificate Nantou Facility and Mexico Facility which prove USI has achieved international cybersecurity management level.Maturity ASEH conducts a third-party assessment for cybersecurity maturity assessment based on NIST CSF every year to assist USI continuously

Assessment monitoring and improving cybersecurity governance capabilities.New Employee

Orientation All newcomers must take Cybersecurity courses and pass tests.Cybersecurity

Awareness Annual Training USI conducts annual on-job training which focuses on cybersecurity threats including Phishing Attack Social Engineering Password Security

Training and Course Information Security and Device Safety. All employees should take Cybersecurity courses and pass tests. Cybersecurity training completion rate

Promotion was 100% in 2025.Phish Insight We conduct Phishing exercises 9 times per year to validate employees' identification and response ability and provide targeted training programs according to the results of Phishing exercises.Multiple Reporting Employees can appeal to cybersecurity issues through telephone e-mail or USI internal system to ensure the events can be discovered and

Channels solved in time.Clear Reporting Define a clear cybersecurity reporting process to identify event categories reporting deadline and process to ensure the event can be effectively

Reporting Process solved in time.Mechanism Employees' Actively encourage employees to participate in the cybersecurity task and reward the employees who discover and report cybersecurity incidents

Participation in time to achieve full participation in cybersecurity.Regular Emergency Exercise regular emergency drills to help worldwide manufacturing facilities and business units better understanding the cybersecurity incident

Drills reporting and handling procedures.Note:

1. ISO 27001 was certified by TNV Certification Pvt. Ltd.

2. TISAX Trusted Information Security Assessment Exchange

3. TISAX was certified by ENX Association.

Category Measures Actions

Business Continuity Generate a business continuity plan including emergency response process recovery strategy and resources allocation proposal for key business

Plan (BCP) system and process.Business

Continuity Regular Practice & USI holds annual business continuity plan exercise with different types of disasters to examine if the employees can successfully recover business

Planning Assessment operations within the specified time frame. The 2024-2025 BCP exercise had been completed and all targets had been met.Data Backup and Build a completed data backup mechanism to regularly backup important data according to business conditions and perform backup and restore

Recovery testing at least once a year to ensure the data resiliency.Regular

Vulnerability Apply professional vulnerability scanners to comprehensively detect the potential safety vulnerabilities of internet operation systems and

Assessment application programs regularly.Penetration Testing Invite professional third party to conduct simulated hacker attacks to deeper discover the system vulnerabilities and assess the protection in

Vulnerability information security.Assessment Vulnerability

Remediation and Through timely remediation and verification test to ensure the vulnerabilities have been fixed.Verification

Red Team Exercise Hold annual Red Teaming by USI internal cybersecurity team (blue team) and external cybersecurity experts (red team) to test the effectiveness of USI safety defense system perfect safety principles and measures through cyber offensive and defensive exercise.Audit Plan USI and ASEH schedule internal audits focused on information security based on operational risk. Audit Center will assess each facility using USI's security standards including penetration test results red team reports and vulnerability scans.Internal Perform Auditing Establish a professional taskforce to perform internal cybersecurity audit and evaluate the effectiveness of cybersecurity control based on the

Cybersecurity Work audit plan.Audit

Based on audit results to issue an audit report with improvement suggestions and track the relevant departments' improvement progress to

Auditing Report &

Corrective Actions ensure the cybersecurity management system has been continuously improved. There were no any high cybersecurity risks from 2024-2025

internal audit and all non-high risks had been fixed.Green Products

and Innovation

As the industry leader we focus on smart

manufacturing and continuously improve our

eco-design capabilities. We promote low-carbon

product designs enhance energy efficiency and

advance smart manufacturing projects. USI's

Green Product (Clean Technology) Strategy of 100 % 1744 59 GWh

Modularization Globalization Diversification Meet International Cumulative Number Product Energy

Vertical Integration and Smart Manufacturing

aligns with the SDGs addresses climate change Green Standards of Patents Efficiency

and aims to reduce energy resources.CO

Key Stakeholders:

Shareholders/Investors/Banks Customers Suppliers/

Contractors Assisted Obtaining CNY 460 Million 1736 Metric Tonnes

EPEAT Silver Saved from CIP and Smart Carbon Reduced from

SDGs Grade Certification for Manufacturing Projects CIP Key Projects

Customer's Set-Top

Box Products

Sustainable Issue Performance and Targets

Material Issue Achieved Not Achieved

Management Purpose KPI 2025 Target 2025 Performance Status 2026 Target 2030 Target

Management Approach: Introduce Eco-design concepts and comply with green product regulations. Set medium and long-term goals for sustainable

Green Products products to implement sustainable management actions.Evaluation Mechanism: Sustainability technology and product plans are established and taskforce meetings are convened periodically to review

performance.Meet international safety

environmental energy 100% shipped products 100% shipped products 100% shipped products 100% shipped products

saving standards meet standards met standards meet standards meet standards

Ensure green products sold Recycled raw materials

and produced meet various Sustainable mechanical More than 80% of mechanical components accounted for 96% of

More than 81% of More than 85% of

international standards and design mechanical components use mechanical components

stakeholder demands use recycled raw materials

mechanical parts total

15 new project products recycled raw materials use recycled raw materials

PCF inventory Inventory carbon footprints

Completed 5 series

for 3 product series products inventory total

Inventory carbon footprints Inventory carbon footprints

179 products for 3 product series for 3 product series

Management Approach: Automated Lights-Out Factory is introduced to increase efficiency improve quality and satisfy customer's delivery date.Sustainable Production Continuous improvement plans are also promoted to optimize design manufacturing and energy saving as well as carbon reduction.Evaluation Mechanism: Sustainable production targets are established and taskforce meetings are convened periodically to review performance.Enhance corporate Reach 3.37-Stars in the

competitiveness through smart Smart manufacturing

(1) Industry 4.0 5-Star rating Reached an average of Reach an average of Reach an average of 3.37-Stars 3.59-Stars 4.35-Stars

automation and encouraging standard

employees to continuously Continuous Improvement Cost saved accounts for Cost saved accounted for Cost saved accounts for Cost saved accounts for

improve Program 0.21% of revenue 0.24% of revenue 0.21% of revenue 0.21% of revenue

Innovation Management

Cumulative number of

Continue to innovate and patents 1730 patents 1744 patents 1800 patents 2050 patents

strengthen competitiveness

increase revenue and enhance Internal proposals

corporate image number of approved 100 proposals 129 proposals 100 proposals 100 proposals

patents

Note:

1. Due to variations in the foundational maturity of USI's global manufacturing sites and the continued impact of softening market demand coupled with the redefinition of smart factory evaluation criteria in alignment with ASEH we adjusted smart

manufacturing maturity level targets.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Green Products

Green Products Vision

USI has five product categories: Wireless Communication Cloud & Storage Industrial & In the long term we will certify our 5G testing capabilities to provide the best-miniaturized

Medical Consumer and Car Electronics. Our vision for green products for the medium term antenna design for smart mobile devices. We will apply this to computers communication

lies in using miniaturization technology to vertically integrate SiP modules in our customers' wearable and industrial electronics and electric vehicles. Then integrate all product

products promoting low-carbon design energy efficiency and environmental impact technologies to form an Internet of Things network. With our green product clean

reduction. Additionally we are investing in developing electronic products for electric vehicles technologies we will develop market opportunities for low carbon low consumption and

to reduce CO? emissions and mitigate pollution. low pollution products to meet customer demands.nics Co

m ire

ctro

mu ln ei sc sa Strategy

Ele S t

tics Miniat iP

n Core Competence

Green Product a ulem

rizat

Design Te ion Market

Smart Modularization

Manufacturing

Vertical

Testing Green Innovation Integration Globalization

Efficiency Promise Management

Diversification

dus

S tr

o ia te

lu l t Mi o

bile RF &

signon De

Operation

Productivity Industrial & Medical

sumer

Con

Automotive C

Cloud & Storage

Network/StoragSolutio

InAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Green Products Design and Management

USI is committed to advancing environmentally friendly products by integrating environmental and social considerations into

product lifecycle management. USI defines green products as "products that meet at least one of USI's Green Product Design

Principles including safety circularity low-carbon design and resource-efficient design" in alignment with the EU Taxonomy

(Circular Economy Activity 1.2: Manufacture of electrical and electronic equipment) and the Taiwan Sustainable Taxonomy Green Products Policy

(Computers and Peripherals). Detailed classifications of eco-labeled product revenue are provided in the Sustainability Data –

Environmental G. Revenues from Eco-Labeled Products table. P roduct development and raw materials 100%

To operationalize these principles USI implements lifecycle controls and collaborates with suppliers and customers across all meet the requirements of customers and

stages from raw material sourcing to after-sales services to minimize environmental impacts from products and production USI green product environmental protection

processes. This approach is reinforced through certified management systems (IECQ QC 080000 ISO 14001 ISO 14064-1) with regulations

annual third-party audits and inventories ensuring regulatory compliance. P roducts must comply with international

USI further translates eco-design principles into measurable business outcomes through its commercial strategy. Sales teams regulations and directives on hazardous

set annual targets for taxonomy-aligned and green product sales in line with corporate objectives with progress regularly substances

monitored and reviewed by senior management. Performance is evaluated under the Employee Performance Management P roduct introduction of ecological design concept

framework with incentives and bonuses directly linked to target achievement. Supported by these mechanisms revenue from

taxonomy-aligned and green products has exceeded 99% for the past four consecutive years.USI Green Product Design Principles Classification: EU Taxonomy◆ Taiwan Sustainable Taxonomy▲ Industry Standards/Regulations■ USI Self-Classification?

Aspect Regulation/Framework Requirement Target Benefit

◆ RoHS (Restriction of Hazardous Substances)

◆ REACH (Registration Evaluation Authorization and

Safety Restriction of Chemicals) Must not contain ? E nhance occupational safety and health

(Hazardous Substances ◆ Batteries Regulation hazardous substances ? Low polluting ? S upport green manufacturing

Management) ◆ PPWR (Packaging and Packaging Waste Regulation) exceeding regulatory or

? Non-toxic ? Reduce environmental impact

◆ ELV (End-of-Life Vehicles) directive limits

■ Halogen Free

Recycling rate greater ? R ecyclable ? Reduce tools used to take machines apart◆ WEEE (Waste Electrical and Electronic Equipment) (1) than 80% ? Easy disassembly ? I ncrease material recovery and reuse

Circular ? Easy recycling ? Introduce recyclable electronics labeling

(Recyclability and Reuse)

▲ ISO 14021 Recycled Material (2) Meet customer request ? Low polluting ? Support a circular economy ? Low impact ? Low impact

▲ ErP (Energy-related Product)

▲ CEC (California Energy Commission) ? R educe energy consumption in standby & off mode

Low-carbon ▲ Energy Star or related Certification Compliant with labeling/ ? Energy saving

(Energy Saving Design) ▲ ISO 14024 Eco-label/EPEAT (Electronic Product declaration requirements ? Resource saving

? Improve energy conversion efficiency

? Keep machinery in power-saving mode

Environmental Assessment Tool) ? L ow impact ? Lower carbon emissions

■ ISO 14067 (Product Carbon Footprint PCF)

Resource-efficient ? SiP (System in Package) At least 1% smaller than ? C ompact ? Support material use

(Miniaturization Design) ? SOM (System on Module) previous generation ? Easy integration ? Improve production efficiency

Note:

1. In line with WEEE Directive requirements a target of ≥85% recycling and reuse has been set for 2030.

53 2. For ISO 14021 recycled materials USI has set 2030 targets of 14.71% recycled plastic use and 26.93% recycled aluminum use.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Hazardous Substance Management

To manage and minimize possible hazardous substances contained in our shipped products are listed below (for a partial list of banned substances and requirements please refer to

we follow the IECQ QC080000 standard to establish a Hazardous Substances Process the Sustainability Data - Environmental F. Partial Selection of Restricted Environmentally

Management System to comply with relevant directives/regulations and HSF standards Hazardous Substances Contained in Products table):

and ensure all substances are within specified limits. The main management requirements

Directive/

Regulation Control Requirements

EU Directive - R

oHS directive was officially implemented on July 1 2006. It mainly regulates the material and technical standards of electronic and electrical products. To protect

RoHS human and environmental health it prohibits the use of lead mercury cadmium hexavalent chromium PBB PBDE DEHP BBP DBP and DIBP in electronic products. (RoHS Directive includes (2011/65/EU) and Amendment Directive (EU) 2015/863).? REACH is a statutory ordinance that compulsory registration evaluation permitting and monitoring of chemicals entering the EU market which came into effect on

June 1 2007. The bill raises the quality requirements and entry barriers for products from different countries and regions to enter the EU.?

EU Regulation - For SVHC in REACH suppliers must confirm all provided components non-BOM and packaging materials and report back to USI via GPARS or questionnaire methods

REACH for any SVHC substances at/or above the 0.1% weight by weight (w/w) concentration. For the current SVHC candidate list please visit ECHA.? T he chemical substances restricted in REACH regulations are REACH Annex XVII hazardous substances. USI requests suppliers to confirm all provided components

non-BOM and packaging materials and ban the use of Annex XVII list of dangerous substances. For detailed conditions of restriction please refer to Annex XVII (amended

directive) content. For the current Annex XVII list please visit ECHA.? California Proposition 65 officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986 was enacted as a ballot initiative in November 1986. The

California proposition protects the state's drinking water sources from being contaminated with chemicals known to cause cancer birth defects or other reproductive harm and

Proposition 65 requires businesses to inform Californians about exposure to such chemicals. USI supplier must confirm all provided components non-BOM and packaging materials

and report back to USI via GPARS or Questionnaire methods for any containing hazardous substances. For the current Proposition 65 list please visit OEHHA.? The TSCA is a U.S. law that was implemented by the U.S. Environmental Protection Agency (EPA) in 1976. The law regulates the introduction of new or existing

chemicals. The main goal is to evaluate and supervise new commercial chemicals before they enter the market to regulate the chemicals that existed in 1976 and

Toxic Substances pose unreasonable risks to health or the environment and regulate the distribution and use of these chemicals.Control Act ? TSCA prohibits the production or import of chemicals that are not on the TSCA list or subject to exemptions. Chemicals listed in TSCA are called Existing Chemicals

(TSCA) while chemicals not listed are called new chemicals. Manufacturers must submit a pre-manufacturing notice to the EPA before manufacturing or importing new

chemicals for commercial use. USI suppliers must confirm and reply whether the materials provided contain hazardous substances controlled by TSCA through

questionnaires. For the current TSCA control list please visit the EPA.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

USI's Hazardous Substance Risk Assessment process includes the management of hazardous factory standards. The Company uses the risk level identification to propose countermeasures

substances in products and chemicals used in production. We evaluate hazardous substance to reduce the potential impacts on human health and the environment publicize the

risks and opportunities based on frequency of occurrence frequency of exposure and degree/ assessment information and carry out education and training for stakeholders in order to

severity of impact and the higher the risk multiplier score the higher the risk level. The risk prevent hazards from occurring. The main risk assessment process is shown in the following:

identification of hazardous substances used in products and production varies according to

Dose-response 1. Numerical or Qualitative Description of Risk

1. Standard Parameters Assessment (1) 2. Uncertain Description of The Evaluation Process

2. Hazard Information 3. Risk Management Measures

3. Exposure Information

Hazard

Characterization

Assessment

Substances of Gather All Allocate Complete Priority Document Outcome

Risk Assessment Available Substances to Risk Characterization and Public Relevant

Information Priorities Relevant Information Information

Exposure Assessment

Considerations: Assessment Criteria: 1. Public Evaluation Information

1. Inherent Hazards 1. Hazard Score 2. Education and Training of

2. Identify Use 2. Exposure Score 1. Define Scope (2) Stakeholders

3. Dissemination Control 2. Setting Exposure Scenario (3)

4. Exposure Control 3. Estimate Exposure (4)

Risk Value for Hazardous Substances

Item Hazardous Substances in Product Chemicals in Manufacturing Production

Value at Risk Risk = Occurrence Frequency × Severity Possibility = Occurrence Frequency × Operational Exposure FrequencyCalculation Risk = Possibility × Severity

Risk Level 3 Risk Level: High Medium and Low 6 Risk Level: Serious High Medium High Moderate Low and Slight

Note:

1. Dose-response assessment include the human health hazard physicochemical hazard environmental hazard persistent bioaccumulative and toxic (PBT) and very persistent and very bioaccumulative (vPvB).

2. Define scope include the material manufacturing use and exposure information.

3. Setting exposure scenario include the used scope usage possible exposure routes and exposure control measures.

4. Estimate exposure include the worker exposure/concentration or environmental exposure concentration.

USI compiles and maintains records of chemicals and restricted or prohibited substances environmental impact assessments equipment selection and procurement construction of a

based on multi-year inventory data. These records are used to establish and update internal wastewater treatment system discharge permit applications solvent performance evaluation

chemical control lists which define banned substances and related restrictions. Detailed process validation production data collection and reliability testing. A new flux-removal

control procedures are provided in the Chemical Safety Management section. As of the end of cleaning process was successfully deployed across production lines in 2020.

2025 a total of 1193 controlled substances had been identified within USI's facilities. At Nantou Facility a complete replacement of n-propyl bromide processes has not yet

In accordance with its risk assessment procedures USI conducts evaluations on 100% of been achieved on certain production lines. However additional improvement measures

mass-production products to assess potential impacts on human health and the environment. were implemented in 2025. With an investment of approximately CNY 910 USI introduced

In 2022 the number of restricted and prohibited substances increased by 179 following the movable semi-enclosed tank covers and optimized the solvent reflux system to reduce

implementation of stricter regulations on toxic chemical substances by Taiwan's Ministry of the volatilization of n-propyl bromide improve condensation recovery and lower solvent

Environment. consumption.Zhangjiang Facility initiated an environmental improvement project to replace n-propyl These initiatives demonstrate USI's ongoing efforts to reduce VOCs emissions at the

bromide (nPB) cleaning processes with a water-based alternative in response to regulatory source and to phase out n-propyl bromide which poses risks to both human health and the

requirements and customer expectations. The project involved approximately CNY 14.3 environment.million in investment and was implemented over a two-year period. Key activities included

Chemical Assessment and Statistics of Prohibited and Restricted Substances

Item Year 2022 2023 2024 2025

Chemical Assessment 160 153 301 93

Added Prohibited and

Restricted Substances 179 5 6 1

Cumene Acetaldehyde Benzyl 246-Tri-tert-butylphenol 2-tert-

New Prohibited and chloride Diphenylamine Melamine Butyl-6-(5-chloro-2H-benzotriazol-2- Dicumyl peroxide

Restricted Substances Sudan II Ammonium nitrate yl)-4-methylphenol Oligomerisation Perfluorotripropylamine Decabromodiphenyl ethane

(non-exhaustive) Tetrabromobisphenol A Bisphenol S and alkylation reaction products of Octamethyltrisiloxane etc.etc. 2-phenylpropene and phenol etc.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Sustainable Raw Materials Management

USI recognizes that establishing transparent and responsible raw materials management in the supply chain is pivotal for avoiding operational disruptions due to critical raw material scarcity

mitigating negative impacts on the environment and society and preserving resource sustainability. This Sustainable Raw Materials Policy is thus ratified and endorsed by the Board of Directors.We are committed to sustainable raw materials sourcing practices through detoxification decarbonization and dematerialization while avoiding human rights infringements.Raw Materials Suppliers

? Material tracking and origin tracing: By leveraging GPARS we gather detailed information ? Proactive investigation: We conduct preliminary assessments on our

Tracking and on the sources of metals from USI's global suppliers extending our focus beyond conflict suppliers based on key factors like level of business relationship and

Collecting minerals to also cover cobalt and mica. Since 2024 we have been assessing and collecting procurement value. At the same time we review the risks of potential

Data sourcing information of critical raw materials (including but not limited to metals such as negative impacts on the environmental social and governance aluminum copper iron nickel and titanium) in accordance with internationally recognized dimensions with respect to the supplier's category type (including raw

supply chain mineral traceability due diligence methods. material suppliers etc.).? Reduction of negative social impacts: ? Reduction of negative social impacts: A supplier Sustainability

? Conflict Materials: Aligning with the due diligence process established by the Organization Assessment Questionnaire (SAQ) was developed based on the

for Economic Cooperation and Development (OECD) to regularly examine the country of Responsible Business Code of Conduct and international standards such

origin of raw materials (including conflict minerals) to avoid using materials from conflict as the UN Universal Declaration of Human Rights. The SAQ for all Tier 1

zones. raw material suppliers are conducted regularly.? Reduction of negative environmental impact: ? Reduction of negative environmental impacts:

? Non-toxicity: Enhancing product compliance with regulations and customers' ? Climate risk: Utilize the World Resources Institute (WRI) database to

Risk sustainability requirements by establishing a hazardous substance process management assess supplier water stress and integrate data on extreme rainfall

Assessment system to ensure that the raw materials used for production do not contain substances conditions to identify suppliers at risk of experiencing flooding and

harmful to humans or the environment. landslides.? Recyclability: Conducting green material assessments and developing non-toxic (or low- ? Biodiversity: We use World Database on Protected Areas (WDPA) of

toxicity) raw materials as well as analyzes material and waste recycling reduction and International Union for Conservation of Nature (IUCN) and apply the

reuse technologies. LEAP (Locate Evaluate Assess Prepare) approach recommended by

? Eco-friendliness: Using Life Cycle Assessment (LCA) techniques to analyze the environmental the TNFD framework to assess whether the production areas of our

impact of products and raw materials and identifying improvement opportunities through raw material suppliers are located in biodiversity-sensitive areas.hotspot analyses to enhance the eco-friendly content of products and raw materials.? Eco-design guidelines: Eco-design guidelines have to be incorporated throughout all new ? Supplier guidance: USI has implemented initiatives for raw material

product and new technology development stages especially in the selection of sustainable suppliers including carbon inventory guidance and renewable

raw materials (choosing materials with lower negative sustainability impacts avoiding energy development programs. As of 2025 a total of 7 suppliers

materials from key biodiversity areas and prioritizing the use of recycled metals minerals have completed the guidance process. In addition 36 suppliers have

Coordinated and materials with third-party certifications). And include relevant review items in the project completed CDP assessments and engagement activities on energy-

Action checklist to ensure implementation in each product or technology development project. saving projects have been conducted with 5 equipment suppliers.? Through hotspot analysis and subsequent improvement actions by

the suppliers receiving carbon inventory guidance a total emissions

reduction of 79094 metric tonnes has been achieved in customer

products in 2025.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Sustainable Green Supply Chain

USI designs green products that meet global regulations based on the aspects of green European Chemicals Agency (ECHA) proposed a restriction proposal in 2023 to reduce the use

product design and constantly improves design capabilities so that products can meet of PFAS. In the same year USI also included PFAS in the Prohibited Substances Elimination

current eco-friendly trends. As a principle we Eco-Design products in the planning stages Plan and implemented relevant controls according to the latest EU announcement to provide

of product development. USI introduced the Green Parts Aggregations & Reporting System customers with the most guaranteed green products.(GPARS) a professional green value chain management platform and a Green Parts (GP)

database to manage the materials we use in our products and whether they meet the latest Year PFAS Elimination Plan

relevant requirements that include but are not limited to Hazardous Substance Free (HSF)

RoHS REACH (1) USI Green Environmental Protection Products Requirements and conduct a ? 2023-2024 Added PFSA in Banned Substance Elimination Plan list

reasonable degree of investigation on the country of origin of the minerals and assess their ? Conduct PFAS survey based on customer requirements

priority as sustainable raw materials.? Build system tools and investigate whether the components

In response to the increase in global green product regulations customer expectations for 2025-2026 contain PFAS

green product standards reduce the impact of raw material acquisition on the environment ? F ollow PFAS regulatory restrictions and exemptions

and society. Suppliers can refer to GPARS to learn about the latest green product

specifications conduct green parts certifications track raw materials to Tier 1 suppliers' ? Establish PFAS control mechanisms for components

material composition list and comply with USI Green Product Specifications requirements. including testing report requirements and limit values

For substances without feasible substitutes at this stage USI has devised a Banned Substance 2027-2028 ? Communicate PFAS regulatory compliance and customer

Elimination Plan and communicated this information to suppliers in the Annual Conferences reporting requirements to suppliers

requiring suppliers to comply with the specifications and cooperate with implementing the

Banned Substance Elimination Plan. In addition suppliers must provide Environmental ? 2029-2039 Ensure supplier components compliance

Hazard Non-Use Declaration material composition tables and verification reports all raw ? Evaluate PFAS alternative solutions

materials are 100% in line with sustainable risk assessment results including human rights

climate biological and other factors to ensure that the purchased parts and materials are

100% in compliance with company specifications. Please refer to the Hazardous Substance GPARS System

Management section for other hazardous substance requirements.New Control Green Environmental Protection Products Requirements in 2025 ERP* R&D*Purchase

Manufacturing and API (2)

Item Explanation Shipping

Total Controlled Substances 475

New Controlled Substances 39

USI GPARS Supply Chain

Names of New Controlled Substances N-Nitrosodiphenylamine

(illustrative examples) 4-Acryloylmorpholine 4-Chlorophenyl cyclopropyl ketone etc.Note:

1. In response to the announcement of adding the 36th batch Substances of Very High Concern (SVHC) the REACH list has been extended to 253 substances.

2. API Application Program Interface

The trend toward sustainable green products is inevitable. Industries could face upcoming USI Supply Chain

challenges only by establishing a sustainable supply chain. USI integrates upstream and

downstream partners to generate maximum environmental benefits from the entire

production process including product design material procurement manufacturing Raw Material Manufacturer

transportation packing selling and product recycling through a comprehensive and ? Active

transparent management system. Our R&D production and quality assurance teams can ? Metal ? Passive

also stay up to date on current standards for our products through GPARS and take necessary ? Plastic ? Mechanical

control measures. The systematic management of our global green product supply chain Consumer? (1)

helps us improve data accuracy strengthen cooperation with supply chain partners and ? Paper PCB

achieve a green supply chain. ? Glass ? Other

? Chemicals

Components Customer

Manufacturer Manufacturer/ Assembly

Note:

1. PCB Printed Circuit Board

Promoting Green Design

USI has organized internal technology forums since 2016 to develop and strengthen the This vertically integrated VRM design delivers measurable performance advantages:

capabilities of its design and R&D personnel. The forums cover a broad range of topics ? R educed size and transmission distance: Shorter power delivery paths reduce copper

including miniaturization and packaging technologies Wi-Fi systems testing methodologies losses while the overall footprint is reduced by approximately 25% compared to

reliability engineering mechanical design hardware development and smart manufacturing conventional configurations.as well as their practical applications within the Company. They provide a platform for ? E nhanced efficiency: Power routing losses are reduced by 50%.knowledge exchange bringing together design engineers and employees with related ? I mproved power density: Current density increases from 0.4 A/mm2 to 0.6 A/mm2.interests to share insights on emerging technologies and applied practices. Since 2020 The design has successfully passed rigorous reliability testing including 96 hours of unbiased

the program has been expanded from a one-day to a two-day program. In 2025 USI invited highly accelerated stress testing (UHAST) under conditions of high temperature humidity

distinguished experts to share their perspectives. Speakers included Professor Yung-Jr. and pressure as well as 1000 cycles of temperature cycling testing (TCT) demonstrating its

Hung (National Sun Yat-sen University) Dr. Y. E. Yeh (Vice President of R&D ASE Inc.) and robustness and practical applicability.Thomas Adam (R&D Director Hirschmann Car Communication). Topics ranged from Co- By advancing these modular power technologies and strengthening integration capabilities

Packaged Optics (CPO) and heterogeneous integration to integrated antenna system design USI is well positioned to address key challenges such as thermal management in high-

for automotive communications. These engagements provided recommendations to support density computing environments and the delivery of stable high-quality power to advanced

USI's development initiatives and further strengthen employees' technical expertise. processors. As AI chips continue to increase in scale and performance supporting components

As highlighted by Chairman Jeffrey Chen in usinsight the rapid advancement of generative must become smaller more intelligent and more highly integrated.AI is driving unprecedented demand for computing power across industries. This trend marks

the emergence of a new cycle of hardware reconfiguration characterized by innovations such

as new chip architectures heterogeneous integration platforms and advanced packaging

technologies―including Chip-on-Wafer-on-Substrate (CoWoS) silicon photonics Co-

Packaged Optics (CPO) and System-in-Package (SiP). These developments are critical to

overcoming existing hardware constraints and present significant opportunities in the AI era.Dr. Li-Cheng Shen positions USI as a key co-developer of AI infrastructure supported by a

comprehensive toolbox of capabilities spanning semiconductor packaging module design

and system assembly. These capabilities integrate multiple core technologies to strengthen

readiness for the accelerating AI era:

? Stacked Power Modules (Modularization): Discrete components including driver-

MOSFETs (DrMOS) inductors and capacitors are pre-integrated into three-dimensional

stacked power modules "power blocks" streamlining assembly processes and shortening

development cycles.?V ertically Integrated Multi-stage VRM and Miniaturization: Power modules are integrated

beneath the processor package rather than positioned side by side bringing power

delivery closer to the point of load.Note:

1. For more detailed information please refer to the USI blog.

USI's R&D personnel possess ecological design capabilities and continue to integrate Ecological Design Products Revenue Share

green concepts and clean technologies into product development enabling us to deliver

environmentally responsible products globally. In accordance with its Design for Environment Year 2022 2023 2024 2025

(DfE) procedures USI considers potential environmental impacts from the design stage Category

onward and works closely with project managers and customers to ensure that product

specifications meet the requirements of Energy Star and the EU ErP. Key environmental Energy Efficiency 11.2% 2.5% 2.5% 2.0%

considerations include material selection energy efficiency and carbon reduction water

resource management pollutant emissions resource efficiency and product recyclability Electronic Waste Recycling 13.2% 11.9% 9.7% 11.8%

with the aim of minimizing environmental impact across the product lifecycle.Green products incorporating clean technologies are required to comply with at least two Light and Compact 58.0% 67.0% 67.8% 67.1%

applicable eco-design standards to enhance energy efficiency and reduce environmental

impact. In 2025 revenue from clean technology-related products accounted for 55.71% of The Proportion of Total

total revenue (1) representing a slight decrease of 1.28% due to softened market demand. USI Revenue 82.4% 81.4% 80.0% 80.9%

conducts annual analyses of product revenue categorizing its portfolio into energy-efficient

products products compliant with electronic waste recycling requirements and miniaturized

or modular light and compact products. These categories have collectively accounted for In our product energy saving evaluation USI's eco-design products saved 58.7 GWh (about

more than 80% of total revenue on average over the past four years reflecting consistent 211353 GJ) equivalent to reducing 23716 metric tonnes of CO?.progress in eco-design implementation. Product Energy Efficiency Evaluation (3)

Looking ahead USI will continue to invest in research and development to expand the

adoption of clean technologies and further advance sustainable product design. Product Category Consumer Cloud and Automobile Item Electronics Storage Electronic

2025 Green Product Revenue to USI's Overall Revenue

Energy Saving in 2025

Green Product Category (2) Revenue Percentage (MWh) 438 7207 51064

Communication 26.82% Total (MWh) 58709

Industrial & Automobile Electronics 1.60%

Consumer Electronics & Cloud and Storage 27.30%

Total 55.71%

Note:

1. The clean technology revenue excluding AFG-SUZ accounted for 0.14%.

2. USI's product categories fall into five categories and this section does not cover medical categories.

3. The energy saving benefit is calculated based on the previous generation of products or market equivalent products.

USI established the Green Design Innovation and Invention Patent Incentive System since 2017. To encourage a culture of sustainability and innovation weighted scores are assigned to green-

related design initiatives. In 2025 USI further advanced green product development based on its green product design principles and the four pillars of its Green Promise. The results of these

green-related design efforts are presented below:

USI 2025 Green Design

Product Design

Aspect Key Features Performances

? Reduced raw material usage by a total of 826 kg in the annual shipment of miniaturized products.? Utilized Computer Aided Design (CAD) reports to optimize the layout of components and wiring reducing the use of capacitive/resistive

Miniaturized design and components by up to 9%.reduced waste ? Optimized the component layout density and wiring and the PCB area is reduced by approximately 19%.Choice of raw ? Using the size code 0201 and 01005 components to improve the layout density and reduced space about 9%.materials or ? Module size is reduced via advanced manufacturing process and the area is reduced by approximately 18%.components ? Total 37 metric tonnes of recycled plastic and metal in products.that have Using recycled materials ? A ctively promote the adoption of recycled solder paste among customers; many SiP product lines have achieved 100% implementation

a lower resulting in an annual carbon reduction of 121 metric tonnes.environmental

footprint Hazardous Substance ?

management 100% met RoHS environmental protection requirements.Enhance transportation ?

efficiency to reduce carbon Through the implementation of a centralized logistics hub management mechanism material transportation was reduced by 1378 land

emissions shipments 660 sea shipments and 1530 air shipments.Reduced energy ? Improve product testing efficiency to reduce energy consumption from testing equipment achieving a 22% reduction in testing time.consumption ? Optimize product testing items by eliminating a total of 20 test items saving 35 hours of testing time.Direct ?

operations Optimized material usage

Design movable semi-tank covers to optimize the raw solution reflux system reducing cleaning solvent volatilization enhancing condensation

recovery efficiency and lowering solvent consumption by 12%.production & ? Facilities promote energy saving schemes which saved a total of 2073 MWh of electricity and reduced CO? emissions by 1170 metric tonnes.manufacturing Reduced emissions and ? W e plan to recycle as much water as possible via improvement of equipment and technology the process water recycling rate of 65%.circular reuse ? Collaborate with suppliers to convert non-value waste into Refuse Derived Fuel (RDF) a stable alternative to fossil fuels transforming waste

into a new energy carrier and enabling the recycling and reuse of a total of 447 metric tonnes of waste.Distribution

storage and Recycled and reused

? USI recycled and reused about 39000 plastic pallets 6000 wood pallets 9.1 million trays 0.53 million partitions and 0.18 million recycling

transportation packaging material bins reducing a total of 3587 metric tonnes of waste.Use phase Improved energy efficiency ? T he DC-DC conversion efficiency of the DC power supply of the server product is more than 90.7%.- operation Energy efficiency ?

and servicing/ regulation 100% in compliance with California's Appliance Efficiency Regulations (CEC) and EU's Eco-design Directive (EU ErP).maintenance Energy saving ? In our product energy saving evaluation eco-design products saved 58.7 GWh.End of life ? Meet WEEE criteria Collaborated with customers and 100% met WEEE criteria in mechanical parts design.management ? 1106 metric tonnes of recyclable and reusable materials were used in USI's annual shipments.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Product Compliance

Throughout the product design process USI complies with all applicable regulatory and compliance requirements including market-specific safety and regulatory standards in the regions where

its products are sold. This helps ensure that products do not pose health or safety hazards to customers. Suppliers are required to comply with USI's Green Product Specification and products

and management systems must meet relevant international standards as well as applicable safety regulations in each market. Raw materials are strictly controlled with preference given to low-

pollution and non-toxic materials to ensure compliance. In addition product life cycle inventory assessments and eco-design evaluations are conducted and product eco-characteristic manuals

are published to comply with the EU ErP Directive. USI has also established a Chemicals Management Procedure to assess and mitigate potential risks associated with the introduction of new

chemicals into production processes as described in the Chemical Safety Management section.USI Products Compliance with Human Health Directives in 2025 In 2025 USI established an information security testing framework aligned with the EN

18031 series standards covering third-party testing certification pathways and wireless

Directive EU RoHS Halogen product development. The framework enabled support for two customers in obtaining Products Free (1) China RoHS certification. Developed under the EU Radio Equipment Directive the EN 18031 standards

Intelligent Connectivity Solutions 100% 100% 100% define cybersecurity requirements for network protection personal data and privacy and fraud prevention. Their adoption has strengthened product cybersecurity resilience reduced

Automotive & Industrial Power Electronics 100% 100% 100% supply chain risks and enhanced governance and regulatory compliance.To prepare for the phased implementation of the EU Cyber Resilience Act beginning in

Advanced Mobile and Miniaturization Solutions 100% 100% 100% September 2026 we developed a compliance roadmap and implemented Phase 1 in 2026.Key initiatives include establishing a vulnerability reporting mechanism strengthening secure

Smart Manufacturing Products 100% 100% 100% product design enhancing technical documentation and improving vulnerability disclosure

processes. These efforts support compliance with EU cybersecurity requirements while

Global Business & Operation Products 100% 100% 100% reducing security and regulatory risks.In 2025 USI received no complaints related to product-related health and safety risks and no

NexGen Swift Manufacture Products 100% 100% 100% incidents of non-compliance with product safety regulations were identified.Products undergo rigorous design reviews including the assessment of potential use USI System Products Compliance with Safety Standards in 2025

scenarios during the early development stage and the identification of regulatory gaps to Standard

enhance product safety. Through the Factory Inspection Mechanism (2) products are subject Products UL 62368-1 IEC 62368-1 CNS 14336.1 GB 4943.1

to quarterly or annual third-party audits (e.g. UL TüV and CCC) to verify compliance with

applicable safety requirements and regulations in global markets. Safety-certified electronic Intelligent Connectivity 50% 52% 36% 9%

products are labeled with appropriate safety warnings and accompanied by user manuals. Solutions

Global Business & Operation

Products 29% 43% 0% 14%

Note:

1. Conducting a halogen free compliance survey on the product bill of materials (BOM) based on customer requirements.

2. Factory Inspection Mechanism: a manufacturing factory that manufactures products which are labeled with safety

regulations shall receive factory inspection (to be audited by an external certification unit) based on the request of a

certification issuance unit to ensure that its products conform to safety regulations.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Product Life Cycle Assessment

Life Cycle Assessment (LCA) is a systematic method for evaluating the environmental impacts SimaPro the IPCC 2021 GWP100a methodology and ReCiPe 2016. The assessments were

of a product or technology throughout its entire life cycle from raw material extraction performed in accordance with ISO 14067 and ISO 14045 to evaluate impacts across 18

and processing to manufacturing transportation use and end-of-life treatment including environmental categories identify hotspots and assess eco-efficiency based on product

recycling or disposal. Among LCA methodologies a PCF quantifies GHG emissions generated value and environmental performance (2).across each life cycle stage and expresses them as CO? equivalents making it a widely used The analysis showed that approximately 90% of product carbon emissions originated from

form of Simplified Life Cycle Assessment (SLCA). raw materials and manufacturing processes. Improvement opportunities identified included

Given the diversity of USI's product portfolio carbon footprint inventories are conducted in optimizing material utilization and cutting ratios to reduce waste increasing local sourcing

phases. To meet customer demand for green products and strengthen capabilities across to lower transportation-related emissions replacing aging equipment to improve energy

facilities relevant expertise and experience in green product development and low-carbon efficiency and integrating PCF data with facility-level GHG inventories to evaluate emissions

materials have been shared. reduction performance. USI also continued promoting the use of renewable energy in its

In 2025 carbon footprint inventories were completed for 5 product series covering a total of facilities (see the Energy Management section).

