Investment

(I) Matters specified in Article 14-3 of the Securities and Exchange Act:

The Company held 5 Board meetings in 2024 and the resolutions are specified in Page 60-62 of the annual report. Matters specified in Article 14-3 of the Securities and Exchange Act were approved unanimously by all independent directors.

(II) Any other resolution(s) passed but with independent directors voicing opposing or qualified opinions on the record or in writing: None.

i. 9th meeting of the 18th Board of Directors on January 25, 2024:

During the review of the proposal to renew the appointment of the Company’s advisor, Chairman Kuan-Han Chen, the brother of Kuan-Ju Chen, independent director Yung-Fu Tseng, the father of Chi-Ying Tseng, and the director Ching-Jen Chen, the brother of Ching-Yao Chen, recused themselves and did not participate in the discussion and voting on the proposal due to involvement of their personal interests.

ii. 10th meeting of the 18th Board of Directors on March 11, 2024:

During the review of the proposal to renew the appointment of Ching-Liang Chen as an advisor, director Ching-Jen Chen, the brother of Ching-Liang Chen, recused himself and did not participate in the discussion and voting on the proposal due to involvement of his personal interests.

iii. 13th meeting of the 18th Board of Directors on November 8, 2024:

During the review of the proposal to renew the appointment of the Company’s advisor, Chairman Kuan-Han Chen, the brother of Kuan-Ju Chen, independent director Yung-Fu Tseng, the father of Chi-Ying Tseng, and the director Ching-Jen Chen, the brother of Ching-Yao Chen, personnel change for director of Hsien-Chueh Hsieh, recused themselves and did not participate in the discussion and voting on the proposal due to involvement of their personal interests.

I.If the operations of the Audit Committee meets any of the following circumstances, the meeting date of the Board of Directors, term, contents of proposals, resolutions of the Audit Committee and the Company’s handling of said opinions shall be specified.

(I) Matters specified in Article 14-5 of the Securities and Exchange Act:

In 2024, the Audit Committee of the Company held 5 meetings and the resolutions are specified in Page 40-41 of the annual report. Matters specified in Article 14-5 of the Securities and Exchange Act were approved unanimously by the Audit Committee.

(II)Other than those described above, any resolutions unapproved by the Audit Committee but passed by more than two-thirds of directors: None.

II. Independent directors’ avoidance of proposals involving any conflict of interest; the names of independent directors, details of the proposals, causes of recusal, and participation in voting shall be disclosed: None.

III. Communication between independent directors, internal audit officer and CPAs (e.g. the major matters, methods and results of communication with regard to the financial and business statuses of the Company):

(I) Monthly Audit Reports: Audit reports are submitted to the Audit Committee at least once a month. Each report includes follow-ups on the improvement of internal control deficiencies or irregularities.

(II) Reports from the Chief Auditor: The Chief Auditor reports on audit activities during every Audit Committee meeting, using the meeting as a platform for communication.

(III) Audit Committee Instructions and Inquiries: When the Audit Committee reviews audit reports and has any instructions or questions, the Chief Auditor is informed for further handling.

(IV) Regular Communication Between the CPAs and Audit Committee: CPAs regularly communicate with the Audit Committee, including presenting the annual audit plan and audit completion reports.

(V) CPAs Attendance at Audit Committee Meetings: CPAs attend Audit Committee meetings to report on the audit results of financial statements or other regulatory impacts on the company. Communication between the independent directors and CPAs is smooth and effective.

(VI) Diverse Communication Channels: The Audit Committee maintains effective communication with both the Chief Auditor and CPAs through various means, including video conferencing, phone calls, email, LINE, and fax, ensuring a clear understanding of the company’s financial and operational status.

(VII) Transparency and Communication Mechanisms: The transparency of the company’s internal controls and communication mechanisms ensures that independent directors are kept well-informed about the financial and audit conditions. Communication with both the Chief Auditor and CPAs smooth and conducted through diverse channels.

IV. Summary of the work focuses of the Audit Committee in 2024:

(I) Reviewing the annual audit plan.

(II) Reviewing the Q1, Q2, Q3 and annual financial reports.

(III) Review of the appointment, competence, and independence of CPAs.

(IV) Review of amendments to the internal control system and assessment of its effectiveness.

(V) Reviewing internal audit reports and follow-up reports.

(VI) Regular communication with the external auditors.

1. Where cash dividends are distributed in the year of evaluation, their distribution is completed within 30 days after the ex-dividend date.

