Environment

Alltek continuously monitors the trend of global climate change and the direction of international response, incorporating this issue into the scope of sustainability management. For climate-related risks and opportunities with a high level of impact and likelihood, we ensure the Company is equipped with appropriate response measures and execution strategies through regular analysis and assessment controls. The action cost of Alltek’s countermeasure strategy in response to the risks and opportunities brought by climate change is expected to account for approximately 0.29% of the company’s total operating expenses in 2025.

Duration of Impact: Short term (within 3 years), Mid-term (3-5 years), Long-term (more than 5 years)

No.	Category of issue	Issue Name	Risk/Opportunity Analysis and Description (Potential Impact on the Company/Organization)	The Affected Value Chain	Duration of Impact	Potential Financial Impact	Risk/ Opportunity Level	Risk/Opportunity countermeasure Strategy
R1	Transition risk/policy and law	National energy transition	With the adjustment of the energy structure, domestic electricity prices face the Risk of Long-term increases. The electricity cost for office buildings and warehouse operations will increase with the rise in electricity prices, causing an increase in operating cost.	Direct operations	Long-term	Increase in operating cost	Low Risk	Regularly review annual electricity consumption and adjust reduction measures accordingly to enhance energy use efficiency. Promote awareness of reduction measures annually to strengthen employees’ energy-saving consciousness.
R2	Physical risk/chronic	Domestic sustainable disclosure regulations	In response to the Financial Supervisory Commission’s “Sustainable Development Roadmap for Listed Companies” and the Taiwan Stock Exchange’s operational procedures, the Company completed the organizational greenhouse gases inventory according to schedule. The Company has established internal expertise in inventory and management to ensure the accuracy and timeliness of information disclosure. The Company has commissioned an external unit to assist in the inventory of greenhouse gases and engaged a third-party agency for verification. The relevant information is disclosed in the annual report and sustainability report, resulting in increased operational costs for the Company.	Direct operations	Mid-term	Increase in operating cost	Low Risk	Implement the greenhouse gases inventory according to the Financial Supervisory Commission’s roadmap schedule and conduct verification by a third-party agency to achieve regulatory compliance. Establish internal verification capabilities and continuously update management capacity. Assign colleagues to participate in professional courses related to climate change and inventory to respond to climate change and international carbon-related policies and trends.
R3	Physical risk/acute	Increase in operating cost	To maintain office temperatures, the demand for air conditioning operation has increased, leading to higher electricity consumption for ice machines and air conditioners, which in turn causes an increase in the Company’s operating cost.	Direct operations	Long-term	Increase in operating cost	Low Risk	Regular announcements (E-mail/internal website) promote the concept of setting the office temperature to an appropriate level (26~28℃). Audit the storage location environment/temperature/humidity record sheet and industrial dehumidifier equipment maintenance card monthly to ensure the effective operation of temperature and humidity equipment.
R4	Transition risk/policy and law	Increase in operating cost	The precision products related to chip parts and components represented by the Company have certain requirements for controlling the temperature and humidity of chips. If the intensity and frequency of typhoons and heavy rains increase due to future climate change, the occurrence of abnormal conditions such as moisture damage or breakage during the transportation process will increase, leading to increased costs.	Direct operations	Short-term	Increase in operating cost	Mid Risk	In response to the potential financial risks posed to businesses by extreme weather events such as torrential rain and floods, Alltek’s actively implements climate change risk management and mitigation measures to strengthen its disaster resilience. For the transportation process of high-precision products, AFTEC requires logistics operators to wrap cargoes with moisture-proof treatments during bad weather or rainy seasons to enhance the safety of cargo transportation. In addition, cargo transportation insurance is taken out every year, which covers most of the potential risks. The ratio of transportation insurance premiums for cargo transportation in 2025 to the turnover is less than 1%.
R5	Opportunity/products and services	Increase product revenue	Logistics scheduling is hindered, giving rise to a large amount of unexpected demand. Extreme weather leads to an increased Risk of supply chain disruptions, forcing the operational side to handle existing loads in a very short time, testing the flexibility of warehouse scheduling. If the frequency of extreme weather increases in the future and the volume of urgent orders exceeds the current manpower capacity threshold, it will lead to order delay compensation or loss of potential orders, resulting in an increase in operating cost.	Upstream supply chain, direct operations, customer	Short-term	Increase in operating cost	High Risk	In the face of physical risk posed by extreme weather, the Company adopts “pre-positioned logistics deployment” and “real-time contingency execution mechanisms” to effectively mitigate the risk of logistics disruptions and significantly reduce potential default penalties and delay costs. By establishing an air transport backup plan and diverse logistics models, ensure the supply chain has high level stability and flexibility. During contingency periods, stringent occupational safety measures are implemented, and a flexible dispatch mechanism is activated to maintain shipping momentum, converting operational resilience into Market competitive opportunities. This ensures delivery stability under extreme weather conditions, deeply instills Customer trust, and reinforces the brand’s core values.
O1	Efficiency of opportunity/resource utilization	Reduction of operating costs	In response to the strong demand for AI servers, the Company proactively engages with supply chain customers that have high growth potential. Through the precise allocation of initial business manpower, we ensure that the products we represent achieve design-in, transforming manpower costs into stable, high-margin orders post-mass production.	Upstream supply chain, direct operations, customer	Long-term	Increase product revenue	High level Opportunity	Continuously optimize the low-carbon, high-performance product portfolio to enhance the Company’s resilience in a low-carbon economy.
O2	Efficiency of opportunity/resource utilization	Reduction of operating costs	Through digital inventory and paperless system operations, the warehouse reduces the use of paper and consumables, lowers administrative costs, and increases operational efficiency. This helps respond to the expectations of customers and the supply chain for low-carbon and information-based management.	Upstream supply chain, direct operations, customer	Long-term	Decrease in operating cost	High level Opportunity	Continuously expanding the scope of paperless operations to enhance digital inventory and electronic documentation, thereby strengthening operational efficiency and environmental benefits.

