Employee Relations

Talent is HUAYIN's most important intellectual asset. We adhere to the philosophy of "placing the right people in the right positions, delegating responsibility at different levels, employing those we trust, and trusting those we employ." By placing talent in positions best suited to them, we allow them to fully utilize their strengths, making trust and authorization a key characteristic of our corporate culture. Prioritizing employee care and creating a high-quality work environment, we comply with labor-related regulations at all our operating locations to safeguard the legitimate rights and interests of our employees. We adhere to the human rights protection spirit and basic principles outlined in international human rights conventions, such as the "United Nations Global Compact," the "Universal Declaration of Human Rights," and the "ILO Declaration on Fundamental Principles and Rights at Work." Enabling our colleagues to achieve an optimal balance between work and life is one of the Company's primary missions.

Human Rights Risk Assessment

To implement the "Human Rights Policy," the Company has established human rights due diligence procedures. Each year, by reviewing information related to domestic and international human rights issues and relevant labor regulations, we identify potential human rights risk issues, determine the affected subjects and sources of risk, and utilize the results of these risk assessments to...

1. Conduct human rights assessments, focusing on workplace health and safety, physical and mental well-being, and work-life balance to create a friendly work environment.

2. Comply with relevant national laws and human rights protection policies, eliminating unlawful discrimination, ensuring equal employment opportunities, and prohibiting sexual harassment.

3. Adhere to international human rights conventions to protect labor rights, prohibiting forced labor such as slavery or coercion, banning workplace bullying, and prohibiting child labor.

4. Strengthen professional training and occupational safety training, continuously evaluating, improving, and adjusting labor conditions to enhance employee benefits.

5. Establish effective communication channels to convey the Company's labor policies to employees, suppliers, and relevant groups, ensuring harmony and mutual benefits for customers, shareholders, and employees.

Education & Training

In 2024, human rights education training was conducted for all employees, with an attendance rate of 98%.

In 2025, internal promotion of human rights policies was conducted for all employees, totaling 28 participants.

Compensation System

1. Article 23 of the Company's Articles of Incorporation stipulates the percentages or ranges for the remuneration of employees, directors, and supervisors:
"If the Company makes a profit for the year, it shall set aside not less than 2.5% as employee remuneration (40% of this amount shall be distributed to junior staff). The distribution may be made in stock or cash by resolution of the Board of Directors, and the recipients may include employees of controlling or subordinate companies who meet certain conditions. From the above profit amount, the Company may, by resolution of the Board of Directors, set aside not more than 3% as remuneration for directors and supervisors. Proposals for the distribution of employee remuneration and director/supervisor remuneration shall be reported to the Shareholders' Meeting. However, if the Company has accumulated losses, it shall first reserve an amount to cover the losses, and then set aside employee remuneration and director/supervisor remuneration according to the aforementioned ratios."
2. Employees enjoy variable compensation such as year-end bonuses, performance bonuses, and project bonuses, and may participate in the Employee Stock Ownership Trust.
Our governance and operational management guidelines not only focus on the achievement of tangible operational results but also fully integrate sustainability indicators into management metrics, departmental goals, and individual performance, taking the practice of corporate social responsibility as our mission. Beyond achieving corporate profitability, it is paramount that every step taken by the entire Company, from top to bottom, is friendly to the environment, nature-centric, and aimed at social benefit.

[Performance Bonuses]
In addition to year-end employee profit-sharing, the Company has established "Performance Reward Management Regulations." Calculated and issued monthly based on target achievement rates and product gross margins, these bonuses incentivize business units to actively expand performance and develop new customer sources (New Product/New Customer Development Bonuses). Production bonuses and technical allowances are issued monthly based on production line assessment results. Additionally, project bonuses are issued irregularly once or twice a year based on market needs, customer requirements, or specific project goals (e.g., industrial safety, carbon reduction, quality indicators), according to the target achievement rate.

[Employee Stock Ownership Trust (ESOT)]
The Employee Stock Ownership Trust plan was officially launched in 2023. According to the Company's Employee Stock Ownership Committee Charter, applicable to eligible employees of the Company and its affiliates, a fixed amount is deducted from monthly salaries, and the Company contributes a matching 1:1 incentive fund. These funds are deposited into a dedicated trust account, managed and utilized for the benefit of all members to assist them in accumulating wealth, securing their future livelihood, and achieving the Company's goal of talent retention.