179 products. Environmental impact assessments were conducted for all products including In 2025 hotspot analyses and targeted improvement measures enabled customer products

full LCAs performed by USI and its customers (representing 47.34% of revenue) (1) SLCAs to achieve a total carbon reduction of 79094 metric tonnes. Building on these results USI

based on ISO 14067 PCF verification (3.55% of revenue) and other assessment methods will continue to expand product-level carbon reduction initiatives and enhance its carbon

focused on restricted substances such as RoHS compliance (49.11% of revenue). footprint inventory program to further reduce environmental impacts and support the

USI conducted carbon footprint and eco-efficiency evaluations for one product series using development of low-carbon products.PCF/Eco-efficiency Evaluation Process

Carbon Footprint

ISO 14067

Selected Assessment Calculate Carbon Principles and standards Identify key hotspots

Methodologies Emissions for quantifying PCFand suggest

IPCC 2021 GWP100a (kg CO?e) improvements

? I nventory data

collection and Import data into

compilation SimaPro software Environmental Impact

? D atabase Coefficient

Update

Selected Assessment Results of 18 Calculate the final Identify the main

Methodologies Environmental Impact environmental types of impacts and

ReCiPe(H) Indicators damage (Pt) give recommendations

(Midpoint) (Endpoint) for improvement

Note:

1. Of the total 7.76% was assessed internally by USI.

2. Eco Efficiency↑＝ Product or Service Value↑÷Environmental Impact↓

Product Carbon Footprint Inventory Performances

Product Category Product Name Carbon Footprint Eco-efficiency Assessment/Environmental Footprint Emissions(kg CO?e/pcs) Certificate/Inventory Report

Industrial Automobile

Electronic Audio Amplifier ? ? 206.72 Audio Amplifier Inventory Report

Cloud and Storage Server Mainboard ? ? 5.78 Server Mainboard Inventory Report

Industrial Automobile

Electronic Mobile Computer ? ? 14.63 Mobile Computer Inventory Report

Cloud and Storage HZ_Smart Dock ? - 87.60 HZ Smart Dock Inventory Report

Cloud and Storage HPH_Smart Dock ? - 80.90 HPH Smart Dock Inventory Report

Consumer Charger for Hearing Aids ? ? 9.00 Hearing Aids Inventory Report

Consumer ATM Control Board ? ? 50.30 ATM Control Board Inventory Report

Industrial Automobile

Electronic Car Wiper Controller ? ? 1.97 Car Wiper Controller Inventory Report

Cloud and Storage Workstation Dock ? - 69.66 Workstation Dock Inventory Report

Cloud and Storage Smart Dock ? - 89.40 Smart Dock Inventory Report

Consumer Clickshare Button ? ? 1.81 Clickshare Button Inventory Report

Industrial Automobile

Electronic Industrial Tablet ? ? 49.20 Industrial Tablet Inventory Report

Cloud and Storage Add-on Card (AOC) ? - 16.56 AOC Inventory Report

Consumer LCD Drive X Board ? ? 4.00 X Board Certificate

Consumer LCD Drive XC Board ? ? 9.20 XC Board Certificate

Industrial Automobile

Electronic Digital Inkjet Printhead ? ? 31.07 Printhead Certificate

Cloud and Storage USB-C Dock ? ? 290.36 USB-C Dock Certificate

Cloud and Storage XnBay Smart Server ? ? 163.60 XnBay Certificate

Communication 4G LTE Module ? ? 6.56 4G LTE Certificate

Eco Labels

EPEAT Energy Star

Green Electronics Council (GEC) developed EPEAT which is an environmental performance Energy Star is an energy efficiency and environmental protection

assessment tool published by the U.S. EPA. There are 51 stipulated standards of which 23 program launched by the U.S. Department of Energy and the

are required criteria and 28 are optional criteria to assess the computer and display imaging Environmental Protection Agency. Its goal is to help consumers

equipment mobile phones network equipment photovoltaic modules and inverters servers businesses and industries save money and reduce carbon emissions

and television products. EPEAT covers the full product life cycle from design production by promoting energy-efficient products. The program established

energy use and product recycling conditions. comprehensive energy efficiency standards for computers and

First rule for hazardous substance: The first essential indicator to the reduction of use of IT equipment electrical appliances office equipment lighting

environmental hazardous substance is to comply with the EU's RoHS standard. The eight household appliances homes and buildings. Products or properties

performance categories also specify the requirement that batteries must not contain more that meet high performance and cost-effectiveness criteria are

than 25 mg of lead cadmium mercury and plastic material and except for wires and eligible to carry the Energy Star label. In 2025 6 of our cloud & storage and industrial

cables the content of polyvinyl chloride (PVC) is prohibited. Furthermore according to products met the Energy Star requirements accounting for approximately 0.47% of our total

the 8th rule: the first essential indicator for product packaging is to reduce and eliminate revenue.packaging materials with intentional addition of toxic substances and the rule specifies that WEEE

"Pb+Cd+Hg+Cr6+" must be less than 100 ppm.The WEEE Directive is an environmental directive passed by the European Union in 2003.In comparison to traditional computer equipment all EPEAT registered computer products It was established to address the disposal of waste electronic and electrical equipment by

have lower contents of lead cadmium and mercury based on the factor of protection of setting regulations for the collection recycling and recovery of such products aiming to

human health and environment and such products are more energy saving and facilitated reduce environmental pollution caused by hazardous substances. The directive requires

for upgrade and recycle/reuse. Accordingly they can reduce GHG emissions due to climate that all electronic and electrical products within its jurisdiction bear the Wheelie Bin symbol

change. For products registered by manufacturers in the EPEAT registry it is necessary to and be properly registered inspected and monitored in accordance with the specified

provide solutions beneficial to the environment and facilitating the recycle operation. If a requirements.product is able to satisfy environmental performance related standards in each stage of its

life cycle it is able to receive the reward of bonus points.In 2025 the Company assisted one of our customers to obtain the certification of silver

medal grade for Set-Top Box products the revenue from EPEAT-related products accounted

for 0.28% such that our customer was able to

gain greater opportunities of product purchase

agreements in the global market. This is an example

demonstrating USI's commitment to green design and

development together with customers and suppliers. To meet the product requirements of customers selling to the European Union we have

Furthermore the Company will also continue to exert established a standard operating procedure for WEEE Directive compliance. This procedure

effort in the GHG emission reduction due to climate outlines the relevant management and operational processes. R&D personnel are required

change. to provide a 3R (Recycle Reuse Reduce) ratio assessment and disassembly report during

the product mass production phase based on project-specific requirements to ensure

the product meets Design for Environment (DfE) standards. In 2025 we launched 15 new

industrial project products with recyclable and reusable materials accounting for 96% of

their composition.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

SDG 12 Responsible Consumption and Production calls on organizations to promote a Percentage of Post-Consumer Recycled (PCR) Plastic Relative to Total

circular economy by improving material management and resource circulation. This includes Products Produced

advancing green design principles to develop products that are durable repairable and fully

recyclable thereby enabling closed-loop supply chains extending product lifecycles and Item Year 2022 2023 2024 2025

reducing waste generation.In alignment with this objective USI collected and analyzed data on all new mass-produced % of total products 0.14% 4.43% 0.27% 0.35%

products in 2025 that comply with WEEE reporting requirements including information on

the use of recycled materials. The analysis indicates a growing market demand for products

incorporating recycled materials reinforcing the importance of sustainable product design

and circular economy practices

USI has established targets for increasing the use of recycled plastics and aluminum based on data analysis of specific product applications and customer adoption trends. A five-year roadmap

has been defined aiming for an average annual growth rate of 8%. By 2030 the target is to achieve 14.71% usage of recycled plastics and 26.93% usage of recycled aluminum. In 2025 we

achieved our 8.80% recycled plastics and 18.00% recycled aluminum targets.In addition given that high-temperature solder paste typically contains over 80% tin USI actively promotes the adoption of recycled solder paste to support resource sustainability. In 2025

recycled solder paste has been fully implemented across multiple SiP product lines resulting in a total carbon reduction of 121 metric tonnes. Building on the progress of this initiative we have

set a target to reduce carbon emissions by 2 metric tonnes annually through the continued use of recycled solder paste contributing to its net-zero ambitions.

2025 Plastic Raw Materials in Products

Plastic Materials in Products: Amount % of Materials from % of Materials

(thermoplastic materials only no packaging) (metric tonnes) Recycled Sources Recycled Target Status 2030 Target

Acrylic Acrylonitrile Butadiene Styrene (ABS) Polybutylene

Terephthalate Polyamide Polycarbonate Polyester 279.02 9.83% 8.80% 14.71%

Polyoxymethylene Polystyrene Polyurethane Silicon Rubber

2025 Metal Raw Materials in Products

Metal Materials Aluminum Cobalt Copper Iron/Steel Nickel Lithium Titanium

Amount

(metric tonnes) 657.6987 0.0011 5.8675 68.6226 0.4285 0.9329 0.0998

% of Materials from

Recycled Sources 19.5156% 0.0000% 40.1847% 1.7139% 4.9411% 0.0000% 3.1680%

Sustainable Green Education

Besides implementing green management internally USI made stakeholders further aware of procedures and eco-friendly materials. In 2025 all facilities implemented 13168 lessons

the importance of environment protection and applied the correct environmental concepts (6347 hours).to various steps in production process (i.e. the product planning raw material control and To meet customer requirements company is not only keen to participate in international

GHG emission reduction). We keep communicating with employees suppliers and contractors forums on carbon emission disclosure but also carry out plans for energy conservation and

regarding our net zero carbon emissions target EHS-associated principles knowledge and carbon emission reduction. By instilling the green concepts at internal training programs

requirements. USI's training courses on sustainable green production train employees in R&D while drawing from external experiences USI conveyed its green values and fulfilled the

procurement and quality control departments on GP-related regulations requirements Green Promises.Sustainable Green Education Courses

Hazardous

Substance Management Green Products Green Products Manufacture Green Design Controlling Green Part Verification and Developing Sustainability

System Requirements for Regulations Introduction Non-BOM Material and Process Approval Competency

Green Products Shipping Control

? Quality Policy ? RoHS Requirement by ? Green Manufacture ? Green Product Workflow ? Operating Standards and ? Sustainable Product Design

? Hazardous Substance Country Management Regulations for Green and Assessment

Management System ? REACH ? RoHS (EU) 2015/863 Products ? Responsible Business Code

? Green Product ? EU Battery ? GP & HF Definition of Conduct

Management System Regulation (EU) 2023/1542 ? Green Non-BOM ? Responsible Minerals

? Green Product Workflow ? Regulation (EU) 2025/40 on Management Management

? RoHS (EU) 2015/863 Packaging and Packaging ? Outgoing Management ? Sustainable Supply Chain

? GP Label in Production Line Waste Training

? Halogen-Free ? EU Directive - ELV

? Green Non-BOM Materials ? WEEE

? Engineering Change ? Halogen-Free

Request (ECR) Process ? CEC

? ErP

? California Proposition 65

Innovation Management

USI recognizes innovation as a key driver of sustainable growth and regards Intellectual To encourage innovation and enhance technological competitiveness USI operates a Patent

Property (IP) as one of its most valuable assets. In addition to protecting its own IP USI Management and Incentive Program that rewards employees for approved intellectual

respects the intellectual property rights of others worldwide. property applications. In 2025 total incentives for approved IP applications amounted to CNY

274 thousand. USI also regularly holds R&D Innovation Competitions to recognize outstanding

Research and Patents projects and technologies. In 2025 24 teams participated including 9 in the Successful

Projects category and 15 in the Innovative Technology category. Following a rigorous

USI has established an IP Management Policy to govern the acquisition protection evaluation process 10 teams received awards with total incentive payments of approximately

maintenance and utilization of IP while preventing infringement. The policy emphasizes that CNY 409 thousand. Through these initiatives USI continues to foster a culture of innovation

IP protection is a shared responsibility and promotes a culture of innovation that creates while strengthening its long-term technological capabilities and competitiveness.value for stakeholders. Through a structured management framework aligned with the PDCA

cycle IP management is integrated with business and operational objectives. USI also shares

its R&D achievements with industry and academia through patent filings and publications Rank Project Name Project Content

in international journals demonstrating its commitment to innovation and knowledge Successful Project

exchange. A dual sided molded miniaturized Wi-Fi/Bluetooth combo

In 2025 USI employed 3030 R&D personnel representing 13.95% of its workforce an increase Champion WM-MQ1 module for smart eyewear applications incorporating a

of 0.75% from 2024. R&D investment totaled CNY 1.901 billion accounting for 3.21% (1) Wi-Fi 7 solution with a QC 2-die front end modules

of revenue. USI continues to invest in the development of its design and engineering talent to nd

sustain its R&D intensity and strengthen long-term innovation capabilities. 2 Place WM23 Confidential business information; not disclosed

3rd Place MMW Confidential business information; not disclosed

R&D Spending and Intensity Integrated with 5G and Wi-Fi 6E connectivity along

Important with advanced scanning capabilities (optical zoom) this

3.14 3.21 Strategy 5G Rugged solution is specifically designed for industrial mobile

2.97 2.97 Award Handheld applications. It features enhanced facial recognition decoding precise indoor positioning technology and

military-grade durability

Innovative Technology

Successfully developed high aspect ratio (>1: 3) copper

Copper Pillar Pin pillar mass transfer technology and took the lead in Champion applying it to concealed capsule endoscopy miniaturized

2.03 1.81 1.91 1.90 R&D Intensity Mass Transfer modules as well as high heat dissipation power

(%) management modules for mobile device

R&D Spending

(in CNY Billion) Smarter HW Warpage improvement technology in the SiP level

2022 2023 2024 2025 2nd Place Design Enables incorporating chamfered structures for bendable SiPs in Bendable applications and passed Wi-Fi 7 High Band Simultaneous

Application (HBS) design and validations

Note:

1. Please refer to page 34 of the 2025 Annual Report for detailed information.

Rank Project Name Project Content 740 801 754

620

Innovative Technology

A breakthrough solution in vacuum printing encapsulation 216 264 240 244

technology utilizes stencil-based molding and liquid 123 13951 83 95 90 89 73

Selective resin printing under ambient temperature and pressure

Vacuum Printing conditions eliminating the need for costly customized 2nd Place Encapsulation with molds and high-temperature high-pressure molding

Fence required in conventional semiconductor encapsulation. 2022 2023 2024 2025In addition FR4 PCBs are used as a substitute for BT

substrates effectively reducing development costs for Annual Filed Application Annual Granted Application

miniaturized products

Auto Via Filling An automated panel transfer machine was developed

Accum. Filed Patent (Pending) Accum. Effective Granted Patent

Curing Transfer for post via-filling panel handling replacing manual USI's patent portfolio in electronics manufacturing and related service technologies includes

Machine operations and effectively addressing quality-related issues 257 granted patents in Mainland China 238 in Taiwan 111 in the United States 12 in Europe and 2 in other countries.Copper Pin Cu-pin module is adopted to expand the process window

3rd Place Module enabling support smaller I/O pitch thicker bottom mold

Distributed of Accumulated Effective Patents

Development For high conductivity and low heat dissipation of 2.5D & 3D 2%

DSM advanced package

AI-Driven PCB A platform integrating rule-based logic with AI-assisted

Design Rule Auto- capabilities was developed to enable automated PCB

Check Platform design rule checking thereby reducing manual effort and

18%

improving review accuracy 42%

Over the past five years the number of patent proposals approved by the Patent Review

Committee has consistently exceeded 140 annually. In 2025 129 patent proposals were filed

and approved including 16 related to key technologies such as SiP miniaturization electric

vehicle technologies and wireless communication technologies.As of 2025 USI held 620 valid granted patents (1) while the cumulative number of approved

patent applications reached 1744 representing a 4% increase from 2024. Patent application 38%

and grant trends over the past four years are presented on the right.Mainland China Taiwan U.S.A Europe Other

Note:

1. The scope of patents counted includes those from USI Science and Technology (Shenzhen) Co. Ltd. and USI

Electronics (Shenzhen) Co. Ltd. in addition to the Report scope.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Green Proposal

In 2025 total 7 of the proposals involved green process designs and have passed internal patent review meetings. The green process proposal is to increase the proportion of automated and

unmanned facility operations by reducing work hours lowering labor costs or improving efficiency to achieve energy and carbon savings in the process. The Company further encourages

employees to submit relevant design proposals to participate in R&D competitions enabling them to obtain enhanced incentives and secure intellectual property rights more effectively. Please

refer to the following table for details:

Facility Green Proposal Proposal Benefit Green Product Design Aspects

A specialized copper pillar design ? C opper-based eco-friendly lead pins increase solder joint area by over 200% improving thermal and drop ? Safety

for module packaging structures resistance while enabling direct sidewall exposure without additional processing. ? Resource-efficient

? Supports dual polarization with a 24-43.5 GHz bandwidth meeting 5G mmWave multi-band requirements.? S implified structure using molding and vacuum sputtering reducing heavy metal wastewater by over

Zhangjiang A broadband dual-polarized 80% compared to electroplating.?

dielectric antenna design for ? Axial radiation enables improved thermal dissipation reducing cooling power from 1.5W to 1.0W. Low-carbon

millimeter-wave applications ? Manufacturing steps reduced by 20%~30% lowering carbon emissions by approximately 12 g CO?e per Resource-efficient

unit.? Detachable modular design enhances recyclability achieving over 85% material recovery.A dual dam encapsulation barrier ?

fabrication method for module Copper and eco-friendly plastic materials are adopted to reduce stress on key chips and connectors

? Safety

packaging structures thereby lowering failure rates during module assembly.? Resource-efficient

A placement method for 3D ? 3D Surface Mount Technology (SMT) stacking technology is applied to utilize vertical space above passive

passive components components achieving over 40% reduction in module size. Resource-efficient

An electronic structure design

with high aspect ratio and ?

flexible layout including its Halogen-free materials are used to replace air dielectric areas with rubber (Vacuum Pad E VPE) filling

? Safety

Kunshan interconnection interface and improving SiP thermal performance and reducing power consumption.? Low-carbon

manufacturing method

A high-density flexible

interconnection interface ? W enhancing thermal and ith halogen-free materials SiP I/O pitch is reduced from 0.4 mm to 0.2 mm within the same footprint ?

electrical performance with further minimizing design area requirements.Safety

its semiconductor packaging Copper pillar structures are utilized to enhance thermal conductivity improving heat dissipation and

Low-carbon

structure and manufacturing reducing power consumption.Resource-efficient

method

An integrated communication ? H alogen-free materials and logic control reduce components and wiring optimizing circuit design.? ?

Nantou interface architecture for one Modular detachable design lowers hardware costs while improving stability and energy efficiency. Safetyto many test cards and its ? F ast switching between control boards accelerates testing and reduces energy consumption. ? Low-carbon

applications ? Scalable modular architecture enables multi-channel testing with lower standby energy use.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Sustainable Production

USI actively introduces smart manufacturing through the automated Lights-Out Factory project to streamline production quality and efficiency meet customer demand and continue

optimization of design production and energy efficiency through the Continuous Improvement Program.Smart Manufacturing

Since 2015 USI has established Zhangjiang Facility as a model factory and the name of development over the next five to ten years to increase the level of automation in USI

Automation Development Division managed by the Zhangjiang Facility general manager has facilities around the world and continue to be at the forefront of the industry.been changed to Smart Manufacturing Development Division with the introduction of smart In 2025 USI successfully introduced 87 automated manufacturing projects (1) achieving total

manufacturing. In 2016 the Company further established the Information Automation Team labor cost savings of CNY 346.78 million. The overall smart manufacturing maturity level

to further improve the function and scope of the Smart Manufacturing Development Division. reached an average of 3.37-Stars with the highest facility achieving 4.0-Stars. In addition 71

Moreover in 2021 the Division was further upgraded to Smart Manufacturing Development application modules were newly developed including 10 AI application modules alongside

Center and the organization members were also expanded to support and promote the the implementation of talent development programs that trained 34 professionals in

5-Star Lights-Out Factory development for all facilities worldwide. The Smart Manufacturing automation and smart manufacturing strengthening the Company's innovation capabilities.

Development Center completed the first WiFi SiP Module Test Lights-Out production line at

Zhangjiang Facility in 2021. In addition four production lines were upgraded to Lights Out We plan to develop 6 common platforms annually and upgrade all facilities with

operations further advancing the Company's smart manufacturing capabilities in 2025. implementation of Industry 4.0 to 3-Star or 4-Star factories in 2030 such that the average

class of facilities will reach 4.35-Star and develop 30 AI application modules. USI aims to

USI's Smart Manufacturing Program has adopted the concept of Industrial Internet of Things implement Lights-Out Factory in all facilities worldwide at least building one fully automated

(IIoT) and plans the development of the Industry 4.0 Smart Manufacturing Program in line smart manufacturing production in each facility. This demonstrates our determination to

with the electronic manufacturing industry and this is called the 5-Star Industry 4.0 Smart provide advanced manufacturing solutions capable of satisfying global customer demands

Manufacturing. We have also formulated the 5-Star Factory Standard with reference to the and creating better business results for shareholders and investors.industry i.e. more than 90% automation of machines more than 90% of machine connection

& real time monitoring and labor efficiency increased by 90%. This plan sets out a phased

Lights-Out Factory Roadmap

2018 - 2021 2022 2023 2024 2025 2026 - 2030

? Facility Monitor System ? Smart SMT ? Lights-Out Test Floor ? Advanced Planning & ? SMT Reel Automatic Splice ? Build up Auto Dispatching

? Electrostatic Discharge ? Equipment Management ? Autonomous Mobile Scheduling System System

Monitor System System Robot Platform ? Remote Control ? Intelligent Lights-Out ? Implement Run-to-Run

? SMT Management System ? Mobile System ? N? Cabinet Data ? SMT IPC-CFX Data Warehouse Control

? Equipment Production ? Back End Process Automation Automation ? Digital Twin and Machine ? Build up Fully Integrated

Traceability System of P&P Management System ? SMT Gate Keeper ? Digital Twin Platform Self-learning Capability of

? Function Test Auto Handler ? Warehouse Management ? Backend Fault Detection Lights-Out Factory ERP

Management System System Classification ? AI Application Modules

to Enhance Smart

Manufacturing Capability of

Lights-Out Factory

Note:

1. The data includes Zhangjiang Jinqiao Huizhou Kunshan Nantou Mexico Vietnam and AFG-SUZ Facilities.

Industry–Academia Collaboration – Intelligent Manufacturing

Innovation Center

Empowering Industrial Upgrade through a Joint Innovation Center Kunshan Facility recognized as a Jiangsu Province Smart Manufacturing Demonstration

Driven by the growing demand for digital transformation and intelligent manufacturing Factory since 2011 provides a real-world environment for validating and implementing

companies around the world are accelerating investments in smart technologies to enhance advanced manufacturing technologies. Meanwhile Soochow University contributes a strong

competitiveness and operational efficiency. To support this trend USI invested CNY 2 million pipeline of talent as well as expertise in robotics intelligent manufacturing and engineering

to jointly establish the Soochow University–USI (Kunshan) Intelligent Manufacturing research. Ongoing collaboration in research and development technical exchange and

Innovation Center strengthening industry–academia collaboration and advancing the engineering applications facilitate knowledge sharing and support continuous technological

development of applied technologies and innovation capabilities. advancement.Officially inaugurated on November 18 2025 the center represents a significant milestone As an integrated platform for research talent cultivation and industrial application the

in USI's intelligent manufacturing journey and reinforces its commitment to the digital Innovation Center helps bridge the gap between academia and industry while fostering long-

transformation of communications and automotive electronics manufacturing. By integrating term sustainable development.academic research with industrial expertise the center serves as a platform for accelerating Future Development: from Collaboration to Ecosystem Co-creation

technology innovation cultivating talent and promoting the practical application of research

outcomes. USI and Soochow University will continue to expand collaboration in joint talent development

and explore extending this model to additional USI facilities. The center will focus on

addressing technical challenges in communications and automotive electronics with an

emphasis on applying research outcomes in production environments.Through continued collaboration the center is expected to support ongoing innovation and

contribute to the development of more efficient and sustainable manufacturing practices.Three Core Areas of Focus

? T echnological Innovation: Enhancing R&D efficiency and facilitating the application of

research outcomes in industrial settings.? T alent Development: Providing practical training opportunities while supporting

recruitment and skills development.? Resource Integration: Leveraging academic industrial and policy resources to support

innovation and improve competitiveness.Sustainable Collaboration Framework

The collaboration combines Soochow University's strengths in mechatronics artificial

intelligence materials science and advanced research capabilities with USI's extensive

manufacturing experience and application expertise. Through close cooperation both parties

work to develop innovative and practical solutions that address evolving industry needs.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Continuous Improvement Program

Continuous Improvement Program (CIP) proposes improvement plans for productivity After the total performance of 2025 is calculated by COD the actual tangible cost saving was

process quality efficiency equipment software hardware energy conservation and CO? CNY 112.98 million and the saving cost accounted for 0.24% of revenue. Please refer to the

emission reduction automation safety digital innovation and have cost saving benefits. figure for the details of each facility.CIP Performance by Facility

CIP Purpose

Vietnam

? Build a platform to realize ideas and approve employees' endeavors Mexico

and awards 3.946.37

? Encourage employees devoting to continuous improvement to Nantou

achieve cost savings in operations 7.66

? Enhance teamwork and enterprise competitiveness Kunshan

CIP Performance

14.43 % 47.06

The proposed cases are reviewed by Site Review Committee (SRC) for their project results Zhangjiang

that including innovation and development capability actual saving value attainment

capability technical application capability standard operation capability and reproduction

operation capability. For the annual review meeting the hosting unit (Corporate Operation

Development COD) selects cases and submits them to the Corporate Review Committee (CRC) Huizhou 9.57

to review the content and effect of saving. In addition facilities are encouraged to replicate

cases of outstanding implementation effect to expand the positive outcome. In the past year 10.97Jinqiao

864 projects have been executed. In addition according to the statistics shown in the graph

below on average about 440 new projects are proposed each year.The CIP annual performance reward is based on performance achievement and facility

profitability comprising a base reward and a performance-based bonus. The bonus is split

between individual/team contributions (20~70%) and departmental or organizational

864

808 performance (30~80%) ensuring recognition reflects both personal impact and collective 769 success. The Facility general manager makes comprehensive determination followed

609 by distributing bonus to project responsible persons (including employees and their

521 department/division supervisors who are involved in project improvement activities). The

458 451

On-going Case total bonus distributed was CNY 785000. In addition the CIP Excellent Contribution Award

360 is a global competition that in 2025 includes a Case Category competition and a SMT Run

New Case Rate Improving Gains Award competition in which the winning teams are awarded trophy

2022 2023 2024 2025 and awarded a total of CNY 289000 to winning employees for their efforts in continuous improvement.

CIP Excellent Contribution Award

In response to climate change USI has incorporated energy saving and carbon reduction into the key award categories of the CIP Excellence Contribution Awards. In line with AI-driven trends

digital transformation has also been recognized since 2024 as a key driver of sustainable operations and included as a priority category. The organizing unit (COD) has established corresponding

evaluation criteria and increased the quota for key project awards to encourage green and digital innovation proposals.In 2025 a total of 9 award-winning projects among which there were 3 digitalization innovation projects and 2 energy-saving and carbon reduction projects receiving awards the total carbon

reduction amount 1736 metric tonnes. For the annual award-winning projects please refer to the following table for details:

Facility Rank Project Name Project Benefit

Key Projects

Independent R&D and Implementation An in-house SECS/GEM driver and EAP platform enables precise equipment data integration with MES and RMS systems supporting

Zhangjiang Gold of the SECS/GEM (1) EAP (2) Platform automated process control full traceability improved product quality and AMHS (3) integration for end-to-end automated manufacturing

(digitalization innovation) with cumulative savings of CNY 1.21 million.COD Digital Optimization - WW Mfg. KPI An interactive digital dashboard covering all USI manufacturing sites integrates equipment-related metrics with automatic updates.Nantou Silver Dashboard Leveraging in-house IT capabilities and AI tools (e.g. Copilot) it consolidates multi-system data into a unified cloud-based platform

(digitalization innovation) enhancing data accessibility flexibility and scalability with cumulative savings of CNY 0.35 million.Warehouse 3-in-1 Creative Material Through the integration and automation of SAP WMS and MES systems operational workflows and workstations are streamlined.Huizhou Silver Reception Process Barcode-based processes enable automated material receiving palletizing and SAP posting reducing labor requirements and space

(digitalization innovation) utilization with cumulative savings of CNY 0.46 million.Energy Saving and Optimization of Implement online monitoring of compressed air systems to enable visualized and digitalized operations thereby reducing energy

Kunshan Bronze Compressed Air Systems consumption saving 2.84 GWh of electricity annually and reducing carbon emissions by 1715 metric tonnes with cumulative savings of

(energy-saving and carbon reduction) CNY 1.33 million.Handler UPS (4) System Optimization Through load analysis and risk validation the removal of one UPS was confirmed to have no impact on testing quality while optimizing Zhangjiang Bronze (energy-saving and carbon reduction) power protection reducing costs lowering carbon emissions and decreasing annual battery waste by 34 units saving 35.7 MWh of electricity annually and reducing carbon emissions by 21 metric tonnes with cumulative savings of CNY 0.17 million.Other Projects

Jinqiao Gold Laser Head (SP Talon 532-40) Lifetime A laser head power and lifetime monitoring system was developed along with standardized replacement and health assessment Extension procedures to reduce procurement and production costs with cumulative savings of CNY 1.43 million.Zhangjiang Silver Laser Drill UPH (5) Improvement Audio products adopt a laser drilling process with new desmear materials to ensure via filling and printing continuity. Silver paste is used to replace antenna modules reducing downstream packaging steps and overall costs with cumulative savings of CNY 0.75 million.Develop PC M/B Streamline Automation Collaborative robots and autonomous mobile robots were implemented to enable automation across testing assembly and AVI stations Kunshan Bronze Line with Test Assembly and AVI (6) establishing USI's first flexible automated PC M/B production line reducing labor effort minimizing handling risks and increasing automation levels with cumulative savings of CNY 0.75 million.Zhangjiang Bronze Auto Reel Loading and Unloading for An integrated system with material shortage management feeder handling and AGV

(7) automation streamlines material flow reduces

SMT Production Lines Project manual errors and enhances traceability with cumulative savings of CNY 0.55 million.Note:

1. SECS/GEM SEMI Equipment Communications Standard/Generic Equipment 3. AMHS Automated Material Handling System 6. AVI Automatic Visual Inspection

Model 4. UPS Uninterruptible Power Supply 7. AGV Automated Guided Vehicle

2. EAP Enterprise AI Platform 5. UPH Unit Per Hour

Value Chain

Management

In response to rapid global development

effective supply chain management not only

reduces production costs and improves product

quality to enhance customer satisfaction but

also strengthens business growth and social

responsibility. By collaborating with partners we 86.3 0 Cases 95 % New Suppliers

can build a resilient supply chain and contribute

to a more sustainable future. Customer Satisfaction Product Recalls Passed the Sustainability

Score Assessment

Key Stakeholders:

Customers Suppliers/Contractors 4058 Metric Tonnes 388 Supplier Partners 95 % Key Suppliers

SDGs Waste Reduced in Participated in the Completed the CDP

Collaboration with Sustainable Value Chain Questionnaire

Suppliers Webinar

Sustainable Issue Performance and Targets

Material Issue Achieved Not Achieved (1)

Management Purpose KPI 2025 Target 2025 Performance Status 2026 Target 2030 Target

Management Approach: Manage and monitor customer satisfaction through surveys and feedback channels gain insight and respond to customer expectations

Customer Relations accurately provide quality and diversified service solutions and create a win-win situation with customers.Evaluation Mechanism: Develop and implement improvement plans to enhance customer satisfaction through surveys and customer feedback systems.Meet customers' diverse needs Customer satisfaction score Customer satisfaction 86.3 Customer Customer satisfaction Customer Satisfaction

and resolve customer feedback score reaches 85.2 satisfaction score score reaches 85.8 Score reaches 86.2

ensuring continued business Zero product recalls 0 product recalls 0 product recalls 0 product recalls 0 product recalls

Management Approach: Develop sustainable procurement policies around evaluating supplier environmental/social performance avoiding purchasing conflict

minerals and advancing with our suppliers to lower operational risks and secure overall supply chain resilience.Sustainable Supply Chain Evaluation Mechanism: Conduct annual surveys including Minerals Reporting Template (MRT) SAQ survey and a Net Zero questionnaire for Key Suppliers

for Decarbonization Engagement (2) to evaluate and track deficiencies based on survey results and establish a traceable management for supply chain

decarbonization.Support local suppliers and procurement Global local procurement 33% Global local Global local procurement Global local procurementrate reaches 37% procurement rate maintains at least 30% maintains at least 32%

Percentage of target suppliers that 100% Target suppliers 100% Target suppliers use conflict-free 100% Target suppliers 100% Target suppliers use completed the MRT use conflict-free minerals minerals use conflict-free minerals conflict-free minerals

Percentage of Tier 1 suppliers Tier 1 Suppliers SAQ Tier 1 Suppliers SAQ Tier 1 SuppliersCollaborate with suppliers to

completing the SAQ completion rate reaches

76% SAQ completion completion rate reaches SAQ completion rate

build a sustainable supply chain 75% rate 75% reaches 75%

that protects the environment

upholds social responsibility Reach 50% GHG 76% of raw material Raw material suppliers' Raw material suppliers' Percentage of Key Suppliers for

respects labor and human rights emissions verification for suppliers completed verification rate reaches verification rate reaches Decarbonization Engagement that have

and promotes health and safety raw material suppliers verification 60% 100%obtained GHG emissions verification

while advancing the value chain (ISO 14064-1 or equivalent third-party Equipment suppliers 40% of Equipment Equipment suppliers' Equipment suppliers'

toward net zero through supply assurance) achieve a verification suppliers completed verification rate reaches verification rate reaches

chain decarbonization efforts rate of 40% verification 60% 100%

Percentage of key raw material suppliers Raw material suppliers 23% of raw material Raw material suppliers' Raw material suppliers'

for Decarbonization Engagement that achieve a verification suppliers completed verification rate reaches verification rate reaches

have obtained PCF verification rate of 30% verification 40% 80%

Questionnaire Completion Rate of Key Completed CDP

Suppliers (3) in the CDP Supply Chain questionnaire responses 95% CDP questionnaire Completion rate reaches Completion rate reaches

Program reached 80% completion rate 85% 100%

Note:

1. For not achieved targets please refer to the corresponding sections for relevant explanations and future improvement plans. 3. CDP Key Suppliers: Suppliers account for 80% of raw material and

2. Key Suppliers for Decarbonization Engagement: (1) Top five raw material categories with the highest carbon emissions; (2) high energy-consuming machinery and equipment procurement spending.

equipment. In 2025 a total of 26 key suppliers were engaged in decarbonization efforts including 21 raw material suppliers and 5 machinery and equipment suppliers.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Product Value Chain

USI is a global leader in electronic design and manufacturing providing Design Manufacturing Miniaturization industrial Software and hardware Solutions as well as material procurement

logistics and maintenance services for leading domestic and international brands. We integrate our products and services into a Value Chain and provide a Turnkey Service (1) for our customers

as shown in the figures below:

Product Value Chain Turnkey Service

Customer Supplier (2) Material sourcing & RFQ

Agent

Contractor

Material planning & purchasing

Communication Consumer

5G SiP WiFi SiP Main Logic Board LCD X-Y Board Inventory management

Smart Phone & Tablet Smart Phone & Tablet for Wearable Device TV NB Monitor

Watch Earbuds Glasses…

VMI hub management

Product RMA service

Categories

SHD & POS Car Electronics Server & ASIC Optical

Logistics & Car LED Lighting AI Card Interconnect

Warehousing Inverter SMB and Data Center & Storage Supplier management

Power Module Docking Optical Transceiver

xEV Powertrain Docking for NB Solid State Drive

System integrator relationship

Industrial & Car & Medical Cloud & Storage

Logistic arrangements

PCBA & box assembly

Note:

1. Turnkey Service is service integration.

2. Material suppliers refer to suppliers of PCBs substrates active/passive components other electromechanical components mechanical components packaging

materials and accessories.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Customer Relations

USI provides engineering and manufacturing services across the product lifecycle from design USI's quality management system covers all major product and service activities including

and development to production and distribution to meet the needs of global customers. Its business planning product design and development manufacturing process development

capabilities in research and development and manufacturing support integrated solutions and control material planning production scheduling production management delivery

across multiple application areas. and after-sales service. Through the PDCA cycle USI strengthens process control quality

Drawing on extensive experience in customer collaboration USI integrates core technologies assurance and risk management supporting continuous improvement in product quality and

in computing communications and multimedia processing. These capabilities support the reduction of operational risks.solutions for wireless communication products computing and industrial applications

storage and server systems automotive electronics video applications and miniaturized Plan Do

products. Customer satisfaction remains a central operational priority. ? Confirm Scope of Management ? Establish Management Program

Quality Management ? Risk Assessment ? C onstruct Control method? Control of Confirmation ? Execute Management

USI has established a comprehensive quality management system supported by a formal ? Control of Selection Procedures

Quality Policy. All facilities are certified under ISO 9001 to ensure that products comply with ? Training and Publicity

applicable regulations and customer requirements. Selected facilities have also obtained

additional certifications including ISO 26262 (Road Vehicles―Functional Safety) and ISO

13485 (Medical Devices―Quality Management Systems). A full overview is provided in the

Management Systems and Certifications Table. Act Check

? Execute Appropriate Correction ? Risk Reassessment

? R eport on Implementation ? R ecords and Tracking Review

Results ? Regular Audit

Quality Policy Quality Mission ? C onfirm Target Achieved ? Performance Evaluation

? C ontinuous Improvement

Customer first quality I mproving the

prioritized and meet performance of the

customer expectation. related quality control To ensure the effectiveness and compliance of quality control and hazardous substance

All involvement process. management systems USI implements an annual internal audit program conducted by cross-

continually improve functional teams. Audits include interviews document reviews and on-site inspections.and pursue Zero Defect. Provides an efficient

Comply with standards management process

Identified non-conformities are assigned to responsible units for corrective action with

for management. follow-up to ensure timely resolution. Audit results are reported regularly to management to and regulations support continuous improvement and strengthen system performance.ensure the safety of P roven compliance

automotive products USI has also established a Quality College to provide structured training programs that with customer

and medical devices. regulatory and/or other enhance employees' technical competencies and reinforce quality management awareness.P revent hazards ensure requirements. In 2025 training activities recorded a total of 21167 attendances and 13710 training

safety and minimize hours. These programs support ongoing improvements in quality management and customer

potential risks. Continuous assessment satisfaction.and improvement.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Customer Service and Feedback

USI has established a structured customer relationship and feedback management framework Customer Feedback and Complaint Classification

that integrates feedback collection complaint handling quality improvement and after-

sales services. Customer input is gathered through multiple communication channels and Classification Quantity Case closure rate

incorporated into internal management processes to support operational improvements and

service quality. Manufacturing Process 4

Customer Communication and Feedback Management Personnel Operations 4 100%

In line with its Quality Policy USI has defined an Operation Procedure for Communication Material Defects 3

with Customers based on the PDCA cycle to standardize communication and feedback Product Design 1

integration. Customers may submit feedback or request support through multiple channels

including online forms email dedicated phone lines and in-person meetings. USI collects

customer feedback across all stages of the product lifecycle―from development and mass Customer Feedback and Complaint Handling Process

production to after-sales service―covering key areas such as quality delivery service and

design. Feedback is integrated into design review and quality management processes through Customer Feedback & ? Online form email dedicated hotline and in-

cross-functional collaboration with gap analyses and corrective actions systematically Complaints person

tracked and monitored. Insights derived from this feedback are continuously incorporated into

product design optimization process improvement and service development. USI regularly ? Designated units promptly verify and record

reviews KPI performance to further strengthen its customer-centric approach to product and

service development. Case Registration

information

? Initial response within 48 hours

Under the Customer Complaint Handling Procedure all complaints are formally recorded

and assigned to responsible units for investigation and resolution. Customers receive ? Inspect raw materials semi-finished and

acknowledgment of receipt and are informed of the handling process. Response timelines Inspection & Shipment Hold finished products

follow customer-defined requirements where applicable. Otherwise USI provides an initial ? Notify relevant units to hold shipments

response within 48 hours and a detailed explanation of corrective and preventive actions

within seven working days. All cases are expected to be closed within 90 days. Where

additional time is required customers are informed in advance and agreement on revised Defect Analysis & Corrective

? Implement short-term and long-term actions

timelines is obtained. Actions

If a case involves product safety concerns or significant quality risks risk control measures―

including product recall procedures where necessary―are initiated in accordance with ? Provide action report to customers

internal protocols. In 2025 USI recorded 12 customer complaint cases with no product Customer Response ? Complete within 7 days close within 90 days

recalls. Customer feedback data is used to support ongoing improvements in quality (extension requires customer approval)

management and customer service processes.Verification & Case Closure ? Verify corrective action effectiveness

? Store record

Product & Service ? Incorporate feedback into product and service

Improvement development through the PDCA cycle

All-Encompassing After-Sales Service After-Sales Service Scope

USI provides lifecycle-oriented service solutions including spare parts replacement system

refurbishment reverse logistics and Return to Vendor (RTV) services. These services enable RMA service Spare Parts Technical Support

customers to extend product lifespans reduce disposal and improve resource efficiency

ultimately minimizing electronic waste. Service plan proposal Need-based on site support

To improve global service consistency and enhance transparency in request submission and

tracking USI continues to optimize its eRMA system and integrate it with Systems Applications Warranty repair Standard lead-time Repair training

and Products (SAP) enabling real-time tracking of request status. and emergency

In parallel USI has established a structured spare parts management framework supported by Engineering Change order spare parts Troubleshooting & failure

material substitution options technical expertise repair training and failure analysis. These rework sale analysis

initiatives support customer operations and maintenance activities while improving service Product swap/ Test fixture and technical

quality and strengthening long-term collaboration. Refurbishment documentation

Driving Up Customer Satisfaction

USI places customer satisfaction at the core of its operations and recognizes it as a key driver of sustainable development and value creation. Through regular meetings project discussions

customer scorecards and satisfaction surveys USI systematically collects feedback on product quality delivery performance and service. Feedback is consolidated by responsible units and

reviewed in cross-functional meetings. Improvement actions are developed to address identified issues and potential risks with progress tracked systematically. This closed-loop feedback

process supports the effective translation of customer input into operational improvements.The 2025 Customer Satisfaction Survey (1) covered all customers representing 100% of USI's revenue. Using a target satisfaction threshold of 93% 96.4% of customers surveyed reported

satisfaction with USI's services. The average customer satisfaction score across all measured dimensions was 86.3.USI strengthens service effectiveness through cross-functional coordination process optimization and quality management initiatives. Through structured communication USI supports

customer engagement and long-term collaboration building a resilient and sustainable partnership.Percentage of Satisfied Customers Customer Satisfaction Score

Quality

Other Delivery 99%

95% 96%

87.1

93%

Aspects of 86.3

Customer

Satisfaction

Service Technology

84.5

Green 84.2

Products

2022 2023 2024 2025 2022 2023 2024 2025

Note:

1. Customer Satisfaction Score: Outstanding (Satisfaction ≥ 90) Excellent (Satisfaction ≥ 85) Successful (Satisfaction ≥ 80) Satisfied (Satisfaction ≥ 70) Improvement Required (Satisfaction ≥ 60) Unacceptable (Satisfaction < 60).

