Implementation of the Sustainable Development

The performance of this table is summarized in the context of the Corporation and its subsidiary (hereinafter referred to as the Consolidated Corporation).

(I).The Corporation established a functional committee, "Sustainability Committee," in 2022, with the primary purpose of assisting the Board of Directors in planning and supervising the Corporation's sustainability development strategy. The committee consists of five directors, with the Chairman serving as the chairperson, including three independent directors. A Sustainability Development Team is established under the committee to assist in building a sustainable operation mechanism, formulating plans, and promoting related measures.

(II). The Sustainability Committee aims to supervise the sustainable operation strategy of the Corporation and its subsidiaries, taking into account comprehensive performance, corporate social responsibility, and sustainable development goals, as well as aligning with international standards to help promote the United Nations Sustainable Development Goals. Its authorities include:

• The establishment of the annual plan and strategic direction of sustainable development.
• The establishment of sustainable development projects and activity plans.
• The tracking and review of the implementation effectiveness of the annual plan for sustainable development, strategic direction, project, and activity plans.
• Decisions on other sustainability-related matters.

(III).The Sustainability Development Team is responsible for identifying sustainability issues relevant to the Corporation's operations and stakeholders' concerns, formulating corresponding strategies and work guidelines, planning and implementing annual programs, while tracking implementation effectiveness to ensure sustainability development strategies are fully implemented. The "Sustainability Development Committee" reports to the Board of Directors annually on sustainability implementation results and future work plans. In 2024, one meeting was convened, with agenda items including the 2023 Sustainability Report and the YungShin Group's ESG implementation progress report, covering

• sustainability development blueprint implementation process and progress;
  
• enhancement of sustainability report implementation process and progress;
• greenhouse gas inventory implementation process and progress; and 
• sharing of recent sustainability-related regulations.
  

The Corporation's board of directors annually receives progress reports, reviews the progress of strategies, and urges adjustments by the Sustainable Development Group when necessary.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

(I).The risk assessment boundaries cover the Consolidated Corporation, engaging with internal and external stakeholders through diverse channels, and identifying and analyzing material issues in accordance with the 2021 GRI Standards to implement corresponding management measures.

(II).The Consolidated Corporation values the rights and interests of stakeholders, and pays attention to environmental, social, and corporate governance (ESG) issues, incorporating them into the Corporation's management policies. It evaluates various risk aspects that may affect the Consolidated Corporation, and regularly tracks and integrates them into the daily operations of each unit.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

In response to the new trend of environmental protection, the Consolidated Corporation has successively made planning for relevant environmental management systems, including:

• Establish environmental management system of the plant and cultivate the concept of environmental protection among colleagues.
• Formulate and develop a sustainable environmental management plan consistent with the characteristics of the Corporation.
• In line with the energy-saving and carbon-reduction policy, encourage colleagues to bring tableware for meals.
• Make planing and design for an environmental protection plant, and promote environmental afforestation and beautification.
• Regularly conduct water quality inspections and do a good job in water quality management.
• Promote plant environmental audit to strengthen plant environmental management.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

The Corporation's implementation results for improving the utilization efficiency of various resources and reduce the impact of environmental impact are as follows:

• Use bubble bags currently (recyclable and environmentally friendly materials) as the cushioning material of the shipping box.
• Regularly test the use efficiency of high-energy-consuming equipment, such as boilers, ice water machines, air compressors and other equipment, and use high-efficiency boilers to replace old ones with new ones.
• In each plant, major electricity support system equipment (chillers, cooling towers, air compressors) have been supplemented with voltage meters, temperature gauges, and flow meters for real-time monitoring and management.
• Steam recycling.
• Reuse the domestic wastewater after treatment for the irrigation of surrounding flowers and trees.
• The fermentation waste residue can be processed into compost, which is provided for use in the plant area or for external sales.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

The assessment and response measures related to climate change risks and opportunities for the Consolidated Corporation are listed in Appendix II-II-III of annual report.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

(IV) The Consolidated Corporation's greenhouse gas inventory results, verification status, and reduction policies are listed in Appendix II-II-III of annual report. The Consolidated Corporation's water consumption and total waste weight for the past two years are summarized below:

• The Consolidated Corporation has implemented improvement measures, including the reuse of RO purification discharge water and bottle rinsing water for cooling tower evaporation replenishment. The injectable drug plant's water reuse reached 11,000 tons in 2023 and 11,500 tons in 2024.
• Due to the nature of the biotechnology pharmaceutical industry, considering safety and hygiene factors, most hazardous waste is disinfected or cleaned before being incinerated by qualified waste disposal contractors. For "mixtures of other aforementioned chemicals or waste containers," Yung Shin Pharm.'s Youth Plant, Youth Plant 2, and Youth Plant 3 effectively clean these items to convert them into non-hazardous waste glass, scrap iron, or waste plastic containers, which are then recycled by qualified vendors.
  