Indicators and Targets

Strategy	Future Goals	Performance in 2025	2026 Work Objectives
Greenhouse gas inventory and verification	Completion of the greenhouse gas inventory at all operating locations by 2026.	In 2025, the greenhouse gas inventory for operating locations in Taiwan and Hong Kong has been completed.	Completion of the greenhouse gas inventory at all operating locations.
	Completion of GHG verification for all offices and warehouses in Taiwan by 2028.	The verification schedule planning for the parent company has been completed for 2025.	Monitor the latest regulatory trends to assess the schedule for completing the verification plan formulation.
Training green talents	Training green talents to respond to climate change and international carbon-related policies and trends.	The “Climate Change Risk Management Personnel Training” course includes training on greenhouse gas inventory, with a total of 3 participants. Lectures on sustainability-related topics, understanding domestic and international SDGs, ESG frameworks, and government net-zero policy promotion, attended by 2 personnel. In Year 2005, a total of 2 individuals obtained the Junior Certificate for Net Zero Carbon Planning Manager from the Ministry of Economic Affairs. CBAM course, with a total of 1 participant.	Assign at least two personnel to participate in courses related to climate change and international carbon-related policies and trends.
Energy management and monitoring	Implement a low-carbon office culture and maintain optimal management indicators for air conditioning in the summer. Conduct regular energy-saving promotions at least once a year. Maintain the office air conditioning temperature at 26-28°C to achieve the power saving goal.	In 2025, one announcement was issued about setting the office temperature at an appropriate level. Reminder for optimal air conditioning temperature settings: The office air conditioning is set to 26-28°C.	Issue at least one announcement about setting the office temperature at an appropriate level to enhance office energy management.
	Regularly review annual electricity consumption and adjust reduction measures accordingly to enhance energy use efficiency. Promote awareness of reduction measures annually to strengthen employees’ energy-saving consciousness.	In 2025, one announcement was issued about office reduction measures: increasing the temperature by 1°C can save approximately 6% of power. The electricity consumption review and electricity consumption in the past two years have been completed, with ongoing tracking of electricity consumption changes.	Issue at least one announcement about office reduction measures and continuously track electricity consumption changes.
	Strengthen warehouse operational resilience to ensure 100% compliance and stability of the environment’s temperature and humidity. Audit the storage location environment/temperature/humidity record sheet and industrial dehumidifier equipment maintenance card monthly to ensure that the relative temperature in the warehouse is maintained between 20-26°C. Ensure the stability of the warehouse environment, with the relative humidity maintained between 45-65%.	Monthly conduct warehouse temperature and humidity monitoring equipment check to ensure that the relative temperature in the warehouse is maintained between 20-26°C, and the relative humidity is maintained between 45-65%. The completion rate of monthly temperature and humidity equipment checks is 100%. There were no temperature and humidity abnormalities throughout the year. The completion rate of filling out the dehumidifier equipment maintenance card is 100%.	Maintain monthly checks to ensure the stability of the warehouse temperature and humidity environment. The completion rate of monthly temperature and humidity equipment checks is 100%. There were fewer than or equal to 1 temperature and humidity abnormality throughout the year. The completion rate of filling out the dehumidifier equipment maintenance card is 100%.
Building climate resilience	Regularly monitor the rainy season and apply moisture-proof coating on the cargo to reduce claims for cargo damage insurance due to moisture.	If the probability of rain on the shipping date reaches 50%, moisture-proof wrapping measures will be implemented for cargo without vacuum packaging. In the current year, the number of cargo damage insurance claims due to moisture within the group is low, and the renewal premium for cargo insurance in the following year saw a reduction of 53.08%.	In response to climate risk and to ensure stable logistics operations, the company will keep real-time track of extreme weather developments and continuously monitor the weather conditions at cargo origin and destination locations. When the probability of rain at either location reaches 50%, moisture-proof wrapping operations are implemented for non-vacuum packaged cargo to reduce the risk of damage. Additionally, strengthen the loss control mechanism through comprehensive insurance coverage for the group’s cargo. In transportation arrangements, a strategy of utilizing multiple freight forwarders and diverse flight configurations is adopted to prevent over-reliance on a single airline, thereby diversifying transportation risk and strengthening operational resilience.