Customer Privacy Protection

Customer confidential information is regarded as a critical asset and a cornerstone of mutual Regarding customer document management the Company stipulates that all customer

trust. Our company is deeply committed to safeguarding customer privacy and the integrity documents are defined to have the highest level of confidentiality to protect product

of confidential data. To ensure this we enter into non-disclosure agreements (NDAs) with information provided by customers. Document information shall be encrypted and stored

our clients with contractual provisions explicitly outlining our responsibility to protect in USI's internal network system. For information security management USI's cybersecurity

such information. Additionally we have also established privacy and personal information objectives are to ensure the preservation of Confidentiality Integrity Availability and

protection policies that serve as the basis for compliance management. This includes Compliance of the core systems engaged in business operations establish information

managing the collection processing and use of personal information and practicing privacy security standard management procedures and training courses to promote and implement

and personal information protection to ensure the rights and interests of all. Relevant details information security policies through various management systems and management

are outlined in our Privacy Policy. Please refer to the Business Ethics and Compliance section committees strengthen information security environment and incident response capabilities

for our Privacy Policy. and protect the Company's intellectual property and customer data from leaking or

unauthorized access. For details please refer to the Information Security Management

section.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Supply Chain Management

Development

In recent years the global electronics industry has experienced steady growth reflecting sustained demand. However the operating environment of alternative Material

shortage review

remains challenging with uncertainties in semiconductor supply geopolitical risks natural disasters inflationary pressures and increasingly material mechanisms

stringent environmental regulations across regions. These factors may result in supply disruptions cost volatility and heightened compliance mechanisms

requirements increasing the need for effective risk management and response capabilities.Against this backdrop the electronics industry is gradually transforming from a traditional execution-oriented supply chain to a value-driven Critical

supply chain that emphasizes resilience and agility. Companies are required not only to ensure the stability of production and delivery but also Emergency Material Risk Purchase

to make rapid adjustments in response to market fluctuations and policy changes. Amid an environment of both growth and challenges USI is response Management mechanism

committed to balancing market expansion supply chain resilience and sustainable development. management from spot measures dealers

For materials with specialized specifications limited substitutes or constrained market supply USI has identified five categories of critical

production materials and established corresponding management mechanisms. Procurement functions have implemented targeted measures to Inter-facility

transfer and

reduce supply disruption risks and maintain operational stability. USI continues to strengthen communication and collaboration with suppliers to rebalancing

support a stable and efficient supply chain. mechanisms

Supply Chain Overview Local Procurement

USI supports local suppliers to promote regional economic development and create employment opportunities. This approach also

USI products are diverse and can be applied in helps reduce transportation time and energy consumption lowering environmental impacts from logistics.many sectors. Our raw material suppliers including

original manufacturers agents and distributors are In 2025 spending on local suppliers declined primarily due to customer requirements mandating the use of designated sources for

spread worldwide to meet our product demand. specific materials and components. These constraints limited the participation of local suppliers. This not only affected the overall

proportion of local procurement but also increased reliance on multinational suppliers adding management complexity and cost

Raw Material Suppliers Distribution (1) pressures.Going forward USI aims to meet customer requirements while diversifying its manufacturing footprint and evaluating new suppliers.It will also develop multi-source strategies for raw materials to gradually increase local procurement and reinforce its commitment to

14 sustainable and responsible supply chain management.

25 Percentage of Procurement from Local Suppliers at Global Local Procurement Rate

All Facilities (2)

49 51 51

43 43% 40% 41%

% 37 32

24 28 33%26 27

37%

35%

5 6 74 4 4 5

Mainland China Asia Europe America 3

Note:

1. The percentages of the amount purchased are calculated 2022 2023 2024 2025 2022 2023 2024 2025

according to the supplier distribution regions.

2. The percentages of the purchase amount of each facility. Southeast Asia Taiwan Mexico Mainland China Performance Target

83 Procurement Rate %About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Unique Significant Suppliers

Within the supply chain raw material suppliers and machinery and equipment suppliers have the most direct impact on daily operations and production activities.Raw material suppliers are further classified into two categories: direct materials which are used in production processes and indirect and packaging materials which support operations or are

used for product packaging. Based on materiality USI has established corresponding management requirements and control mechanisms to enhance overall supply chain stability and resilience.To support efficient resource allocation and prioritize management efforts USI focuses on raw material suppliers and machinery and equipment suppliers with ongoing business relationships.Suppliers with annual procurement volumes above a defined threshold and sustained transaction activity are designated as "unique suppliers" (1) and are managed in accordance with established

policies and procedures. In 2025 a total of 495 suppliers met this definition.Building on this framework USI conducts supply chain risk and criticality assessments to identify suppliers with a greater operational impact. These suppliers are designated as "unique

significant suppliers" (2) and are subject to enhanced management and development measures. In 2025 196 suppliers were identified in this category. For additional details on supplier screening

refer to the Sustainability Data – Social K. KPI for Supplier Assessment and Development table.Supplier Code of Conduct Supply Chain Management Strategy

As a key component of USI's value chain and an extension of its corporate values the supply chain is

expected to operate in alignment with the Supplier Code of Conduct. USI requires its suppliers as well

as their upstream suppliers to comply with the Code. Suppliers must adhere to applicable laws and Responsible Diversified Sources

regulations in their respective countries and regions and meet standards related to labor practices Minerals Sourcing To maintain at least two

health and safety environmental protection business ethics and management systems. Suppliers are To ensure that suppliers are using only suppliers for the same

also expected to promote compliance with these requirements within their own supply chains. responsibly sourced material to ensure a continuous supply.USI communicates the Code to suppliers on an annual basis to ensure awareness and alignment. In conflict-free minerals in their products.

2025 100% of suppliers with active transactions were notified of the Code and required compliance

expectations.As part of its anti-corruption governance framework USI maintains a dedicated whistleblowing channel

through which stakeholders may report concerns related to business ethics and integrity (see the

Business Ethics and Compliance section). No cases of corruption or bribery involving suppliers were Strategic Cooperation Value-OrientedTo integrate suppliers' To obtain a competitive

reported in 2025. resources and overall value in the

capabilities for greater supply chain.Supply Chain Strategy innovation.USI fully understands that the overall power of procurement is a unique resource. To pursue sustainable

growth while meeting the needs of our customers in the Company's daily procurement operations in

addition to cost and quality considerations we have developed six major supply chain strategies and

evaluated the sustainability value of different projects such as supply chain diversity and sustainable Sustainable Sourcing Quality First

procurement. With the development and progress of these projects the Company shall continue to To raise suppliers' To obtain the best quality

improve overall supply chain resilience grow together with our suppliers and implement sustainable economic environmental products and services

procurement. In all we hope to create a mutually beneficial future for our customers our company and and social performance in from suppliers.sustainability.our suppliers by developing stable partnerships with them.Note:

1. Unique Suppliers: (1) Tier 1 suppliers: Suppliers with transactions over two consecutive years including (a) raw material suppliers replaceability such as printed circuit boards semiconductor parts mechanical parts and connectors. (2)

with annual procurement amounts exceeding USD 200000; and (b) equipment suppliers accounting for the top 80% of annual High Risk Suppliers: Suppliers with priority or other non-conformances regarding labor rights health and

procurement spend. (2) Non-Tier 1 suppliers: Suppliers providing raw materials or equipment through agents or distributors. safety environment sustainability supply chain management unsafe production practices that result in

2. Unique Significant Suppliers: (1) Critical Tier 1 Suppliers: (a) Raw material and equipment suppliers accounting for the top 85% fines or shutdowns.

of procurement spend with transactions maintained over two consecutive years. (b) Suppliers for key raw materials and low 84About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Sustainable Supply Chain Projects

Projects Highlights Quantitative/Qualitative Results

Supplier Financial Risk USI regularly reviews suppliers' financial risk and identifies those with potential operational concerns to mitigate material shortages due to In 2025 the Procurement and Finance Departments collaborated to conduct Monitoring supplier financial risk. semi-annual financial risk assessments covering 46 suppliers.Valued Supplier To reduce reliance on single regions or suppliers USI diversifies suppliers and USI is actively developing competitive suppliers in the Mainland China market

Development increases local sourcing thereby strengthening supply chain stability and and proposing alternative sourcing solutions to our customers. Projects resilience. implemented in 2025 resulted in annual cost savings of CNY 28.4 million.USI established a centralized distribution hub to consolidate goods from

multiple sources optimize routing and scheduling by destination and 2025 supplier coordination reduced transportation frequency: Vietnam Centralized Distribution

Hub improve overall transport efficiency. This approach reduces logistics costs

Facility―road shipments decreased from 1685 to 307 Mexico Facility―sea

minimizes handling and supports USI's decarbonization and logistics shipments decreased from 960 to 300 and air shipments from 1731 to 201.efficiency strategy. These improvements resulted in total cost savings of CNY 19.6 million.USI reduced waste by recycling spent activated carbon diverting material

Spent Activated Carbon previously sent for incineration back into the circular system. This initiative In 2025 USI collaborated with environmental technology partners to recycle

Recycling supports resource recovery and contributes to progress toward zero-waste 24.6 metric tonnes of spent activated carbon including 16.2 metric tonnes

manufacturing. at the Zhangjiang Facility and 8.4 metric tonnes at the Jinqiao Facility.Collaborate with third-party specialists to develop Refuse Derived Fuel In 2025 we collaborated with environmental service providers to convert

Solid Waste-to-Energy (RDF) solutions converting non-recyclable production waste into alternative non-recyclable waste from incineration to RDF-based resource recovery. A

Conversion fuel compliant with T/SCEA 00016-2025 reducing incineration impacts total of 446.6 metric tonnes were recovered including 314.9 metric tonnes while enhancing energy recovery and supporting waste reduction energy at the Zhangjiang Facility and 131.7 metric tonnes at the Jinqiao Facility

substitution and carbon optimization significantly enhancing waste circularity performance.Recycling Packaging Collaborate with major processing vendors and recycle packaging materials In 2025 Zhangjiang Huizhou Kunshan and Nantou Facilities recycled 9.07

Materials reducing raw material energy and pollutant treatment costs and minimizing million trays 180000 partitions and 530000 recycling bins reducing 3587 environmental impact. metric tonnes of waste and saving approximately CNY 50 million.Pallet Recycling and Cooperate with local suppliers and reuse shipping pallets reducing pallets In 2025 Huizhou Kunshan and Nantou Facilities recycled and reused

Reuse used and subsequent environmental damage. 38657 plastic pallets and 6002 wood pallets and saved approximately CNY 6 million.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Supplier Evaluation

Following customer demands procurement strategy and future trends USI has a system

to evaluate potential suppliers for technical capability quality and productivity and select Board of Directors

those that meet the requirements as our official suppliers. A cross-departmental evaluation

team would initially survey potential new suppliers' capacity by screening their basic company

information financials product services and primary customers and then assess their quality Strategy and Sustainability Committee

green product management and sustainability through the SAQ (including labor rights

health and safety environmental protection and other components).The team would rate the supplier on the survey report and present it to the Quality Review Sustainability Committee

Board for final assessment and approval. All new suppliers developed by USI are required to Chair: President

sign the Supplier's Commitment to Corporate Social Responsibilities and Supplier Code of Vice Chair: Senior Vice President

Business Integrity along with the Purchasing Contract to ensure they will address and manage Executive

their environmental labor and human rights impacts. In 2025 a total of 39 new suppliers Secretariat

were evaluated and 95% passed the screening criteria to become qualified suppliers. S&EHS Division

Value Chain Management

Sustainable Supply Chain Leader: Senior Vice President of the Supply Chain Department

Coordinator: Supervisor at the department-level or above

With the UN's advocacy and worldwide trend in supply chain management suppliers are appointed by the Taskforce Leader

expected to meet environmental social and governance standards in addition to quality

delivery and cost to create sustainable value with partners across the value chain.USI's Supplier ESG Programs are executed and overseen by the Strategy and Sustainability

Committee led by the Chair under authorization from the Board of Directors. This structure Supplier ESG Risk Green Low Carbon Responsible Minerals

ensures Board-level supervision alignment of company policies and implementation Management Supply Chain Initiative Compliance

and continuous improvement to achieve long-term goals. In addition the Sustainability

Committee also track and review the performance of supply chain sustainability indicators

on a semi-annual basis including supplier rewards and exclusions supplier risk assessment In addition based on the quarterly supplier performance measurement results USI

and tiered management desk or on-site audits and corrective actions supplier capability/ invites select suppliers to participate in the Company's quarterly Executive Business

technology development programs and training initiatives. Review (EBR) meetings using a scorecard to score the four major components of price

delivery and cooperation quality and ESG by the responsible units. Through this channel

USI regularly evaluates suppliers through its Supplier Performance Measurement Procedure of communication USI can educate suppliers on the Company's sustainability policy and

prioritizing assessments based on transaction volume. Performance is rated across five levels. ESG strategy gain insights into market supply and demand and development trends share

Top-performing suppliers are rewarded with preferential access to new product contracts and experiences with each other maintain close interaction with suppliers and find long-term

increased order volumes. suppliers. In 2025 a total of 25 EBR meetings were held.If the supplier does not meet the expectations the Company will request a Vendor Corrective In addition to the supplier assessment process in 2025 we trained 100% of our internal

Action Report (VCAR) and require the supplier to provide a reply and proof of improvement procurement staff and other employees in sustainability knowledge and awareness with

within one month. a total of 3556 employees participating 2654 hours in the training sessions to ensure

If the response and follow-up reviews remain unsatisfactory USI will initiate a transaction that they understand the Company's Supplier ESG Program and instill ESG principles and

freeze in coordination with relevant departments. Frozen suppliers are excluded from placing knowledge into each employee's role and implement their daily operations. The Company

orders in internal systems. Reinstatement requires approval from the Procurement and follows the Supplier ESG Program to build strong relationships with suppliers and promote

Product Engineering departments followed by a compliance audit by the Quality Engineering sustainability improvements throughout the supply chain to reduce overall supply chain risk

team. and simultaneously build resilience and capacity to respond to global climate change.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Green Low Carbon Supply Chain

As regulatory frameworks such as the Science Based Targets initiative (SBTi) and the encourages suppliers to set emission reduction targets establish renewable energy and net-

Carbon Border Adjustment Mechanism (CBAM) increasingly drive carbon management as a zero commitments and implement improvement measures.prerequisite for market access low-carbon supply chains have become a core operational In 2025 USI completed a survey of Tier 1 suppliers' (1) GHG inventory status with 149

priority. Strengthening supply chain resilience enables companies to mitigate climate-related suppliers demonstrating established inventory mechanisms. Among key suppliers for

risks and enhance competitiveness. To support its net-zero target USI collaborates with decarbonization engagement 16 raw material suppliers and 2 equipment suppliers obtained

supply chain partners to reduce emissions and advance a low-carbon supply chain through ISO 14064-1 verification while 5 raw material suppliers achieved ISO 14067 PCF certification.five key management pillars: The remaining suppliers are progressing according to plan. These efforts enhance visibility

into key emission sources across the supply chain and provide a foundation for subsequent

Establish Low-Carbon Strategies decarbonization actions and management decisions.Under the CDP Supply Chain program 38 key suppliers were invited to participate with a

95% response rate indicating a high level of climate disclosure. Among respondents 76%

achieved a CDP rating of B or above reflecting solid progress in climate management. For

Enhance Carbon Data Transparency lower-performing suppliers USI provides targeted feedback and practical recommendations.Through training and knowledge-sharing USI supports improvements in GHG inventory

Five Key decarbonization planning and disclosure strengthening overall supply chain climate

Management Drive Low-Carbon Supply Chain performance.Pillars Transformation Driving Low-Carbon Supply Chain Transformation

In 2025 USI launched the Next-Generation and Existing Equipment Energy Efficiency

Implement Low-Carbon Transportation Program to reduce equipment energy consumption and improve product energy performance.Solutions USI also issued an Equipment Energy Management White Paper defining energy management

and design requirements for key testing equipment to guide future development. Through

standardized design specifications and energy-saving technologies USI is advancing the

Build a Low-Carbon Supply Chain development of high-efficiency low-energy equipment in support of its target to reduce electricity consumption per unit of output by 20% by 2030.In the initial phase USI identified five key equipment suppliers for decarbonization and

Through systematic analysis of supply chain carbon hotspots USI identifies Key Suppliers conducted baseline energy assessments. Energy-intensive equipment was selected for

for Decarbonization Engagement based on carbon-intensive materials procurement value measurement under both operating and idle conditions. Based on technical feasibility USI

and energy-intensive equipment. Based on this assessment USI establishes corresponding developed energy-saving measures including high-efficiency components variable frequency

management requirements. USI conducts structured surveys to assess Tier 1 suppliers' GHG drive (VFD) technologies optimized heat exchange and power systems improved standby

inventory status and carbon management maturity and progressively requires Key Suppliers control and firmware-based intelligent energy-saving modes.for Decarbonization Engagement to complete third-party GHG inventory and verification as By the end of 2025 all five suppliers had submitted energy-saving proposals. Three

well as PCF certification by 2030. These actions improve the accuracy transparency and proposed retrofit solutions with expected energy savings of approximately 10% although

comparability of supply chain carbon data. implementation has been delayed due to extended payback periods. One supplier is

To support suppliers in strengthening carbon management including the identification of implementing measures to reduce material usage and energy consumption while

climate-related risks and opportunities USI collaborated with ASEH and CDP in 2025 to another continues to develop next-generation energy-efficient designs and is planning

implement supply chain climate change and water security questionnaires. This initiative implementation.Note: USI continues to collaborate with suppliers to advance energy-saving technologies. Through

1. Tier 1 suppliers refer to raw material and equipment suppliers that have conducted transactions with USI for two technical exchange data analysis and pilot validation USI aims to accelerate adoption of

consecutive years with an annual procurement value exceeding USD 200000. energy efficiency solutions and improve equipment performance while reducing energy use.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Sustainable Supply Chain Development

Suppliers' sustainable development supports the reduction of environmental impacts and operational risks while contributing to long-term value creation. USI regards suppliers as key partners

and promotes engagement and capability development through training knowledge sharing and technical support strengthening sustainability practices across the supply chain.? Supplier Support for Corrective/Improvement ?Sustainable Supply Chain Training ?T echnology and Product Exchange

Actions USI organizes an annual Sustainable Supply Chain Webinar Through its Technology Forum USI facilitates knowledge

USI conducts document reviews and on-site audits of for suppliers. In 2025 the Greater China session was held exchange on emerging technologies and market

raw material suppliers and service contractors providing at the Nantou Facility where USI communicated its ESG developments with suppliers. In 2025 25 sessions were

targeted guidance to address identified gaps. In 2025 strategy supply chain requirements and future targets. conducted with material suppliers supporting alignment on

60 suppliers received recommendations (Including 50 Supplier partner Cyntec Co. Ltd. shared its approach to ESG new products and technological applications.

on-site assessments and 10 desk assessments) on areas goal setting and implementation providing practical insights

such as production capacity planning safety practices for participants. In addition a PwC Sustainability Services ? Supplier Capacity/Technology Development

and crisis response. In addition 12 suppliers received speaker delivered a session on "Carbon Management and the Program

guidance following conflict minerals assessments to address Path toward Net Zero Standards 2.0" highlighting evolving USI supports supplier capability and technology development

incomplete disclosures or gaps in management processes. In regulatory expectations and the importance of transparent through technical assistance and structured programs.total 72 suppliers were supported through these activities. verifiable decarbonization actions. These efforts aim to strengthen suppliers' understanding

A total of 388 suppliers participated in the online session of ESG requirements and improve performance in quality

generating 556 training hours. Post-event feedback efficiency and sustainability.indicated high satisfaction levels.CDP Supply Chain Program

In February 2025 USI joined the CDP Supply Chain Program at the invitation of its parent company with implementation carried out through the end of the year. USI

encouraged key suppliers to complete the CDP Climate Change Questionnaire and provided training and guidance on disclosure requirements environmental risk

identification and reporting.Through this engagement suppliers improved their ability to identify emission hotspots and decarbonization opportunities. USI also worked with suppliers to develop

improvement plans and monitor progress in alignment with CDP standards. In 2025 38 key suppliers were invited to participate of which 36 completed the disclosure.Supplier Carbon Mentoring Program

To address climate-related risks and support USI's net-zero pathway the Supplier Carbon Mentoring Program promotes GHG reduction and encourages suppliers to adopt

energy-saving and low-carbon practices. The program also supports the establishment of supplier carbon inventories laying the groundwork for future initiatives such as

carbon hotspot analysis and quantitative emissions assessment.In April 2025 USI launched the program and assigned a dedicated team to train and support suppliers in establishing GHG inventory management systems (ISO 14064-1) and

calculating PCF (ISO 14067). Over a six-month period both on-site and online training were provided to strengthen suppliers' carbon accounting capabilities and improve their

competitiveness. In 2025 one supplier obtained certification for both GHG inventory and PCF with USI's support. Since 2022 the program has supported seven suppliers.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Supplier Sustainability Risk Management

To properly assess the sustainability risk of suppliers and ensure they comply with USI's These supplier risk assessments ensure their risks can be effectively reduced and controlled.Supplier Code of Conduct USI suppliers are required to sign a commitment to follow the On-site audits are conducted for suppliers that may have higher risks to gain a deeper

Code and respond to USI's sustainability risk assessment questionnaire which covers five understanding of their sustainability development status implement effective supplier

aspects: labor rights health and safety environmental protection sustainability and risk management reduce risks improve the overall efficiency of the supply chain and strengthen

management and supply chain management. the sustainable development of the supply chain.Sustainability Risk Assessment Process

Sustainability Compliance Risk Investigation and Assessment Validation Improvement

? Suppliers sign the Corporate Social ? Proactive supplier selection ? On-site/Online/Document Audit ? Supplier training & support

Responsibilities Commitment and ? Risk assessment through supplier ? Supplier Sustainability Assessment ? Uncompliant suppliers would have their

follow the USI's Supplier Code of SAQ responses Program transactions reduced or frozen

Conduct ? High-risk supplier audits ? Corrective action verification

Before conducting a risk assessment of suppliers the Company must first proactively conduct supplier screening. The Company selects suppliers to be included in control by annual procurement

amount and identifies suppliers with potentially high risks in terms of governance environment and social as the basis for key management. For supplier country analysis please refer to the

Sustainability Data – Social L. Supplier Selection by Country table.Supplier Screening

Methodology for Suppliers Screening

We proactively review and investigate all suppliers' countries/regions their production processes and their respective product categories to conduct preliminary assessments of suppliers

and analyze potential risks.? Country/location-specific risk: Depending on the supplier's location it may be monitored as a high-risk country. Minerals from the Democratic Republic of the Congo and neighboring

countries in Central Africa may lead to human rights violations and risks of environmental damage.? Sector-specific risk: Suppliers of raw materials labor agencies contractors and field service providers that provide labor energy consumption and manufacturing processes with special

risks of pollution emissions in the manufacturing industry as well as labor agencies contractors and field service providers who provide manpower.? Commodity-specific risk: Parts containing metals and hazardous materials are selected according to the classification of parts.Aspects of Suppliers Screening

Environmental Social Governance Business Relevance

? Any fire explosion industrial accident ? A ny violation of labor human rights ? Any violation of the Company Act Securities ?A nnual procurement amount of direct

resulting in serious injury death toxic and health and safety related laws and and Exchange Act information security or indirect and packaging materials

substance release into the environment or regulations that results in penalties or other network security incidents ?T echnical and price advantages

property damage work suspensions ordered by competent ? Productivity satisfaction and cooperation

?A ny violation of applicable environmental authorities

protection laws and regulations such as

penalties or work suspensions ordered by

competent authorities

Supplier Sustainability Risk Assessment

To enhance supply chain resilience and ensure that suppliers meet CSR standards USI establishes an annual audit task force Distribution of Supplier and Contractors

led by the Human Resources and CSR departments or engages an independent third-party verification body. The assessment Sustainability Audit Findings

framework covers five areas: labor practices occupational health and safety environmental performance business ethics and

management systems. Evaluations are conducted through both desk reviews and on-site audits.For unique suppliers USI goes further by requiring completion of the SAQ survey and submission of relevant system

certifications such as ISO 14001 ISO 14064-1 ISO 45001 and ISO 27001. In 2025 USI surveyed 495 unique suppliers 26

achieving a 76% response rate. 28

Based on SAQ responses USI identified suppliers with potential sustainability risks and conducted targeted audits. In 2025

USI carried out on-site audits and document reviews for 69 material suppliers. Non-conformances identified during these Labor

audits were addressed through online or in-person consultation. Suppliers were required to submit corrective action plans and

complete remediation within one month. Follow-up reviews confirmed an 87% closure rate of identified findings. 5 % Health and Safety

Suppliers with unresolved issues are subject to continued follow-up. Depending on the nature of the deficiencies and 3 Environment

remediation progress suppliers are required to complete corrective actions within defined timelines or are placed on a

priority management list for closer monitoring. Overall audit results indicate a low level of risk. Detailed data are provided in Ethic38

the Sustainability Data – Social K. KPI for Supplier Assessment and Development table. Suppliers that did not respond to the Management system

SAQ were subject to additional risk screening using publicly available information. No supplier relationships were terminated

following assessment in 2025.USI extended its sustainability oversight beyond suppliers by conducting on-site audits of 41 service contractors across all

facilities in 2025 ensuring alignment with USI's Code of Conduct. Analysis of audit findings indicates that 38% of deficiencies

were related to occupational health and safety with the remaining categories presented in the accompanying chart. USI

continues to promote and help its suppliers strengthen their sustainability management capabilities.Supplier and Contractors Audit Findings and Corrective Actions (1)

Category Classification Major Non-conformance Findings Corrective Actions

Ineffective working hours control exceeds local overtime hours Adjust production allocation based on capacity to avoid overloading and reduce urgent Working Hours legal limits orders? Enforce system-based overtime controls; require prior approval for exceptions

Internal policies impose salary deductions as penalties and are ? S trengthen employee reward and disciplinary mechanisms

Labor Wages and enforced ? Implement performance-based allowance adjustments for disciplinary actions

Benefits ?

Final wages were not paid upon termination of employment Inform employees of final wage payment timelines during onboarding? Provide system notifications on final wage payment upon termination request

Young Workers No documented policy for the management of underage ? workers Update policies to include protections for underage workers

Note:

1. Identify the first three main categories of the key audit deficiencies.

Category Classification Major Non-conformance Findings Corrective Actions

Occupational Lack of Personal Protective Equipment (PPE) issuance records ? Revise PPE procedures to include issuance records and guidelines

Health and No management provisions for female employees during ? Update occupational health procedures to include provisions for pregnancy maternity

Safety pregnancy maternity and postnatal periods and postnatal employees

Emergency exits were obstructed by stored items Remove obstructions from emergency exits and keep access clear? E nhance safety training to strengthen emergency response awareness

Emergency No drills were conducted for fire safety chemicals or electrical

Health and ? Preparedness hazards Conduct required emergency drills promptly

Safety

Dormitories and night shift personnel were not included in ?

emergency response procedures Include dormitories and night shift personnel in emergency drills

Hazardous equipment lacked required safety warning signage ? Complete hazard labeling for equipment (e.g. electrical panels ovens chemicals noise)

Health ?

and Safety Insufficient multilingual signage for foreign workers Provide multilingual hazard signage SOPs procedures and evacuation routes for foreign

Communication workers

Inadequate hazard management and communication practices ? C onduct monthly inspections and maintain hazard labeling inventory

Hazardous Chemical hazard labeling was not compliant with international ?

Substances standards Update labels to ensure alignment with international standards

Environment Energy

Consumption No identification and tracking of CO2 cylinder emissions under ?

and GHG Scope 1 was conducted Include CO? cylinders in emission identification and conduct regular tracking

Emissions

Collection of sensitive personal data (e.g. marital status blood ?

type military status) Revise personnel data forms to remove sensitive informationPrivacy

Ethics No formal data privacy and confidentiality policy

? Establish and communicate data privacy and confidentiality procedures

Protection of

Identity and Grievance mechanism lacks anti-retaliation protection and ?

Non-Retaliation anonymous reporting channel

Introduce anti-retaliation protection and anonymous grievance mechanisms

Company No social responsibility policy covering labor and business ?

Commitment ethics Establish relevant policies and communicate them during onboarding

Management Legal and ? Customer No regulatory identification and compliance procedures Review applicable labor laws and regulations quarterly and update procedures System Requirements accordingly

Documentation ? Outdated documents not updated to reflect current practices Update procedural documents and provide related trainingand Records ? Ensure strict adherence to updated procedures

Based on SAQ responses supplier sustainability reports and publicly available information USI conducted a 2025 human rights risk assessment of its supplier base. The assessment identified

key risk areas including human rights policies and commitments non-discrimination and humane treatment occupational health and safety and industrial hygiene.Suppliers with potential high-risk exposure were identified and appropriate follow-up measures were implemented. USI monitors the effectiveness of corrective actions based on risk level and

continues to engage and support suppliers on human rights issues. Additional attention is given to suppliers that do not respond or provide sufficient disclosure.Category Risk Issue Mitigation Measures Compensation Measures

1. Supply Chain Risk Assessment and Segmentation 1. Corrective Actions and Timeline Management

? Conduct regular human rights risk assessments for all suppliers and ? R equire suppliers to submit Corrective Action Plans (CAPs) within

Human Rights Policy include high-risk suppliers in a priority management list defined timelines for identified human rights violations or high-risk ?

and Commitment Apply enhanced audit frequency and corrective action follow-up for issues including root cause analysis and preventive measureshigh-risk suppliers ? M onitored by USI on an ongoing basis until full closure of identified

2. Policy Implementation and Documentation findings

? Require suppliers to establish and disclose human rights anti- 2. Remedy for Affected Workers

Labor discrimination and anti-harassment policies aligned with the Supplier ? Require suppliers to provide appropriate remedies to affected

Code of Conduct and local regulations workers including compensation reinstatement correction of

3. Training and Capacity Building working conditions or other reasonable measures

Non-Discrimination/ ? Enhance suppliers' capability to identify and manage human rights risks ? Ensure remedies are implemented without retaliation or further

Non-Harassment/ through briefings e-learning and guidance materials harm

Humane Treatment 3. Escalation and Enforcement

? Apply enhanced audits order suspension or termination of business

relationships where remediation is insufficient

1. OHS Management Systems 1. Incident Investigation and Immediate Action

Occupational Health Require suppliers to establish OHS management systems including risk

? Require suppliers to conduct prompt incident investigations and

& Safety identification hazard assessment and control measures implement corrective actions to prevent recurrence2. Preventive Management and Monitoring 2. Medical Support and Compensation

Health ? Conduct periodic reviews of suppliers' OHS performance indicators ? E nsure affected workers receive necessary medical care

and ? V erify workplace conditions and protective measures through occupational injury compensation and statutory benefits

Safety document reviews and on-site audits 3. Continuous Improvement and Verification

3. Worker Protection and Communication ? Require submission of supporting evidence and remediation

Industrial Hygiene ? R equire provision and proper management of PPE reports with effectiveness verified through follow-up audits

? Establish worker feedback and reporting channels to ensure timely ? C lassify similar incidents as key risks and incorporate them into

communication of health and safety concerns ongoing risk assessment and prevention mechanisms

External grievance mechanism & reporting mailbox: for details please refer to the Business Ethics and Compliance section.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Responsible Minerals Commitment

Conflict minerals refer to tantalum tin tungsten and gold (collectively referred to as 3TG) across its supply chain in accordance with the OECD Due Diligence Guidance for Responsible

as well as cobalt which may originate from conflict-affected and high-risk areas. These Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Guidance) with

materials have been associated with risks such as forced labor child labor and human rights the objective of supporting a conflict-free mineral supply chain.abuses in the Democratic Republic of the Congo (DRC) and surrounding regions. USI is To implement conflict minerals management USI has established a governance structure

committed to responsible sourcing and the protection of human rights and the environment. with defined roles and responsibilities. The organizational framework is presented below:

In alignment with ASEH's sustainability policies USI promotes responsible mineral sourcing

Responsible Minerals Organization

President/COO

Representative

QA& Sustainability Head

Business/Project

Manager Fin & Legal Supply Chain Management Supplier Quality Engineer

Green Product &

Conflict Minerals Information Technology

Lead Customer Review CM Supplier Supplier Audit Identify Materials Enhance

CM (1) Inquiry & Declaration & Management Arrangement Verify & Build System

Request Policy SoR (2) Database Platform

Responsible Minerals Management

To manage the risk of conflict minerals in its production chain USI has established a conflict illegal mining or corruption and prohibits the use of conflict minerals in its supply

Corporate Policy for Sourcing Conflict Minerals in alignment with ASEH requirements. These chain.requirements aim to prevent the use of non-conformant metals originating from Conflict- USI has established a management system aligned with the five-step framework of the OECD

Affected and High-Risk Areas (CAHRA) and source them from conformant smelters or Guidance. Through its due diligence process supply chain risks are identified assessed and

smelting facilities verified by independent third-party programs. mitigated. USI has developed supplier audit tools and conducts on-site and document-based

USI follows the OECD Due Diligence and has established its USI Supply Chain Policy for reviews to evaluate supplier practices and promote alignment with OECD requirements.Responsible Sourcing of Minerals from Conflict-Affected and High-Risk Areas. USI does not Conflict minerals requirements are integrated into USI's procurement framework. Suppliers

support or engage with mineral sources associated with severe human rights abuses armed are required to source minerals from independently validated smelters and refiners to comply

with USI's sourcing policy. These requirements are incorporated into supplier contracts as

Note: conditions of engagement.

1. CM Conflict Minerals

2. SoR Smelter or Refiner

Responsible Minerals Management Process

Conflict Minerals Reasonable Country

Management of Origin Inquiry (RCOI) Due Diligence (DD)

Independent Private Conflict Minerals Report

Sector Audit (IPSA) (CMR)

Management system Identify and assess risks Respond to identified risks Conduct third-party audits Report annually on due diligence

? Comply with USI conflict ? Assess supplier mineral ? Define supplier risk ? Undergo annual IPSA ? Disclose annual conflict

minerals sourcing policy reports assessment criteria minerals reporting

? Set corporate annual ? Request supplier conflict ? Conduct supplier documents

conflict minerals objectives minerals representation or on-site audit

? Support suppliers with

management mechanism

Reasonable Country of Origin Inquiry

USI has established conflict minerals management procedures and conducts annual RCOI for USI uses the GPARS system to collect mineral disclosures from suppliers covering 3TG cobalt

target suppliers (1). These assessments are used to identify and verify the sources of 3TG as mica and other additional minerals. This information is consolidated and compared with the

well as cobalt and mica contained in products and components. Information is cross-checked latest independently validated smelter lists to assess smelter conformance status.against the latest list of conformant smelters and refiners that have undergone independent Where non-conformant smelters are identified USI applies a risk management process that

due diligence assessments as well as RCOI data provided by the parent company and other includes three mitigation options: continued engagement with corrective actions temporary

publicly available sources to assess whether materials may originate from CAHRAs. suspension during a defined remediation period or where appropriate termination of the

business relationship. Suppliers are required to adopt corrective measures including the

removal or replacement of non-conformant smelters within defined timelines.Risk Identification Management Process

Identify Smelter Risks Case Closed

Qualified Smelter

3TG Parts Supplier Provides/ Non-Qualified

Updates Report Smelter

Yes No List High Risk Suppliers

Risk Mitigation Options

Risk Mitigation Efforts Risk Mitigation

and Evaluate to

Non-Feasible Continue Trading

Note:

1. Target suppliers are the top 85% of suppliers according to the annual purchase amount.

Due Diligence

USI promotes responsible mineral sourcing across its supply chain and through its due Independent Private Sector Audit and Annual Report

diligence processes requires suppliers to source from smelters and refiners that have

(1) USI complies with customer requirements regarding conflict minerals audits and management undergone independent due diligence assessments. The MRT survey scope covers standards. Each year USI conducts an IPSA based on the results of supplier due diligence.

designated target suppliers for the reporting year. Where non-conformant smelters or refiners Target suppliers are required to source from conformant smelters and to provide annual

are identified suppliers are required to implement corrective actions and transition to conflict minerals declarations.conformant sources within defined timelines.USI's parent company ASEH files an annual Conflict Minerals Report with the United States

In 2025 USI completed conflict minerals due diligence for 347 target suppliers representing Securities and Exchange Commission (SEC) covering USI and its subsidiaries. Additional

85% of total procurement spend and obtained independent third-party assurance. A total information is available on the USI Website.

of 233 smelters and refiners were identified all of which were independently validated. The

geographic distribution of 3TG smelters is concentrated primarily in Asia followed by the Availability of Grievance

Americas. To promote transparency and accountability in conflict minerals management USI has

established a publicly accessible grievance mechanism in accordance with the OECD Due

3TG Qualified Smelter Distribution Area Diligence Guidance. Stakeholders with concerns related to USI's conflict minerals policy

10 2 supply chain due diligence or SoR sourcing may submit grievances or provide feedback

through the following channels.

32 142 Grievance Channels: conflict_minerals@usiglobal.com

Asia 100% 2018~2025 Conflict Minerals Compliant Target Suppliers

47 America Future Plans

Europe 1. Conduct comprehensive supplier assessments and support the

development of sustainability management systems.Africa 2. Establish automated mineral source verification process to enhance

the quality of smelter data management and meet customer reporting

Oceania requirements.