Employee Benefits
1. Statutory Basic Benefits
The Company comprehensively provides the following statutory benefit protections to ensure basic labor rights and reduce workplace risks and employment uncertainty:

Category	Content
Social Insurance	Health Insurance, Labor Insurance, Occupational Accident Insurance
Retirement Preparation	Monthly contribution of pension to individual labor pension accounts in accordance with the law
Labor Protection	Contribution to the Arrears Wage Payment Fund to safeguard employee rights
Family Care	Provision of parental leave without pay, paternity leave, vaccination leave, epidemic prevention care leave, and other family-friendly leaves

2. Self-Managed Benefits (Superior to Laws)
The Company designs diversified benefit content focusing on four major aspects: life support, health promotion, financial incentives, and emotional connection, to enhance overall workplace attractiveness and employee loyalty:

Welfare Aspect	Description
Rewards & Incentives	Year-end bonus, performance bonus, employee profit-sharing system
Health Care	Free health check-ups, group insurance (including life, accident, and medical insurance)
Learning Support	Subsidies for various educational training and external courses to enhance professional growth
Care & Condolence	Compassionate payments, maternity subsidies, wedding/funeral cash gifts, injury/sickness assistance
Life Support	Employee pricing for company products, three major holiday bonuses, birthday bonuses
Welfare Activities	Employee Welfare Committee organizes travel subsidies, lunch days, team-building activities, etc., to promote employee interaction and emotional connection

Retirement System
The Company's pension application procedures and conditions are specified in the "Work Rules" to safeguard employees' retirement rights. Employees may apply for retirement according to the retirement standards of the Labor Standards Act, and payments shall be made within thirty days from the date of retirement. The Company currently has no employees under the old labor pension scheme. For personnel under the new labor pension scheme, the Company contributes 6% of the monthly salary to the individual's labor pension account in accordance with the "Labor Pension Act." In 2024, the cumulative contribution to the new pension scheme amounted to NT$ 851,686.


Employee Code of Ethical Conduct
The Company believes that the behavior of every employee affects the entire organization and its reputation. Therefore, every colleague has the responsibility and obligation to maximize the Company's interests within the legal scope and prevent damage to the Company's interests. To provide guidance for all employees' conduct and to maintain the Company's assets, rights, and image by complying with legal and ethical principles, the following Ethical Policy is established:
1. Comply with relevant national and government laws and regulations.
2. Establish and protect the relevant rights of employees, customers, shareholders, and suppliers.
3. Uphold business ethics, fair trade, integrity in management, transparency of information, respect for intellectual property, and protection of personal safety and trade secrets.
4. Continuously improve the execution of the Company's ethical policy.

Employee Communication
The merged Company has always emphasized human-centric management and adopts multiple methods to communicate labor-management issues. We value employee benefits and two-way communication on a daily basis and hold regular labor-management meetings, resulting in harmonious labor relations. To strengthen two-way communication, various measures are summarized as follows:
1. Establishment of an Employee Communication E-mail Window as a channel for colleagues to report problems and opinions.
2. Irregular E-mail surveys on employee satisfaction to understand colleagues' needs.
3. Promotion of Management by Wandering Around (MBWA), encouraging supervisors to visit work sites to care for employees' conditions, or scheduling employee interviews for two-way interactive communication.

Talent Cultivation & Development
To cultivate employees' character and improve their quality, professional skills, and work efficiency, in addition to holding various educational training sessions, we select outstanding cadres to attend professional training courses at vocational training institutions or invite experts and scholars to give series of special lectures at the Company to enhance their professional academic skills and facilitate the accomplishment of tasks.

Workplace Safety
Occupational Safety and Health Policy
To maintain employee health and prevent occupational diseases, the Company assigns work appropriately based on employees' physical and mental conditions. In accordance with the Occupational Safety and Health Act and the Labor Health Protection Rules, we have established "Employee Health Management Regulations." General health check-ups are conducted once every three years for all in-service employees, and once every year for those aged 65 and above, with the cost fully subsidized by the employer.
Additionally, to maintain gender equality in employment and human dignity, we have established "Measures for Prevention, Complaint, and Punishment of Sexual Harassment" and set up a Sexual Harassment Complaint Review Committee to handle relevant complaints, prevent sexual harassment in the workplace, and comprehensively protect employees' physical and mental health.