	To strengthen the supply chain’s ability to respond to extreme weather events, and through the establishment of a logistics backup plan, ensure that the main shipping routes have at least two cooperating carriers and flexible transit scheduling, reducing the Risk of disruption to a single transportation channel. It also continuously optimizes warehouse operation efficiency to enhance order processing capacity during peak periods, ensuring stable shipment and service quality even under extreme weather or logistics disruption scenarios.	In 2025, through cross-departmental coordination and pre-logistics management, effective preventive shipping was successfully achieved within working days after resumption following multiple weather events, keeping the impacted shipment volume within expected indicators. During emergency responses and overtime periods, stringent safety protection measures are implemented, achieving an annual record of zero occupational accidents and zero fatalities, and quickly restoring stable shipping momentum, effectively reducing delay fees and contract default risk.	Emphasize strengthening cross-departmental preventive collaboration mechanisms to optimize order processing within 48 hours (working days) after resumption of operations, minimizing the communication time lag between business and warehouse to ensure stable shipping momentum. Simultaneously implement real-time scheduling management for logistics partners to enhance supply chain responsiveness under extreme weather conditions. In addition, rigorous site Risk assessments and occupational safety briefings will be conducted for contingency overtime environments, strengthening the group’s operational resilience in addressing Climate risk with the absolute assurance of employee safety.
Opportunity for Low-Carbon Product Services	Continuously optimize the low-carbon, high-performance product portfolio to enhance the Company’s resilience in a low-carbon economy.	Successfully introduced key customers, leading to significant revenue growth in low-carbon related products, laying the foundation for the high-level communication green supply chain market.	Continue promoting skills upgrades, deepening the layout of low-carbon products, and achieving revenue growth targets.
Warehousing management training	Deepen employees’ precise operational capabilities to establish a high-efficiency and low-loss digitalized warehouse operation process. Regularly hold 1 Inbound and Outbound Flow Process course each year to ensure warehouse operations meet standardized procedures.	In 2025, an Inbound and Outbound Flow Process course was completed to maintain an efficient distribution process and transportation mode.	Arrange at least one Inbound and Outbound Flow Process course to continuously enhance personnel operational capabilities.
Smart warehousing and digital optimization.	Continuously expanding the scope of paperless operations to enhance digital inventory and electronic documentation.	Through the implementation of paperless processes, inventory efficiency and data immediacy are enhanced. The less paper situation for Taiwan’s warehouse in 2025 is as follows: Taiwan’s warehouse has fully implemented inventory operations using tablets, saving a total of 5,065 sheets of paper. The paperless ratio of procurement documents in Taiwan’s warehouse reached 85%, reducing paper usage by 7,932 sheets for the entire year.	Expanding the scope of paperless inventory and electronic documentation operations, extending from Taiwan warehouse to Hong Kong warehouse, fully implementing a digital operation model to achieve digitalization and Less Paper goals for offshore warehouse operations. The paperless inventory coverage rate for the Hong Kong warehouse: 100%. The electronic document usage rate for the Hong Kong warehouse: >80%. Year paper reduction: >5,000 sheets.

Environmental Management Policies

Alltek Technology references environmental regulations established by the Ministry of Environment to formulate relevant environmental policies, establishing the company’s environmental management system and related operational principles. Due to the nature of its operations, Alltek Technology does not engage in manufacturing and does not have the issues of wastewater and air emissions typically associated with the production processes of general manufacturing industries. However, Alltek still upholds its responsibility for environmental sustainability by continuously undertaking energy-saving and carbon-reducing actions. It has corresponding environmental management measures in place regarding energy, greenhouse gases, water resources, and waste to minimize negative impact on the environment.