3. Promote USI's policies and implement due diligence practices through

Beyond 3TG USI is progressively expanding its scope to include additional minerals from supplier conferences.CAHRAs including cobalt mica nickel copper lithium and graphite. In 2025 225 suppliers 4. Expand supply chain due diligence beyond priority minerals to include

were surveyed under this scope. USI applies a risk-based approach to supplier segmentation silver aluminum rare earths and other minerals of significance.and conducted document reviews for 53 suppliers. Suppliers with identified gaps were 5. Maintain conflict minerals due diligence coverage for suppliers

provided with guidance to strengthen their processes and reduce sourcing risks. USI also representing at least 85% of total procurement spend through 2030.communicates its conflict minerals policy and requirements through sustainability webinars

to encourage supplier participation in responsible sourcing practices.Note:

1. The survey scope included suppliers of USI AFG and HCC

Environmental

Protection and

Occupational Safety

With an emphasis on environmental protection USI

takes aggressive measures against climate change.We look forward to considering environmental

protection as well as achieving environmental

sustainability while pursuing high quality products

and services. In addition we are committed to 100 % 8238 MWh 0 Cases

promoting a culture of occupational safety and

health and providing a quality working environment Renewable Energy Use in Renewable Energy Contractor

for our employees. Mainland China Mexico Produced through Occupational Injuries

and Vietnam Facilities Solar Panels

Key Stakeholders:

Shareholders/Investors/Banks Employees Suppliers/

Contractors Governments CNY 36 Million 92 % 3955 Participants

SDGs Invested in Non-hazardous Waste Attended Health

Environmental Recycling Rate Promotion Activities

Protection

Sustainable Issue Performance and Targets

Material Issue Achieved Not Achieved(1)

Management Purpose KPI 2025 Target 2025 Performance Status 2026 Target 2030 Target

Management Approach: Establish ISO 45001 OHS management systems regularly inspect and review work processes and implement the PDCA

Occupational Health & Safety cycle to raise awareness assess risks and ensure the health and safety of all workers in the workplace.Evaluation Mechanism: Periodic tracking of management indicators through the Safety and Health Production Committee.Obtain/maintain ISO Obtain/maintain ISO Maintained ISO 45001 Obtain/maintain ISO 45001 Obtain/maintain ISO 45001

45001 certification 45001 certification certification in all major certification in all major certification in all major facilities (2) facilities facilities

Promote OHS culture and enhance risk Major occupational No major occupational 0 major occupational No major occupational No major occupational

management injury prevention and disease incidences diseases diseases diseases diseases

emergency response capabilities to

create a safe workplace for all workers Major occupational No major occupational 0 major occupational No major occupational No major occupational

injury incidences (3) injuries injuries injuries injuries

Major infectious No major infectious 0 major infectious No major infectious No major infectious

disease incidences diseases diseases diseases diseases

Management Approach: Introduce ISO 14064-1 to all facilities and annually conduct GHG inventory to manage related emissions and work towards

Climate Strategy reaching the 2050 Net Zero Carbon Emissions goal.Evaluation Mechanism: Annual review of facility GHG emissions to ensure ISO 14064-1 certification.Obtain ISO 14064-1 Obtain ISO 14064-1 Obtained ISO 14064-1 Obtain ISO 14064-1 Obtain ISO 14064-1

certification certification certification certification for all major certification for all major facilities facilities

Monitor and reduce GHG emissions as Absolute Scope 1 & 37.8% decrease from 84% decrease from 2016

part of the Low Carbon strategy 2 (market-based) 2016 (reduced 126487 metric 42.0% decrease from 2016 58.8% decrease from 2016GHG emissions tonnes CO?e)

Absolute Scope 3 12.5% decrease from 77% decrease from 2020

GHG emissions 2020 (reduced 13484105 15.0% decrease from 2020 25.0% decrease from 2020metric tonnes CO?e)

Note:

1. For not achieved targets please refer to the corresponding sections for relevant explanations and future improvement plans.

2. Manufacturing facilities comprise the Zhangjiang Jinqiao Huizhou Kunshan Nantou Mexico and Vietnam facilities. Environmental performance data disclosed in this chapter relate to these facilities unless otherwise stated.

3. Number of occupational injury deaths.

Material Issue Achieved Not Achieved

Management Purpose KPI 2025 Target 2025 Performance Status 2026 Target 2030 Target

Management Approach: Establish ISO 50001 energy management systems to improve energy efficiency and reduce the risk of changes in energy

Energy Management supply cost and demand enhancing business sustainability.Evaluation Mechanism: Annual review of regulations and site energy consumption ratios to propose energy saving improvement projects and

ensure energy intensity performance.Improve energy efficiency and reduce

energy costs Energy intensity 10% decrease from 2015 25% decrease from 2015 11% decrease from 2015 15% decrease from 2015

Management Approach: Comply with local waste management regulations implement waste separation and reduction continuously review and

Waste Management reduce the total amount of waste.Evaluation Mechanism: Monthly review of waste types and total amount of waste on site and confirm no violation of regulations.Hazardous waste 1% decrease from the 4.9% increase from the 1% decrease from the 1% decrease from the

generation intensity previous year previous year previous year previous year

Reduce waste generation and disposal

costs through effective recycling and

reuse of resources Non-hazardous 90% non-hazardous Non-hazardous waste recycling rate reached 90% non-hazardous waste 90% non-hazardous waste waste recycling rate waste recycling rate 92% recycling rate recycling rate

Air Pollution Control Management Approach: Comply with local regulations on air pollution prevention and control and continuously reduce air pollution.Evaluation Mechanism: Annual regular emissions monitoring and recording and prevent regulatory violations.Reduce air pollution emissions and Air pollution No significant air 0 significant air pollution No significant air pollution No significant air pollution

improve air quality violations pollution violations (1) violations violations violations

Water Management

Increase process water recovery rate

to reduce water demand and risks Water intensity 10% decrease from 2015 15% decrease from 2015 11% decrease from 2015 15% decrease from 2015

Note:

1. The definition of a significant fine or penalty is sanctions over USD 10000 (CNY 71440)

Climate Change Impacts and Adaptation

As manufacturing and climate-related challenges continue to evolve USI strives to minimize

environmental impacts while improving resource efficiency and operational resilience.Environmental sustainability considerations are integrated into business decision-making

and operational management with oversight provided by the Board of Directors and senior

management. In establishing environmental strategies policies and objectives USI considers 1.Governance 2.Strategy

stakeholder expectations and seeks to create long-term value while contributing to a more ? The Strategy and ? I dentify short medium

sustainable future. To systematically manage environmental impacts and risks USI maintains Sustainability Committee is and long-term risks and

management systems aligned with internationally recognized standards including ISO 14001 ISO the highest organizational opportunities related to

50001 and ISO 14064-1 (please refer to the Management Systems and Certifications Table). unit responsible for nature/climate dependencies

Through regular monitoring risk assessments and employee training programs USI continuously managing USI's sustainable and their impact

identifies and manages material environmental issues including climate change energy use air development. It annually ? A ssess risks and opportunities

emissions water resources wastewater waste hazardous substances noise and soil pollution. prepares a Sustainability based on different climate

Environmental considerations are integrated into daily operations to improve resource efficiency Report covering nature and scenarios

reduce environmental impacts and support continuous improvement. USI also publicly discloses climate-related issues for the ? I dentify the organization's

environmental information to promote transparency and accountability. Board to review interactions with and impacts

Guided by its EHS & Energy Policy USI is committed to legal compliance environmental on ecosystems

protection and responsible resource use. USI actively engages with regulatory authorities industry

organizations and other stakeholders to stay informed of emerging environmental requirements

and best practices. Stakeholders may submit environmental inquiries recommendations or

complaints through dedicated communication channels including telephone and email. TCFD/TNFD

In 2025 USI received no environment-related complaints recorded no environmental pollution Framework

incidents and reported no violations of environmental laws or regulations. In addition USI is not

subject to any significant fines or penalties (1) related to the environment or ecology.

4.Metrics and Targets 3.Risk and Impact

Climate and Nature Risk Management Management

? Set quantitative climate and ? I ntegrate climate and nature

Climate change and nature loss present increasingly important risks and opportunities for nature-related performance risks into the ERM process

businesses worldwide. Recognizing the potential financial and operational impacts of these global indicators and targets track ? C onduct cross-functional

challenges USI supports the goals of the Paris Agreement and has integrated climate- and nature- progress and publicly disclose value chain assessments

related considerations into its sustainability strategy. Following the recommendations of the results to identify risks and

TCFD and TNFD frameworks USI published its inaugural Climate and Nature Risk Management ? S et long-term goal of Net Zero opportunities evaluate

Report in 2024 providing transparent disclosure of climate and nature-related risks opportunities Carbon Emissions by 2050 financial impacts and

governance mechanisms and response strategies. ? Set long-term goals for No implement mitigation and

With oversight from the Strategy and Sustainability Committee USI continuously monitors and Deforestation and Net Positive adaptation measures

evaluates emerging developments related to climate change biodiversity natural resource Impact by 2050

management and evolving sustainability regulations and initiatives. Through ongoing risk

assessment and strategic planning USI seeks to strengthen organizational resilience identify

sustainable growth opportunities and support long-term value creation.Note:

1. The definition of a significant fine or penalty is sanctions over USD 10000 (CNY 71440).

USI implements an ERM framework to identify and manage sustainability-related risks and opportunities across its value chain encompassing direct operations as well as upstream and

downstream activities. Assessments consider short medium and long-term time horizons including potential financial impacts. Climate and nature-related risks and opportunities are evaluated

to determine their significance to business operations strategy and financial planning. Based on the assessment results USI develops corresponding mitigation and adaptation measures

identifies opportunities and establishes monitoring indicators to track performance and effectiveness.Performance is reviewed annually and reported to the Board of Directors. For details please refer to the 2025 Climate and Nature Risk Management Report.Category and Issue Time Impact Description Value Chain Stages Potential Financial Impact

Regulatory requirements Short term Stricter regulations and carbon pricing increase Direct operations Under carbon pricing schemes inadequate Transition for existing products and (within 3 compliance and production costs; mitigation through Downstream emissions control and disclosure may lead to Risk services years) equipment optimization and renewable energy customers higher carbon costs or penalties increasing adoption compliance expenses

Increased severity of Short term(within 3 Upstream suppliersextreme weather (flooding) years) Geographic differences expose sites to various Direct operations

Intensified extreme events may cause

extreme weather risks; rising frequency and intensity flooding or landslides leading to operational

Increased severity of Short term may disrupt operations and increase costs shutdowns equipment damage and financial

Physical extreme weather (landslide- (within 3 Upstream suppliers losses

Risk prone areas) years) Direct operations

Changes in climate patterns Medium Rising temperatures and shifting precipitation

Long-term changes in precipitation may cause

term increase cooling and electricity demand and intensify Upstream suppliers droughts and water shortages leading to (drought water stress) (4–5 years) water stress raising operational risk and costs Direct operations operational disruptions or shutdowns supply shortages and financial losses

Opportunity Adoption of low-carbon

Medium Adopting renewable energy energy storage and Direct operations Adoption of renewable energy or low-carbon

energy term energy management systems reduces emissions and Downstream fuels reduces energy and carbon costs and (4–5 years) enhances market reputation customers meets demand for low-carbon manufacturing

Energy and Carbon Management

Net Zero Carbon Emission Targets

USI is committed to delivering high-quality low-carbon products and supporting customers in in carbon removal solutions including carbon capture utilization and storage (CCUS) new

advancing low-carbon manufacturing. At the same time we actively address climate change energy technologies and nature-based solutions supplemented by the responsible use of

through the effective management of energy water resources waste and air emissions carbon credits.while strengthening adaptation and resilience efforts across our operations. In alignment To support this transition USI adopts internationally recognized climate disclosure frameworks

with ASEH's SBTs which were revalidated by SBTi in 2025 under the 1.5° C pathway USI to track performance strengthen climate awareness and guide decarbonization planning.has established GHG reduction targets that support the parent company's commitment to USI continues to expand renewable energy deployment across its global manufacturing

achieve net-zero emissions by 2050. In response to customer expectations and global climate operations and plans to invest approximately CNY 18 million in renewable energy projects

commitments USI aims to achieve a 90% absolute reduction in Scope 1 Scope 2 and Scope in 2026 further enhancing climate resilience and supporting long-term sustainable

3 emissions by 2050. To address the remaining residual emissions USI will evaluate and invest development.

Net Zero Carbon Emissions Roadmap

2026 2030 2040 2045 2050

CO? CO? CO? CO? CO?

? C omplete GHG Inventory in ? Accomplish SBT Targets (1) ? 90% Renewable Energy in ? 95% Renewable Energy in ? Net zero carbon emissions

All Sites ? Reduce Absolute Scope 1& Operations Operations ? Scope 1 & 2: 90%

? 85% Renewable Energy in 2 GHG Emissions by 58.8% ? 1 00% On-site Low-Carbon ? 100% Upstream and reduction from 2016

Operations (Base Year: 2016) Transportation Downstream Low-Carbon baseline

? S et Internal Carbon Pricing ? Reduce Absolute Scope ? 100% Tier 1 Equipment & Transportation ? Scope 3: 90% reduction

? 30% Tier 1 Equipment 3 GHG Emissions by 25% Material Suppliers Engaged in ? 100% Low-Carbon Key from 2020 baseline

& Material Suppliers (Base Year: 2020) GHG Inventory & Reduction Materials ? 1 00% Renewable Energy in

Engaged in GHG Inventory & ? 8 8% Renewable Energy in Operations

Reduction Operations ? Carbon Credit Investment

? 50% Tier 1 Equipment

& Material Suppliers

Engaged in GHG Inventory &

Reduction

Note:

1. Scope 1 2 and 3 GHG base year emissions cover 100% of our manufacturing facilities with the following emission amounts:

- Scope 1 & 2 (market-based): 150100 metric tonnes CO?e (base year: 2016)

- Scope 3: 17467257 metric tonnes CO?e (base year 2020)

Carbon Management

On the path toward net-zero emissions USI continues to engage stakeholders in carbon reduction USI is committed to reducing GHG emissions and advancing its transition toward

initiatives and awareness programs as outlined below. a low-carbon economy. We initiated our first GHG inventory in 2007 in accordance

During the low-carbon transition we regularly review internal workforce allocation to ensure that with ISO 14064-1 and expanded the scope in 2010 to cover global manufacturing

transformation measures do not adversely affect employees' existing roles. We also pay close attention operations. GHG inventories are regularly verified by independent third parties to

to the quality of life in surrounding communities avoiding potential impacts on local residents' rights ensure data accuracy and establish a consistent basis for emissions management

and interests thereby balancing sustainable development with stakeholder protection. and performance tracking.To further strengthen climate action USI began conducting PCF assessments in

Category Key Actions 2017 and disclosing relevant information in response to customer requirements

and evolving international standards. In alignment with ASEH's SBTs USI has

Scope 1 established carbon reduction objectives and continues to implement initiatives that ? C ontinued investment in renewable energy to replace conventional support the achievement of its decarbonization goals. We have also participated in

Scope 2 electricity and fossil fuels reducing GHG emissions. In 2025 CDP disclosure since 2022 to enhance transparency regarding climate-related risks

(market- emissions decreased by 84% compared to 2016 (reduced 126487 opportunities and performance.GHG based) metric tonnes CO?e) USI integrates climate considerations into business decision-making and financial

Reduction

Implemented supplier engagement programs including carbon planning. Through assessments of physical and transition risks we identify Targets ?

inventory guidance and renewable energy initiatives. By 2025 a opportunities related to energy efficiency renewable energy adoption and low-

Scope 3 total of 7 suppliers had been supported. Based on hotspot analysis carbon investments while closely monitoring emerging climate regulations carbon

emissions from purchased goods were reduced by 79094 metric markets and other policy developments that may affect its operations.tonnes CO?e USI's Sustainability Committee Taskforce regularly reviews energy conservation

and carbon reduction initiatives across all sites. Since 2023 we have applied an

? U pstream suppliers contractors distributors and agents: internal carbon pricing mechanism based on an implicit carbon price to support

Conducted 11 Sustainable Supply Chain Webinars to communicate climate-related decision-making and investment planning. Covering Scope 1 & 2

ESG policies sustainability requirements and future. emissions across global operations the internal carbon price ranged from CNY 9 to

? C ustomers and investors: Disclosed net-zero targets and progress 260 per metric tonnes CO?e (approximately USD 1 to 36 per metric tonnes CO?e) in

Value Chain through the corporate website and sustainability reports. 2025 providing a reference for evaluating emissions reduction opportunities and

? B anks: Since 2024 secured sustainability-linked loans totaling prioritizing climate investments.over USD 320 million achieving sustainability targets for two To reduce climate-related risks and accelerate decarbonization USI continues

consecutive years and benefiting from interest rate incentives to to expand the use of renewable energy and improve energy efficiency across its

drive continuous ESG performance improvement.Stakeholder operations. In 2025 facilities in Mainland China Mexico and Vietnam operated

Engagement ? P articipated in Taiwan Electrical and Electronic Manufacturers' using 100% renewable electricity while Nantou Facility further increased

Industry Association (TEEMA) supporting energy-saving and carbon renewable energy procurement. In addition Zhangjiang and Jinqiao Facilities

Associations/ reduction initiatives in line with international trends. USI follows implemented carbon quota management practices in accordance with local

Initiatives ASEH's SBT and supports the Paris Agreement while adopting TCFD regulatory requirements. USI will continue to monitor developments related to

and CDP frameworks. emissions trading schemes carbon pricing mechanisms and climate-related

regulations while advancing energy efficiency renewable energy adoption and

Government/ Supported the Ministry of Environment's Air Quality Improvement

environmental management programs to strengthen climate resilience and

Public Sector/ Program. Collaborated with ecological experts to develop and green

support long-term emissions reduction.Communities air quality purification sites near schools creating sustainable green spaces for environmental education in local communities.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Greenhouse Gas Emissions

In 2025 USI's total Scope 1 & 2 (location-based) GHG emissions were 165792.53 metric increase was primarily driven by greater emissions associated with dry ice cleaning processes

tonnes CO?e an increase of 2818.86 metric tonnes CO?e from 2024. Scope 1 emissions and higher indirect electricity consumption. USI will continue to advance emissions reduction

totaled 5459.05 metric tonnes CO?e while Scope 2 (location-based) emissions amounted to and energy efficiency initiatives to support its decarbonization goals.

160333.48 metric tonnes CO?e. GHG emissions intensity was 3.17 metric tonnes CO?e per The breakdown of GHG emissions is shown in the following figures:

million CNY of revenue compared with 3.05 metric tonnes CO?e per million CNY in 2024. The

The Ratio of Scope 1 to Scope 2 Greenhouse Gas Emissions (1~6) Greenhouse Gas Emissions and Intensity

6.24

5.86

5.31

4.48 4.85

4.02 4.13

3.72 3.89

3.05 3.17

Fixed Burning Emission

1.0%

Mobile Burning Emission

Scope 2 Scope 1 0.1%

96.7% 3.3%

201538.85 202570.24

Fugitive Emission 160333.48 215510.73

2.0% 149881.38 168730.49 158496.83151993.76 148201.93 184225.84

142043.16

Processing Emission

0.2%

8057.25 7024.93 6802.39 5385.74 4476.85

8017.46 7853.69 8438.83 4592.71 5265.23 5459.05

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Note:

1. The data presented came from the ISO 14064-1 inventory results rounded to the 1st decimal place. GHG Emissions - Scope 1 (metric tonnes CO?e) GHG Emissions - Scope 2 (metric tonnes CO?e)

2. The data organization boundary is summarized by the operation control method.

3. The significant threshold is set at 3% and the substantial threshold is set at 5%. GHG (Scope 1+Scope2) Intensity (metric tonnes/M CNY)

4. The GHG emissions includes various categories such as CO2 CH4 N2O HFCs PFCs NF3 and SF6.

5. Global Warming Potential (GWP) value adopts the IPCC Sixth Assessment Report (2021).

6. Scope 1 emissions from processes and land-use change were below 0.1% of the total and thus not shown.

Energy Management

Indirect Greenhouse Gas Emissions Electricity consumption accounts for approximately 96.7%

Since 2020 we have expanded our GHG inventory to encompass all 15 upstream and downstream Scope 3 categories and of USI's GHG emissions making energy efficiency a key

conducted significance assessments to identify material emission sources. The 2025 third-party verified results are shown component of our climate strategy. To reduce energy

below: consumption and support decarbonization USI invests

in energy-saving technologies process optimization and

Indirect Greenhouse Gas Emissions (1-2) renewable energy procurement including the purchase of Unit: metric tonnes CO?e Renewable Energy Certificates (RECs). Energy efficiency

Category Description Greenhouse Gas Emissions considerations are also incorporated into product design

with priority given to low-energy-consumption components

1 Purchased goods and services 3068573.97 and environmentally responsible design practices.

2 Capital goods 154563.90 USI has established an energy management system based on

ISO 50001 integrating processes equipment facilities and

3 Fuel and energy related activities 24788.34 environmental health and safety functions. Through regular

energy audits performance monitoring and data analysis

4 Upstream transportation and distribution 15937.45 we identify significant energy uses evaluate improvement

opportunities and develop targeted energy reduction

5 Waste generated in operations 525.76 initiatives. Dedicated energy management personnel receive

6 Business travel 1116.22 regular external training to strengthen expertise in energy

conservation and energy management practices. In addition

7 Employee commuting 12872.41 all facilities provide annual energy efficiency and carbon

reduction training to employees. In 2025 total training

8 Upstream leased assets 21798.11 hours reached approximately 6919 with 15627 participant

9 Downstream transportation and distribution 42261.99 attendances.

To improve energy performance USI implements a range

10 Processing of sold products N/A of energy-saving measures across its facilities including

11 Use of sold products 619450.72 variable-frequency drive controls seasonal optimization of air-conditioning systems replacement of aging equipment

12 End-of-life treatment of sold products 6054.95 with higher-efficiency alternatives and enhanced electricity

monitoring and management. Energy-saving opportunities

13 Downstream leased assets N/A are continuously evaluated and prioritized based on energy

consumption data and operational requirements.

14 Franchises N/A

15 Investments 15208.08

Total 3983151.90

Note:

1. The data presented came from the ISO 14064-1 inventory results rounded to the 2nd decimal place converted to the GHG Protocol for disclosure.

2. N/A: non-significant after assessment of the indirect emissions materiality criteria in accordance with ISO 14064-1.

In 2025 total energy consumption was 1146070 GJ covering both manufacturing facilities USI implemented 11 major energy-saving projects in 2025 resulting in annual electricity

and office operations. (1) Energy consumption at manufacturing facilities totaled 1139916 savings of 2089 MWh (7522 GJ) and GHG emission reductions of approximately 1181 metric

GJ an increase of 59452 GJ compared with 2024 primarily due to higher production-related tonnes CO?e. Total investment in these projects amounted to CNY 3.09 million. Through

energy demand. ongoing investment in energy efficiency renewable energy and operational improvements

Based on revenue energy intensity in 2025 was 21.8 GJ/M CNY an increase of 8.0% from USI will continue to strengthen energy management and reduce the environmental impacts

2024. However compared with the 2015 baseline of 29.1 GJ/M CNY energy intensity of its operations.

decreased by 25.1% demonstrating continued long-term improvements in energy efficiency.Energy Consumption (2) Energy Consumption and Intensity

Unit: GJ

Direct Energy Consumption Indirect Energy Category Consumption

Total Energy 31.3 29.1

Year Natural ConsumptionDiesel Gasoline Gas/Liquid Electricity 26.1 25.5

Petrol Gas 22.0 20.6 20.6 21.820.2 20.2

18.5

2025 926.1 1846.4 30015.5 1107127.9 1139915.9

2024 858.2 2159.6 27566.2 1049880.0 1080463.9

2023 1225.2 2277.3 30110.9 1042555.7 1076169.2

1139915.9

1095673.3 1080463.9

986633.2

2022 1266.0 2215.4 28307.9 1063884.0 1095673.3 1076169.2948926.3

776645.7 758413.1 878276.2

731386.2 738890.4

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Energy Consumption (GJ) Energy Intensity (GJ/M CNY)

Note:

1. Includes offices located in the United States Japan Shenzhen Zhuhai and Hong Kong.

2. Conversion data of the heat value index:

- Zhangjiang Jinqiao Huizhou and Kunshan Facilities adopted the General Principles for Calculation of Comprehensive Energy Consumption (GB/T 2589-2008) Appendix A (Reference coefficients for converting various energy sources to standard coal).- Nantou Facility adopted the Unit Calorific Value Table for Energy Products published by the Energy Administration Ministry of Economic Affairs.- Mexico Facility adopted "Secretaría de Energía (SENER) - Dirección General de Planeación e Información Energéticas/Oficio GPIE.210.010.2024".- Vietnam Facility adopted data from the Intergovernmental Panel on Climate Change (IPCC).About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Power Saving Performances in 2025

Facility Project Description Power Saved Power Saved CO? Reduction

(1~2)

(MWh) (GJ) (metric tonnes CO?e)

Compressed air system heat exchange Installed additional heat exchangers to recover heat generated during compressor operation

improvement project increasing the temperature of purified water endpoints and HVAC (3) hot water systems. 372.2 1340.4 213

Zhangjiang

Cooling tower energy efficiency project Integrated cooling towers across HVAC compressed air and refrigeration systems to reduce overall equipment energy consumption. 371.8 1338.7 213

Jinqiao Compressed air-cooling pump and Installed variable frequency drives (VFDs) on cooling water pumps and corridor exhaust fans to corridor exhaust fan upgrade reduce energy consumption. 109.4 393.9 63

Kunshan Improved compressed air system Replaced a 900 kW air compressor with a 450 kW high-efficiency model. 955.7 3441.3 557

Huizhou Thermal exhaust fan VFD retrofit Upgraded a constant-speed thermal exhaust fan to variable frequency control to enable energy-efficient operation. 22.4 80.7 9

Air handling unit (AHU) energy

efficiency improvement Installed VFDs on AHU fan motors to reduce HVAC energy consumption. 4.0 14.3 2

AHU heater energy efficiency upgrade Replaced a 50 kW heater with a 20 kW heat pump system to improve energy efficiency. 122.4 440.6 58

Nantou Elevator regenerative energy system Installed regenerative drives on elevators to capture braking energy for reuse. 11.8 42.4 6

Improved chilled water system Added VFDs to chilled water pumps to reduce energy consumption. 38.6 139.1 18

AHU replacement project Replaced AHUs with high-efficiency motors and added VFDs to reduce operational energy use. 64.5 232.3 31

Vietnam LED lighting upgrade RepIaced existing LED bulbs with lower-wattage LED bulbs. 16.4 59.1 11

Total 2089.2 7522.8 1181

Renewable Energy

USI actively responds to the call for renewable energy use. We purchased 255500 MWh (920010 GJ) of I-RECs Green Electricity Certificates (GEC) and Taiwan Renewable Energy Certificates

(T-REC) in 2026 to offset CO2 emitted by traditional power in 2025 (the annual electricity usage for Zhangjiang Jinqiao Huizhou Kunshan Mexico and Vietnam Facilities were all offset Nantou-

NK Facility was partially offset). Low-carbon products produced in facilities using renewable energy account for 87% of USI's annual revenue. According to GHG Protocol Scope 2 Guidance the

statements are used to neutralize Scope 2 market-based emissions. The GHG emissions amount by location and market (4) are as follows:

Category Item Scope 1 Scope 2 Total

GHG Emissions (metric tonnes CO?e) 5459.05 160333.48 165792.53

Location based

Percentage 3% 97% 100%

GHG Emissions (metric tonnes CO?e) 5459.05 18154.37 23613.42

Market based

Percentage 23% 77% 100%

Note:

1. Carbon emissions reduction = electricity saved x electricity emission coefficient - Huizhou Facility adopted the 2023 Provincial Average Electricity CO? Emission Factors by the Ministry of Ecology and

2. Electricity emission coefficient: Environment Guangdong emission factor: 0.404 kg CO?e/kWh.

- Zhangjiang and Jinqiao Facilities adopted the 2023 Provincial Average Electricity CO? Emission Factors by the Ministry of - Nantou Facility adopted the 2024 Electricity Emission Factor announced by the Bureau of Energy with a CO?

Ecology and Environment Shanghai emission factor: 0.574 kg CO?e/kWh. emission factor of 0.474 kg CO?e/kWh.- Kunshan Facility adopted the 2023 Provincial Average Electricity CO? Emission Factors by the Ministry of Ecology and 3. HVAC Heating Ventilation and Air Conditioning

Environment Jiangsu emission factor: 0.583 kg CO?e/kWh. 4. The data presented came from the ISO 14064-1 inventory results rounded to the 2nd decimal place.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Water Resources Management

Although none of USI's manufacturing facilities are located within water source protection to discharge. Regular inspections monitoring and third-party testing are conducted to

areas water resource management remains an important focus of our environmental ensure compliance with applicable discharge standards. All facilities perform inspections

stewardship efforts. USI implements water efficiency management programs across its in accordance with local regulatory requirements. (1) In 2025 there were no incidents of

operations to monitor consumption improve efficiency and minimize environmental impacts wastewater discharge exceeding regulatory limits.associated with water use and wastewater discharge. Total water withdrawal in 2025 was 1049.81 ML an increase of 2.4% from 1024.70 ML in

Water consumption is monitored through facility-level metering systems and monthly reviews 2024 primarily due to higher water demand from new product manufacturing processes.to identify conservation opportunities and support continuous improvement. To strengthen Despite this increase water intensity decreased by 15.1% compared with the 2015 baseline

water stewardship USI provides regular water conservation and environmental awareness reflecting continued improvements in water-use efficiency. (2)

training encouraging employees to identify water-saving opportunities and participate in With the exception of Nantou-TT Facility which withdrew 46.86 ML of groundwater all

improvement initiatives. In 2025 total training hours reached approximately 6083 with facilities sourced water from municipal supplies totaling 1002.95 ML. Wastewater discharge

16207 participant attendances. amounted to 896.02 ML and was discharged to municipal or industrial park sewerage

USI also maintains stringent wastewater management practices. Process-related chemicals systems following applicable treatment requirements. USI will continue to strengthen water

are separately collected and managed at each facility while wastewater is treated through conservation wastewater quality management and employee engagement efforts to support

on-site treatment systems or authorized industrial park wastewater treatment plants prior the sustainable use of water resources.Water Withdrawal and Recycle Water Usage Ratio

28.8 30.0

25.4

22.6

96%

1068 1029 1025 1050 4%

2022 2023 2024 2025

Groundwater Tap Water

Water Withdrawal (ML) Water Recycling Rate (%)

Note:

1. Kunshan Facility occupies leased space within the parent company's facility. Water withdrawal and wastewater discharge are managed and controlled by the parent company while Kunshan Facility only shares the associated water-related costs;

Main test: pH Suspended Solids (SS) Biochemical Oxygen Demand (BOD) Chemical Oxygen Demand (COD) Ammonia Nitrogen Total Phosphorus Total Nitrogen Petroleum Hydrocarbons Animal and Vegetable Oils Copper Nickel Cadmium

Lead Zinc Arsenic Fluoride Hexavalent Chromium Selenium Silver Total Mercury Sulfides.

2. Water intensity of 0.169 (m3/K USD) in 2015 and 0.144 (m3/K USD) in 2025 a decrease of 15.1% from the base year.

USI assesses water-related risks using the World Resources Institute Aqueduct Water Risk USI continues to improve water efficiency through process optimization and investment in

Atlas with baseline water stress used to evaluate the balance between water demand water recycling and reuse technologies. At Zhangjiang Facility a process water recycling

and available renewable surface and groundwater resources. Based on this assessment system enables treated wastewater to be reused in production processes reducing freshwater

Zhangjiang Jinqiao Kunshan and Mexico Facilities are located in areas of high baseline demand. At Jinqiao Facility water recovery initiatives include a zero liquid discharge (ZLD)

water stress while Huizhou Nantou and Vietnam Facilities are located in areas of lower system and the reuse of HVAC condensate in cooling tower operations. These measures

water stress. support water conservation efforts particularly at facilities located in water-stressed regions.In 2025 58.6% of total water withdrawal and 40.0% of total water consumption occurred in In 2025 USI recycled 315.12 ML of water achieving an overall water recycling rate of 30%.high water-stress areas. To mitigate water-related risks USI implements site-specific water Process water recycling volume reached 488.15 ML corresponding to a process water

management measures including the establishment of water efficiency targets and the recycling rate of 65%. Moving forward USI will continue to strengthen water resource

evaluation and deployment of water recycling and reuse systems. management expand water reuse opportunities and improve water-use efficiency across its

operations to support long-term sustainable water stewardship.Water Withdrawal and Discharge (1-2) Unit: ML

Nantou

Facility Zhangjiang Jinqiao Huizhou Kunshan Mexico Vietnam

TT NK

Water Stressed Areas YES YES NO YES NO NO YES NO

Source Tap water Tap water Tap water Tap water Tap water Groundwater Tap water Tap water Tap water

Water Withdrawal 392.351 75.349 130.189 96.321 19.565 46.858 105.309 51.317 132.547

Discharge 353.116 67.814 117.170 86.689 24.229 94.779 46.185 106.038

Water Consumption 39.235 7.535 13.019 9.632 42.194 10.531 5.132 26.509

Fresh Water (≤ 1000 mg/L TDS) N/A N/A N/A 96.321 66.423 105.309 N/A 132.547

Sewage Sewage Sewage Sewage Sewage City sewage Sewage

Discharge Flow treatment treatment treatment treatment Sewage treatment facility treatment treatment treatment

facility facility facility facility facility facility facility

Note:

1. Apart from Nantou-TT Facility USI has no discharge water flow meter in each facility. Vietnam Facility is estimated based on 80% of the water withdrawal while other facilities use a 90% estimation based on water withdrawal.

2. N/A: water at all facilities is supplied by municipal water utilities and complies with local water quality standards but there is no total dissolved solids (TDS) test data.

Waste Management

USI is committed to minimizing waste generation and maximizing resource recovery through Through regular waste assessments USI identified chemical containers and wipes organic

the principles "Impact Mitigation & Continuous Improvement" and "Effective Reduction & solvents and mixed waste plastics as key waste streams. We continue to implement

Circular Reuse". Waste management performance is incorporated into annual operational waste reduction initiatives focused on source reduction material reuse and recycling to

objectives across all facilities. Through regular waste data collection tracking and analysis decrease waste requiring treatment and disposal. By advancing circular resource utilization

process facilities and EHS units monitor waste generation and identify opportunities for and continuously improving waste management practices USI seeks to further reduce

source reduction recycling and reuse. To strengthen employee engagement USI regularly environmental impacts and support its long-term sustainability objectives.provides waste reduction and recycling training to enhance awareness of waste classification

minimization and resource conservation practices. In 2025 total training hours reached Waste Generation and Recycling Rates

approximately 9346 with 18497 participant attendances.In 2025 USI generated 11175 metric tonnes of waste of which 9783 metric tonnes were

recycled achieving an overall recycling rate of 87.5% and exceeding the annual target of 86.0 87.3 90.6 87.5

80%. Hazardous waste generation totaled 824 metric tonnes with 241 metric tonnes recycled

(29.2% recycling rate) while non-hazardous waste generation amounted to 10351 metric

tonnes with 9542 metric tonnes recycled (92.2% recycling rate) exceeding the annual

target of 90%.Hazardous waste intensity was 0.113 kg/K USD in 2025 slightly higher than the previous 15680

year primarily due to changes in revenue rather than a significant increase in hazardous

waste generation. To further reduce hazardous waste generation USI continues to evaluate

opportunities to replace hazardous materials with lower-impact alternatives and improve

material utilization efficiency. 11586 9836 10351

In 2025 discarded products and electronic waste totaled 251.093 metric tonnes and were

managed by qualified recycling vendors. USI also promoted the reuse of packaging materials

including cartons partitions and trays achieving a total reuse volume of 2983 metric 1006 790 833 824

tonnes. 2022 2023 2024 2025

Hazardous Waste Non-hazardous Waste Waste Recycling

(metric tonnes) (metric tonnes) Rate (%)

USI has established a waste management program requiring hazardous waste to be handled by qualified and licensed contractors while non-hazardous waste is directed to authorized recycling

facilities or licensed waste-to-energy and treatment facilities as appropriate. To ensure compliance and minimize environmental risks facilities conduct annual assessments of waste disposal

contractors through document reviews online evaluations site inspections and periodic unannounced audits.Zhangjiang Jinqiao Huizhou Kunshan Nantou-TT Nantou-NK and Vietnam Facilities achieved zero waste to landfill in 2025. USI continues to monitor regulatory developments strengthen

waste management practices and invest in initiatives that promote waste reduction recycling and reuse to further support circular resource utilization.Waste is classified by treatment method to enhance monitoring and identify opportunities for diversion from landfill. Certain waste streams are processed through waste-to-energy recovery

systems where energy generated during treatment is utilized as a secondary resource reducing reliance on external energy sources and associated GHG emissions. The breakdown of waste by

treatment method is shown below.Waste Disposal by Treatment Method (1) Unit: metric tonnes

Reused Recycled Composted Landfilled Incinerated

Treatment Hazardous Nonhazardous

Hazardous Nonhazardous Hazardous Nonhazardous Hazardous Nonhazardous Hazardous Nonhazardous Energy Without Facility energy Energy

Without

recovery recovery energy recovery recovery

Zhangjiang 0.000 0.000 51.350 1309.023 0.000 473.283 0.000 0.000 350.697 0.000 28.078 0.000

Jinqiao 0.000 0.000 12.156 369.395 0.000 267.675 0.000 0.000 38.367 0.000 10.906 0.000

Huizhou 0.000 0.000 27.545 1697.190 0.000 73.737 0.000 0.000 33.830 0.000 64.104 0.000

Kunshan 0.000 0.000 118.000 1625.396 0.000 164.512 0.000 0.000 96.380 0.000 33.241 0.000

TT 0.000 0.000 0.000 179.331 0.000 71.340 0.000 0.000 4.670 0.000 36.609 0.000

Nantou

NK 0.000 0.000 0.000 491.368 0.000 66.960 0.000 0.000 17.178 0.000 145.349 0.000

Mexico 0.000 0.000 2.379 2010.420 0.000 47.900 0.000 323.492 0.000 37.777 0.000 0.000

Vietnam 0.000 0.000 29.397 678.679 0.000 16.203 0.000 0.000 4.014 0.000 166.793 0.000

On-site 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Off-site 0.000 0.000 240.826 8360.803 0.000 1181.611 0.000 323.492 545.136 37.777 485.080 0.000

Subtotal 0.000 0.000 240.826 8360.803 0.000 1181.611 0.000 323.492 545.136 37.777 485.080 0.000

Percentage 0.00% 0.00% 2.16% 74.82% 0.00% 10.57% 0.00% 2.89% 4.88% 0.34% 4.34% 0.00%

Total 0.000 8601.629 1181.611 323.492 582.914 485.080

Note:

1. Data is rounded to the 3rd decimal place.

Air Pollution Control

Air quality remains an important environmental issue in the regions where USI operates. To opportunities for continuous improvement.minimize the environmental impacts of air emissions and ensure regulatory compliance USI USI continues to invest in emissions reduction initiatives. Jinqiao Facility upgraded its boiler

implements air emissions management programs across its manufacturing facilities focusing system with low-NO burners to reduce nitrogen oxide emissions while Nantou-NK Facility

on the monitoring control and reduction of regulated pollutants. Xinstalled a zeolite rotor and regenerative thermal oxidizer (RTO) system to enhance VOCs

USI regularly monitors key air pollutants including volatile organic compounds (VOCs) abatement. Mexico Facility also performs routine PM monitoring and management as part of

nitrogen oxides (NOX) sulfur oxides (SOX) and particulate matter (PM) in accordance with its air emissions control program.applicable regulations. To reduce emissions facilities deploy a variety of air pollution control In 2025 USI emitted 42.216 metric tonnes of VOCs an increase of 4.2% compared with

technologies including activated carbon treatment systems scrubbers UV photolysis (1) the previous year primarily due to the use of volatile organic substances in new product

zeolite rotor concentration systems and thermal or catalytic oxidation technologies. manufacturing processes. USI will continue to strengthen emissions management expand

For VOCs management Nantou Facility conducts air emissions reporting in accordance air pollutant monitoring and disclosure coverage and implement improvement initiatives to

with local regulations while Zhangjiang and Jinqiao Facilities comply with applicable reduce emissions and mitigate environmental impacts.environmental tax reporting requirements. Mainland China Facilities perform routine Detailed air pollutant emissions data (2–5) for 2025 are presented in the table below:

emissions monitoring and management programs to support compliance and identify

Unit: metric tonnes

Facility Nantou

Zhangjiang Jinqiao Huizhou Kunshan Mexico Vietnam

Pollutant TT NK

Volatile

Organic

Compounds 3.796 1.308 0.418 1.848 11.982 22.865 N/A N.D.(VOCs)

Nitrogen

Oxides (NO ) 1.022 0.037 N/A N/A N/A 1.820 N/A N/AX

60.064 51.491 40.501 42.216 Sulfur Oxides

(SO ) N.D. N.D. N/A N/A N/A 0.001 N/A N/AX

Particulate

2022 2023 2024 2025 Matter (PM) 0.100 0.092 0.865 N.D. 0.001 0.822 0.961 14.116

VOCs Emissions (metric tonnes)

Note:

1. UV beams can break the molecular bond of industrial waste as well as the water and oxygen in the air. Then with the 3. The discharge amount of Nantou Facility is based on the declared amount of air pollution fees collected by local

use of ozone the oxidization reaction takes place for deodorization and sterilization. environmental protection agencies which are calculated with mass balance.

