To develop steadily together with our suppliers, we require them to comply with the relevant issues and monitor suppliers in the following ways:

1. Supplier assessment and evaluation:

(1) A new supplier must pass one of the following assessments before it can be approved and set up in the system:

1. Market reputation: rated as excellent by peer manufacturers, the industry, or the market in general.
2. Certified under the ISO 9001 system.
3. Capable of carrying out the processes it supplies to the Company and has passed sample evaluation.
4. Samples confirmed as qualified.
5. Vendors the Company dealt with before implementing the ISO 9001 quality system that have had no major quality defects, upon approval by the Plant Director.
6. Special exceptions registered despite failing the Company's evaluation or annual assessment:

• Suppliers designated by the customer
• When the seller has a market monopoly

7. Vendors for advertising services or general expenses.
8. Others.

(2) Raw materials and supplies are in principle assessed every six months using the "Supplier Assessment Form." If there were five or fewer deliveries during the assessment period, the result is for reference only and is not included in the assessment. Machinery and equipment vendors and related service providers are assessed annually (including service quality and efficiency) when annual transactions reach NT$100,000, and the results are recorded in the "Equipment & Engineering Acceptance Report." Assessment items may include, but are not limited to:

1. Supplier background.
2. Business management.
3. Quality control system.
4. Manufacturing capability.
5. Environment and equipment.
6. HSF (hazardous substance free).
7. Delivery.
8. Environmental protection.

2. On-site supplier audits:

Each year the plant affairs unit provides the "Supplier Audit Form (Manufacturer) / (Trader)" or the "Supplier Assessment Form" to the top five vendors for self-assessment. The plant supervisor evaluates the reasonableness of the self-assessment results. If the weighted total score is 70 or below, the situation must be looked into, and an on-site audit is required if supply quality is affected.

3. Supplier complaints:

(1) If a major abnormality occurs in raw materials or supplies, the quality control unit shall record the defect on a "Quality Abnormality Handling Form," which the purchasing staff fax to the supplier requesting corrective action and follow up for a reply.

(2) After the supplier replies to the "Quality Abnormality Handling Form," quality control staff shall track the next delivery of that material or from that vendor to confirm that the same abnormality has not recurred. The form may be closed only after it is confirmed that the abnormality has not recurred.

4. Implementation of supplier evaluations:

In 2025 there were 128 suppliers with transactions in total. After screening against the supplier evaluation criteria, 76 required evaluation, and all met the qualified supplier standards after evaluation or on-site visits.