In 2025, in terms of energy resources, the company continued to promote energy conservation and water-saving advocacy, turning off office lights for one hour during the lunch break to save energy. The office equipment is set to the power saving mode. For long periods of non-use of electrical appliances or computer information equipment, we instruct our employees to turn off the power of the mainframe and peripheral equipment at the end of the day to reduce the waste of standby power. In terms of waste, all general industrial waste is managed by qualified disposal companies; the water quality of the drinking water supply equipment is arranged for regular quarterly inspections to maintain employees’ health. In the past three years, there have been 0 incidents of violations of major environment regulations.

* Environmental Policies

The Company upholds the spirit of environmental protection and sustainable development with the following commitments:

1. Comply with ENVIRONMENT-related laws and regulations, and fulfill corporate environmental responsibilities.
2. Place emphasis on pollution prevention, and reduce waste and unnecessary resource consumption.
3. Regularly review environmental management performance to promote continuous improvement.
4. Strengthen the Whole Team of employees’ environmental awareness and promote participation in environmental protection actions.

* Operations Content

(1) Energy resource management

• Regularly review annual electricity consumption and adjust reduction measures accordingly to enhance energy use efficiency.
• Promote awareness of reduction measures annually to strengthen employees’ energy-saving consciousness.

(2) Water resource management

• Regularly review annual water usage and adjust reduction measures accordingly to promote sustainable use of water resources.
• Promote awareness of reduction measures annually to enhance employees’ water-saving consciousness.

(3) Drinking water management

• According to the Ministry of Environment’s Drinking Water Management regulations, conduct regular equipment maintenance for continuous water supply fixed installations and perform water quality testing every three months.

(4) Waste management

• Regularly review annual waste generation and adjust reduction measures accordingly to continuously improve resource utilization efficiency.
• All general industrial waste is handled by qualified waste disposal companies certified by the Environmental Protection Bureau.

(5) Greenhouse gas management

• According to the Financial Supervisory Commission’s scheduled regulations, complete the group greenhouse gases inventory and assess the emissions to formulate reduction targets and action plans for continuously lowering carbon emissions.

(6) Climate risk management

• Regularly identify and assess the potential risks and opportunities of climate change on operations, and incorporate them into the risk management procedures.
• Submit an annual report on the implementation of risk management policies, including necessary improvement suggestions.

(7) Natural ecological impact management

• Regularly assess the potential impact of business activities at operating locations on the natural ENVIRONMENT to reduce ecological impact.
• Review evaluation results annually to ensure biodiversity and sustainable use of natural resources.

Greenhouse Gas Management

Greenhouse Gas Inventory Information and Assurance Status

The Company has established a verification schedule according to the “Sustainable Development Roadmap for TWSE/TPEx Listed Companies” issued by the Financial Supervisory Commission in March 2022. The parent company’s individual inventory information will be disclosed in 2026, and the consolidated financial statements of the parent and subsidiary companies will be disclosed in 2027. Completion of external verification for the parent company by 2028; completion of external verification for the consolidated financial statements of the parent and subsidiary companies by 2029.

In accordance with the aforementioned schedule, our company will initiate a self-inventory for the group’s subsidiaries and overseas locations starting in 2025. In subsequent years, we will continue to track and compile statistics on the emissions from overseas locations to plan future group reduction targets. The relevant planning has been submitted to the Board of Directors and will be managed quarterly.

• The Greenhouse Gas Emissions and Emissions Intensity for the Recent Two Years (2024 and 2025)

Year	Scope Type	Emissions (tonnes CO2e)	Emission intensity
			tonnes CO2/Million USD Total Revenue
2024	Scope 1	0	0.0054
	Scope 2	245.92
	Scope 3	417.61	–
	Total	663.53
2025	Scope 1	293.4910	0.0233
	Scope 2	808.4382
	Scope 3 (Purchased goods and services)	1070.8224	–
	Scope 3 (Waste generated in operations)	1120.0872
	Scope 3 (Upstream transportation and distribution)	118.8199
	Scope 3 (Business travel)	314.0562
	Scope 3 (Employee travel)	8843.3364
	Scope 3 (Downstream transportation and distribution)	11.917
	Total	12580.9683

Note 1: Greenhouse gases inventory standard: ISO14064-1:2018 released by the International Organization for Standardization (ISO).

