Message from the President

In 2025, the global landscape continued to evolve rapidly. Geopolitical tensions, the pace of energy transition, technological advancement, and
supply chain restructuring collectively reshaped the business environment. At the same time, differing perspectives on ESG and sustainability also
emerged worldwide. With the inauguration of a new U.S. administration, greater uncertainty and discussion have arisen regarding the future
direction of climate policy, sustainability disclosure, and corporate responsibility.

For BenQ Materials, however, sustainability has never been a short-term response to changing policy trends. Instead, it is a core driver of long-term
competitiveness and corporate resilience. We firmly believe that meaningful sustainability practices are built upon proactive risk management, efficient
resource utilization, and a long-term commitment to people and society.

Over the past year, BenQ Materials has continued to integrate ESG deeply into corporate governance and operational decision-making. From an environmental perspective, in addition to continuously strengthening energy management and implementing energy-saving and carbon-reduction initiatives, we further established Scope 3 greenhouse gas reduction targets to incorporate value chain emissions into our overall climate management framework. Meanwhile, through the operation of the Internal Carbon Fee Review Committee, we systematically embedded carbon cost considerations into equipment investment and R&D decision-making processes. By evaluating projects based on marginal abatement costeffectiveness, we provided corresponding resource support and investment incentives, thereby enhancing consistency in low-carbon transition decision-making across the organization.

Beyond our ongoing efforts in climate governance and carbon reduction management, we continue to incorporate sustainability thinking into product development processes and promote the application of lowcarbon products and circular materials. Throughout 2025, the Companycontinued to expand assessments for the introduction of recycled PET, process-recycled materials, and other circular raw materials. Through product lifecycle thinking, carbon reduction, resource efficiency, and circular design are incorporated into product development decisions. Concurrently, the Company continues to develop application solutions for recycled materials from electronic waste. Through circular innovation models such as e2cycle, recycled resources are reintroduced into the product value chain, gradually enhancing the environmental value and market competitiveness of products.

In terms of sustainability disclosure and performance, BenQ Materials maintained a B Level rating in both the Climate Change and Water Security questionnaires of CDP. In particular, our Climate Change score improved across multiple key dimensions, including value chain engagement, energy management, governance structure, and climate-related risk and opportunity identification, reflecting the continued advancement of our climate governance and management maturity. Furthermore, we have begun adopting the framework and assessment approach of the Taskforce on Nature-related Financial Disclosures (TNFD), progressively identifying our operational and value chain dependencies and impacts on nature.

We are also incorporating nature-related risks and opportunities into our broader sustainability risk management framework, laying the governance
foundation for addressing biodiversity and natural capital issues in the future. From a social perspective, we continued to strengthen talent development initiatives by comprehensively enhancing employees' digital and AI capabilities, while further improving family-friendly and diversity,
equity, and inclusion (DEI) workplace practices. New support measures, including leave benefits for employees with children entering elementary
school, were introduced during the year. These efforts also led to our first recognition with the Family-Friendly Workplace Award presented by
CommonWealth Magazine, demonstrating the practical implementation of our people-oriented values in both systems and corporate culture.

At the same time, we deeply recognize that Taiwan is facing long-term demographic challenges arising from a declining birth rate. This is not only a societal issue, but also one that directly affects future corporate competitiveness and operational resilience. As the available workforce gradually declines, companies must establish comprehensive talent development systems and supportive workplace cultures that enable employees to continuously learn and grow professionally amid rapidly changing industries. By strengthening employees' sense of identity and belonging, we can retain critical talent while continuing to attract the next generation of high-potential professionals, thereby reinforcing the foundation of BenQ Materials' long-term sustainable competitiveness.

In supply chain management, we continued to deepen engagement and alignment with our business partners. Through our annual supplier conference, we focused on key sustainability topics such as low-carbon transformation and circular collaboration, while recognizing suppliers with outstanding sustainability performance. At the same time, we once again reaffirmed our strong commitment to supply chain decarbonization and human rights issues, with the goal of working together with value chain partners to build a sustainable supply chain ecosystem characterized by responsibility, resilience, and long-term value creation. Regarding sustainability disclosure and overall ESG performance, BenQ Materials received multiple domestic and international recognitions during the year.

Notably, in the S&P Global Corporate Sustainability Assessment (CSA), our overall score increased significantly by 53% compared to the previous year, and we were selected for the Sustainability Yearbook for the first time. This achievement reflects the growing maturity of our ESG governance and management systems on a global scale.

Looking ahead, global ESG development will continue to evolve amid the combined pressures of climate transition, geopolitical shifts, and intensifying industrial competition. Sustainability is no longer merely a matter of compliance or disclosure; it will increasingly influence corporate investment decisions, technological capabilities, and value chain management. Under this trend, the key challenge for companies is not simply responding to external expectations, but continuously creating long-term value for society and future generations in an increasingly uncertain world.

Rooted in material science, BenQ Materials connects human well-being with planetary sustainability. We will continue strengthening climate risk governance, improving green manufacturing processes and resource efficiency, and actively expanding recycled material applications and circular economy strategies. Together with our employees, supply chain partners, and broader society, we aspire to build a sustainable future that is resilient, inclusive, and growth-oriented throughout the transformation journey.

Chairman and CEO