2. The estimated emission level and amount in the test report produced by a third-party test body are adopted for 4. N.D.: non-detectable below detection limit.

Zhangjiang Jinqiao Huizhou Kunshan Mexico and Vietnam Facilities and the data is rounded to the 3rd decimal place. 5. N/A: Not required by local regulations; no testing was conducted.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Biodiversity

USI recognizes that healthy ecosystems provide essential services that support business were identified within protected areas several are located within a 5-km buffer zone. USI

operations including water supply water quality regulation flood mitigation and climate will continue to evaluate potential biodiversity impacts and strengthen engagement with

regulation. To support biodiversity conservation and responsible land use USI has established suppliers on appropriate mitigation measures.and publicly disclosed its Biodiversity Conservation and No Deforestation Commitment which The assessment identified key nature-related dependencies including water supply water

applies across global operations subsidiaries suppliers and value chain partners. Approved quality regulation flow regulation and flood and storm mitigation. Key impacts include

by the Board of Directors the commitment includes a long-term goal of achieving a Net emissions waste generation water use and operational disturbances such as noise

Positive Impact (NPI) on biodiversity by 2050. and light. To mitigate these impacts and enhance resilience USI integrates biodiversity

To identify and manage nature-related risks and opportunities USI adopts the TNFD considerations into its water resource management climate action energy management

LEAP (Locate Evaluate Assess Prepare) approach and utilizes the ENCORE tool to assess waste management and air emissions management programs.biodiversity-related dependencies and impacts across its operations and value chain. Site Since 2013 USI has collaborated with external organizations to support afforestation and

locations are evaluated against the IUCN protected area classification system and national ecological restoration initiatives that contribute to biodiversity enhancement as well as

ecological conservation databases. Based on the assessment none of USI's operational sites soil and water conservation. Through the application of the mitigation hierarchy―avoid

are located within designated protected areas. However Nantou Facility is situated within minimize restore and offset―USI seeks to reduce biodiversity impacts across its operations

a nationally identified ecological conservation zone and USI continues to monitor relevant and value chain while advancing its no-deforestation commitment and long-term biodiversity

environmental requirements and potential ecological risks. objectives. For further details please refer to the 2025 Climate and Nature Risk Management

USI also conducts location-specific assessments of supplier sites. While no supplier facilities Report.Locate Evaluate Assess Prepare

Collect operational site and value Assess dependencies and impacts Identify material nature-related Develop strategies allocate

chain data to prioritize interactions on ecosystem services across risks and opportunities. resources and set targets for

with natural ecosystems. operations and the value chain. monitoring.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Green Manufacturing and Expenditures

In addition to incorporating eco-design principles into its products USI promotes cleaner generating approximately 55 MWh during the year. By the end of 2025 cumulative solar

production practices across its operations including manufacturing logistics environmental power generation across USI facilities had reached 8238 MWh. USI will continue to advance

management and corporate responsibility. Guided by the principles of cleaner production clean production initiatives and green infrastructure development to support the transition

USI focuses on resource conservation green manufacturing pollution prevention and toward low-carbon manufacturing.environmentally friendly design. These efforts help reduce environmental impacts while To evaluate environmental investments USI classifies environmental expenditures according

improving operational efficiency lowering resource consumption and generating both to ASEH's environmental expenditure framework including operating costs upstream and

economic and environmental benefits. downstream costs management overhead and social activity costs. (For details please refer

USI continues to invest in green buildings and renewable energy projects. Nantou-NK Facility to the Sustainability Data – Environmental D. Environmental Expenditures table). In 2025

obtained EEWH Green Building certification in 2020 and has operated a rooftop solar power total environmental expenditures amounted to approximately CNY 36 million a decrease of

system with a total installed capacity of 499 kWp since 2019. (1) In 2023 Huizhou Facility 16% compared with the previous year primarily due to lower operating costs. Through regular

installed a rooftop solar power system with a total capacity of 1814 kWp generating 551.9 monitoring and performance reviews USI continues to optimize environmental investments

MWh annually. Vietnam Facility added a 568 kWp rooftop solar power system in 2025 and enhance resource efficiency.Environmental Protection Expenditures

Sustainable Finance

To support its low-carbon transition and strengthen climate resilience USI

secured sustainability-linked loans totaling more than USD 320 million in 2024. 47496006

The financing framework links borrowing costs to sustainability performance with 42551851

targets focused on increasing renewable energy use and achieving greenhouse gas

reductions aligned with SBTi-validated pathways. Through these mechanisms USI 35918776

reinforces accountability for sustainability performance while supporting long-term 29912628

energy conservation emissions reduction and sustainable growth objectives.

2022 2023 2024 2025

Environmental Expenditure (CNY)

Note:

1. kWp is the calculation unit of the solar cell's power output under standard sunshine conditions; 1 kWp = 1 kilowatt-hour (kWh)

Occupational Health and Safety

In addition to complying with applicable labor and occupational safety regulations all seven Safety and Health Production Committee's Responsibilities

manufacturing facilities operate ISO 45001-certified Occupational Health and Safety (OHS)

management systems. These systems cover employees and non-employee workers (1) within

the defined operational boundary (coverage rate: 100%). USI maintains documented OHS

policies standard operating procedures drills and training programs to raise workplace safety Guard the

awareness and holds various health and well-being activities to ensure workers' physical and workplace

mental health in the workplace. To maintain certification OHS policies and performance are Guarantee the

reviewed annually in accordance with regulatory requirements and internal standards. These Prevent investments are

reviews support continual improvement of the management system and workplace safety occupational inputed

conditions. diseases

Occupational Health and Safety Management

Health and Safety Management Goals and Statuses in 2025 Develop and Ensure the

implement

Goals Performance Safety and Health trainings andhealth Production educations aremanagement

Maintain Zero Occupational Disease accomplished

Incidences No cases of occupational disease occurred

and promotion Committee

Maintain Zero Work-Related Deaths No cases of work-related deaths occurred

Since 2016 we established a universal Supervise Perfect the

Zero Infections from Infectious Diseases notification system and enhanced our

and check the system of

production production

within Facilities emergency response capabilities. No works responsibilityinfectious disease-related cases occurred in

2025

To ensure the safety and health of workers in the facility USI invested CNY 233 million in

Each facility has established a Safety and Health Production Committee in accordance with safety production and chemical safety management in 2025. Occupational safety and health

local regulatory requirements. Worker representatives account for at least one-third of costs include employee insurance physical check-up labor protection safety measures

committee membership. Committees meet at least quarterly to review OHS performance and improvements operating environment monitoring and ISO 45001 certification fees.provide recommendations on risk management and workplace safety measures. Facilities also

maintain internal communication channels including WeChat groups and periodic exchange

sessions to facilitate information sharing and ensure effective communication.Note:

1. Non-employee workers: workers that include temporary workers and contractors such as construction cafeteria

security cleaning personnel stationed personnel and others with 5347 people in total by the end of 2025.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Occupational Safety Risk Management

USI integrates OHS into its enterprise risk and opportunity management processes including Hazards Risks and Opportunities Identification Procedure

procurement contractor management and management of change. This approach is designed

to identify and control safety and health risks arising from changes in production processes

operational activities or services that may affect working conditions or the environment. ? Establish hazard identification ? Analyze job roles and work

Defined control measures include application and approval procedures safety evaluations and risk assessment procedures activities to identify potential

personnel notification and training and updates to technical documentation to mitigate and define operational workflows hazards and perform risk and

identified risks. and evaluation criteria opportunity assessments

Responsible units conduct regular hazard identification and risk assessments and also in

response to triggers such as process changes procurement activities stakeholder input and Plan Do

regulatory updates following the established Safety and Health Risk and Opportunity Assessment

Procedures.Based on assessment outcomes and applicable regulatory and internal requirements priority ? Set OHS objectives and

risks are identified and corresponding control and improvement measures are implemented to improvement plans ? Consolidate assessment results

reduce operational risks and enhance OHS management system effectiveness. ? Continuously track the to determine priority risk

To strengthen the quality and consistency of risk assessments the dedicated OHS unit provides effectiveness of items and the scope for

periodic and ad hoc training and awareness programs (please refer to the Occupational Health improvements improvement

and Safety Training section). In addition designated safety and health representatives and Act Check

personnel are required to complete ISO 45001 internal auditor training and obtain relevant

certification.Hazards Risks and Opportunities Identification Management Measures in 2025

Risk and Corrective Action Identification Hazard or Impact AboveOpportunity Level Result Medium Level Management Measures

1. Control measures must reduce the risk to an

1. Serious acceptable range

2. Review the integrity of existing protection

and control measures and formulate plans for There are no Serious or High-Level risks in the work activities or working environment of USI facilities.improvement. If there is no improvement it

2. High is necessary to formulate operation control

procedures or emergency response plans

Must wear safety belts and helmets and use compliant auxiliary equipment;

3. Medium-High Risks and incidences must be reviewed to see Part of the factory Elevated operations: drop fall set up the operation control area and have workers from the same industry to

whether there are still opportunities to improve operations and assist in the operation.

4. Medium such as: high-risk operations Confined space operations: hypoxia Wear self-contained breathing apparatus and strengthen training.

1. Measures to further reduce personnel employees have

5. Low exposure frequency or incidence rate Medium High or Hot work operation: fire Must control fire sources and combustibles wear personal protective

2. Adjust the work work plan and working Medium Level risks equipment carry spare fire extinguishers and strengthen training.

environment to be suitable for workers and opportunities; In addition to regular monitoring of high-risk operating environments (including

3. Reduce monotonous work or working others are Low or Work environment (such as using

organic solvents X-Ray inspections): lighting) environmental inspections should be conducted. The inspection 6. Slight frequency Slight Level risks items include noise carbon dioxide concentration organic solvents specialized

4. Strengthen existing control measures and opportunities. inhalation hazard skin contact

hazard or body pathology substances dust lead workplaces and free radiation; they require personal protective gear during operation.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Chemical Safety Management

In 2025 more than 30 safety and health management programs were tracked which includes In alignment with the United Nations Strategic Approach to International Chemicals

strengthening the management of hazardous operations eliminating safety hazards of Management and the SDGs which call for sound chemicals management by 2030 to reduce

machinery and equipment reducing chemical use or using alternatives and occupational the release of hazardous substances USI has established Chemical Management Procedures

disease prevention. to strengthen source control and manage chemical-related risks within its operations.At the same time to provide a better workplace environment USI rewards employees for These procedures include a chemical control list specifying prohibited substances. All

proposing any improvement measures that mitigate any occupational hazard or disease chemicals are required to be screened against an internal database prior to introduction and

and if employees find that there is a direct threat to personal safety and other emergency following review and approval by designated authorities formally registered before entering

situations they can immediately suspend their work at hand and evacuate the workplace the procurement process. Operational controls cover transportation loading and unloading

according to the emergency response measures of each facility. USI will not punish any storage handling labeling use pollutant management and emergency response. Relevant

employees for the above actions. personnel must complete pre-job and periodic training with training records maintained.Safe Workplace Chemical risk levels are determined based on hazard characteristics and exposure assessments. Corresponding control measures are implemented in accordance with the

To ensure the safety of workers and facilities each facility conducts inspections in accordance hierarchy of controls to reduce exposure risks and mitigate occupational hazards.with local government regulations and the Company's operating standards and EHS personnel

also conduct routine facility safety audits with the scope encompassing Occupational Health Chemical Safety Management Process

and Safety Management Systems. In some facilities the inspection results are included in

the occupational safety and health evaluation activities and outstanding units are publicly

recognized in the regular occupational safety and health (production) meetings to encourage

personnel to participate in safety and health management and improvement measures. USI's internal

Audit Findings Results Over the Years chemical database

YearAspects 2022 2023 2024 2025 New chemicals Check forprohibited Hazard Filed and controlled

Safety 535 594 1210 941 evaluation substances identification

Health 59 33 12 104

Management 13 0 14 49 Authorized System purchase and use

In addition according to the actual operating hazards of each facility qualified institutions

are also commissioned to regularly implement environmental testing to control the operating Check for Operational risk and

environment of the hazard factors testing items such as building security drinking water regulatory Approved for waste management

safety sewage testing Legionella pneumophila bacteria emergency lighting lightning Find alternative exemption one year personnel training and

protection testing smoke detection equipment and fire equipment testing. At the same time record keeping

the Company also regularly monitors operational environments with high risks including

noises the concentration of carbon dioxide organic solvents specific chemical substances

lead in the workplace and free radiation to ensure that the threshold values of concentration

of harmful substances and noises are below standards. If there are any abnormalities it

will be immediately corrected and maintained; if it is close to the abnormal state we will

provide employees with appropriate preventive training and with a healthy and safe working

environment.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Occupational Incident Management

To ensure that the relevant units can respond quickly when an occupational incident occurs Occupational Injury Accident Reporting Procedures

each facility has established procedures for accident investigation and handling stipulating

that if a near miss occupational injury or occupational disease occurs in the facility

procedures such as first aid reporting investigation and improvement measures would be

carried out and at the same time improvement measures are proposed based on the root Occupational

cause of the accident. All improvement measures would be carried out across all facilities accident occurred

and relevant continuous improvement would be tracked regularly to prevent the recurrence

of similar accidents. In 2025 there were 12 physical work-related injuries. In addition to

improving the hardware and equipment the Company is also actively raising the safety

awareness of its employees and continuing to work towards the goal of Zero Accidents. There On-site emergency

were no accidents resulting in injury or death of employees or damage to equipment resulting treatment notify EHS to

in production stoppage in 2025. assist in emergency aid

Occupational Injury Causes and Improvement Measures

Injury Type Cases Improvement Measures

YES

Slip/Trip 3 Is the injury serious

Notify authorities

or fatal according to local regulations

Contusion 3 ? R e-examine the actions and procedures of the

personnel operating the machine make further

modifications add protective devices and post

Crush injury 2 warning signs to prevent recurrence. NO

Physical E nhance training and issue personal protective

Fall 2 equipment to protect personnel safety.Government agencies

? I ncrease inspections develop strict SOPs enhance intervene to assist in the Internal accident

safe operation promotion and continuously accident investigationinvestigation

Puncture improve operation procedures to reduce

wound 1 accidents.Implement corrective

Other 1 and preventive actions

Closed

Occupational Safety and Health Training

Occupational Injuries and Occupational Diseases Over the Years (1) In order to enhance employees' awareness of occupational safety and health USI has

established "Environmental Safety and Health and Energy Education and Training

Year 2022 2023 2024 2025 Management Regulations" at each facility to draw up annual environmental safety and Items　　　　　　　 health education and training plans according to practical needs and to conduct safety and

Total hours worked 47217045 37813798 37577554 36283442 health education and training for new recruits and in-service personnel (e.g. chemical safety operation electrical safety personal protective equipment use and workplace accident

Number of lost-time injuries 11 14 7 12 management training) regulatory and certification training (e.g. first aid personnel special

machinery and equipment safety management and radiation device operation training)

Lost-Time Injury Frequency management system operational training emergency response training and contractor

Rate (LTIFR) (2) 0.23 0.37 0.19 0.33 training (please refer to the Contractor Management section) as well as arranging drills

and tests for employees to enhance their knowledge and skills and their ability to deal with

Number of high-consequence 1 0 0 0 emergencies. In 2025 USI held 371 training courses and 33328 employees logged 45381 work-related injuries hours in occupational safety training.Rate of high-consequence 0.02 0.00 0.00 0.00 Occupational Health and Safety Training Datawork-related injuries (3)

Year

Number of near misses 5 0 3 0 Items　　　　　 2022 2023 2024 2025

Near Miss Frequency Rate Total Number of Courses 118 224 190 371

(NMFR) (4) 0.11 0.00 0.08 0.00

Total Number of Trainees 10967 19956 13101 33328

Number of work-related

fatalities 0 0 0 0 Total Training Hours 11008 22702 13790 45381

Rate of fatalities as a result As a manufacturing company USI has comprehensive Emergency Response Procedures to

of work-related injuries (5) 0.00 0.00 0.00 0.00 control and mitigate negative impacts caused by disasters. Our EHS Emergency Response

Occupational Diseases Rate Center conducts emergency response training for disasters caused by earthquakes fires and

(ODR) (6) 0.00 0.00 0.00 0.00 chemical leaks to ensure employees fully understand facility evacuation routes and how to

use emergency response equipment. In 2025 over 40 emergency drills were held including

Number of days lost due to first responder training and earthquake fire and chemical spill drills.injuries 309 444 424 415

Lost Day Rate (LDR) (7) 6.54 11.74 11.28 11.44

Note:

1. Statistical count excludes traffic accidents during commutes. Please refer to the Sustainability Data – Social: I.

Facilities Occupational Injuries and Occupational Diseases and Contractor Management section for each facility and

contractor work-related injuries data.

2. Lost-time injuries frequency rate (LTIFR) = (Number of lost-time injuries ÷ Total hours worked) × 1000000

3. Rate of high-consequence work-related injuries = (Number of high-consequence work-related injuries ÷ Total hours 6. Occupational Diseases Rate (ODR) = (Number of occupational diseases ÷ Total hours worked) × 1000000.

worked) × 1000000 Statistics of occupational disease are in accordance with the definition of occupational diseases from relevant local

4. Near Miss Frequency Rate (NMFR) = (Number of Near Misses ÷ Total hours worked) × 1000000 laws and regulations for each facility.

5. Rate of fatalities as a result of work-related injury = (Number of fatalities as a result of work-related injuries ÷ Total 7. Lost Day Rate (LDR) = (Number of days lost due to injury ÷ Total hours worked) × 1000000. Number of days lost

hours worked) × 1000000 due to injury are based on the information collection period until 12/31/2025. 118About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Contractor Management

Nowadays outsourcing technical and professional projects to contractors are part of In 2025 more than 2051 occupational safety and health training sessions were held for 9347

daily operations. Besides requesting contract project quality and schedule USI values participants from 1091 contracting companies (trainees include contractors for material

contractors' safety and health. USI's Policy clearly commits to "Awareness Training" contractors factory services construction waste and other services). After training and

and communication for all workers and our Contractor and On-Site Construction evaluation by each facility's EHS departments 3055 contractor employees obtained construction

Management Regulations were formulated using the concept and principle of the PDCA permits.cycle and we use the Regulations as our guidance to effectively manage and improve To ensure construction safety during work performed by contractors we focus on dangerous

contractor occupational safety and health. operations and repeat offenders to strengthen the inspection of operational safety during

The quality of the contractor's personnel has a significant impact on the quality construction such as protective equipment for workers and compliance with safe conduct. If

duration and safety of the work being contracted. Therefore USI contractors are asked deficiencies are found and not improved immediately penalties will be imposed in accordance

to provide the necessary documentation of education and training as well as participate with company regulations and the results will be included in the evaluation of the contractor's

in occupational safety and health education and training conducted by USI. qualifications. In 2025 no qualified contractors were disqualified due to safety and health audits.Contractor and On-Site Construction Management Regulations

Construction Document Education

Post-

Assessment Review and

Construction Construction

Training Management Management

1 2 3 4 5

? C onstruction ? Contractor information ? C onstruction worker ? Notification of working ? Fines for violation

requirements review training environment hazards ? Occupational injury

? Contractor qualification ? C onstruction application ? Construction permit ? Sub-contractor meeting statistics

evaluation form application ? Construction supervision ? F eedback to contractor

? H azardous work ? Sub-contractor training ? E nvironmental safety evaluation

application form inspection and audit

Contractor Construction Application and Audit Findings (1)

Year

Items　　　　　 2022 2023 2024 2025

No. of construction applications 3174 3386 3789 3964

No. of applications for hazardous work (2) 886 584 1302 1099

No. of on-site audit findings 66 20 13 29

No. of major findings (3) 28 20 4 11

Note:

1. From 2022 to 2023 the data includes Zhangjiang Jinqiao Huizhou Kunshan and Nantou Facilities. Starting from 2. Hazardous work: includes hot work hanging work confined space work elevated work.

2024 the scope of the statistics is consistent with the disclosure scope of this report. 3. Major findings: on-site audit findings and issuing a ticket.

Physical and Mental Healthcare

Through its ISO 45001 Occupational Health and Safety Management System USI has To provide employees with comprehensive health care USI has built a healthy workplace

established a structured framework for managing contractor operations. Contractors working better than what is required by law. We have amenities and programs on-site with specialized

on-site are required to follow established incident reporting and investigation procedures for personnel to provide professional services. Programs include health knowledge bulletins

all incidents including occupational injuries fires and explosions. These procedures include health seminars workshops and group activities regularly conveyed through channels such

immediate reporting root cause analysis implementation of corrective and preventive as the USI Newsletter WeChat groups email announcements and bulletin boards to enhance

actions and complete documentation to support timely and effective incident management employee health knowledge and skills and build an excellent healthy workplace.and strengthen risk control.With the continued implementation of these management and risk prevention measures no Amenities and Programs

contractor work-related injuries or major occupational safety incidents were recorded from USI provides employees with quality healthcare services. We have on-site nurses and regularly

2022 to 2025. This performance indicates the effectiveness of the contractor management invite specialized family medicine doctors occupational medicine doctors psychologists

framework and progress toward the occupational health and safety objective of zero physiotherapists and nutritionists to provide employees with psychological work stress

incidents. career and other consulting services. In 2025 USI provided approximately 12000 health

consultations totaling 9960 service hours. USI nurse stations are equipped with basic

Contractor Occupational Injuries and Occupational Diseases (1) medical supplies including first-aid materials blood pressure monitors and weighing scales

to provide primary healthcare support for employees and on-site workers. Facilities also

Year

Items　　　　　 2022 2023 2024 2025

include rest areas counseling rooms and breastfeeding rooms to accommodate needs for

rest consultation and nursing. Nantou Facility has received the Nantou County Excellent

Total hours worked 7724377 8087325 7842256 8909887 Breastfeeding Room certification for 12 consecutive years reflecting its continued provision

Number of lost-time injuries 0 0 0 0 of a supportive environment for nursing mothers.Lost-Time Injury Frequency Rate To serve the needs of all customers USI implemented customer service improvements for

(LTIFR) 0.00 0.00 0.00 0.00 seniors and persons with disabilities. Measures include upgraded barrier-free access routes

Number of high consequence enhanced accessibility facilities and signage and dedicated staff assistance. Through these

work-related injuries 0 0 0 0 initiatives USI provides a safe accessible and inclusive service environment that meets the

diverse needs of elderly and disabled customers.Rate of high consequence work-

related injuries 0.00 0.00 0.00 0.00 Accredited Nantou County

Number of near misses 0 0 0 0 Physical Therapist Intervention Breastfeeding Room

Near Miss Frequency Rate (NMFR) 0.00 0.00 0.00 0.00

Number of work-related

fatalities 0 0 0 0

Rate of fatalities as a result of

work-related injuries 0.00 0.00 0.00 0.00

Occupational Diseases Rate (ODR) 0.00 0.00 0.00 0.00

Number of days lost due to

injuries 0 0 0 0

Lost Day Rate (LDR) 0.00 0.00 0.00 0.00

Note:

1.Please refer to the Occupational Incident Management section for the relevant ratio calculation formula.

Health Risk Management

Employee health is a critical foundation for enhancing corporate competitiveness and In addition to complying with regulations and relevant guidelines we systematically identify

advancing sustainable development. To implement comprehensive and effective health health risks based on employees' job characteristics and through health risk matrix analysis.management USI provides annual free health examinations that exceed regulatory Our efforts focus on three core management areas: special health hazard management

requirements. For employees working in high-risk environments additional specialized health cardiovascular disease prevention and musculoskeletal disorder prevention.examinations are arranged with results used for risk stratification and continuous follow-up. Regarding special health hazard management analysis of health examination results has

Occupational Health Risk (1) not identified any abnormalities directly related to work. However employees' physical health is closely associated with workload and psychological stress making these key areas

in overwork prevention management and critical factors influencing cardiovascular disease

159 Employees 100% of the employees involved in hazardous

operations completed special health exams risk. Furthermore based on industry characteristics occupational diseases remain primarily

Special health examination and related follow-ups. Medium & high-risk related to musculoskeletal disorders.management cases are closely monitored.Based on these risk characteristics we integrate health examination results with overwork

98 Employees After a holistic assessment of work-related and assessment mechanisms to establish management indicators for three major health risk

Overwork Prevention and personal overwork factors medium & high-risk cases categories―metabolic

(2) syndrome cardiovascular disease and musculoskeletal disorders.

would be further advised on working hours management

Health Management and psychological counseling if necessary. These indicators serve as the basis for risk identification classification and follow-up

management as detailed in the table below.

60 Employees Employees assessed with NMQ ≧ 3 and above are

Occupational musculoskeletal considered medium or high-risk cases. USI would Health Risk Issues and Management Metrics

disorder prevention arrange physical therapists and occupational

management specialists to conduct on-site assessment

consultation and health management. Issues Management Metrics 2025 Performance Status

55 Employees Expecting mothers' physical and mental health and work environment are evaluated during pregnancy

Maternal healthcare

management and the year after giving birth. Based on evaluation

Metabolic Syndrome Less than 22% 15.84%

results work adjustments are made when necessary.

62 Employees Employees required to wear RPE are given fit Cerebrovascular and Risk level of 3 or more less 0.65%

Medical evaluation for respiratory tests and physiological evaluations to assess Cardiovascular Disease than 2%

protective equipment (RPE) use for suitability.NMQ (3) of 3 or more less than

549 Employees Risk-stratified management of employee health

Musculoskeletal Disorders 2.3%

examinations with health consultations for 10%

General physicals abnormalities medium- and high-risk individuals and follow-

management up monitoring as needed.Health Promotion

For individuals aged 45 and above a comprehensive

219 Employees assessment and classification will be conducted. Those Health promotion is an integral part of preventive healthcare. Based on the results of the

Middle-aged and elderly identified as having Weak results will be scheduled for health examination and the willingness to participate in health promotion activities USI

health management health consultations and follow-up examinations and holds various health seminars trainings and activities such as pregnancy healthcare cancer

management will be arranged if necessary. screening services vaccination services blood donation activities weight-loss competitions

quit smoking contests and bone density detection to prevent chronic and occupational

Low Relevance to Work High diseases. USI also encourages employees to exercise regularly eat and drink healthily and

maintain good living habits.Note:

1. The data includes Nantou Facility.

2. Metabolic syndrome: when three out of five factors are met (a. abdominal obesity b. high blood pressure c. high blood sugar d. high triglycerides e. low high-density lipoprotein cholesterol).

3. NMQ Nordic Musculoskeletal Questionnaire

121

Risk Severity HighAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

In mental health USI not only holds fellowship campaigns regularly for employees (please

refer to the Employee Benefits section for details) but also has Employee Assistance Diverse Health Activities Performance Highlights

Programs (EAP). It works with the human resources department to improve their performance

by enhancing employees' mental well-being. In addition to managing human resources more ?

effectively it can deal with crises efficiently improve production efficiency and make sure A total of 48 health promotion activities were conducted throughout the year with 3955 participant instances and a satisfaction rate exceeding 90%

employees' pressure from their families work and life can be balanced and addressed. We ? Nantou Facility was awarded the Healthy Workplace Certification - Health Promotion

have specially arranged an overall work adaptability assessment for employees with physical Label by the National Health Agency.or mental difficulties this year to ensure that all employees have received professional ? More than 650 employees participated in joint hospital charity clinics providing one-stop

assistance. health check-ups and specialist consultation services.?

Annual Health Promotion Activities 5 00 employees participated in mid-to-senior age programs to gain awareness of health risk management and chronic disease prevention.Cancer Mental

Screening Health Charity Clinic First Aid Competition

Vaccination Counseling

Preventing

Blood Technology- Metabolic

Donation enabled Syndrome

Bone Density Fitness

Detection

Tobacco

Hazard

Prevention Tension Relief Cancer Screening Technology-enabled Fitness

Pampering Workshop Long-term

Moms Christmas Care ResourcesGift

Exchange

Slow Jogging Science-

based Weight

Management

Slow Jogging Vaccination

Inclusive

Workplace

Talents are the essential seeds for USI's

continuous growth and need to be carefully

nurtured and watered. We build an inclusive

workplace for employees by Enforcing Human

Rights Implementing Talent Development

Providing Comprehensive Benefits and 17636 56 % 93 %

Cultivating Harmonious Labor Relations. Job Opportunities Women in Revenue Local Hire Ratio

Provided Generating Function

Management

Key Stakeholders:

Employees Government 140 86 % 571 Employees

SDGs: Employee Communication Facilities have Union Sponsored to Obtain

Symposiums Representation Degrees

Sustainable Issue Performance and Targets

Material Issue Achieved Not Achieved (1)

Management Purpose KPI 2025 Target 2025 Performance Status 2026 Target 2030 Target

Human Rights/Diversity & Inclusion

Ensure women

have participating More than 21% women More than 23% women More than 26% women

Construct a workplace where there are no chances in all-level in top management 20% women in top

human rights violations equality of gender decision-making positions management positions

in top management in top management

positions positions

and job opportunities and with diversity leadership

and inclusion

Employ disabled Employ more than 100 105 disabled employees More than 100 disabled More than 100 disabled employees disabled employees employees employees

Management Approach: Encourage employees to continue their advanced studies. Plan training courses for employees to fit in the right

Human Capital Development position and cultivate internal instructors to inherit corporate culture and organizational capabilities

Evaluation Mechanism: Quarterly/yearly review the internal Instructor training plan and track employee training status

Improve employee More than 1100 Internal 1243 internal instructors More than 1150 internal More than 1350 internal

Provide employees with a lifelong and competence instructors instructors instructors

optimized learning environment to enhance

their ability for future career development Employee career Subsidize more than 100 employees to obtain 152 employees More than 100 employees More than 100 employees development plan degrees subsidized for degrees subsidized for degree subsidized for degree

Management Approach: Provide competitive salary plans and welfare measures build a sound welfare system and harmonious labor

Talent Attraction & Retention relations increase employees' willingness to stay and reduce employee turnover

Evaluation Mechanism:Monthly/quarterly/yearly statistics on employee turnover and retention rates to ensure management performance

D L turnover rate is less

Employee(2) turnover than 26.5% DL: 20.8% DL: less than 20% DL: less than 18%

Provide employees with suitable jobs and rate I DL turnover rate is IDL: 8.9% IDL: less than 7% IDL: less than 6.5%

retain talents for the company's sustainable less than 8%

operation

Key talent retention

rate More than 98% 93% More than 95%

(3) More than 95%

Note:

1. For not achieved targets please refer to the corresponding sections for relevant explanations and future improvement plans.

2. Employee includes direct employee (DL) and indirect employee (IDL).

3. Based on retention performance over the past three years we have proactively revised our short- to long-term targets. This adjustment aims to align metrics with practical levels ensuring more precise execution and measurement of our talent

retention efforts.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Human Rights Protection

USI firmly commits to its responsibility to respect and uphold human rights across Our HRDD approach extends throughout the value chain including JVs and suppliers. JVs

its operations and value chain. We fully align our human rights commitments with are required to conduct annual human rights risk assessments and implement appropriate

internationally recognized standards including the Universal Declaration of Human Rights mitigation and remediation measures based on identified risks and reported findings. For Tier

the United Nations Global Compact (Principles 1 and 2) the United Nations Guiding 1 suppliers we conduct sustainability risk assessments through desk reviews on-site audits

Principles on Business and Human Rights the International Labor Organization Declaration and other due diligence measures to identify higher-risk suppliers for enhanced engagement

on Fundamental Principles and Rights at Work and applicable national laws and regulations and monitoring. Through these efforts we work collaboratively with our business partners

in the countries where we operate. We are committed to preventing and addressing adverse to foster a responsible compliant and resilient value chain. For supply chain management

human rights impacts and to promoting a workplace and business environment founded details please refer to the Supply Chain Management section.on dignity equality diversity inclusion and mutual respect. We work collaboratively with

our stakeholders including employees joint ventures (JVs) contractors business partners HRDD Process

(suppliers and customers) governments and communities. USI human rights management-

related policies include the Human Rights Policy Anti-Discrimination and Anti-Harassment Define human rights risk items and Monitor and track outcomes for

Policy Sustainable Development Manual USI Code of Business Conduct and Ethics Supplier identify material risks continuous improvement

Code of Conduct USI Corporate Policy for Sourcing Conflict Minerals Environment Health ? Define human rights risk items based on ? Review progress quarterly and refine

Safety (EHS) & Energy Policy Policy on the Protection of Privacy and Personal Data. USI policies and international standards. mitigation through Sustainability

? Conduct annual matrix evaluations to Committee taskforces.Human Rights Due Diligence identify and prioritize salient human ? Report annual results to executive

USI has established a human rights governance and management system covering employees rights issues. management for strategic alignment.suppliers and JVs across all operations. Guided by the PDCA approach we identify assess

monitor mitigate and track actual and potential human rights impacts to support effective

risk management and continuous improvement.Human rights risk management is overseen by dedicated taskforces operating under the Plan Do Check Act

Sustainability Committee. Through quarterly reviews the Committee monitors performance

indicators related to labor practices business ethics environmental management and OHS

and reports consolidated annual results to executive management. To promote transparency

and accountability we regularly disclose our human rights due diligence (HRDD) activities and

outcomes through our corporate website. Implement human rights risk Develop responsive mitigation and

mitigation and remedial measures remediation and engage stakeholders

To identify and assess human rights risks USI conducts annual risk assessments across all ? Integrate human rights protections into ? Establish tailored mitigation and

operating sites and evaluates new business partners based on the likelihood and severity daily management to prevent incidents remediation measures to address

of potential impacts. Human rights self-assessments and independent third-party audits and track implementation across identified human rights risk issues.are integrated to identify and verify potential risks. Where non-conformities are identified policies operations awareness and ? Disclose performance on the official

corrective action plans are implemented monitored and tracked to completion within records. website to engage stakeholders.defined timeframes. We also employ a cross-site peer audit mechanism to strengthen

oversight and share best practices across facilities.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Human Rights Risk Issues and Due Diligence

USI Role Target Human Rights Issues Main Policies Due Diligence Grievance Mechanism

Forced labor working hours wages

Employer Employees and benefits anti-discrimination/anti-?

Value Chain Partner Foreign migrant harassment/humane treatment wage

Human Rights Policy

equality gender equality young workers Anti-Discrimination and Anti-(Including Mergers employees Harassment Policy Human rights risk

& Acquisitions Joint Young workers freedom of association and collective assessments third-party ?

Ventures) Third-party workers bargaining freedom of religion OHS

EHS & Energy Policy

emergency preparedness occupational Policy on the Protection of

audits internal audit

? Internal reporting channels:

? Female employees injury and illness data privacy unlawful Privacy and Personal Data all reporting channels of each

infringement sanitation food & housing facility

? External reporting channels:

Forced labor working hours wages

and benefits anti-discrimination/anti- Supplier Code of Conduct

please refer to the Business

Ethics and Compliance section

Purchaser Suppliers harassment/humane treatment young

USI Corporate Policy for Sustainability risk

Contractors workers OHS emergency preparedness Sourcing Conflict Minerals assessments desk review

for details

occupational injury and illness data Policy on the Protection of on-site audit

privacy conflict minerals Privacy and Personal Data

Product/Service Customers Data privacy Policy on the Protection of Risk assessment internal/?Provider Privacy and Personal Data external audit

Grievance Mechanisms & Whistleblower Protection

USI views grievance mechanisms as a critical line of defense against human rights violations. To this end we have established standardized employee reporting channels and a non-retaliation

policy while ensuring the impartiality of the verification process through investigations led entirely by an independent unit. Operating in strict accordance with the whistleblower protection

principle we rigorously enforce confidentiality protocols across all reporting formats. The primary investigation procedures are as follows:

1. Case Intake 2. Independent Investigation 3. Committee Review 4. Outcome Notification 5. Remediation & Improvement

? Internal channels: suggestion ? J ointly register complaints via ? Convene Disciplinary Review ? Communicate disciplinary results ? Propose and implement

boxes reporting mechanisms department heads and HR. Committee and actions to relevant parties. improvement plans based on

? E xternal channels: USI ? Form a separate investigation ? Evaluate findings and determine ? S ecure all complainant and findings.official website "Contact Us" team adhering to conflict-of- resolutions or disciplinary investigation data under strict ? Provide necessary consultation

phone mail ethics inbox interest rules. actions based on investigation confidentiality. and substantial assistance to

(ethics@usiglobal.com) ? C omplete within 30 days. report affected parties.? Conduct human rights training.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Human Rights Risks Assessment Results

USI's global manufacturing facilities identify site-specific risks by integrating the results of In 2025 USI received 15 employee grievance cases 10 of which were substantiated following

human rights risk assessments third-party audits and employee grievance data to develop independent investigations. 5 cases were related to verbal physical or quid pro quo sexual

targeted mitigation plans. The 2025 HRDD confirmed zero instances of child labor hazardous harassment while 5 cases involved workplace harassment including verbal abuse and

work involving young workers forced or compulsory labor violations of indigenous peoples’ threats. Appropriate disciplinary actions were taken in all substantiated cases ranging from

rights or any form of discrimination. reprimands and demerits to termination of employment depending on the severity of the

Human rights self-assessments conducted across all global facilities indicated low to medium violation. All cases have been resolved and remedial actions and support measures for

risk levels while all facilities achieved third-party audit scores above 175 points with no major affected individuals have been completed. For detailed analysis regarding workplace health

findings. Based on the assessment and verification results Working Hours was identified as and safety and supplier human rights please refer to the sections in Supplier Evaluation and

the salient human rights issue requiring ongoing management attention. Occupational Health and Safety.Human Rights Risk Assessment Scope (1) Human Rights Risk Assessment Results (2) Human Rights Risk Analysis (3)

Zhangjiang

187.7

Sexual Harrassment

Vietnam Jinqiao Working Hours

100 100 100 100 100 100 184.5 187.7

75.9

80.7 76.5 Workplace Misconduct

Mexico 70.7 83.6 Huizhou

181.5 184.5

76.4 80.5

28.6 Supplier Responsibility

15.4 0 % Hazardous Substances Emergency Preparedness

EHS Communication

Assessment Scope Identified Risks Implemented Mitigation Nantou Kunshan

187.5 175.2

Facilities Contractors & Tier 1 Suppliers Joint Ventures Low Medium High3rd-party Audit Self-Assessment

Impact

Note:

1. Assessment Scope: Encompasses manufacturing facilities (by full-time employee headcount) contractors and Tier 1 suppliers (by total count) and our joint 3. Risk Classification: Major risks are defined as events with high frequency

venture (Memtech International Ltd). and high impact; minor risks are events with low frequency and low impact;

2. Risk Rating Criteria: Self-assessment scores above 80 indicate low risk scores of 60–80 indicate medium risk and scores below 60 indicate high risk. For all other events are categorized as secondary risks.

third-party audits scores above 180 indicate strong performance and lower risk while scores of 160–180 indicate basic compliance and opportunities for

improvement.