Note 2: The scope of data for 2024 includes: Alltek Technology’s Taiwan headquarters, various offices in Taiwan, and logistics warehousing (Taoyuan bonded warehouse, Xizhi warehouse).

Note 3: The scope of data for 2025 includes: Scope 1 and 2 cover the parent and subsidiary companies in the consolidated financial statements; Scope 3 includes Alltek Technology and Alltek Technology (H.K.) Ltd.’s Taiwan headquarters, various offices, and logistics warehousing (Taoyuan bonded warehouse, Xizhi warehouse, Hong Kong warehouse).

Note 4: Emissions intensity is calculated per unit of “total revenue”. In 2024 and 2025, the revenues were NT$45,892.739 million and NT$47,383.106 million, respectively.

Note 5: Types of greenhouse gases: Nitrous oxide N2O, Methane CH4, Carbon dioxide CO2, Hydrofluorocarbons HFCs, Perfluorocarbons PFCs, Sulfur hexafluoride SF6, Nitrogen trifluoride NF3, etc.

Note 6: The Global Warming Potentials (GWP) used in this table are from the “IPCC Fifth Assessment Report (2013).” and “IPCC Sixth Assessment Report (2021).”

Note 7: Boundary setting method: Operational Control Approach.

Energy Management

Energy Management Promotion Measures, Targets, Achievement of Goals.

Alltek’s main service is to represent IC component products. The energy used by our company is all non-renewable electricity purchased from power companies, with the primary energy use coming from the headquarters office building. The company’s energy-saving plan starts with fully implementing daily life-saving electricity measures in the office. The energy-saving promotion measures are as follows:

1. Turn off office lights for one hour during the lunch break to save energy.
2. The office equipment is set to the power saving mode.
3. For long periods of non-use of electrical appliances or computer information equipment, we instruct our employees to turn off the power of the mainframe and peripheral equipment at the end of the day to reduce the waste of standby power.

The company uses 2024 as the base year, with the goal of reducing electricity consumption by 1% each year compared to the base year. The electricity consumption in 2025 increased by 0.02% compared to 2024, primarily due to the growth in manpower driving up electricity demand.

• The Energy Consumption and Intensity for the Recent Two Years (2024 and 2025)

Year	Total Energy Consumption (kWh)	Total Energy Consumption (GJ)	Increase/Decrease Ratio	Emissions Intensity (GJ/Million USD Total Revenue)
2024	518,821	1,867.756	Base Year	0.041
2025	518,903	1,868.051	0.02%	0.039

Note 1: The scope of data includes: Alltek Technology’s Taiwan headquarters, various offices in Taiwan, and logistics warehousing (Taoyuan bonded warehouse, Xizhi warehouse).

Note 2: The energy statistics all use non-renewable energy sources, with the renewable energy percentage being 0.

Note 3: The energy used is all from purchased power (indirect energy).

Note 4: The energy conversion announced in the 2024 Energy Statistics Handbook by the Energy Agency states that 1 kWh = 0.0036 GJ.

Note 5: Emissions intensity is calculated per unit of “total revenue”. In 2024 and 2025, the revenues were NT$45,892.739 million and NT$47,383.106 million, respectively.

Water Resource Management

Water is an indispensable resource in life. In the face of challenges related to water resources, according to the Water Risk Assessment Tool (Water Aqueduct) by the World Resources Institute (WRI), areas with water resource pressure analyzed as high or extremely high, 2025 identifies Taiwan as a non-water resource pressure area.

In terms of water resource management, the company uses 2024 as the base year, with the goal of reducing water consumption by 1% each year compared to the base year. Water consumption in 2025 was 1,450 metric tons, a reduction of 27.21% compared to the base year (2024). In terms of reduction targets, the goal of reducing water consumption by 1% compared to the base year has been achieved. The company remains committed to improving overall water efficiency and promoting water conservation among employees.

• The water consumption and intensity for the recent two years (2024 and 2025)

                                                                                                

Year	Total Water Consumption (metric tonnes)	Increase/Decrease Ratio	Emissions Intensity (tonnes/Million USD Total Revenue)
2024	1,992	Base Year	0.0434
2025	1,450	-27.21%	0.0306

Note 1: The scope of data includes: Alltek Technology’s Taiwan headquarters. Alltek Technology’s various offices in Taiwan, and logistics warehousing (Taoyuan bonded warehouse, Xizhi warehouse). are managed by the building management committee and are not separately billed to the company monthly.

Note 2: Emissions intensity is calculated per unit of “total revenue”. In 2024 and 2025, the revenues were NT$45,892.739 million and NT$47,383.106 million, respectively.