First, The impact and extent for company on greenhouse gas emissions.

(1) Risks of company being regulated by laws and regulations on climate change:

The Environmental Protection Administration in Taiwan has issued a greenhouse gas emission declaration management method to regulate specific targets for reporting. Although we have not been regulated by laws and regulations, we will cooperate with government regulations soon and gradually reduce greenhouse gas emissions.

(2) The real risks of the company being affected by climate change:

In recent years, there have been many natural disasters due to climate change. And it is resulting in a significant increase in the purchase of raw materials, electricity supply and fuel costs which are affected by climate change deeply. Therefore, we believe that running a company has an important connection with climate change.

(3) The choices for our company:

Our company consider further the adoption of cost reductions which the operating costs are increasing due to climate change; such as inventory of various procurement costs, high unit prices or large quantity demand which develops more suppliers as substitutes and uses a long-term contract to reduce prices. By energy savings and clean energy using is to reduce the emission of greenhouse gases.

(4) Greenhouse gas emission (direct and indirect) and whether through external verification:

Data coverage and verification scope

All emission sources within the reporting boundaries of our company's 1st, 2nd and 3rd factories in Gangshan, Taiwan.

Before 2021, the data were self-inspected and had not yet been verified by external sources; in 2022~2024, they were verified by DNV's external third-party unit in accordance with the ISO 14064-1:2018 standard.

Second, The company's strategies, methods, and targets for greenhouse gas management

(1) Strategies for company handling climate change or greenhouse gas management:

1. Cooperate with government environmental policies in checking greenhouse gas.
2. Change the oil-fired boiler to a gas boiler. (2 new gas boilers)
3. Plant lighting design replaces electrical energy with natural lightening ones, and traditional lamps with high power consumption are changed to LED power-saving ones.
4. The equipment in the factory is gradually replaced with high-efficiency motors of IE3 level or above.
5. In the future, we will follow the carbon emission reduction policy on ESG environmental issues, reduce emissions by at least 1% every year, and continue to achieve the carbon reduction target.

(2) Greenhouse gas emission reduction target:

1.Lower greenhouse gas emission by power reduction.

2.In the future, we will comply with the provisions of the Energy Management Law, save at least 1% of energy every year, and continue to  achieve the goals of energy conservation and carbon reduction.

(3) Budget and plan for reducing greenhouse gas emissions:

1. Adjustment of the production process.
2. Methods for energy saving.
3. Replacement and management of electric lighting.
4. The motor is replaced with a new one( IE3 up ).
5. Fully automatic slag discharge, separation and recycling machine, quickly separates waste residue, reduces and saves processing costs, increases social responsibility and image, and enhances product value
6. The air compressors are being updated one after another, 111.08 (50HP) → the efficiency level is D=25; 112.05 (50HP) → the efficiency level is D=30, the current highest level

(4) The effect of carbon reduction for customers from company product/ service.

The factory adopts natural lighting mode, high-efficiency lighting or LED to reduce the consumption of electric energy during the day; the old motors replace the new high-efficiency ones to save energy; adjust the production procedure to reduce waste emissions. To have a sustainable energy is by controlling the using of air-fuel ratio, heat source recycling and clean fuel.