127

Frequency

Medium HighAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Human Rights Risk Mitigation & Remediation

To address key human rights risks identified for 2025 USI has deployed targeted mitigation and remediation measures across its seven major manufacturing facilities with a primary focus on

"Unlawful Infringement (1) (including Sexual Harassment)" and "Working Hours". Through specialized training proactive recruitment and systematic oversight USI reinforces workplace equality

and ensures full compliance with legal and corporate standards. Details are as follows:

Target

Item Labor

Risk Issues Unlawful Infringement and Working Hours

Unlawful Infringement

? Systemic Promotion and Implementation: Issued the "Statement on Prohibiting Unlawful Infringement in the Workplace" and the "Workplace Infringement

Prevention and Management Measures." A dedicated portal has been established on SharePoint integrating grievance channels management workflows legal

regulations preventive measures and training materials.? Education Training and Communication: Annual training on human rights and humane treatment is conducted covering labor standards gender equality and

anti-harassment laws. Multiple channels are utilized to communicate grievance procedures ensuring human rights awareness is deeply embedded in the corporate

culture through strengthened labor-management dialogue.?Victim Protection and Counseling: Rigorous confidential investigation procedures and disciplinary mechanisms are in place. Beyond case-specific remedies USI

Mitigation provides on-site physician consultations to assist employees with psychological counseling and stress management aiming to alleviate workplace pressure and frustration.Working Hours

?Workforce and Recruitment Strategy: Recruit sufficient staff to meet production requirements and optimize dynamic manpower allocation addressing the root

causes of labor shortages to prevent excessive overtime risks.?Digitalized Intelligent Control: Utilize an automated management system to implement real-time alerts. Automatic notifications are sent to employees and their

direct supervisors regarding overtime limits and seven-consecutive-day work rules enabling management to precisely control personnel attendance.?Management Performance and Milestones: In 2025 the working hour compliance rate (2) reached 89% reflecting a year-over-year increase of 1666 instances of

compliance with maximum weekly working hour and continuous work requirements. This improvement demonstrates the effectiveness of strengthened monitoring

and management measures.? Remediation and Transformation of Unlawful Infringement: For issues related to human rights and humane treatment USI conducts independent investigations

via grievance mechanisms followed by disciplinary actions and follow-up coaching to ensure measures are effectively implemented. Furthermore USI reviews and

adjusts internal management mechanisms and compensation schemes based on specific cases while enhancing managers' leadership skills and human rights

awareness through targeted training.Remediation ?Working Hours Management and Compensation: Strictly adhering to local regulations and industry sustainability standards USI provides lawful compensation for

all overtime work. Digital monitoring is utilized to ensure the fairness of labor remunerations safeguarding employees' economic interests and their right to rest.?Comprehensive Holistic Support System: Organizes mental health seminars and stress-relief activities; provides on-site physician consultations and proactively

promotes Employee Assistance Programs (EAPs). These initiatives leverage professional resources to assist employees with psychological counseling and stress

management.Grievance Internal reporting channels include the Human Resources mailbox a dedicated employee grievance hotline and reporting boxes located at all facilities.Note:

1. Unlawful Infringement: refers to the physical or mental unlawful infringement of a worker by his or her employer supervisor 2. Working hours compliance rate = 100% - (sum of monthly headcount that employees work more than 60

co-worker or other third party in the workplace such as workplace violence workplace bullying sexual harassment or hours per week ÷ sum of employees at the end of each month) × 100%

employment discrimination.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

In line with our "Policy on Humane Treatment in the Workplace" USI prioritizes the protection workplace areas. Additionally each facility implements Recruitment Guidelines to standardize

of all parties involved during any remediation and improvement process. Every grievance processes ensuring that diverse talent selection is guided by non-discrimination principles.undergoes a strict confidential investigation featuring individual interviews to ensure both We have also instituted the Policy on Humane Treatment in the Workplace to foster an

parties can fully present their accounts. For substantiated misconduct the Disciplinary inclusive and respectful workplace culture. Through dedicated communication channels

Committee collectively determines appropriate sanctions based on the Work Rules followed and grievance mechanisms we protect employees from physical or psychological harm

by a formal announcement. We facilitate communication and mediation to implement safeguarding their overall well-being.response and improvement measures while collaborating with on-site physicians to provide

psychological support workplace stress management and career counseling. Furthermore to Human Rights Training

foster a gender-equal healthy and happy workplace we establish comprehensive grievance

procedures institute victim privacy protection systems and continuously strengthen USI is committed to respecting human rights strengthening employee awareness and

the communication of human rights laws policies and management systems across all mitigating potential risks through ongoing training and education. Employees across all

manufacturing facilities. global sites are required to complete annual training on the Employee Code of Conduct

and the Policy on Humane Treatment in the Workplace including assessments to ensure

Sexual Harassment Case Handling and Remediation Principles understanding of expected behaviors requirements and applicable standards. In 2025 USI

provided a total of 24233 human rights training hours with 25231 participants (including

Disciplinary former employees) and an average of 1.0 hour per employee. Training completion among

Actions Support Remediation active employees reached 100%.? Determine appropriate ? E nforce strict ? Review root causes Human Rights Training Participant Numbers and Training Hours

disciplinary measures confidentiality throughout track the effectiveness

through the Disciplinary the process provide access of corrective actions

Committee based on the to medical and counseling and strengthen policies 39707

severity of the violation resources and facilitate procedures and programs

and the Work Rules workplace adjustments if to prevent recurrence and

necessary. retaliation. 24366 24233

21436

Employee Rights 29110

USI strictly abides by the human rights and labor laws of all operating locations achieving 25231

a 100% employment contract signing rate with agreements in employees' native languages 20611 22275

(or languages they can comprehend). These contracts clearly define mutual rights and

obligations. In the event of significant operational changes leading to the inability to

maintain employment relationships USI not only provides advance notice in accordance with

local statutory notice periods(1) but also actively communicates with affected employees to

explain their rights. Furthermore we enhance employee competitiveness through internal

training and proactively assist them in preparing for career transitions. For instance the 2022 2023 2024 2025

Nantou Facility proactively collaborates with the Workforce Development Agency to provide No. of Employees Total Training Hours

training information and gather local job vacancies fully assisting employees with retraining

and career transitions.All USI facilities have established Work Rules to ensure employees are fully aware of their Note:

rights and obligations. For instance Nantou Facility specifies terms in its Work Rules 1. Notice Periods: Mainland China Facilities: 30 days in advance for both individual and mass layoffs; Nantou Facility: at least 10 days for individual layoffs and at least 60 days for mass layoffs (notice to authorities and employees);

regarding employment resignation working hours leave bonuses insurance and conduct Mexico Facility: no legal mandate but 3 days in practice; Vietnam facility: 3–45 days depending on contract type for

standards which are prominently disclosed on the intranet bulletin boards and within individual layoffs and 30 days for mass layoffs (notice to authorities).About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Employee Unions

USI strictly complies with international labor standards and local regulations publicly

communicating our Human Rights Policy to safeguard freedom of association grievance

mechanisms and anonymity protection. All employees may voluntarily establish join

organizations or exercise collective bargaining rights. We guarantee that no employee will

face discrimination retaliation or harassment for exercising or refraining from these rights.USI does not interfere with the establishment operation or management of unions and

provides necessary operational support. Currently unions are established at six of our

seven facilities (Zhangjiang Jinqiao Huizhou Kunshan Mexico and Vietnam) with Nantou

Facility being the exception. Although Nantou Facility has no union yet we uphold the

same principles to facilitate labor dialogue and protect employee rights through existing

communication channels and regular labor-management meetings.In 2025 41.2% of employees were covered by collective agreements (1). All agreements

were regularly renegotiated and updated per local regulations. For employees not covered

working conditions strictly comply with local laws or align with existing agreements that offer

terms superior to statutory requirements. For details on union communication please refer to

the Diversified Employee Communication section.Note:

1. Collective agreement coverage rate = Number of employees covered by collective bargaining agreements ÷ total

number of employees within the calculation scope at period-end × 100%. Employees at Huizhou Facility were

excluded as no collective bargaining agreement was in place as of year-end.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Talent Attraction and Retention

In response to global talent trends and demographic shifts USI builds sustainable human capital and a thriving workplace to attract and retain top-tier global talent across four key pillars:

employee rights protection a diverse and inclusive workplace competitive compensation and benefits and talent competency development.Human Capital

Policy Practice

? Robust Working Hours Management: We implement rigorous workforce allocation and working hours management. All overtime arrangements must adhere to the

voluntary principle requiring employee consent or proactive application. The attendance system features real-time warnings of working hour limits to automatically

alert employees and supervisors ensuring precise time tracking. Exceptional overtime requires two-tier managerial approval to prevent fatigue.?

Employee Rights Transparent & Compliant Policies: In response to legislative changes we update and publicize management policies including work rules leaves compensation

Protection structures and resignation procedures ensuring employees understand their rights. We guarantee employees' leave entitlements requiring employees to pre-plan their annual leave and ensure any unused days are compensated via cash payouts meeting or exceeding statutory standards.?Diverse Labor-Management Communication: We engage in regular negotiations with employee representatives or trade unions regarding labor conditions to establish

a two-way collective communication channel. In tandem a compensation and leave review mechanism is in place; should employees have concerns regarding salary

overtime pay or annual leave encashment they can report to the responsible departments for prompt clarification or correction.? Equality and Inclusion Practice: We regularly host equality-themed events (such as cross-cultural food sharing Day of the Dead cultural celebrations and International

Women's Day activities) along with care seminars to eliminate workplace bias boosting employees' recognition of and engagement in a diverse equitable and inclusive

Diverse and environment.Inclusive ? Physical and Mental Health Support: We conduct regular employee health check-ups fitness assessments mental decompression activities and diverse sports

Workplace competitions to comprehensively safeguard employee well-being.? Localized Social Responsibility: We practice the principle of "local talent recruitment" to support surrounding communities and implement job redesign initiatives to

fulfill our commitment to maintaining an employment scale of over 100 employees with disabilities annually.? Fair Compensation System: We regularly monitor the gender pay gap to achieve equal pay for equal work while also establishing a Living Wage management framework

to ensure that wages across all facilities are 100% at or above local living cost benchmarks. Our total rewards program includes performance bonuses annual profit

Employee sharing and equity incentive plans to tangibly reward employee contributions.?

Compensation Elevating Well-Being and Protection: Beyond statutory coverage we offer comprehensive safety nets including commercial group personal accident employer liability

and Benefits and business travel insurance. We also extend self-paid group insurance options to employees' families delivering all-around protection.? Child-Friendly & Parental Initiatives: In compliance with local laws we offer robust maternal protection including maternity parental and family care leaves alongside

paid time off for prenatal checkups and paternity or pregnancy accompaniment. Combined with childcare subsidies lactation rooms and flexible working arrangements

we fully support employees in balancing family responsibilities and career development.? Structured & Innovative Learning: We host regular hackathons and offer digital tool training to deeply embed the benefits of digital transformation; we establish a

Talent structured learning mechanism to provide professional competence cultivation and internal certification courses to strengthen employees' expertise ?

Competency Deepening Sustainability Awareness:

We publish the quarterly newsletter usinsight and hold sustainability seminars and online courses covering topics such as

Development workplace inclusion carbon footprint and carbon pricing to elevate the organization-wide awareness of sustainability.?Diverse Talent Cultivation: We tailor Individual Development Plans (IDPs) job rotations and talent transition mechanisms that empower employees to achieve

continuous multifaceted growth through challenging assignments overseas postings preferential selection reskilling and outplacement support.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Workforce Structure

As of the end of 2025 the total workforce across USI's seven manufacturing facilities employee workers from third-party contractors are stationed at our global facilities providing

covered in this report reached 16365 employees consisting of 99.8% (16340) permanent services including production support security facility cleaning cafeteria operations and

employees and 0.2% (25) temporary employees. By job category the workforce comprised convenience store services. We uphold the same principles of safety and respect for these

1112 management 3999 technical 1636 administrative and 9618 skilled positions. partners ensuring a safe and healthy environment where their rights are fully protected

By nationality our employees hail from 9 countries including 15261 local nationals and thereby extending our corporate responsibility across the entire value chain. For other

1104 foreign nationals; by region the distribution includes 7279 employees in Mainland detailed classification information please refer to Sustainability Data - Social A. Workforce

China 3933 in Taiwan 2847 in Mexico and 2306 in Vietnam. Additionally 2252 non- Structure table.Employee Headcount Permanent/Temporary Employees (1) Job Category Distribution

1112

1170

16660 17031 974

14998 16365

(6%) (7%) 30 7% (0.2%)

(0.2%) 3999

9271 9133 15686

15861 16340 24%

8860

8200 (94%) (93%) 14968 (99.8%) 9618(56%) 7389 (54%) 7898 (54%) (55%) 7505 (99.8%) 59%

(44%) (46%) 6798 (46%)

(45%) 1636

10%

2022 2023 2024 2025 2022 2023 2024 2025

Male Female Total Employees Permanent Employee Temporary Employee Management Technical Administrative Skilled

Geographic Distribution Top Management Geographic Distribution(2)

98% 98%

746 99% 2 2

(4%) 2306 100% 1

1228 (14%) 129 127 Mainland China Domestic

2604 (8%) 121 120

(16%) 3487 Mainland China Foreign

(21%) 2847

4302 2961 Taiwan Domestic

(20%) (17%) 59% 58%

62% 76%

(26%) 4138

(24%) 33 34 31 20 Taiwan Foreign3517 3933

(23%) (24%) 63 Mexico Domestic

9754 50 Mexico Foreign

(58%) 8660 47 46 81%

(51%) 7292 7279 92% 80% 80% 4 Vietnam Domestic(49%) (45%) 3 3 0%1 0% 0% 9

4 Vietnam Foreign

11 12 3 12 17

2022 2023 2024 2025 2022 2023 2024 2025

Note:

Mainland China Taiwan Mexico Vietnam 1. Permanent (regular) employees refer to employees who have signed an indefinite labor contract with the company. Temporary employees refer to employees who sign a

fixed-term labor contract with the company and are also called contracted employees. Permanent/regular/temporary/contracted employees are full-time employees.

2. The proportion of domestic top management position＝ No. of domestic top managers in the Facility ÷ No. of all top managers in the Facility × 100% 132About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

As our business globalizes building a diverse workplace that integrates multiculturalism Gender Diversity Indicators

embraces individual differences and remains free from bias regardless of age gender

race religion nationality political affiliation or disability has become a top priority. USI 　　　　　　　　Year 2022 2023 2024 2025

is committed to cultivating a gender-friendly and inclusive environment recently focusing Indicators

our efforts on two primary pillars: "promoting female empowerment and decision-making Females in total employees 44.4% 46.4% 45.3% 45.9%

participation" and "securing employment and local integration for individuals with disabilities."

For female empowerment we raise awareness of workplace equality through initiatives Females in management positions 23.1% 23.6% 24.5% 23.5%

such as International Women's Day and place significant emphasis on developing women for Female in junior management

top management roles with a clear target to increase their representation by 1% annually positions (1) 25.6% 24.3% 26.4% 24.8%

aiming to exceed 26% by 2029. As of the end of 2025 females comprised 45.9% of our

total workforce and 23.5% of management roles. Although the percentage of females Females in middle management

positions (2) 21.8% 24.8% 24.7% 24.0%in top management has trended upward since 2018 it declined to 19.8% in 2025 due to

organizational restructuring executive retirements and health factors. To address this Females in top management 19.2% 20.1% 19.9% 19.8%

fluctuation we have launched a dedicated enhancement plan: identifying high-potential positions (3)

female mid-level managers through internal talent reviews and providing executive mentorship Females in revenue-generation

and cross-functional project experience. Furthermore we have optimized our promotion function management positions (4) 50.0% 50.6% 51.4% 56.3%

mechanisms by requiring a specific proportion of female candidates in candidate shortlists for (5)

top management ensuring a robust talent pipeline to resume our growth trajectory. Females in STEM job positions 21.7% 21.8% 20.8% 24.8%

For social inclusion and local engagement USI actively facilitates employment for local

residents and individuals with disabilities. Adhering to our "local talent recruitment" principle

93.5% of our employees are residents of our operating communities thereby fostering

local economic growth. For colleagues with disabilities we implement "job redesign" and

"customized work planning" to ensure proper placement role competence and professional

fulfillment. In 2025 we employed 105 individuals with disabilities (approximately 0.64% of our

total workforce); we pledge to maintain an annual employment scale of over 100 individuals

continuing to create an inclusive and barrier-free workplace.Employees with Disabilities

116

101 105

83 International

WOMEN'S DAY

63 8MARCH63

38 43 42 Note:1. The junior management positions refer to section and sub-section heads.

30 2. The middle management positions refer to department heads.

3. The top management positions refer to the division heads and above.

2022 2023 2024 2025 4. Revenue-generating functions: sales function excluding support functions such as HR IT and Legal.5. STEM refers to personnel with job functions related to science technology engineering and mathematics fields.

133 Male Female TotalAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Recruiting the Right Talents

USI recruits global professional talent guided by our operational development goals and

core competencies. Our human resources recruitment department analyzes labor market

conditions to design strategic diverse hiring channels and employment models including

campus recruitment employee referrals industry-academic internship programs corporate

briefing sessions and multimedia online recruitment platforms to conduct talent selection

openly. Based on facility-specific manpower requirements each site establishes appropriate

employment relationships such as full-time or part-time employees fixed-term or open-

ended contract workers and dispatched labor. We treat all applicants with strict impartiality

remaining free from prejudice or discrimination and evaluate candidates utilizing objective

testing tools tailored to specific professional characteristics. By leveraging the strengths of

a diverse global workforce we build the momentum necessary for continuous growth and

innovative R&D to satisfy diverse customer and market demands.In 2025 USI recruited 6126 new employees globally comprising 4931 DL (1) and 1195 IDL (2). Talent

To strengthen our global talent layout and connect with outstanding professionals worldwide Attraction

we implemented SAP SuccessFactors as our core global HR cloud platform to enhance andRetention

talent management efficiency identify the potential of cross-regional talent and realize

our goals of "Respecting Developing and Retaining Talent." Additionally we continuously

promote internship programs to allow students to gain early insight into future job roles and

strengthen their professional skills while enabling USI to engage with outstanding students

at an early stage. Through these efforts we aim to cultivate youth career capabilities and

fulfill our corporate social responsibility.We actively promote the "3-6-9 New Hire Care Trilogy" assigning dedicated mentors to EmployeeEngagement

guide new employees quickly familiarizing themselves with our comprehensive benefits and Survey

comfortable working environment. Through scheduled interviews and proactive check-ins

on the 30th 60th and 90th days of employment we monitor their work adjustment and

living conditions in real-time. By establishing open communication channels we help new

hires seamlessly integrate into our corporate culture enhancing their sense of identity and

belonging to reduce early-stage turnover and prevent the loss of human capital. Multi-Faceted

By analyzing the turnover reasons of both DL & IDL we further refine our interviewing Performance Comprehensive

techniques enabling us to precisely identify and screen out candidates at the source Appraisal System Compensation

of recruitment who may not align with or integrate into our organizational culture. System

Concurrently USI combines these turnover insights with the results of our regular employee

satisfaction and Employee Engagement Surveys to implement targeted retention programs

demonstrating our commitment to continuously optimizing the workplace environment

fostering a sense of belonging and proactively responding to our employees' expectations. Recruiting the

Right Talents

Note:

1. DL refers to employees working in skilled positions.

2. IDL refers to employees working in management technical and administrative positions.

In 2025 the implementation of our differentiated retention Overall New Hire Numbers and Ratios Overall Turnover Numbers and Ratios

program successfully drove a significant reduction in

the overall turnover rate bringing it down to 15.8%.The key breakthrough lay in DL retention where the 54.3% 55.1% 28.8% 29.7%

turnover rate plummeted to 20.8% while the rate for IDL 40.1% 39.1%

was consistently maintained at a low 8.9%. For DL we 21.6%

enhanced workplace stability for front-line employees by 15.8%

strengthening supervisors' scheduling and communication

skills encouraging participation in skill certifications and 5003 5119 9434 9499

internal transfers and deepening employee relations

mechanisms. Regarding IDL beyond intensifying employee

care initiatives we established clear career development 6426 6126 3463

pathways offered cross-functional learning and overseas

assignment opportunities and optimized recruitment and 2485

retention precision through in-depth turnover analysis. For

key talent retention we provided comprehensive training

and challenging job rotations with supervisors assisting 2022 2023 2024 2025 2022 2023 2024 2025

in the formulation of IDPs to ensure professional growth No. of New Employees New Hire Rate No. of Resigned Employees Turnover Rate

through practice. Furthermore we upheld the principle of

"Internal Priority Promotion" coupled with equity incentive

schemes to reinforce the long-term commitment of key

talent to USI. For other detailed classification information IDL New Hire Numbers and Ratios IDL Turnover Numbers and Ratios

please refer to the Sustainability Data - Social B. New Hires

and Employee Turnover table.

17.1% 18.2%

14.3% 12.6%

8.1% 9.1%8.0% 8.9%

1136 1195 950 851

593 586

550 523

2022 2023 2024 2025 2022 2023 2024 2025

No. of New IDL Employees New IDL Hire Rate No. of Resigned IDL Employees IDL Employee Turnover Rate

Comprehensive Compensation System

Furthermore USI participates annually in compensation surveys conducted by prominent consulting firms and regional

remuneration associations. We evaluate macroeconomic indicators market compensation standards external talent

USI Compensation Principles competitiveness and labor market supply-and-demand dynamics to make appropriate salary adjustments ensuring our

overall remuneration remains highly competitive. In 2025 USI adjusted basic salaries across various sites: 0.1% (2) to 10.3% for

? Recognize employee contributions define internal Mainland China 3.0% to 4.2% for Nantou Facility 4.0% to 15.0% for Mexico Facility and an overall 7.0% for Vietnam Facility.relativity between positions and maintain equitable Following precise calculations the ratio of standard entry-level salaries to the local statutory minimum wage stands between

salary structures 1.00 and 1.51 highlighting USI's market-leading starting pay that consistently exceeds local statutory minimums. The gender

? Align remuneration with individual performance to pay ratio (3) of basic salary (4) and compensation (5) for each facility is shown in the table below:

motivate current staff and attract top market talent

? Ensure fair and reasonable compensation with Pay Equity Indicators: Entry-Level Wage Ratio and Gender Pay Ratio

adjustments that correspond directly to expanded DL Entry-level Wage to

scopes of responsibility Zhang Local Minimum Wage jiang Jinqiao Huizhou Kunshan Nantou Mexico Vietnam

?Maintain flexible agility to adapt to labor market Female-to-Male Ratio (6)

trends and organizational restructuring Basic Salary & Compensation Ratios (7) 1.00 1.00 1.28 1.02 1.00 1.00 1.51

Basic salary ratio 0.79 1.06 0.88 0.89 0.80 0.56 0.91

USI views employees as our most vital capital for sustainable Management

operations guided by the philosophy that "talents are Compensation ratio 0.79 1.17 0.90 0.91 0.75 0.57 0.87

the seeds for continuous growth." We strictly adhere to Basic salary ratio 1.09 1.02 0.93 1.02 0.83 0.81 0.83

local labor laws and implement an inclusive gender- Technical

equal remuneration policy ensuring the consistency and Compensation ratio 0.98 0.99 0.91 0.98 0.79 0.81 0.83

fairness of our starting pay and incentives irrespective of Basic salary ratio 0.89 0.98 0.88 0.94 1.00 0.91 0.91

gender religion political stance or marital status. Through Administrative

a rigorous performance appraisal system we provide Compensation ratio 0.94 0.97 0.87 0.90 1.04 0.91 0.91

substantive returns for employee contributions. Beyond Basic salary ratio 1.02 1.01 1.01 0.97 0.96 0.78 0.98

competitive basic salaries we share our business success Skilled

through monthly performance bonuses equity incentive Compensation ratio 1.02 1.00 1.01 0.95 0.93 0.78 0.98

schemes (1) employee stock ownership plans and annual

profit-sharing bonuses to reward outstanding performance.Supporting UN SDG 8 (Decent Work and Economic Growth) Note:

USI established the "Fair Remuneration and Living Wage 1. Equity Incentive Scheme: aimed at talent attraction retention and motivation. Eligible employees may exercise shares at a set price during the validity period

Management Framework" to regularly review global salary provided that both the corporate financial and sustainability performance thresholds for the grant year and individual performance ratings are met.levels against the Anker living wage benchmark or localized 2. The lower average salary adjustment is the result of structural base-salary tweaks for non-technical positions at select facilities in Mainland China.official economic indicators. In 2025 USI achieved 100% 3. Basic Salary: fixed monthly remuneration including base pay fixed allowances and recurring bonuses (e.g. meal shift night-shift expatriate position monthly performance and attendance).compliance with the living wage standard across all global 4. Compensation: total remuneration comprising basic salary allowances overtime pay and non-monthly rewards (e.g. festival bonuses employee profit sharing

sites. This ensures our colleagues and their families receive performance bonuses and special bonuses).income sufficient to cover basic needs including food 5. Gender Pay Ratio Analysis: most global sites demonstrate a strong commitment to equal pay for equal work; the lower ratio in Mexico's management category highlights a key focus area for future organizational structural optimization.housing healthcare and education underlining our long- 6. DL entry-level wage to local statutory minimum wage ratio = DL starting salary ÷ local statutory minimum wage

term commitment to employee well-being. 7. Female-to-male basic salary (or compensation) ratio = female basic salary (or compensation) ÷ male basic salary (or compensation)

Diversified Employee Communication

USI actively fosters positive employee relations by establishing an open transparent and A total of 140 communication sessions were held across all covered facilities in 2025 to

seamless one-way and two-way communication environment ensuring that employees stay strengthen care for targeted groups including 46 GM Town Halls 23 New Employee Outreach

informed about company updates and their rights. Beyond providing dedicated training on Sessions 18 Foreign Employee Caring Meetings and 53 Employee Feedback Meetings.feedback and grievance channels we conduct regular management symposiums real-time Furthermore USI integrates multiple channels including digital and physical Suggestion

feedback mechanisms and engagement surveys to listen to our employees' voices taking Boxes grievance hotlines and the Employee Relationship Network to actively broadcast

concrete actions to promote harmonious labor relations. information and listen to frontline voices. During the reporting period USI received 6516

Regarding collective bargaining mechanisms USI adopts a tailored-to-local-needs strategy feedback cases globally; 6510 cases were successfully resolved (achieving a 99.9% closure

to ensure structured labor-management dialogue across global facilities. The execution rate) through mutual communication while the remaining 6 cases continue to be tracked for

frequency is as follows: sites in Mainland China and Vietnam hold Employee Representative processing. This underscores USI's high regard for employee feedback and its commitment to

Congresses at least once a year; the Nantou Facility conducts quarterly labor-management efficient execution.meetings; and the Mexico Facility engages in annual collective negotiations with the trade

union. In 2025 the core negotiation topics covered salary adjustments and work rule

revisions demonstrating USI's proactive response to employees' expectations for improved

labor conditions. Through sincere communication and consensus-driven implementation

all covered facilities remained stable with no major labor disputes or work stoppages due to

strikes.Internal Communication External Platform

? Departmental communication ?WeChat Enterprise Account

? HR and Employee Relations ? LinkedIn: 27842 Followers

staff ? Facebook

? Physical/electronic bulletin

board Harmonious

? Email Labor

? Employee Self-Service network Relations

?usinsight quarterly newsletter

? Video broadcast

Instant Feedback & Meeting 2-Way Communication

? 46 President/GM Town Halls ? Employee engagement survey

? 23 New Employees Outreach Sessions ? Trade Union Representation: established

? 18 Foreign Employees Caring Meetings in 6 of 7 major manufacturing facilities;

? 53 Employee Feedback Meetings 52% employee representation

? Conduct regular labor-management

meetings and Town Halls

? Employee suggestion box

? General Affairs Service Platform

Employee Benefits

To address the diverse global needs of our employees in food housing education recreation transportation and physical and mental health USI provides localized welfare systems and

comprehensive insurance plans. We offer well-equipped facilities and diverse activities to promote physical and mental well-being helping employees achieve a healthy work-life balance.Furthermore through our EAPs career transition plans and retirement counseling mechanisms we safeguard the professional resilience and personal transitions of our colleagues at every

stage. (Please refer to Tailored Career Plan-Talent Value Reinvention & Career Transition Mechanisms and Sustainability Data - Social H. Comprehensive Welfare System).Flexible Working Hours Remote Workplace (Work from Home) Holistic Wellbeing

To support global business and cross-time zone demands USI continues to enhance flexible work arrangements based USI supports holistic employee well-being through third-

we offer diverse shift patterns for operational flexibility. on operational needs and role requirements. By providing party provided EAPs offering mental health legal financial

Additionally employees may request schedule adjustments greater workplace flexibility where appropriate we support and medical counseling. Combined with stress assessments

for personal needs such as family care or professional employee well-being attract and retain talent enable career transition and retirement support health promotion

development subject to managerial approval. Our flexible global workforce deployment and strengthen organizational seminars sports club subsidies and cultural activities these

working hours empower team members to achieve a self- resilience and long-term operational efficiency. initiatives strengthen employee well-being engagement

managed work-life balance. and workplace resilience.Employee Support Programs

Category Details

Workplace stress ? Conduct stress assessments provide professional counseling services and offer wellness seminars recreational activities and arts and cultural programs to

Employee management support employee well-being.Benefits Sport & health ? Sports Activities: Provide dedicated facilities and subsidies for employee sports clubs and wellness activities.initiatives ?Health Management: Offer annual health examinations and access to on-site healthcare professionals for medical consultation and health promotion services.? Staggered hours: Provide multiple start-time options within the same shift (e.g. day shift options starting at 08:00 08:30 and 09:00) to accommodate

Flexible working operational needs and employee circumstances. Eligible employees may select a suitable schedule with supervisor approval.Work hours ? Flex-time: In 2025 Nantou Facility introduced Flexible Commuting Hours to enhance work efficiency and support work-life balance based on local workforce

Conditions needs.Working-from-home ? Offer remote or hybrid work arrangements for eligible positions based on business needs and job requirements supporting talent attraction retention and

arrangements organizational resilience.Childcare facilities or ?

contributions Provide preschool tuition and fee discounts through contracted childcare service providers.Breast-feeding room ?Maintain dedicated lactation rooms at all facilities to support nursing employees.and benefits ? Paid lactation breaks: Provide 60 minutes per day for nursing employees.Maternity leave

Family ?pregnancy check-up Paid maternity leave: Mainland China facilities: 98/158+ days; Nantou Facility: 70 days (Effective 2025); Mexico Facility: 84 days; Vietnam Facility: 180 days.Benefits ?leaves Paid pregnancy check-up leaves: Mainland China facilities: 4 hours per visit; Nantou Facility: 7 days; Vietnam Facility: 5 days.? Paid Paternity (and Check-up Accompaniment) Leave: Mainland China facilities: 10/15 days; Nantou Facility: 10 days (Effective 2025 exceeding the statutory 7

Paternity leave days); Mexico Facility: 5 days; Vietnam Facility: 5–14 days (depending on delivery conditions).parental leave and ? Parental Leave: Mainland China facilities: 5 or 10 days per year (paid); Nantou Facility: Maximum 2 years per child before age 3 (unpaid leave); Vietnam Facility:

caregiver leave 15 or 20 days per year (paid depending on adoption or maternity insurance standards).? Paid Caregiver Leave (for parents aged 60+ hospitalized): Mainland China: 5 or 15 days/year for only-child and 5 days/year for non-only-child.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Employee Benefits and Subsidies Family Support

Benefit Amount To address the challenges of an aging population and echo government birth incentives USI complies with local laws and Benefit Item Beneficiaries (CNY) integrates site-specific needs to build a comprehensive family support system. We offer competitive welfare benefits providing

marriage and childbirth allowances to support colleagues at every stage of family life. Nantou Facility has taken the lead by

Three Festival Gift 29891 5622372 implementing measures that exceed statutory requirements extending maternity leave to 70 days and paternity/pregnancy Certificate check-up leave to 10 days. Combined with flexible shifts parental leave options pregnancy nutritional supplements and

childcare subsidies these initiatives enable employees to balance work and family life. This supportive framework serves as a

Birthday Gift 12014 156336124 solid pillar for stable employment with 312 newborns welcomed across global facilities in 2025.Certificate

Beyond economic and leave benefits USI actively enhances physical infrastructure and institutional safeguards. We provide

Employee Continued 229 516817 private comfortable lactation rooms and paid breaks to support breastfeeding employees while our Proactive Notification Education Subsidy and Reinstatement Care Mechanism guarantee smooth workplace reintegration when leave expires. In 2025 59% of eligible

employees applied for parental leave driving a 25% year-on-year increase in leave-taking intent. Concurrently the proportion

Scholarships for 4302 2977780 of male applicants reached 48.7%

(1) demonstrating a shifting corporate culture toward gender balance in childcare.

Employees' Children

Driven by our proactive care mechanism the reinstatement rates for male and female employees increased by 18% and 2%

(2)

Retirement Gift 2831 1005674 respectively while the retention rate one-year post-reinstatement reached 62.1% reflecting concrete success in talent

retention. Moving forward USI will continuously optimize family-friendly measures to foster long-term retention benefits and

Total 49267 166458767 organizational resilience.Parental Leave Indicators

Subsidy Item Subsidy Subsidy Amount Recipients (CNY) 2025

Item 2022 2023 2024

Wedding Subsidy 243 91027 Male Female Total

Employees eligible for parental leave in the

Childbirth Subsidy 233 98819 reporting year (3) 192 102 118 39 32 71

Travel Subsidy 5552 2466890 Employees that applied for parental leave in the

reporting year 34 35 40 19 23 42

Hospital Consolation

Subsidy 187 40739 Employees expected to be reinstated in the reporting year 34 42 42 11 12 23

Condolence Payment 254 376300 Employees reinstated in the reporting year 23 33 29 8 10 18

Emergency Assistance 10 87984 Employees reinstated in the previous year 17 23 33 11 18 29

Employees remaining employed 12 months

Total 6479 3161759 post-reinstatement in previous year 8 20 20 8 10 18

Reinstatement rate (4) 68% 79% 69% 73% 83% 78%

Retention rate (5) post-leave 47% 87% 61% 73% 56% 62%

Note:

1. Male parental leave application rate= (male employees who applied for parental leave in the current year ÷ total 3. Eligibility for parental leave in the current year: those who have taken paternity leave or pregnancy leave (20 weeks or

male employees eligible for statutory parental leave in the current year) × 100%. USI defines statutory eligibility as more) from 2022 to 2025 and are still working in 2025.employees with children under three years old. 4. Reinstatement rate = (Actual employees reinstated after parental leave in reporting year ÷ Expected employees to

2. Retention rate after one year of reinstatement = (employees who returned to work from parental leave in the previous be reinstated) × 100%

year and remained employed for at least 1 year ÷ total number of employees who returned to work from parental 5. Retention rate = (Employees remaining employed 12 months after return in previous year ÷ Total employees

leave in the previous year) × 100% returned in previous year) × 100%

Employee Retirement Plans

USI and its subsidiaries strictly comply with the retirement regulations of each operational site fully

allocating pensions and old-age social security insurance. Any employee who meets the statutory Mainland China Nantou (New System) Mexico and Vietnam

retirement criteria can legally apply for pension withdrawal or old-age annuity. In 2025 a total of 75

employees retired globally (34 from Nantou Facility 9 from Mainland China Facilities and 32 from Mexico ? Legal Compliance:

Facility) with a total pension allocation of CNY 261029835.8 across global facilities (1). Beyond financial ?Mainland China and Vietnam Facilities: monthly contributions are made in

protection USI provides retirement counseling and re-employment mechanisms to ensure the inheritance accordance with local social insurance regulations (Mainland China: Social

of core technologies realizing a sustainable cycle of talent value. Insurance Law; Vietnam: Law on Social Insurance) based on contribution

base percentages.Nantou (Old System) ?Nantou Facility: under the Labor Pension Act employers and employees

contribute a fixed monthly percentage of the employee's salary to

individual pension accounts determined by the employee's employee

? L egal Compliance: bracket. Voluntary employee contributions are tax-exempt.?In accordance with the Labor Standards Act USI allocates defined-benefit retirement funds

?Mexico Facility: monthly deposits are made to employee pension savings

managed by the Labor Retirement Reserve Fund Supervisory Committee which are deposited into accounts based on a fixed percentage the employee's salary following

a dedicated account at the Bank of Taiwan. The company conducts annual actuarial evaluations to local retirement benefit regulations.assess funding status; if the account balance falls short of the estimated payout for the reporting ? Contribution Rate:

year the deficit is fully funded in the following year. This pension payment is calculated based on the

?Employer contribution rates: 16% for Mainland China Facilities 6% for

employee's average wage of the six months prior to retirement multiplied by the statutory bases of Nantou Facility 2% for Mexico Facility and 21.5% for Vietnam Facility.service seniority.?Employee contribution rates: 8% for Mainland China Facilities 0% to 6%

? Contribution Rate: for Nantou Facility 0% for Mexico Facility and 10.5% for Vietnam Facility.?The employer contributes 2% of the employees' total monthly salary to the labor retirement reserve ? 2025 Performance:

fund.?A total of CNY 260460502 was contributed to the retirement insurance

? 2025 Performance: fund.?A total of CNY 569334 was contributed to the retirement reserve fund with an ending balance of

CNY 159454616.Work-Life Balance

At USI employees with physical and mental well-being along with fulfilling personal lives are the core of corporate vitality and sustainability. Embracing "Health Happiness and Learning"

we deepen work-life balance by encouraging effective time management and family bonding. Through family-inclusive events we foster a family-friendly workplace realizing our philosophy of

joyous learning by bringing life into skills and skills into life. This allows colleagues to unwind while strengthening teamwork and cohesion shaping a high-trust efficient workplace culture that

drives stable corporate growth.Three Main Themes of Employee Activities

Drive mutual win-win outcomes through Inspire lifelong vitality through

Create infinite possibilities through a the happiness philosophy. If failure is continuous learning. Learning secures

Health healthy body. We enhance employees' Happiness the mother of success then happiness Learning our employees' long-term future. We wellness knowledge and work is its father. We inspire our employees' design training programs for employee

environments to boost operational passion and creativity serving as the career development to rediscover the joy

efficiency and double overall productivity. ultimate source of energy for continuous of learning provide a sense of purpose to

dedication. life and inject vibrant energy into work.Note:

1. Global facilities include Zhangjiang Jinqiao Huizhou Kunshan Nantou Mexico and Vietnam Facilities other manufacturing facilities and sales offices. 140About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Prioritizing employee health USI allocates annual budgets to support diverse club Sports Competition

operations utilizing well-equipped wellness facilities to host regular seminars

experiential activities and sports tournaments. Covering sports and health Enhance physical fitness and individual skills through exercise training and

learning and growth arts and culture and public service we facilitate holistic competitive matches thereby enriching employees' cultural lives.personal development. Through structured welfare planning we collaborate

with clubs to build a supportive environment enabling colleagues to pursue

professional growth while safeguarding personal well-being and life quality.In 2025 to optimize resource allocation USI supported 48 employee clubs based

on their substantive performance. With the dedicated budget adjusted to CNY

363000 a more flexible and standardized subsidy mechanism successfully drove

annual club events up from 141 last year to 316. Regarding participation the

program shifted toward in-person in-depth club interactions and specialized

courses. Due to this format transition annual attendance reached 12379

attendees; however the small-class structure and deep engagement effectively

enhanced employee satisfaction and interaction quality.Art Culture & LOHAS

48 316 12379 Provide diverse arts and cultural activities to promote individual exploration

Clubs Employee Activities Attendees and holistic growth of mind body and spirit.? 29 Sports Clubs ? 23 Sports Activities ? 2237 Sports

? 6 Health Clubs ? 237 Health & Wellness Competitions

? 10 Arts & Culture Activities Attendees

Clubs ? 35 Other Activities ? 3203 Health Activity

? 3 Charity Clubs e.g. Celebrity Attendees

Lectures DIY ? 5675 Arts & Culture

Workshops and Activity Attendees

Family-Friendly ? 1264 Charity &

Events Volunteer Service

? 2 1 Charity & Volunteer Attendees

Service Activities

141

Employee ActivitiesAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Energy Supplement Employee Performance Management

Offer diverse seminars appreciations and stress-relieving DIY workshops USI has established a strategy-aligned performance management system that translates

to help employees boost personal energy and absorb cross-disciplinary long-term corporate vision into concrete employee action metrics ensuring organizational

knowledge. goals are highly aligned with individual performance indicators. We implement regular

evaluations for all employees by incorporating a professional Review Committee system. This

integrates multi-dimensional feedback from supervisors cross-departmental partners and

customers to effectively reduce subjective bias and ensure fair objective assessments.During the appraisal process managers combine a "guided performance normal distribution"

system with IDPs to implement differentiated management precisely identifying high-

potential talent and establishing succession pipelines for critical positions. These appraisal

results are directly linked to competitive compensation performance bonuses and long-

term incentives. Through a transparent promotion mechanism top performance is translated

into tangible career advancement effectively attracting and retaining key talent while

strengthening USI's sustainable competitiveness amid industry shifts.Warmth & Gratitude

? Promotion Nomination

Engage in charity and volunteer activities to support colleagues and those in ? Compensation Incentive

need fostering team solidarity humanistic care and self-actualization. Application ? Career Development

? Evaluating System (Self-evaluation and PA

Committee)

? Performance Review and Feedback

Appraisal ? Individual Development Plan

? Review and Follow-up Adjustments

? Coach and Motivation

Execution

? Set Goals and Working Plans

Planning

Employee Performance Appraisal Types

Types of PA Objectives Frequency Practices

Agile Ongoing/ Through the SuccessFactors system USI cascades annual objectives and enables dynamic performance tracking. The platform facilitates an

Conversations IDL all the time ongoing two-way performance management process whereby supervisors provide regular and ad hoc feedback on KPIs and work behaviors while employees are encouraged to proactively initiate performance discussions and development dialogues.Management by Employees and supervisors align on measurable goals at the beginning of the year through the SuccessFactors system. Throughout the

Objectives and All Annual performance cycle supervisors provide ongoing feedback and guidance with year-end performance assessed against agreed objectives and

Ranking incorporated into the calibration process.Through a Review Committee approach employee performance is evaluated using multi-source feedback from senior management

Multidimensional IDL Semi/annual cross-functional supervisors peers and clients. Supervisors provide developmental feedback and results are incorporated into the final

performance rating process.Team-based

Matrix IDL Ongoing/ Through a cross-functional matrix structure team members report to both Project Leads and functional supervisors. Project Leads provide

Management all the time ongoing input throughout the project lifecycle and contribute structured performance feedback during review and evaluation discussions.Multiskilled DL Quarterly For workstation/line operations machinery handling product inspection and troubleshooting Instructors determine qualification by assessing and certifying exam results.Employee and Distribution of Taking Regular Performance Appraisal and Competency Review (1~2)

Performance Appraisal Competency Review

Gender Position

Number of Employees No. of Employees Taking Percentage of Taking Performance Appraisal Performance Appraisal Number of Employees

No. of Employees Percentage of Taking

Taking Review Review

Management 840 840 100.00% 802 802 100.00%

Technical 3041 3041 100.00% 3041 3041 100.00%

Males

Administrative 409 409 100.00% 409 409 100.00%

Skilled 4027 4027 100.00% 4027 4027 100.00%

Subtotal 8317 8317 100.00% 8279 8279 100.00%

Management 258 258 100.00% 256 256 100.00%

Technical 748 748 100.00% 748 748 100.00%

Females

Administrative 1163 1163 100.00% 1163 1163 100.00%

Skilled 4819 4819 100.00% 4819 4819 100.00%

Subtotal 6988 6988 100.00% 6986 6986 100.00%

Total 15305 15305 100.00% 15265 15265 100.00%

Note:

1. Eligibility for Performance and Competency Appraisals: Regular employees who have been with the company for three months or more are eligible. However those who have not passed their probationary assessment or those on leave without

pay for more than three months are excluded from the evaluation list.