In 2024, no sexual harassment complaints were received (0 cases).

For production operations, we have established an "Education and Training Management System" and "Safety and Health Work Rules," regulating the responsibilities of labor safety and health management personnel, maintenance and inspection of machinery and equipment, and work safety and health standards. This ensures that factory operations comply with local safety regulations and that employees complete pre-post SOP training before operating machinery.
In 2024, no fires occurred (0 cases).
In 2024, there were 10 occupational accidents involving 10 injuries, accounting for 2.42% of total employees. The Administration Department records and tracks the injuries of employees involved in occupational accidents and provides corresponding compensation. We have also formulated the 2025 Annual Safety Drill Plan and Safety Education Training Plan to strengthen employees' safety operation and safety awareness training. Courses are planned for specialized operation personnel, along with practical drills on accident handling, to remind and ensure the maintenance of personnel's industrial safety awareness.

For production operations in the factory area, we have established an "Education and Training Management System" and "Safety and Health Work Rules," regulating the responsibilities of labor safety and health management personnel, maintenance and inspection of machinery and equipment, and work safety and health standards. This ensures that factory operations comply with local safety regulations and that employees complete pre-post SOP training before operating machinery.

Labor Environment Maintenance
To provide employees with a healthy and comfortable working environment and protect them from potential hazards in the workplace, the offices are equipped with access control measures. Cleaning personnel are hired to clean the environment once a week, and general affairs personnel inspect the factory environment once a week to ensure clear aisles and complete lighting. Fire safety inspections are conducted annually to check the normal operation of fire extinguishers, fire hydrants, escape signs, and emergency lighting, ensuring long-term maintenance of environmental comfort and safety.

Equipment Safety Management
Machinery and equipment in the factory area undergo regular maintenance. Facility personnel conduct safety inspections and records quarterly; operating areas are equipped with protective covers and warning signs, as well as emergency stop devices and sensor-based safety equipment.

Education, Training, and Drills
In 2024, the factory area held seven occupational safety education training sessions for in-service employees, totaling 10 hours and 946 participants. Assessments were conducted after class, with a 100% passing rate. Detailed training course information is as follows:

Date	Course Content	Attendees	Hours
2024.03.13	National Security Law Promotion, Work Safety Management, Technical Expertise	161	1
2024.05.10	Post Safety Operation Regulations	157	2
2024.05.17	Dual Risk Identification & Hazard Inspection	155	2
2024.07.26	Fire Safety Knowledge Training, Summer Safety Knowledge	154	2
2024.09.09	Analysis of Typical Accidents and Emergency Cases	155	1
2024.09.19	Safety Education for Specialized Operation Personnel	5	1
2024.11.19	Safety Education on the Use of Labor Protection Appliances (PPE)	159	1

10 on-site emergency response drills were conducted for various potential accidents. Supervisors and relevant personnel were assigned to participate, with each department supervisor organizing a command team to direct employee response. Drill scenarios included fire and explosion accidents, evacuation and escape, etc., ensuring that in the event of an accident, employees can evacuate the scene in time via escape routes, and firefighting personnel can extinguish the fire as quickly as possible to minimize injury. The total training attendance was 383. Detailed drill content is as follows:

Date	Drill Content	Attendees
2024.02.24	Specialized Fire Drill for Fire and Explosion Accidents	161
2024.03.01	Emergency Evacuation for Fire in Waste Area	159
2024.03.15	Electric Shock Accident On-site Disposal Scheme	9
2024.04.12	Mechanical Injury Accident Disposal Scheme	9
2024.05.08	Poisoning and Asphyxiation Accident On-site Disposal Scheme	9
2024.06.21	Confined Space Safety Accident Emergency Rescue Drill	7
2024.08.16	Vehicle Injury On-site Disposal Scheme	8
2024.10.18	Scald and Death Accident Disposal Scheme	8
2024.11.22	Fall from Height On-site Disposal Scheme	8
2024.12.06	Special Equipment Accident Disposal Scheme	5