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

The Consolidated Corporation complies with international human rights standards, including the "United Nations Global Compact," the "United Nations Universal Declaration of Human Rights," and the "International Labor Organization Declaration on Fundamental Principles and Rights at Work" and other international human rights conventions, has adopted a "Human Rights Policy" and published it on the Corporation's website. The Corporation prohibits discrimination, forced labor, and sexual harassment incidents, develops a healthy and safe workplace, and values employees' families to establish a diverse and inclusive work environment, treating all different individuals with dignity and respect. Formulates relevant management systems in accordance with labor laws and regulations, and formulates employee work rules to guide employees' behavior and development direction, respect internationally recognized principles of basic human rights in labor, regardless of gender, age, religion, sexual orientation without any discrimination in employment, and rationally and legally protect the rights and interests of employees.

• The Corporation has a code of ethical conduct and have designed our systems and vetting authority to prevent conflicts of interest.
• The Corporation has established rules for the appointment of new employees and the handling of gifts, and all employees have signed a letter of consent to the Code of Conduct for Employees, which requires employees to comply with confidentiality obligations and intellectual property rights, integrity, and prohibits sexual harassment and workplace violence.
• The Corporation promoted the "a letter of commitment to integrity" mechanism in line with the "ESG" corporate sustainability concept.
• Periodically conduct preventive measures against workplace violence and sexual harassment, as well as "Workplace Illegal Infringement Prevention" seminars, to strengthen employees' self-protection awareness and encourage whistleblowing mechanisms.
• The Corporation had a barrier-free and non-hierarchical communication channel for employees to raise suggestions that can help the Corporation move toward a friendly workplace or to obtain relief for personal injury.
• The Corporation has established a new partner care system to help new partners know the corporate environment and speed up their adaptation to the workplace. From before, during and after the newcomers come, there are newcomer care and other related measures to reduce the time for newcomers to find their way around, reduce their frustration, and at the same time, enhance the centripetal force of newcomers through continuous motivation and encouragement.
• The Corporation has established the "Exit Management Regulations" to manage the transfer of employees or their departure in accordance with the labor laws and regulations, so that employees' personal rights are fully protected.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

The Corporation has established regulations related to salary, attendance management, on-the-job education, and other relevant policies to comprehensively manage employee compensation, attendance, and related issues. The Corporation encourages employees to participate more actively in operational management. Based on the principle of profit-sharing and to recognize employees' hard work, the Corporation distributes employee compensation annually in accordance with the Articles of Incorporation and resolutions passed at the Annual Shareholders' Meeting, and implements performance-based salary adjustments.

• The Corporation has formulated the "Performance Evaluation Method" to implement performance appraisals and performance interviews twice a year. In addition to rewarding outstanding performance, supervisors also conduct performance interviews with underperforming employees to assist them in understanding areas for improvement or adjustment, developing improvement plans and schedules, and providing daily performance guidance to help employees improve their job performance.
• Individual performance is integrated with career planning to formulate a talent development system, aimed at recommending promotions and rotations for outstanding performers to accumulate achievements and work experience.
• The innovative proposal improvement reward system encourages employees at all levels, to propose innovative ideas and optimize resources for existing operations, meanwhile linking the performance system to recognize and reward employees who propose improvement operations and use them as a reference for employee promotion.
• Family care and infant & mom protection measures: To take care of employees' hard work and work safety with pregnant women, the Corporation implements flexible commuting measures, holds relevant doctor lectures from time to time, and builds comfortable and safe Nursing Rooms and Parking Spaces for pregnant women to use at ease. At the same time, the right of employees to apply for leave without pay is protected in accordance with the law, so that employees can combine work and life balance.
• Diverse employee benefits: In addition to the basic leave required by the Labor Standards Act, the Corporation has also established paid parental leave, children's marriage leave, and birthday leave to create a happy workplace atmosphere. Among them, the subsidiary Yung Shin Pharm. provides free meals, factory area shuttle buses, uniforms, group insurance, and general health examinations every three years, giving employees comprehensive safety protection. The Corporation distributes education scholarships to employees' children annually, encouraging them to study diligently, and provides subsidies for employees' on-the-job education, travel allowances, subsidies for employees and their family members to stay at Yung Shin Elderly Nursing Home, birthday cash gifts, festival bonuses, wedding and funeral subsidies, and various condolence payments to care for employees' families. Setting up an Employee Welfare Committee to organize various large-scale events (New Year's Day walking, Family Day, club activities, group travel, spring banquet and employee general meeting, etc.) periodically to strengthen relationships among employees and achieve work-life balance.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

The Consolidated Company Actively promotes "Zero Workplace Accidents" campaigns to raise awareness about workplace safety, transforming passive attitudes into proactive ones. These initiatives heighten alertness regarding personal safety, environment, machinery, products, and construction processes, strengthening attention to facility safety through autonomous management. Adhering to the philosophy that employees are the Corporation's most valuable assets, with employee health as the primary objective, the Corporation provides comprehensive on-the-job health examinations that exceed legal requirements, and monitors various health abnormalities.