143 2. Management at the Vice President level and above is excluded from the competency appraisal list. 　About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Employee Engagement Survey

Sustainable employee engagement reflects workforce resilience organizational support and Employee Engagement Survey Annual Targets

employee well-being. Engaged employees are more likely to share feedback and improvement

ideas that contribute to organizational development. To bolster this long-term commitment Year 2021 2023 2025 2027

USI began collaborating with expert consultants since 2017 to launch its first biennial

Employee Engagement Survey. In 2021 we introduced a Sustainable Development Index Items (%) Target Result Target Result Target Result Target

framework and measurement benchmark (1) covering Sustainable Engagement Wellbeing

Retention and ESG categories to better understand employee perspectives. Survey insights Engagement 80 84 83 80 85 83 87

are integrated into talent attraction retention and development initiatives helping refine

organizational processes and management practices to better address employee needs. Data coverage 80 89 85 83 85 96 85

In 2025 a 14-day survey was conducted among all DL and IDL hired before June 30 2025. The

survey yielded 15253 valid responses (2) representing a 96% coverage rate with an overall

engagement score of 83%. While the findings show strong positive alignment in Supervisor Guided by the belief that employee well-being drives performance USI applies the Oxford

Support Cross-boundary Collaboration & Teamwork and Individual Career Growth they Wellbeing Research Centre framework to assess employee well-being. In 2025 employees

also highlight Internal Communication Organizational Efficiency and Timely Recognition as reported an average positive well-being score of 84% with improvements in both job

critical priorities for future development. satisfaction and sense of purpose compared with the previous assessment. Survey results

also indicate that employees utilize available support resources to help manage stress and

Employee Engagement Survey Framework maintain engagement. Going forward we will continue strengthening well-being and inclusion

initiatives through a data-driven approach to support employee engagement retention and

Employee Experience Sustainability Indexes organizational performance.

(4 Dimensions 12 Categories) (5 Categories)

Employee Well-being Measurement Results (%)

Purpose Work Reward People Sustainable EngagementEngaged Enabled Energized

DEI (3)

85 82 85 83

Belonging Opportunity

Inspiration Drive Growth Trust Impartiality

Wellbeing

Job Satisfaction Purpose

Inclusion Voice Capability Collaboration Happiness Stress

Retention

Pull Force Push Force Job Satisfaction Purpose Stress Happiness

Understanding Organization Fair Pay Support

ESG

Environment Society

Governance

Note:

1. Measured on a 5-point scale and the results are calculated based on the sum of two positive evaluations of Strongly Agree (5) and Agree (4).

2. The survey scope includes employees at all report-scope facilities as well as AFG-Suzhou AFG-Poland and AFG-Tijuana facilities and sales offices.

3. DEI Diversity Equity and Inclusion

Human Capital Development

Recognizing that our employees are the soul of our growth USI is dedicated to talent investment and fostering a learning-oriented culture. Through tailored resources and effective training

models we enable our team to continuously evolve and maximize their professional impact.Dual Career Ladder

The cornerstone of USI's talent cultivation is USI University (USIU) a dedicated learning and To proactively retain talent USIU provides a comprehensive development framework built

development system. USIU comprises the Colleges of Management R&D Manufacturing upon a "dual-track system" for managerial and professional career paths aiming to achieve

Quality and Sustainability alongside the General Education Center. USIU is presided over by high operational performance through an innovative learning environment. We design tailored

our President with Vice Presidents―each a recognized authority in their respective field― training programs to help employees solve problems enhance expertise and strengthen

serving as Deans. This structure integrates global learning resources to support continuous leadership and innovation ultimately driving the achievement of our organizational goals.employee growth.Manufacturing College R&D College Management College Quality College Sustainability College General Center

Technical/Prof. Manager Executives

Expert/Lecturer Organizational Capability Cultural Inheritance

Division Mgr.Staff Engineer/Administrator UMBA (1)

Advanced Training Department Mgr.

(2)

Senior Engineer/Administrator MTP

Middle Training Section Mgr.MIT (3)

Engineer/Administrator e-platform Supervisor

Basic Training TWI (4)

Talent Development Skilled-based Training Corporation Culture Reshaping Leadership Ability Building

Global Talent

Development Professional Orientation Company Culture Compliance Managerial Language & Digital Tools Self-learning

? Succession mgmt. ? Position certification DL: ? USI motto ? Employee CoC ? UMBA ? Language courses ? External or on-line

? Global leader ? Position evaluation ? Training matrix and ? Core value ? Responsible ? MTP ? Non-IT programming trainings seminars

development ? Train the trainer certificate ? Core competency Business CoC ? MIT ? Power BI forums etc.? Intermediate talent program ? Mentorship ? Leadership ? Fraud risk mgmt. ? TWI ? Python ? LinkedIn on-line

development ? Global Process Owner IDL: competency ? Info. security ? COO leadership forum ? MS Office courses

? Young-Po program assignment ? Day 1 onboarding orientation ? Growth mindset ? Data privacy ? Site elite forum ? Power automate ? Book club

? Mgmt. associate ? Tech. forum ? Mentorship ? Corporate ? Teams ? Dept. OJT

program ? R&D award competition ? 90-day Dept. learning governance ? Hackathon ? Advanced education

? College's courses by job courses OJT

function ? USI camp

USI Motto "Realizing IDEAS Together"

Note:

1. UMBA USI Master of Business Administration 3. MIT Manager Initial Training

2. MTP Manager Training Program 4. TWI Training Within Industry for Supervisors

145

Leadership Development

Position CertificationAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Diversified Channels and Platforms of Learning

Building a "learning organization" through USIU USI utilizes its digital Learning Management experience and cross-functional perspectives across diverse teams and under managers'

System (LMS) and diverse learning channels to offer a curriculum covering leadership guidance co-create career growth blueprints that align with USI's strategic mission.development professional certification global talent cultivation cross-cultural integration To drive digital transformation and reshape talent value we have made "AI Empowerment"

and digital transformation. In practice we adopt external courses and forums to track our top priority this year using a phased approach. Following the completion of foundational

the latest industry trends. Internal training features instructor-led lectures face-to-face literacy training we are introducing job-specific certifications in big data cloud applications

interaction or self-paced e-learning via the LMS. Beyond this USI implements a mentoring and digital ethics. This shift steers our team away from repetitive tasks toward data

system using supervisors and senior peers as mentors pairs LinkedIn Learning mandatorily collaboration and smart decision-making. Ultimately this initiative turns digital literacy into

with insight sharing and organizes topic-based cohort group and network learning like "Book employees' long-term career assets ensuring that both our team and USI achieve sustainable

Clubs" "Sustainability ESG-ing" and "Copilot Learning Cohorts." This enables cross-functional growth powered by intelligence.collaboration through interaction transforming individual study into a robust internal

knowledge network that drives USI's sustainable competitive practice. Meanwhile we regularly host navigator and technical forums to facilitate deep dialogues

between experts and peers thereby strengthening competency while fostering an

To navigate transformational challenges USI regards talent development as a core foundation organizational culture of knowledge sharing and cross-domain collaboration. This effort

for our sustainable business growth. We continuously deepen our IDP management creates a sustainable development platform that inspires a sense of belonging and

mechanism which aligns three core elements: personal capabilities personal interests and achievement. In 2025 the Leadership and Management Forum Technical Forum and

organizational needs. Through "role swapping" we encourage employees to build hands-on Sustainability Seminars attracted a total of 3892 participants tangibly demonstrating a

corporate culture of self-driven growth and proactive adaptation to change.IDP Management Mechanism

Confirmation Development Plan Evaluation & Adjustment

? Self-Reflection & ? F ormulate Annual ? F ollow-up Sharing &

Career Exploration SMART (2) Goals Feedback Consulting and

?Goals Identification Self-Assessment ? The 70-20-10 Rule (3) Implement Listening

and development ? Recording Adjustment &

? Self-assessment using ?One Small Step a Continuous Improvement

SWOT (1) analysis Day; Self-Reflection

? Build a Win-Win ? Seek Feedback and

Strategy Support

? Face Obstacles

? Commitment and

Motivation

Note:

1. SWOT Strengths Weaknesses Opportunities and Threats

2. SMART Specific Measurable Attainable Relevant Time-Based

3. The 70-20-10 Rule Learning by Doing - Learning from Others - Learning by Curriculum

Amidst the waves of global industrial transformation and sustainable transition USI has precisely aligned its training initiatives with organizational strategies through annual training needs

surveys optimizing training resource allocation. In 2025 total annual training reached 716490 hours with average training hours per person leaping from 24.2 to 43.8 hours reflecting a

strategic focus on job-specific certification courses and the strengthening of critical topics such as climate resilience and business ethics. A total of CNY 8.4 million was invested in talent

development to comprehensively enhance employees' core competitiveness and build a resilient foundation for USI's long-term sustainable operations. For details please refer to the

Sustainability Data - Social G. Training Hours and Cost table.Training Statistics by Employee Category

Employee Training Hours

2025

Category 43.8

Total Training Hours Average Training Hours

Male 442168 49.9 28.8

24.5 26.4

Female 274321 36.6

Management 716490

Position 66810 60.1

Technical Position 138512 34.6 480548

Administrative 417418

Position 84816 51.8

395338

Skilled Position 426352 44.3

New Employees 202324 33.0 2022 2023 2024 2025

Total Employees 716490 43.8 Total Training Hours Average Training Hours

Training Statistics on Topics

Items

Training Topics Environment Health & Safety Human Rights Green Product Business Ethics Enterprise Risk Cybersecurity

Total Training Hours 55495 53138 24233 6347 43949 7101 10736

No. of Employees 22738 24137 25231 12524 24626 7961 8974

Average Training Hours 2.4 2.2 1.0 0.5 1.8 0.9 1.2

Note:

1. Average training hours = The actual total training hours of employees of this category/gender ÷ the number of employees of this category/gender at the end of the period

Tailored Career Plan

USI promotes a "Dual-Track Development" system for both managerial and professional

positions utilizing the Kirkpatrick Four-Level Evaluation Model (1) to ensure training aligns with Talent Value Reinvention & Career Transition Mechanisms

business goals through an "end-to-beginning" design. Since 2020 we have standardized global ? Performance Coaching and Resilience Building

learning materials in four languages―Chinese English Spanish and Vietnamese―enabling our USI has established a standardized performance improvement system for employees

workforce to stay aligned with corporate policies and strategy thereby achieving our long-term with growth potential. Through gap analysis mentorship and personalized

sustainability goals in talent development. improvement plans―complemented by extended evaluations or internal transfers―

we help employees regain momentum and enhance their competitiveness for future

Enhancing Employee Employability roles or retirement achieving a win-win for both individual and organizational growth.In response to career transformations and diverse talent demands USI provides systematic skill ? Competency Transition and Reskilling

management and tailored training programs. These initiatives empower employees to excel in We invest in diverse training resources to help employees navigate future

current roles while developing the competitive edge needed for career transitions ultimately transformations. Key initiatives include Professional Certifications to deepen

optimizing organizational agility and competitive advantage. expertise; Digital Transformation tools (AI/BI data analytics) to drive innovation; and

? Deepening Professional Certifications and Setting Industry Benchmarks Workplace Resilience training (multi-skilling cross-departmental communication) to

Recognized in 2019 as one of the first High-Skilled Certification Enterprises in Jiangsu ensure employees realize their self-worth throughout all stages of their careers.Province our Kunshan Facility provides accreditation for three specialized categories: ? Senior Care and Value Inheritance

electronic equipment assembly testing and soldering spanning four levels from Junior To ensure a dignified transition for retiring employees USI provides regular updates

to Master Technician. As of year-end 2025 we have cultivated a total of 3345 skilled on retirement benefits and personal financial planning to help them achieve mental

professionals including 424 Master Technicians 1378 Senior 823 Intermediate and 720 and physical well-being and life balance. Furthermore we actively establish an "Elite

Junior Technicians. This robust talent pool establishes a high-standard technical reserve Talent Rehiring Mechanism" inviting senior employees with critical professional skills

driving the industry's workforce transformation. to return. This allows them to pass on core technologies and corporate culture to younger generations. In doing so we simultaneously empower our senior colleagues

? Stimulating Internal Mobility and Expanding Career Horizons with new career value and build a sustainable cycle of talent value.We have established a transparent internal recruitment and rotation platform to encourage

employees to expand their multi-functional potential. The inter-departmental IDL replacement

rate (2) rose significantly from 40% in 2022 and stabilized at 46% in 2025 following a period IDL Job Transfer Numbers & Rate

of high-efficiency matching. This reflects a mature mechanism for talent self-sufficiency and

deployment flexibility. Through cross-functional collaboration and rotation employees not 62%

only deepen their expertise but also cultivate agile adaptability and long-term employability 61%

fostering a win-win outcome for both the enterprise and its talent.?Driving Transformational Learning to Build Talent Resilience 46%40%

USI identifies "Digital Empowerment" as the core of talent development leveraging "Interest"

as the primary driver for autonomous learning. Through digital tool training and process

optimization we facilitate the evolution of digital mindsets and professional skills enhancing

per-capita output and team agility. Simultaneously creative initiatives such as "Book Sharing 1005

Sessions" and "Language Competitions" spark a passion for self-driven learning. These 922 856

activities transform cross-disciplinary knowledge into innovative inspiration strengthening 753

cross-functional communication resilience and cultivating career soft skills to achieve

harmony between personal growth and corporate sustainability.Note:

1. The Kirkpatrick Four-Level Evaluation Model is a classic framework for measuring training effectiveness through four progressive

levels―Reaction Learning Behavior and Results―helping organizations verify whether training investments truly translate into 2022 2023 2024 2025

tangible business performance. No. of IDL Replacement Positions Inter-departmental IDL Replacement Rate

2. Inter-departmental IDL replacement rate = Total IDL Job Transfers ÷ (Total IDL Job Transfers + Total New IDL Employees) × 100% 148About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Course and Training Modes Course Description and Business Impact

Strategic Leadership Development Program (TWI/MIT/MTP)

Managerial Competencies To support succession planning we implement tiered Strategic Leadership Development Programs based on core competencies and global leadership

models to enhance managerial effectiveness.? M anagerial Positions Participants: 469 (2.5%) (1)

? In-person courses Key Achievements:

? Operational Excellence: Transitioned to strategic leadership via automation and lean management boosting efficiency by 19%–50% and minimizing

waste.? Coaching Leadership: Enhanced coaching-style leadership to foster autonomy resulting in a 40% increase in independent task completion.Business Benefits: Approximately CNY 26.89 million.Position Certification

Professional Competencies USI's Position Certification System standardizes expertise by evaluating the specific professional skills required for every role.? R egular and Contract Employees Participants:1005 (5.4%) completed the certification.Key Achievements:

? In-person/online courses ?Recruitment Optimization & Talent Mobility: Achieved a 53% inter-departmental IDL replacement rate reducing recruitment costs and accelerating

supervisor guidance OJT productivity.Business Benefits: Approximately CNY 30.7 million

New Employee Camp

Company Culture USI integrates corporate philosophy global trends and gender equality into its curriculum to drive sustainable practices and DEI values. By fostering

awareness and respect for diversity we reshape our culture to enhance inclusivity and talent retention.? R egular and Contract Employees Participants: 7924 (48.4%)

? In-person/online courses Key Achievements:

coaching mentorship ?Talent Retention: Employee turnover rate decreased by 5.8% compared to 2024.apprenticeship and work-life Business Benefits: Approximately CNY 52.86 million

guidance

Microsoft Copilot

Digital Tools We leverage digital tools to optimize large-scale data analysis and cross-regional collaboration enhancing corporate agility and operational efficiency.Participants: 300 (1.8%)

? Indirect Employees Key Achievements:

? In-person/online courses ?AI automation of routine tasks (copywriting minutes data) saves 14–25 minutes daily. Complex decision-making analysis was slashed from 8 hours to

30 minutes yielding a 70% boost in overall efficiency.

Business Benefits: Approximately CNY 9.65 million

Note:

1. Ratio = the number of trainees ÷ total employees at the end of the year × 100%

Lifelong Learning Program Internal Instructor Cultivation and Knowledge Inheritance

Since 2018 Zhangjiang Kunshan and Mexico Facilities have collaborated with local Knowledge inheritance is the cornerstone of our corporate competitiveness. Through a

colleges and universities to bring "Academic Education" programs directly to our sites. In comprehensive instructor training and certification system we encourage top-performing

2025 152 employees successfully earned degrees with USI's encouragement including 46 employees to transform practical experience into forward-looking curricula fostering a

who obtained bachelor's degrees through Customized Corporate Programs in fields such as virtuous cycle of knowledge. As of year-end 2025 we have certified a total of 1243 internal

Human Resources Electronic Information Engineering Automation Technology and Business instructors worldwide. These instructors continuously distill field-proven expertise to cultivate

Administration. Since its inception the program has supported a total of 571 employees world-class talent with a global perspective.in advancing their education. This initiative effectively optimizes time management for

learning empowers employees to achieve personal value transformation and fosters a robust Internal Instructors

corporate culture of lifelong learning.

1243

Lifelong Learning Programs 1118 1129

3 1042

22% 26 829

17% 774 777

659

59%

414

344 352 383

2022 2023 2024 2025

Master University College High School Male Female Total Internal Instructors

Social Involvement

To manage our relationships with our surrounding

communities and the environment USI actively

engages in corporate citizenship through external

participation and four approaches: Investing in

Education Contributing to Society Conserving

the Environment and Promoting Arts & Culture. CNY 7.65 Million 183517 Trees 3226 Students

Together we can create social value and build a

sustainable future. Invested in Social Planted in the Participated in Industrial-

Involvement Million Tree Project Academic Partnerships

Key Stakeholders:

Employees Communities Industry Unions/Associations

6839 Volunteer Hours 2923 Students 2330 Participants

SDGs: Contributed to Local Reached through 6 Rural Engaged in Environmental

Communities Revitalization Programs Activities

Sustainable Issue Performance and Targets

Material Issue Achieved Not Achieved

Management Purpose KPI 2025 Target 2025 Performance Status 2026 Target 2030 Target

Social Involvement

Rural area reading Hold 6 reading activities in Held 6 rural reading Hold 6 reading activities in Hold 6 reading activities in

activities rural areas activities rural areas rural areas

Number of

industrial-academic Conduct 2 industrial-

Conducted 2 research Conduct 2 research

academic partnerships industrial-academic

Conduct 2 industrial-

partnerships partnerships academic partnerships

industrial-academic

partnerships

Number of interns Admit 100 interns Admitted 129 interns Admit 100 interns Admit 100 interns

Number of USIU

classes shared Share 25 USIU classes Shared 28 classes Share 25 USIU classes Share USIU 35 classes

Effective management of Number of students

social activities investment benefiting from Support 1800 rural 2923 rural students

to maximize social value for rural revitalization students supported through 6

Support 1800 rural Support 2000 rural

students students

both the company and the programs programs

beneficiaries

Number of Reach 2200 volunteer Reached 6839 volunteer Reach 2310 volunteer Reach 2800 volunteer

volunteer hours hours hours hours hours

Number of art Supported 4 art groups

groups supported Support 4 art groups and 12 artists Support 4 art groups Support 4 art groups

Number of trees

planted Plant 15000 trees Planted 17252 trees Plant 15000 trees Plant 18000 trees

Number of

participants in Reach 1000 participants Reached 2330 1000 participants in 2500 participants in environmental participants environmental activities environmental activities

activities

Social Activities Overview

As a corporate citizen we believe that social involvement is more than monetary investments. To measure the social value of our programs we adapted the LBG framework to make

Our contributions should be anchored in sustainable development and contribute to better decisions be more accountable and maximize the effectiveness of each program by

community development making a positive impact. As the top management for Social evaluating our inputs outputs and impact. USI invested CNY 7.65 million (1) in 100 social

Involvement the Sustainability Committee established our Public Affairs Engagement Policy activities and 48 external organizations in 2025 and engaged 1349 employees to volunteer

and Corporate Volunteer Regulations to systematically manage and focus our strategic 6839 hours of service throughout the year.direction. We encourage employees to volunteer in social activities that align with our four

approaches: Investing in Education Contributing to Society Conserving the Environment and

Promoting Arts and Culture.The following figures show the ratio of CNY Invested by type of approach (2) type of activities and type of contribution:

Investment by Approach Investment by Type of Activity 中國大陸、南投Typ( e新 o制f C)o、n墨tri西bu哥tio、n越南

413826 81265

8 3 4 19 5%

24 32 19 34 32 33

49 896206 6755226

9 11% 83%

9 4 41

21 4 68 19 65 63

56 5

46 42 43 40

Unit: CNY

2022 2023 2024 2025 2022 2023 2024 2025

Percentage of Total Costs (%) Percentage of Total Costs (%) Cash Contributions In-Kind Giving

Investing in Education Contributing to Society Commercial Initiatives Community Investments Time Management Overheads

Conserving the Environment Promoting Culture & Arts Charitable Donation

Note:

1. Total social investment costs are based on cash and in-kind giving. Volunteering time and management overhead costs are not included in the calculations.

2. External organization participation costs are excluded from the four approaches of social involvement.

Investing in Education

Sponsor Taiwan Reading Foundation (Nantou Facility)

Talent is an important growth driver for enterprises. Broadening children's horizons and cultivating reading interest cannot be done overnight. Therefore USI has continuously

Reading is the groundwork for accumulating innovative sponsored the Taiwan Reading Culture Foundation to build Philanthropic Libraries since 2005 and invested CNY 114000 every

capabilities. As part of the Investing in Education year purchasing new books for the Libraries. To date we have donated 887 boxes of books developing the reading ability of

strategic pillar USI helped establish the Taiwan students in rural and remote areas. We understand that only continuous investment can bring substantial impact and change

Reading Culture Foundation and its Philanthropic to students and not just financial and material assistance.Library. The Library is set up in each township as a Understanding that different methods are needed for different age groups to guide reading in addition to book donations

resource for teachers to borrow and use in class. We USI collaborates with the Foundation to organize Parent-Child Reading Meet the Author and Magical Physics Science Camp

co-organized the Chinese Literary Prize for Global activities. We spare no effort to expand investment in local education enhance reading habits and promote interest in science.Youth to encourage students in literary pursuits. In In 2025 we held 6 reading activities. For preschool to lower graders families are the cradle of learning. We held 2 Parent-Child

terms of youth training we have several industrial- Reading activities and guided children to read picture books in a lively way to cultivate active interest in reading and learning.academic partnership and internship projects in Additionally for upper graders we held 2 Magical Physics Science Camps where students can test physics experiments with

multiple facilities to enhance youth employability and their five senses and a hands-on approach. We also held 2 Meet the Author activities where invited authors talked at schools

develop the next-generation of technology talents. about their works and experiences letting students approach books from another perspective.We continued to use SROI to analyze and quantify our impact on students and children through the Philanthropic Libraries

program and activities. Through our survey we found 83% of students who participated in the Magical Physics Science Camp

felt their science knowledge increased. Of the parents that participated in the Parent-Child Reading activity 78% of parents

believed that the event could improve reading focus. For detailed analysis please refer to the charts on the next page. In total

every $1 invested in the Philanthropic Libraries can generate $6.41 of social value.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Parent-Child Reading: Outcome Incidences Magical Physics Science Camp - Outcome Incidences for Students

Parents 1st-3rd Graders

78 83 83

74 7673 73

71 72 71 72 77 7870 68 74 74 75 75

65 71 72 70

Rate Rate

(%) (%)

Improved Family Reading Quality Improved Reading Comprehension Improved Reading Focus Increased Science Knowledge Increased Interest in STEM Subjects Increased Reading Motivation

2022 2023 2024 2025 2022 2023 2024 2025

Sponsor Chinese Literary Prize for Global

Youth (Nantou Facility)

The Chinese Literary Prize for Global Youth is known as

the fountain of living waters for new literary talents. Many

literary luminaries such as Chang Man-Chuan Jian Zhen and

Hou Wenyong had won this prize as students. To encourage

student participation and advance Chinese literary culture

USI sponsors CNY 68000 every year as prize money to scout

for new literary stars. The call for manuscripts has expanded

to include Chinese students from all over the world. In 2025

the 43rd Global Chinese Student Literature Award received

1318 entries with 340 entries from overseas. We look

forward to more award-winning students emerging in the

Chinese literary world.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

USI University Courses & Industrial-Academic Partnerships (Global)

USI has always emphasized employee training and passing down knowledge. Internal lecturers Also to put academic theory into practice USI provides internship opportunities in

from USI University cooperate with industry unions associations and universities and freely Zhangjiang Kunshan Nantou Mexico and Vietnam Facilities with one-on-one mentor

share their knowledge experience or the industry's latest trends to associated organizations system so students can bridge the gap between school and work after graduation. In 2025

and students. Through diverse courses like Introduction to the Semiconductor Industry HR 129 students interned in our internship programs. In addition to internship opportunities

Digital Transformation Career Planning and Marketing Skills we share our experiences with Nantou Facility partnered with National Taiwan University to conduct research projects

industry peers and hold career planning courses to help university students grasp the job such as the Smart Handheld Desensitization Modeling and Electromagnetic Interference

market. We shared 28 courses that totaled 5185 hours of lessons in 2025 contributing to research. Overall 3226 students benefited from these industrial-academic partnerships and

enhancing youth employability. participated 76920 hours in 2025.USI University Courses (Global)

Facility Course Name

? Introduction to the Semiconductor Industry (Shanghai Tech

School)

Zhangjiang A ngel Podcaster Tours USI-AI Manufacturing (Shanghai Disability Union)

? HR Digital Transformation Practices (Beisen)

? ESD Protection Training (Suppliers)

Huizhou Career Planning (Schools)

? H ow HR Powers Innovative Management (Industry)

? Four Step Marketing Skills (School)

Kunshan ? Pearl Students Exploration Camp (School)

? Empowering Employment (Industry)

? Corporate Digital Transformation (National Chung Hsing

University)

Nantou Intro to Power Modules (National Yang Ming Chiao Tung University)

? Intro to A&I PE (National Chung Hsing University)

? Intro to MCC SiP (Feng Chia University)

? Introduction to Corporate Sustainable Development

(Tec Milenio)

Mexico ? Introduction to the Semiconductor Industry (Technology

University of Jiquilpan)

? ESD Protection Training (Tec Milenio)

Contributing to Society

Rural Revitalization

In response to SDGs (Goal 1: No Poverty; Goal 4: Quality Education) USI sponsors several educational rural revitalization programs to help children in impoverished regions obtain resources for

quality education and narrow the gap between urban and rural areas. For example in 2025 USI invested CNY 609 thousand in the Rural Digital Education Program Hope for Pearls Project Spark

Philanthropic Library Western Region Student Aid Program Shanghai Tech Partnership Program and the Kunshan Charity Foundation's Donation Drive assisting 2923 students in need.Rural Digital Education Program Hope for Pearls Project Spark Philanthropic Library

(Zhangjiang Facility) (Huizhou Kunshan Facilities) (Zhangjiang Jinqiao Facilities)

USI believes in tech for good and thus focuses on Since 2016 USI has actively participated in the Hope Books are a beacon of light that guides our path

bridging the computer education gap by enriching tech for Pearls Project helping students with excellent forward. Reading sparks wisdom and knowledge

resources and supporting local education in remote grades but cannot afford tuition to actualize their accumulating the foundation for innovation. To

areas in response to the United Nations digital literacy dream of finishing high school. In 2025 we held "DIY realize investing in education and letting the light of

advocacy initiative and rural revitalization efforts. for Pearls" and "99 Charity Sale" activities at USI knowledge shine in all corners we built a Philanthropic

This program provides customized training material where employees bought produce from 12 low-income Library at Wenguang Elementary School in Yunnan.and tech support for 7 schools and held mini typing farmers to raise funds for 50 students in 2024 USI Pearl During the construction period USI employees held a

competitions to encourage and strengthen what Class. In addition to financial aid we also sent learning book donation campaign to bring better educational

they learned. In 2025 2073 students benefited from supplies to wish them luck in their studies. resources to 670 students. When the Library was

this program with a cumulative beneficiary of 4590 completed USI and employees donated 3390 books

students. and 20 audio players with 600 audiobooks to enrich the

school's resources. We hope to provide practical help

to narrow the urban-rural gap. We sincerely hope that

the students will learn from books keep up with the

times and thrive like the children in the city.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Western Region Student Aid Program Shanghai Tech Partnership Program Kunshan Charity Foundation Donation Drive

(Zhangjiang Facility) (Zhangjiang Facility) (Kunshan Facility)

USI believes that the merit of investing in education To cultivate high tech talent USI partnered with With love in our hearts we participated in the Donation

lies in the present while the benefit is in the future. We Shanghai Tech University where we hosted a seminar Drive and donated supplies for 20 profoundly disabled

provided financial aid to 12 impoverished outstanding for 64 students offered 10 internships and provided 12 children and vulnerable people in need.university students from rural areas such as Yunnan and scholarships. This integration of academic instruction

Sichuan through Cihui Foundation's Western Region and practical training ensures a seamless alignment

Student Aid Program to ensure their opportunities for between the university's talent development and

education and growth. the company's workforce needs creating a mutually

beneficial outcome.Social Inclusion

Our mission is to give back to the community by gathering resources and encouraging employee participation in community activities. We aim to build a society where everyone has a sense of

growth purpose and fulfillment.Accompanying Disadvantaged Children (Nantou Mexico Facilities)

Science Museum Trip Christmas Party

Every child has the right to education and is expected to grow up happily. USI volunteers not

only lead guided tours of the Science Museum for elementary schools in remote areas but also

organize baseball and musicals watching. At the end of the year we held Christmas parties to

enrich the lives of children at the Nantou Home for Children and the Mexican Salvation Army

brightening up every moment of their childhoods. USI also reaches out to children fighting

cancer donating supplies to them and their families to cheer them on conveying "you are not

alone".Caring for the Elderly in the Community (Huizhou Kunshan

Nantou and Mexico Facilities)

As society ages addressing the challenges of elderly care and loneliness becomes critical. Our Senior Home Visitation Retirement Home Visitation

company organizes meal donations and visits nursing homes to engage with seniors. Through

the ASEH Chang Yao Hong-Ying Social Welfare & Charity Foundation we organize the Senior

LOHAS Program offering healthy exercises educational games and friendly chats to promote

active aging and an age-friendly society.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Conserving the Environment

Climate change is an issue that humanity must face. Saving energy and reducing carbon Million Tree Project (Global)

emissions are the starting points for Conserving the Environment. For years USI has been In response to SDGs (Goal 13: Climate Action;

cooperating with Shanghai Roots & Shoots in the Million Tree Project to purify air quality and Goal 15: Life on Land) USI actively promotes

restore biodiversity. We also work with the ASE Environmental Protection and Sustainability environmental education protects ecosystems

Foundation in the Campus LED Installation Project to replace combats desertification and reverses land degradation

LED lighting for rural schools to save energy and schoolchildren's through collaborating with Shanghai Roots and

eyesight. We host activities such as Environmental Seminars Mini Shoots' Million Tree Project. To expand this project

Farmers' Markets and Environmental Cleanups to promote green we began reforesting in Vietnam's Cuc Phong National

and low-carbon lifestyles raise environmental awareness deepen Park. In addition to reversing land degradation and

connections with neighboring communities mitigate negative desertification in Inner Mongolia and Ningxia planting

impacts and contribute to the global environment. trees also restores local biodiversity. The latest

ecological survey reports 49 species observed in Inner

Mongolia and 8 species in Ningxia indicating the sand

Activity Approaches has begun stabilizing the ecosystem is reaching a

balance and there are early signs of recovery. By the

end of 2025 USI has planted 183517 trees covering

112.85 hectares and cumulatively captured 1449.95

Low-Carbon Lifestyle metric tonnes of CO?e using IPCC Guidelines. The

Carbon Reduction Environmental Protection afforested land conserves about 154830.2 metric tonnes of water annually through water ? Environmental Seminars

? Million Tree Project ? A dopt-a-Road balance estimation methods.? F armer Markets

? Campus LED Installation ? Recycling Initiative ? Environmental Cleanups USI tree ambassadors is a global initiative to engage employees in environmental action. In

Project 2025 85 ambassadors went to Inner Mongolia Ningxia Vietnam and Mexico to plant trees

doing our part to protect the environment. Participants deeply realized that environmental

restoration is an uphill battle and were even more supportive of environmental protection

activities. In 2025 17252 trees were newly planted of which employees donated 336 trees.USI Tree Planting Data 112.85

97.91 105.12

88.75

76.71

67.20

53.06

39.62

26.79 22381

18.30 21864

3.00 7.85 10.85 21040

21268 17252

6160 7004 20111 14783

19654

4000 4000 4000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

159 Trees Planted Cumulative Trees PlantedAbout this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Campus LED Installation Project (Nantou and Vietnam Facilities)

Since 2014 USI has assisted the ASE Environmental Protection and Sustainability Foundation in launching the Campus LED Installation Project in remote elementary and middle schools

in Nantou to enhance energy conversion and lighting in rural schools. The project aims to replace old fluorescent lights with energy-saving T8-LED lights which not only effectively reduce

electricity consumption and thus achieve energy-saving and carbon reduction benefits but also protect children's eyesight and create a high-quality education and learning environment. In

2025 we assisted in the installation of 2930 LED lights for a total of 754 teachers and students in Nantou's Zhongliao Middle School Mingang and Gongxie Elementary Schools and Vietnam's

Van Phong Primary and Secondary School saving 63288 kWh of power and thus reducing 29999 kg of CO?. In total we have installed 47524 lights in 53 schools creating low-carbon and

sustainable campuses.Year Schools LED Lights Installed Annually Saved Energy (kWh)

2023 3 2723 58817

2024 3 2300 49680

2025 4 2930 63288

Green Zone Adoption (Nantou Facility)

Environmental pollution is an increasingly pressing global challenge with air quality posing Environmental Cleanup Low-Carbon Life

a significant threat to public health and quality of life. In response USI has partnered with (Huizhou Kunshan and Nantou Facilities)

ecological experts to develop a community green space and improve local air quality adjacent Loving the planet begins with our everyday habits and the communities around us. To

to Caotun Elementary School implementing targeted greening initiatives to create a cleaner encourage low-carbon lifestyles Huizhou Facility launched a seven-day challenge inspiring

healthier environment. Beyond improving local air quality and residents' well-being the employees to adopt greener practices and reduce their environmental footprint. A total

restored green space also serves as a model for community-based air purification efforts. It of 530 employees participated actively choosing low-carbon transportation such as

provides a valuable platform for ecological education supporting both school learning and subways and carpooling collectively logging 11.8 million steps and recycling 106 kg of

broader community engagement in environmental protection. clothing. At Kunshan Facility a team of 14 volunteers visited Qiandeng Old Town collecting

approximately 50 kg of litter to help preserve its scenic environment. Meanwhile Nantou

Facility's annual beach cleanup went ahead despite heavy rain with 123 dedicated volunteers

quickly removing 90.3 kg of waste. Through these initiatives each facility not only raised

awareness about reducing and preventing litter but also brought employees together to help

create cleaner more vibrant communities.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Promoting Arts and Culture

Sponsored Youth Go Competitions (Zhangjiang Facility) Sponsored Cross-Strait Student Baseball League and Breakdancing

USI continued to sponsor CNY 76 thousand in youth Go tournaments so evenly matched Go Competition (Zhangjiang Facility)

players across the strait could meet and compete through the Twin Cities Cup and extend To promote diverse youth exchange initiatives across the strait USI sponsored both the

their friendships and dreams through the chessboard. We hope to encourage more youths to 6th Cross-Strait Baseball League and the inaugural Breakdancing Competition in Nanjing.test their skills and grow through such activities. Through these sports and cultural activities the programs created meaningful opportunities

for young people to foster cultural exchange and mutual understanding. Nearly 300 dancers

and 1100 baseball players from both sides took part bringing together young people to

celebrate shared interests through sports and creative expression.Sponsored Cloud Gate Dance Theatre Annual Tour (Nantou Facility) Sponsored Ming Hua Yuan Theatre Performance (Nantou Facility)

Since 2005 USI has annually supported the Cloud Gate Culture and Art Foundation as we Promoting traditional arts and giving back to the community is central to USI's commitment

believe that while technology can improve our quality of life art can improve the quality of to social activities. In 2025 we continued supporting the Straw Crafts Culture Festival by

our minds and souls. This year we sponsored the All Ears production and invited supplier inviting the Minghuayuan Theatre Group to perform Master of Sword - Lu Dongbin at Caotun

partners to enjoy dancers expressing the joy of life and depth of culture through dance. Zhongshan Park where over 2200 locals came and enjoyed the traditional opera outdoors

keeping traditional culture alive.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

External Participation

As a global corporate citizen and leader in electronic design and manufacturing services Our assessment determined that 30 industrial associations we joined are Paris-aligned. An

we recognize the need to be more visible in advocating key industry issues such as climate example of an association actively involved in developing climate policy and advocacy is listed

change corporate sustainability human rights and supply chain resilience. below:

The Sustainability Committee systemically manages and guides our company-wide ? Taiwan Electrical and Electronic Manufacturers' Association (TEEMA)

associations through the Public Affairs Engagement Policy. Organizations we choose to

participate in are ones we share similar values with and we regularly review our memberships TEEMA's mission is to promote economic development and act as a bridge for cross-sector

for alignment on material issues such as the Paris Agreement goals. Every year the communications. In response to international trends and regulations TEEMA actively

Senior Vice President of the Administration Group and the Employee & Social Well-being participates in and promotes energy saving and carbon reduction. USI responded by setting

Engagement Taskforce responsible for the stewardship of public affairs engagement and achieving energy-saving goals. In addition to meeting the SBT targets pledged by ASEH

reports review results to the Sustainability Committee. Where misalignments are found the to support the Paris Agreement goals we have also introduced the TCFD & CDP frameworks

Committee reviews and deliberates whether to continue our membership. into our environmental management system. Please refer to the Climate and Nature Risk

Management section for our performance and progress results.USI actively participated in 48 industrial organizations (1~3) and contributed CNY 865 thousand

in 2025 (4). Upon review most associations we joined focus on other industry-specific issues

including workplace safety sharing best practices and professional development. Through

networking events and serving important positions USI keeps in touch with the industry and

contributes to its progress. The following is a partial list of organizations USI joined:

Zhangjiang Facility Huizhou Facility

???Pudong Association of Foreign Investment ???Guangdong Greater Bay Area Strategic

???Shanghai Integrated Circuit Industry Development Association

Association ???Huizhou Association of Taiwan

???Pudong New Area Association of Work Investment Enterprises

Safety

Kunshan Facility Nantou Facility

? Kunshan Labor Relations Association ?? Taiwan Electrical and Electronic

?? Taiwan Compatriot Investment Enterprises Manufacturers' Association

Association of Kunshan ???Taiwan Telematics Industry Association

???Kunshan Workplace Health Association ???Nangang Industrial Manufacturers

Association

???Taiwan Association of Occupational

Health Nurses

Note:

1. ?Represents the position of Chairman/Vice-chairman 4. USI's Business Code of Conduct prohibits political participation through donations to lobbyists and political groups.

2. ??Represents the position of Executive Director And USI did not make any monetary contributions to political campaigns or organizations lobbyists or other tax-

3. Represents the position of Director/Supervisor exempt groups whose role is to influence political campaigns or legislation. ??? 162Subsidiary Overview

Asteelflash Suzhou Facility

EcoVadis Bronze Sustainability Rating

Asteelflash Suzhou Co. Ltd. (AFG-SUZ) specializes in printed circuit Company Name: Asteelflash Suzhou Co. Ltd.board surface-mount technology (SMT) processing and assembly. Date of Establishment: 2002

Its product portfolio covers automotive electronics networking

equipment consumer electronics industrial control systems and Legal Representative: Andrew Wu

medical devices. To enhance local value chain and service capabilities Company Address: No. 8 Gutang Rd. Wujiang ETDZ Suzhou

USI has established a finance center a Design for Manufacturing (DFM) Jiangsu China

team and a global mechanical component supplier development Reporting Period: 01/01/2025 to 12/31/2025

team at AFG-SUZ.Governance and Economic

Stakeholder Engagement

Communication Channel (Frequency) 2025 Performance

Shareholders/Banks Focus Issues: Risk & Crisis Management Sustainable Supply Chain Innovation Management Data Privacy Green Products Occupational Health

& Safety

? B oard Meeting (annual/non-periodic) ? Participated in 2 AFG board meetings in 2025.? Periodic Reports ? Provided financial disclosures and performance analysis through official USI Financial Reports.(monthly/quarterly/semiannual/annual) ?Hosted 2 bank on-site visits.? Bank Visits & Receptions (non-periodic)

Customers Focus Issues: Customer Relations Sustainable Supply Chain Green Products Risk & Crisis Management Information Security Occupational Health

& Safety

? Customer Satisfaction Survey (annual) ? Achieved an average customer satisfaction score of 4.74 out of 5 across quality delivery service and overall performance.? After-Sales Service System (all the time) ? Recorded zero product recalls and resolved 100% of customer complaints.? Project Team (all the time) ? Provided timely customer services in quality engineering and delivery through dedicated project teams. Customers may provide

? Dedicated Email Support (all the time) feedback suggestions or complaints at any time via company email channels.? Customer inquiries and audits (all the time) ?Held periodic meetings with customers on quality delivery CIP and ESG performance.? Passed 11 OHS & environmental compliance customer audits.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Communication Channel (Frequency) 2025 Performance

Employees Focus Issues: Occupational Health & Safety Data Privacy Human Rights Information Security Risk & Crisis Management

?Workers' Catering Committee (monthly) ?Held catering meetings to introduce new menus and rating systems promoting a clean and pleasant dining experience. The labor

?Workers' Congress (annual) union also held an annual employee representative meeting to share company updates and facility improvements.? GM/Employee Suggestion Box (all the time) ? Established an anonymous suggestion box with the General Manager personally responding to all submissions and achieving a 100%

? Social Media Accounts (all the time) resolution rate (22 cases).? Company Announcements (all the time) ? Shared employee activities training updates and other news via WeChat. Held 13 events with 2171 total participants.? Training Programs (non-periodic) ? Provided diverse training programs to enhance employee skills averaging 30.2 training hours per employee.? Internal Evaluation & Incentives (Quarterly) ? Granted quarterly AFG-SUZ Stars and Outstanding Team awards and recognized Safety Excellent Management Teams through internal

? Emergency Drills (Monthly) evaluations.? Completed 22 emergency drills with 2259 participants in line with safety and environmental response plans.Suppliers/Contractors Focus Issues: Occupational Health & Safety Customer Relations Risk & Crisis Management Data Privacy Information Security

?Quarterly Business Review (quarterly/semi- ? Conducted 4 quarterly business reviews with key automotive material suppliers and 2 semi-annual reviews with non-automotive

annual) suppliers.?New Supplier Assessment (annual) ? Approved 2 new suppliers through sustainability evaluations and qualification audits. All signed the Supplier Code of Conduct

? Supplier Questionnaire (annual) commitment and achieved a 100% audit pass rate.? Supplier Sustainability Conferences (annual) ? Surveyed 34 suppliers through supplier SAQ and completed on-site audits of 27 raw material suppliers and 5 labor/service contractors

? Supplier Training (annual) to assess their current sustainability status.? Promoted corporate policies such as the Code of Conduct and Human Rights to 929 suppliers and contractors. Engaged 36 suppliers in

the annual Stakeholder Concern Survey.? Conducted labor law training for 3 HR service contractors and conflict minerals training for 39 raw material suppliers.Schools/Academic Institutions Focus Issues: Human Rights Occupational Health & Safety Talent Attraction & Retention Human Capital Development Green Products

Waste Management

? Briefings/Seminars/Forums/Project ? Since the launch of the lifelong learning initiative in 2023 27 employees have pursued further education (17 associate's 8 bachelor's

Collaborations (non-periodic) and 2 master's degrees).? Established a skills certification system aligned with operational needs; 236 employees obtained certifications (124 intermediate 112

advanced).Governments & Industry Unions/

Associations Focus Issues: Occupational Health & Safety Water Resource Management Waste Management Energy Management Social Involvement

?Hosted 11 government inspections with a 100% pass rate.?Official document (non-periodic) ? AFG-SUZ complied with regulatory requirements without major compliance violations and regularly disclosed operational

? Industry conferences/member meeting performance and development updates.(non-periodic) ? Installed a 1.5 MWh solar power system generating 1021 MWh in 2025.? Achieved a 96% non-hazardous waste recycling rate.? Participated in five external training sessions and seminars including safety regulations risk prevention and fire safety.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Communication Channel (Frequency) 2025 Performance

Community (NGO Media) Focus Issues: Social Involvement Data Privacy Occupational Health & Safety Human Rights Sustainable Supply Chain Air Pollution Control

? Resident representatives on-site ? Developed emergency response plans for production safety and environmental incidents; engaged local community representatives

meeting (non-periodic) and signed a Right-to-Know and Mutual Assistance Agreement.?Maintained zero major environmental pollution violations.? Actively engaged in community activities participating in/organizing four events to foster positive community relations.Customer Satisfaction

AFG-SUZ regularly gathers customer feedback through business reviews customer scorecards

and satisfaction surveys assessing performance across four key dimensions: quality delivery

service and overall satisfaction. In 2025 the satisfaction survey covered all mass-production Percentage of Average Satisfaction

customers with a target score of 4.2 (on a 5-point scale where 4–5 indicates "excellent"). Customers with a Score

Results showed that over 97% of customers rated AFG-SUZ 's overall satisfaction as Score ≥ 4

"excellent" with an average satisfaction score of 4.74 points a slight increase from 4.70 in 97% 4.74

2024. Customers Customer

To address customer feedback we regularly form dedicated task forces to implement Surveyed Satisfaction ≥ 4

targeted improvements enhancing product and service quality. AFG-SUZ was honored with 31 30

the "Outstanding Contribution Award" by ROBAM (Boss Appliances).Risk & Crisis Management

2025 Enterprise Risk Assessment

Risk Category Risk Scenario Risk Response Enterprise Opportunities

1. Provide cross-cultural training for support teams (e.g.

local etiquette values and work styles) to enhance 1. Leverage localized supply chain strategies of

1. China–Europe cultural differences impacting cross- communication efficiency. multinational companies to capture European orders

border talent initiatives at AFG-SUZ. 2. Promote localized supply chain deployment to in China. Geopolitics 2. Continued China–U.S. trade tensions intensifying reduce reliance on single sources and improve supply 2. Maximize local supply chain advantages to reduce

regional economic competition. stability. costs and enhance price competitiveness. 3. Develop tailored solutions for domestic clients 3. Leverage group strengths to rapidly expand domestic

to increase local orders and mitigate demand customers and create growth chances.fluctuations.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Risk Category Risk Scenario Risk Response Enterprise Opportunities

1. Insufficient assessment of technology trends leading

to poor technology selection causing delays and 1. Conduct research and select appropriate

budget overruns. technologies.

2. Loss or reassignment of key personnel causing 2. Build cross-functional teams and establish

1. Apply business intelligence tools to improve cost

Innovation standardized documentation to ensure continuity. transparency and decision-making.Research & knowledge gaps and affecting project progress and quality. 3. Confirm design freeze timelines and cost

2. Proactively deploy state-of-the-art technologies to

Development 3. Unplanned specification changes by client causing responsibilities with customers early to enhance

gain market advantage.

3. Leverage AI to enhance R&D efficiency and

delays and resource waste transparency and reduce risks. accelerate innovation cycles.

4. Inadequate cost assessment in early R&D stages 4. Conduct detailed cost evaluations before initiating

reducing project profitability. innovation projects.

1. Regularly review and update succession plan.

1. Talent loss among mid-level managers and key staff. 2. Establish backup stems and internal/external talent 1. Build a robust talent pipeline through succession

2. Aging workforce among mid- and senior-level pools. identification and backup role systems.

Succession management and key roles. 3. Conduct biennial talent reviews and development

2. Develop successors with required capabilities for key

Planning 3. Talent gaps across management levels with plans.positions.insufficient successors. 4. Rehire experienced talent in line with delayed 3. Enhance retention through diversified development

4. No structured succession planning or tracking retirement policies. resources.

system 5. Develop high-potential young talent with expanded 4. Introduce external talent to bring new perspectives

growth opportunities. and ideas.Information Security and Data Privacy Innovation

Since obtaining TISAX certification in 2024 AFG-SUZ has continuously enhanced information security controls and prototype As of 2025 there are a total of 60 valid intellectual

protection within the certification scope successfully upgrading from TISAX V5.1 to V6.0. The upgrade included standard property rights in which 11 patents were granted in 2025.training regulatory gap analysis policy updates and internal audits strengthening overall information security governance. In Furthermore 5 applications are under review and 6

2025 five information security procedures were updated with 1662 training participations to enhance employee awareness applications are accepted.

and compliance.In network and system security AFG-SUZ implemented FortiGate 200E firewalls to achieve physical separation of OA and OT Status Invention Utility Total

networks strengthening operational security. The company also completed a full upgrade to Windows 11 improving system Model

security and stability. Granted and 3 57 60

For data privacy legal teams regularly updated privacy policies and regulations and enhanced procedures including data Valid

breach handling data subject access requests and retention policies. Visitor ID registration was eliminated to minimize Under

sensitive data collection. External visitors including long-term on-site clients and suppliers signed privacy notices total 53 in Review 5 - 5

2025. Overall we achieved significant improvements in systems technology and privacy management providing a secure and Application

reliable operating environment. Submitted - 6 6

Sustainable Manufacturing Sustainable Supply Chain

? C ontinuous Improvement In 2025 AFG-SUZ engaged 623 raw material suppliers across Mainland China Asia Europe and the Americas. AFG-SUZ

In 2025 AFG-SUZ set annual improvement targets and adjusted sourcing strategies based on industry trends and adopted differentiated procurement approaches to diversify risks

incentive mechanisms supported by a review committee and ensure price competitiveness cost efficiency timely delivery and stable quality localized sourcing was promoted to reduce

led by General Manager. Employee proposals were logistics costs and carbon emissions with 93% of suppliers located in Mainland China.submitted via an electronic system and reviewed monthly.In total 53 improvement projects were completed Raw Material Category Distribution Raw Material Supplier Regional Distribution

(1)

delivering cost savings of CNY 3.14 million and enhancing 2 1

operational efficiency.

6 5 4

? D igitalization 8

AFG-SUZ upgraded its BI platform to LEANBI 2.0 37

optimizing interface design refining KPIs and adding 11

over 100 dashboards. The system now includes 438 pages % %

with over 20000 monthly visits serving as a transparent

and traceable management tool. Leveraging low-code

platforms we digitalized KPI management processes 33 93

improving standardization automation and decision-

making efficiency. Mechanical Active Passive Mainland China Asia

? A I Applications PCB Packaging Other America Europe

AI Applications In 2025 seven AI training sessions were ? ?

conducted with 255 total participations. Since rollout in Supplier Code of Conduct Supplier Assessment

August AI systems have delivered an average of 8904 Promoted compliance with the Supplier Code of Conduct New suppliers developed by AFG-SUZ are required to sign

monthly responses supporting daily operations and via USI website platform. In 2025 all 929 active suppliers procurement contracts CSR commitments and business

significantly improving efficiency and digital capabilities. were covered ensuring their adherence to applicable integrity agreements to ensure environmental social and

laws regulations and anti-corruption requirements with human rights considerations are addressed. In 2025 two

no reported grievances or violations. new suppliers were assessed with a 100% qualification

rate.? C onflict Minerals Compliance

To ensure responsible mineral sourcing we conducted

due diligence surveys in accordance with USI's

Responsible Minerals Management requirements please

refer to the Responsible Minerals Commitment section.Note:

1. Purchase percentages are calculated based on supplier regions.

Environmental Protection

Green Products Waste Management

We conducted hazardous substance compliance surveys per In 2025 496 metric tonnes of waste were generated including 97 metric tonnes of hazardous waste and 399 metric tonnes of

customer requirements with the 2025 results as follows: non-hazardous waste. A total of 430 metric tonnes were recycled achieving an overall recycling rate of 87%. Non-hazardous

waste achieved a recycling rate of 96% exceeding the annual target of 90%. Discarded products and e-waste (48.26 metric

Green Products Directive Automotive Products tonnes) were managed by licensed contractors while 292 metric tonnes of packaging materials (pallets turnover boxes and

wooden skids) were reused. Waste by treatment method is shown below.EU RoHS 100%

Project 2025 Performance

China RoHS 100% Packaging Material Total 150000 trays and 30000 cartons were recycled reducing waste generation by 273

Recycling metric tonnes and saving CNY 3.39 million.Pallet Recycling and Reuse Plastic pallets were reused over 1300 times reducing 19 metric tonnes of waste and saving CNY 280000.Unit: metric tonnes

Reused Recycled Composted Landfilled Incinerated

Treatment

Hazardous Nonhazardous

Hazardous Nonhazardous Hazardous Nonhazardous Hazardous Nonhazardous Hazardous Nonhazardous

Facility Energy No energy Energy No energy

recovered recovered recovered recovered

AFG-Suzhou 0.000 0.000 48.260 346.890 0.000 35.163 0.000 0.000 48.180 0.000 17.340 0.000

On-site 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Off-site 0.000 0.000 48.260 346.890 0.000 35.163 0.000 0.000 48.180 0.000 17.340 0.000

Subtotal 0.000 0.000 48.260 346.890 0.000 35.163 0.000 0.000 48.180 0.000 17.340 0.000

Percentage 0.00% 0.00% 9.73% 69.96% 0.00% 7.09% 0.00% 0.00% 9.72% 0.00% 3.50% 0.00%

Total 0.000 395.150 35.163 0.000 48.180 17.340

Climate Strategy Energy Management

To mitigate climate impact AFG-SUZ began quantifying and reporting the organizational In 2025 the AFG-SUZ implemented multiple energy initiatives to mitigate the impacts of

carbon emissions inventory in 2023 and achieved ISO 14064-1 certification. In 2025 we climate change:

continued monitoring and reducing GHG emissions purchasing 8961 MWh of renewable ? I nstalled a new 1.5 MWh solar power generation system with total annual generation

energy certificates to offset emissions from purchased electricity. Refer to the table below for reaching 1021 MWh.Scope 1 & 2 GHG emission:

Unit: metric tonnes CO?e ? S olar-powered streetlights were installed across the facility with estimated electricity

savings reaching 2.27 MWh.Category Scope 1 Scope 2 Total ? Collaborated with the power utility to use green electricity accounting for 73% of total

consumption.Location-based Emissions 172.51 4471.01 4643.52

AFG-SUZ was recognized as a Suzhou Near-Zero Carbon Factory for the strong performance

Market-based Emissions 172.51 971.12 1143.62 in energy conservation and carbon reduction.We conducted 15 categories of significant identification and inventory of upstream and

downstream activities in Scope 3. 2025 results verified by a third-party as follows: (1-2)

Unit: metric tonnes CO?e

Category Description GHG Emissions

1 Purchased goods and services 55078.77

2 Capital goods 182.47

3 Fuel and energy related activities 391.45

4 Upstream transportation and distribution 2296.20

5 Waste generated in operations 3.44

6 Business travel 40.86

7 Employee commuting 248.29

8 Upstream leased assets 6.50

9 Downstream transportation and distribution N/A

10 Processing of sold products N/A

11 Use of sold products N/A 2025 Energy Consumption

12 End-of-life treatment of sold products N/A

13 Downstream leased assets N/A Energy Category Unit Consumption

14 Franchises N/A Electricity GJ 33679

15 Investments N/A Gasoline (non-renewable) GJ 221

Total 58247.99 Diesel (non-renewable) GJ 42

Note:

1. The data presented came from the ISO 14064-1 inventory results rounded to the 2nd decimal place converted to

the GHG Protocol for disclosure.

2. N/A: non-significant after assessment of the indirect emissions materiality criteria in accordance with ISO 14064-1.

Water Resources Management Air Pollution Control

In 2025 total water consumption was 50.626 million liters a 34% decrease from 77.044 million In 2025 VOCs and PM emissions were tested in accordance with local regulations. Emissions

liters in the previous year mainly due to converting underground pipelines to above-ground piping data are shown in the table below. Quantities were estimated from third-party reports (based on

and fixing leaks. We continue to review and implement water-saving initiatives to reduce water concentration and exhaust volume) and rounded to the third decimal place (3).demand and mitigate water scarcity risks.Unit: ML Unit: metric tonnes

Item AFG-Suzhou Pollutant AFG-Suzhou

Water-Stressed Region Yes Volatile Organic Compounds (VOCs) 0.180

Source Tap Water Nitrogen Oxides (NOX) N/A

Water Withdrawal 50.626 Sulfur Oxides (SOX) N/A

Discharge(1) 45.563 Particulate Matter (PM) 0.042

Water Consumption 5.063

Fresh Water (≤ 1000 mg/L TDS) (2) N/A

Discharge Flow Municipal Sewage Treatment Plant

Note:

1. AFG-SUZ uses 90% withdrawal volume estimation principle.

2. N/A: AFG-SUZ sources water is supplied by municipal water utilities and complies with local water quality standards but there is no total dissolved solids (TDS) test data.

3. N/A: Not required by local regulations; no testing was conducted.　

Social

Inclusive Workplace Talent Attraction and Retention

AFG-SUZ's total workforce comprises 628 employees with 300 males (48%) and 328 females

(52%) distributed across job categories as follows: ? E qual and Fair Compensation & Benefits System

? Direct Labor: full attendance/performance/night shift/position allowances or bonuses.

? Indirect Labor: annual/quarterly incentive bonuses.

14% ? Annually review and adjust salaries and bonuses based on individual performance

market conditions and company revenue.

254 103 ? O ptimize Benefits & Boost Employee Engagement

41% 16% Management ? In 2025 2171 employees engaged in 13 activities such as skills competitions

Technical basketball tournaments and green hikes.?

183 Administrative

Multiple Communication Channels

? Various channels are available to collect employee feedback with ongoing

29% Skilled improvements and transparent communication (e.g. GM's mailbox and complaint

hotline).Workforce Breakdown by Category

Diversity Indicators (Ratio) Male Female We analyze gender-based salary ratios and run quarterly awards for outstanding employees

and teams promoting our core values.Management 49 (56%) 39 (44%)

Junior Management 19 (51%) 18 (49%)

Middle Management 24 (55%) 20 (45%)

Top Management 6 (86%) 1 (14%)

Operational Supervisors 27 (69%) 12 (31%)

New Hires 39 (57%) 30 (43%)

Resigned Employees 41 (53%) 37 (47%) Gender Pay Ratio by Job Category

Age Distribution (Ratio) New Hires Resignations

Category Female-to-male Female-to-male Basic Salary Ratio Remuneration Ratio

<30 Years-Old 45 (65%) 37 (47%) Management 0.90 0.89

30~50 Years-Old 24 (35%) 40 (52%) Technical 0.86 0.88

>50 Years-Old 0 (0%) 1 (1%) Administrative 0.97 0.97

Skilled 0.98 0.95

AFG-SUZ provides various benefits and subsidies including parental leave. ? Mid-Autumn Environmental Awareness Campaign

This initiative promoted the concept that small everyday actions can support

Employee Benefits and Subsidies environmental protection through learning modules and online quizzes. Participants who

achieved a perfect score were awarded a Mid-Autumn Festival gift box.Item Beneficiaries Benefit Amount(CNY)

Festival Gift 1161 168815

Wedding Subsidy 7 2100

Childbirth Subsidy 7 1400

Continued Education

Subsidy 7 18000

Total 1182 190315

2025 Parental Leave Summary ? Clean Plate Campaign

The company cafeteria promoted the Clean Plate Campaign to reduce food waste

Item Male Female Total conserve resources minimize kitchen waste and lower greenhouse gas emissions. In 2025

Employees qualified to both food waste and carbon emissions decreased by 35% compared to 2024.apply for parental leave 10 17 27

Employees that applied for

parental leave 10 17 27

Employees expected to

return from leave 10 17 27

2025 Employee Activities

? Health Promotion

? Environmental Protection and Employee Health Initiatives ? Monthly themed articles on occupational health nutrition seasonal prevention and

During International Women's Day the company launched the "Cans for Plants" event. A emergency awareness were published on the WeChat Official Account reaching up to

total of 402 female employees participated collecting 808 empty cosmetic bottles (618 600 views and promoting healthy habits.plastic 190 glass) and reducing waste by approximately 78 kg. ? A basketball competition was organized involving 25 participants and other employees

attended as spectators to encourage exercise and enhance team cohesion fostering a

culture of health and teamwork

Talent Development

AFG-SUZ provides diverse learning opportunities to support continuous employee We have established an incentive-driven performance management system to support

development. Since becoming a pilot enterprise for skill level certification in 2023 we have strategy execution and employee growth fostering teamwork to achieve company goals and

been qualified to certify electronic equipment assembly technicians at multiple levels create value for customers.with 124 intermediate and 112 senior technicians certified by the end of 2025. In addition

through an internal trainer management system 125 employees have been certified as in- Employee Coverage in Regular Performance Appraisal

house trainers facilitating knowledge transfer.Regular Performance Appraisal

Training Records Summary Gender Position Eligible Assessed

Employees Employees Coverage

Category Training Hours Average Training Hours

Management 49 49 100%

Male 8714 29.0

Technical 65 65 100%

Female 10243 31.2 Male

Administrative 50 50 100%

Management 2460 28.0

Skilled 136 136 100%

Technical 3772 36.6

Subtotal 300 300 100%

Administrative 3688 20.2

Management 39 39 100%

Skilled 9037 35.6

Technical 38 38 100%

New Employees 3004 43.5 Female

Administrative 133 133 100%

Total 18957 30.2

Skilled 118 118 100%

Subtotal 328 328 100%

Occupational Health and Safety

AFG-SUZ is ISO 45001 certified ensuring a safe workplace for all employees. Below are its

safety and health objectives and status for 2025: Occupational Health and Safety Training

Category Performance

KPI and Target Performance Status

Total Number of Courses 38

Zero Occupational Disease Incidences 0

Total Number of Trainees 947

Zero Work-Related Deaths 0 Total Training Hours 707

2025 Occupational Injuries and Occupational Social Involvement

Disease Summary In 2025 AFG-SUZ invested CNY 15718 in social activities and engaged 48 employees to volunteer 136 hours of service throughout

the year.Items Employee Contractor

Total hours worked 1570215 845290

Number of lost-time injuries 0 0 Green Hiking for Low-Carbon Living Book Donation Initiative

Lost-Time Injury Frequency

Rate (LTIFR) 0.00 0.00 AFG-SUZ organized a hike at Qionglong Mountain in AFG-SUZ has organized a book donation drive

Number of high- Suzhou for employees and their families promoting for four years with 99 employees donating 542

consequence work-related 0 0 green travel and environmental awareness. During children's books in 2025 to support children in

injuries the event 110 participants collected over 200 underprivileged areas.pieces of litter and organic waste contributing to

Rate of high-consequence cleaner environment.work-related injuries 0.00 0.00

Number of near misses 0 0

Near Miss Frequency Rate

(NMFR) 0.00 0.00

Number of work-related

fatalities 0 0

Rate of fatalities as a result

of work-related injuries 0.00 0.00

Occupational Diseases Rate

(ODR) 0.00 0.00

Number of days lost due to

injuries 0 0 Caring for Persons with Disabilities in the Community Support for Underprivileged Children

Lost Day Rate (LDR) 0.00 0.00 Under the guidance of community staff union In collaboration with the Foreign-Invested

representatives and volunteers visited families Enterprises Association and the Intelligent

of persons with disabilities in need providing Manufacturing Association we provided donated

donated supplies such as wheelchairs rice supplies and delivered festive greetings and care

cooking oil and milk. New Year care packages to children at the Wujiang Social Welfare Institute.were also delivered to employees with disabilities

within the company.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

Appendix

Contributions to the SDGs

? I nvested in 6 rural revitalization ? D onated a cumulative total of 887

boxes of books to the Philanthropic ? Increased percentage of females programs benefiting 2923 ? H eld 48 health activities such

students. Libraries for 21 years running.in top management positions

as blood donation weight-loss reaching 20% by 2025.? USI provides pension insurance competition and bone density ? Built 7 computer classrooms through ? S trengthen human rights

and elder insurance in accordance testing with 3955 participants. the Rural Digital Education Program training and publicity including

with the retirement laws and benefiting 4590 students.? D onated 235 Chinese ? Provide medical and emergency non-discrimination and sexual

regulations of each business New Year's Eve dinners to support for unexpected or sudden ? T rained cumulative total of 1243 harassment. A total of 25231

location USI has allocated disadvantaged lonely elders illnesses for employees stationed USIU internal lecturers. employees participated in the

CNY 261 million in total for the to spread warmth and cheer. overseas or on business trips. ? S upported total 571 employees to training with 24233 training

retirement programs. take advanced studies. hours.? R educed 15% water use ? Purchased certified renewable ? CNY 59.2 billion revenue in 2025. ? A n R&D intensity of 3.21% and a workforce

intensity from the baseline year energy to offset carbon ? C ustomer satisfaction score reached composition of 13.95% R&D personnel in 2025

2015. dioxide emissions generated 86.3. reflect USI's strong commitment to cultivating

? R ecycled 65% of process water by traditional electricity used. innovation in design and development.

100% renewable energy use in ? S tarting salaries for direct laborers in 2025.

Mainland China Mexico and at each facility are higher than local

? Solar panels installed on Nantou-NK Huizhou

Vietnam Facilities. minimum wages. Employees have

and Vietnam Facilities generated 8238 MWh of

the right to equal pay for equal work renewable energy as of 2025.regardless of gender.? Provided 18686 job opportunities

worldwide with 94.3% local hires.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

? Cooperated with suppliers to recycle

pallets and packaging materials

reducing 4058 metric tonnes of waste

and saved CNY 57 million.? Included PFAS in the Prohibited ? P romoted green product design reduced energy

? Consistently monitored our compliance Substances Elimination Plan to minimize loss and engaged in continuous improvement

with legal emission regulations to their impact on workers and the to reduce CO? emissions saving 58.7 GWh of

lessen our negative environmental environment. electricity in 2025 equivalent to reducing 23716

impact and contribute to building metric tonnes of CO?.? USI established Tax Policy to guide ? Assisted customers to obtain EPEAT

the principles of tax governance and sustainable communities. There were Silver certification for Set-Top Box ? 0 days of production interruptions due to climate-

follow tax laws of global operation 0 significant air pollution incidents in products. related disasters.locations. 2025. ? Used 96% recyclable or reusable ? I mplemented TCFD to analyze USI climate risks.? Employed 105 people with disabilities. ? Recycled 92% of non-hazardous waste materials in designing mechanical USI will use 100% renewable energy in our through qualified disposal/recyclers. operations and invest in carbon credits to achieve

? Employed 439 ethnic minorities with products which reached 1106 metric net-zero carbon emissions by 2050.

5 in management positions. tonnes in USI's annual shipments.

? C leaned up 1 coast and picked ? S upported the Million Tree Project for ? Established Sunshine Conduct Policies and ? P rovide a wide range of

up 90.3 kg of trash. 13 years running planting a total of Anti-Corruption Management Measures with electronic products and services

? Held 1 environmental seminar 183517 trees covering 112.85 hectares. reporting mechanisms to ensure compliance under Global Demand Local

and 2 environmental protection ? E stablished Biodiversity and No from suppliers and employees. No corruption Service to our customers with

film screenings. Deforestation Commitment. Through or bribery instances were found. operations covering Asia Europe

the hierarchical mitigation approach ? No major fines or violations related to insider America and Africa.of prevention mitigation restoration trading anti-competitive practices or ? G lobal local procurement rate

and offsetting in our facilities to reduce antitrust laws and regulations. reached 33%.the Potentially Disappeared Fraction of ? F ormulated Information Security Policy and

species and achieve Net Positive Impact Privacy Policy. No cybersecurity incidents

and No Gross Deforestation by 2050. privacy violations or data leaks or losses

occurred in 2025.About this Report Sustainability Operations and Green Products Value Chain Environmental Protection Inclusive Social Subsidiary Management Governance and Innovation Management and Occupational Safety Workplace Involvement Overview Appendix

ESG Key Performance Data

Environmental

Renewable Energy Use Unit 2022 2023 2024 2025

USI Group % 81.6 81.7 83.4 87.5

Mainland China Facilities % 100 100 100 100

Mexico Facility % 50 100 100 100

Vietnam Facility % - 100 100 100

Nantou Facility % 0 0 6 23

GHG Emissions Unit 2022 2023 2024 2025

Scope 1 metric tonnes CO2e 5385.74 5265.23 4476.85 5459.05

Scope 2 Location-based metric tonnes CO2e 215510.73 202570.24 158496.83 160333.48

Scope3 (1) metric tonnes CO2e 11521990.32 8764066.55 13188624.96 3983151.90

Water Resource Management Unit 2022 2023 2024 2025

Water withdrawal ML 1068.173 1028.620 1024.702 1049.806

Recycled water ML 307.539 232.938 260.242 315.123

Recycling rate % 28.8 22.6 25.4 30.0

Waste Management Unit 2022 2023 2024 2025

Hazardous waste generated metric tonnes 1006.243 790.359 833.189 823.739

Non-hazardous waste generated metric tonnes 9835.675 11586.338 15679.655 10350.985

Non-hazardous waste recycled metric tonnes 9097.263 10599.595 14758.800 9542.413

Non-hazardous waste recycling rate % 92.49 91.48 94.13 92.19

Note:

1. The 2024 emissions figure increased supported by the strategic procurement of inventory.

Environmental Expenditures Unit 2022 2023 2024 2025

Total CNY 29912628 47496006 42551852 35918776

Operating cost CNY 12634136 27857337 26403041 17338672

Upstream/downstream cost CNY 862255 262200 421888 640651

Management overhead CNY 16237399 18599286 15327772 17627118

Social activities cost CNY 178839 777183 399151 312335

Green Products Unit 2022 2023 2024 2025

Annual product energy efficiency GWh 22.02 7108.28 151.84 58.70

Revenue ratio of eco-design products % 82.4 81.4 80.0 80.9

Number of LCA products inventoried - 28 33 110 179

Social

Talent Attraction and Retention Unit 2022 2023 2024 2025

Number of employees - 16660 17031 14998 16365

Male - 9271 9133 8200 8860

Female - 7389 7898 6798 7505

Percentage of females in total workforce % 44.4 46.4 45.3 45.9

Employees in top management positions

(director and above) - 213 219 231 242

Female employees in top management - 41 44 46 48

Percentage of females in top management

positions % 19.2 20.1 19.9 19.8

Employees in management positions - 1061 1113 1096 1112

Female employees in management - 245 263 268 261

Percentage of females in management

positions % 23.1 23.6 24.5 23.5

Talent Attraction and Retention Unit 2022 2023 2024 2025

IDL employees promoted - 745 834 837 698

Female IDL employees promoted - 278 320 315 250

Employees with disabilities - 83 101 116 105

Average age of employees year 33.0 33.8 35.5 34.8

Average number of years employees

worked in USI year 5.2 5.4 6.6 6.4

Employee turnover rate % 28.8 29.7 21.6 15.8

Ratio of DL entry level wage compared to

local minimum wage - 1.00~1.09 1.00~2.51 1.00~1.37 1.00~1.51

Employee engagement score % - 80 - 83

Return to work rate of employees that

took parental leave % 68 79 69 78

Retention rate of employees that took

parental leave % 47 87 61 62

Training and Talent Development Unit 2022 2023 2024 2025

Employees that complete the internal

lecturer training program - 1118 1129 1042 1243

Female internal lecturers - 344 352 383 414

Employee training and development cost M CNY 17.1 10.4 7.1 8.4

Employee training coverage % 100 100 100 100

Average training per employee hour 28.8 24.5 26.4 43.8

Employees supported to take advanced

studies - 24 155 107 152

Human Rights Unit 2022 2023 2024 2025

Average human rights training per

employee hour 1.4 1.0 1.1 1.0

Labor contract signage rate % 100 100 100 100

Number of employee symposiums - 140 167 139 140

Employees in unions - 5901 6887 6607 8474

Percentage of union labor in workforce % 35.4 40.4 44.1 51.8

Occupational Health and Safety Unit 2022 2023 2024 2025

Occupational disease incidences - 0 0 0 0

Work-related fatalities - 0 0 0 0

Amount invested in safety production M CNY 184 197 217 233

Number of emergency drills conducted - 30 36 41 40

Number of health and well-being

activities held - 51 40 63 48

Number of participants in health and

well-being activities - 8611 10705 6554 3955

Number of doctor consultations held - 30211 14856 13902 12813

Total hours consulted hour 9777 9720 9231 9960

Social Involvement Unit 2022 2023 2024 2025

Total social involvement cost CNY 5281086 9248749 9548459 7651432

Investing in Education CNY 2205556 4960776 6061126 2883338

Contributing to Society CNY 1015895 306252 395842 332756

Conserving the Environment CNY 423275 696683 753805 1286124

Promoting Arts & Culture CNY 1188091 2834620 1700169 2284122

External Participation CNY 448269 450417 637517 865092

Number of employees engaged in social

activities - 701 535 968 1349

Number of hours volunteered hour 2047 3645 4844 6839

Environmental Protection Unit 2022 2023 2024 2025

Annual number of trees planted - 22381 21268 14783 17252

USI Corporate Forest - 14000 14000 14501 16916

USI Employee Forest - 8381 7268 282 336

Annual area of trees planted Ha 12.04 9.16 7.21 7.73

Cumulative number of trees planted - 130214 151482 166265 183517

Cumulative area of trees planted Ha 86.36 97.91 105.12 112.85

Weight of trash picked or reduced Kg 200.00 35040.00 865.00 246.3

Rural Revitalization Unit 2022 2023 2024 2025

Number of programs invested - 5 6 6 6

Number of students assisted - 1838 2732 2803 2923

Amount invested in targeted programs K CNY 818 531 523 609

Investing in Education Unit 2022 2023 2024 2025

Cumulative number of Philanthropic

Library boxes donated box 767 807 847 887

Number of people engaged in reading

activities - 479 689 347 572

Number of students participating in

industrial-academic partnerships - 660 679 1447 3226

Local Procurement Unit 2022 2023 2024 2025

Global % 43 40 41 33

Mexico % 5 6 7 5

Taiwan % 30 28 26 27

Mainland China % 50 51 51 43

Southeast Asia % 3 4 4 4

Supplier Sustainability Evaluation Unit 2022 2023 2024 2025

Number of suppliers evaluated with

sustainability metrics - 525 456 469 495

Percentage of suppliers that completed

the SAQ % 73 76 76 76

Number of suppliers and contractors on-

site audited with sustainability metrics - 81 99 108 110

Supplier Communication Unit 2022 2023 2024 2025

Number of suppliers that attended the

Sustainable Supply Chain Webinar - 342 507 529 388

Conflict Minerals Unit 2022 2023 2024 2025

Number of suppliers that completed due

diligence - 199 219 241 347

Percentage of target suppliers that

completed the MRT % 100 100 100 100

Governance

Financial Performance Unit 2022 2023 2024 2025

Operating revenue M CNY 68516.08 60791.91 60690.65 59195.06

Operating cost M CNY 61327.07 54939.14 54929.61 53579.58

Operating profit M CNY 3460.80 2177.68 1872.48 2104.57

Total profit M CNY 3477.20 2189.69 1853.82 2139.49

Net profit M CNY 3059.99 1949.71 1644.17 1878.63

Government subsidies M CNY 56.14 89.40 59.89 56.90

Taxes M CNY 897.55 963.30 826.56 877.75

Earnings per share CNY 1.40 0.89 0.76 0.85

Research and Patents Unit 2022 2023 2024 2025

Share of R&D personnel of total workforce % 11.5 12.2 13.2 14.0

Amount invested in R&D M CNY 2034.46 1807.20 1907.55 1901.27

R&D intensity % 2.97 2.97 3.14 3.21

Number of patents accumulated - 740 801 754 620

Smart Manufacturing Unit 2022 2023 2024 2025

Number of introduced projects - 70 62 68 87

Saving benefits M CNY 295.44 299.71 310.38 346.78

Continuous Improvement Unit 2022 2023 2024 2025

Amount of carbon reduced from CIP key

projects metric tonnes CO?e 1316 2877 2543 1736

Number of improvement proposals - 360 458 451 521

Cost saved M CNY 119.25 108.74 120.26 112.98

Customer Relations Unit 2022 2023 2024 2025

Customer satisfaction score - 84.2 84.5 87.1 86.3

Satisfied customers % 93 95 99 96

Percentage of revenue covered by

customer surveys % 100 100 100 100

Board of Directors Unit Remuneration Committee Unit

Number of board directors (1) - 11 Number of committee members - 5

Independent directors - 4 Number of independent directors in the - 4

Percentage of independent directors % 36.4 committee

Percentage of independent directors % 80.0

Strategy and Sustainability Committee Unit

Nomination Committee Unit

Number of committee members - 7

Number of independent directors in the Number of committee members - 5

committee - 2 Number of independent directors in the - 3

Percentage of independent directors % 28.6 committee

Percentage of independent directors % 60.0

Audit Committee Unit

Number of committee members - 5

Number of independent directors in the

committee - 3

Percentage of independent directors % 60.0

Note:

1. Board directors include three females.

Sustainability Data

Environmental

A. Scope 2 Market-based GHG Emissions

Item Unit 2022 2023 2024 2025

Scope 2 Market-based metric tonnes CO?e 26912.82 26286.99 23938.40 18154.37

B. Hazardous Waste

Item Unit 2022 2023 2024 2025

Recycled/reused metric tonnes 232.13 205.74 205.58 240.83

Total metric tonnes 774.11 584.62 627.61 582.91

Landfilled metric tonnes 0.00 0.00 0.00 0.00

Incinerated with energy recovery (1) metric tonnes N/A 494.35 514.21 545.14

Incinerated without energy recovery metric tonnes 774.11 90.27 113.41 37.78

C. Non-hazardous Waste

Item Unit 2022 2023 2024 2025

Recycled/reused metric tonnes 9097.26 10599.60 14758.80 9542.41

Total metric tonnes 738.41 986.74 920.86 808.57

Landfilled metric tonnes 393.25 440.43 429.75 323.49

Incinerated with energy recovery metric tonnes N/A 546.31 491.10 485.08

Incinerated without energy recovery metric tonnes 345.16 0.00 0.00 0.00

Note:

1. N/A: no survey on the energy recovery status of hazardous and non-hazardous waste incineration facilities before 2023.

D. Environmental Expenditures (1) Unit: CNY

2022 2023 2024 2025

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