• The Corporation places a high emphasis on workplace safety issues. In addition to implementing necessary access control management, conducting regular occupational safety education and training, enforcing a complete smoking ban, establishing employee cafeterias, and providing work uniform cleaning services, the Corporation also values the physical and mental health of all partner colleagues. The Corporation appoints on-site nursing staff and visiting physicians as required by regulations, and regularly arranges free health examinations for employees, providing colleagues with professional health services, medical assistance, and occupational disease prevention, in order to detect health hazards and potential pathogenic factors at an early stage.
• The Corporation has set up nursing room and hold a series of health promotion activities, enabling all partners working in the Corporation to receive perfect health care, so as to achieve the goal of "win-win for work and health", and strengthen the overall competitiveness.
• Emphasizing Employee and Vendor Safety: In 2024, the subsidiary Yung Shin Pharm. organized "Fire Evacuation Drills" at various plant sites, totaling 6 sessions; related educational training (traffic safety, laboratory safety, confined space operation safety, fire prevention promotion) totaled 6 sessions, for a combined total of 12 sessions.
• In 2024, the subsidiary Yung Shin Pharm. had 7 occupational accidents involving 7 employees (representing 0.54% of total employees at the end of 2024); the causes of these accidents were traffic incidents (5 cases) and plant workplace accidents (2 cases). Therefore, the Company Actively implemented educational training methods, strengthened equipment safety controls, and promoted safety concepts to employees through various means such as new employee orientation and periodic training for current employees. Both internal and external expert instructors were invited to conduct these sessions to deeply instill safety awareness in employees.
• No fire incidents occurred at any of the Corporation's operation sites in 2024.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

The Consolidated Corporation provides capability development for the professional knowledge and skills required for each position. Comprehensive training programs are planned, including new employee orientation, on-the-job professional training, new manager training, etc., to assist managers and colleagues with continuous learning and growth. Each year, based on training needs submitted by individual departments, external training courses are arranged to enhance professional key competencies.

• The Corporation has set up the "Education and Training Management Regulations" to establish a complete training system, set up a separate training expense each year as a special budget for employee's training. Based on the operation strategy, the Corporation sets annual education and training goals and plans for the training needs of employees in various fields and levels vertically and parallelly, with external consultants, internal lecturers, participation in external knowledge, sharing of transfer training resources, job promotion, and rotation, etc., EQMS quality management online retraining, labor safety certification and retraining are all fully subsidized by the Corporation to cultivate multi-faceted professionals.
• New employee training is conducted by the Human Resources Department at the beginning of each month. The curriculum includes company history and culture, management systems, plant tours, and instruction on relevant systems. It also covers important legal requirements such as workplace violence and sexual harassment prevention, and occupational safety and health regulations. The training activities encourage interaction among new colleagues in the same cohort, helping them expand their networks and step outside their comfort zones.
• The "Internal Instructor Policy" has been established to enhance professional capabilities and experience transfer.
• The "Employee On-the-job Training Management Policy" has been established to encourage employees' self-learning, providing paid on-the-job training incentive programs that allow employees to fulfill self-actualization needs while improving work efficiency.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

The Consolidated Corporation complies with relevant laws and regulations announced by the central health authorities regarding export items and product labeling, which are conducted in accordance with both Taiwanese and local regulations. The Corporation formatted the western medicine over-the-counter drug instructions box to make it easier for the public to read and take medicine safely.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

The Consolidated Corporation has established a standard procedure for contract work management requiring contractors to sign a "Contractor Environmental Safety and Health Commitment Letter" to ensure compliance with relevant occupational safety and health regulations.

Contracts with suppliers include provisions requiring compliance with environmental laws, labor regulations, and occupational safety and health laws. In case of violation, the Corporation reserves the right to terminate or rescind relevant clauses of the contract.

The Consolidated Corporation requires contract suppliers to sign a "Vendor Integrity Commitment Letter." If there is any violation of the law or any provision in the commitment letter, the Corporation has the right to immediately suspend, terminate or rescind the transaction and cooperation relationship with the supplier.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation

The Consolidated Corporation follows the 2021 GRI Standards issued by the Global Reporting Initiative (GRI) as the main framework for reporting, and complies with the Regulations Governing the Preparation and Filing of Sustainability Reports by Listed Companies, the Sustainability Accounting Standards Board (SASB) sustainability indicators, and the Task Force on Climate-related Financial Disclosures (TCFD) for disclosure. The sustainability indicators listed in the Summary Table of Assurance Subjects in the appendix of the Consolidated Corporation's 2024 Sustainability Report will obtain third-party assurance reports before August 2025. The Corporation has commissioned PricewaterhouseCoopers Taiwan to plan and perform limited assurance in accordance with Assurance Standard No. 3000 "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information" issued by the Accounting Research and Development Foundation of the Republic of China.

Deviations from the Corporate Social Responsibility Best Practice Principles for TWSE/TPEx Listed Companies and reasons thereof : No Deviation