2. The Company has formulated and disclosed the internal regulations on the insiders’ trading of securities using the undisclosed information in the market, including (but not limited to) the directors shall not trade their stocks during the period of 30 days before the announcement of the annual financial report, and during the 15 days before the announcement of the quarterly financial report, and the implementation status shall be disclosed in the annual report.

3. The Company’s interim financial reports are approved by the Audit Committee and submitted to the Board of Directors for discussion and resolution.

4. The Board of Directors regularly (at least once per year) assesses the independence and competence of the CPAs based on the Audit Quality Indicators (AQIs), and discloses the evaluation procedures in the annual report.

5. All directors and independent directors have completed continuing training based on the hours specified in the “Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies”.

6. The Company’s annual report discloses the specific and clear dividend policy.

7. The Company has set up an English website, which includes information related to finance, business, and corporate governance.

8. The Company is invited (voluntarily) to hold at least two institutional investor conferences, and disclose at least two complete video/audio links of the meetings. The Company is also required to hold the first and last investor conferences of the year of evaluation with at least three months in between.

9. The Company establishes a specialized (or designates an existing) department to promote sustainable development, and it conducts a risk assessment of environmental, social, and corporate governance issues related to its operations and establishes relevant risk management policies or strategies based on the principle of materiality, with the Board of Directors responsible for supervising the promotion of sustainable development, and with disclosures on its website and in its annual report.

10. The Company discloses the water consumption and total weight of waste over the previous two years.

11. The Company has established and disclosed in detail on its website a system for reporting illegal (including corruption) and unethical behaviors of both staff and non-staff.

12. The Company’s Board of Directors has approved the sustainability report prepared by the Company.

13. The Company discloses the annual greenhouse gas emissions over the previous two years.

14. The Company has adopted policies for GHG reduction management, including reduction targets, implementation measures, and results of achievement.

1. The Company has established an environmental management system and disclosed the implementation status on the Company’s website, annual reports or sustainable reports.

2. The Company discloses the scope of greenhouse gas emissions and the annual emission volume in the previous year.

3. The Company establishes a specialized (or designates an existing) department to promote sustainable development, and it conducts a risk assessment of environmental, social, and corporate governance issues related to its operations and establishes relevant risk management policies or strategies based on the principle of materiality, with the Board of Directors responsible for supervising the promotion of sustainable development, and with disclosures on its website and in its annual report.

4. The Company discloses the greenhouse gas emissions, water consumption and total weight of waste over the previous two years.

5. The Company adopts a policy on the diversity of members of the Board of Directors, and discloses the specific management targets and status of implementation of the diversity policy on its website and in its annual report.

6. The Company’s interim financial reports are approved by the Audit Committee and submitted to the Board of Directors for discussion and resolution.

7. Starting in 2025, the Company will conduct annual internal evaluations of the performance of the functional committees (must include at least the Audit Committee and the Remuneration Committee), and will disclose the status of implementation and results of evaluation on the Company’s website or in its annual report.

I. In the event where the Remuneration Committee’s proposal is rejected or amended by the Board of Directors, please describe the date and session of the meeting, details of the proposal, the board’s resolution, and how the Company handles the Remuneration Committee’s opinions (if the remuneration approved by the Board of Directors was more favorable than the one proposed by the Remuneration Committee, the differences and reasons shall be specified): None.

II. For resolution(s) made by the remuneration committee with the committee members voicing opposing or qualified opinions on the record or in writing, please state the meeting date, term, contents of motion, opinions of all members and the company’s handling of the said opinions: None.

I. Has the Company established a governance framework to promote sustainable development? Has the Company established a specialized (or designated an existing) department to promote sustainable development, which the senior management is authorized by the Board of Directors to manage under the supervision of the Board of Directors?

The Company established a corporate social responsibility organization in 2015, and changed its name to the Sustainable Development Organization in 2022. The President serves as the convener of the organization, and the Human Resource Department is responsible for the promotion of sustainable development. The promotion unit is set up according to the risks and opportunities of different fields, and is divided into seven categories, namely investors, corporate governance, labor & human rights, supply chain management, channel operators, product responsibility and environmental protection energy. The Human Resource Department conducts regular risk assessments on environmental, social and corporate governance issues related to the Company’s operations in accordance with the principle of the Company’s operations.

The Company will base its risk assessment on the risks and opportunities of each topic, and develop feasible risk management policies or strategies, and execute them effectively. The Board of Directors is responsible for supervising the implementation of the organization’s sustainable development, ensuring that relevant tasks are completed successfully and achieving the established goals.

The Company discloses the promotion of sustainable development in the annual report every year, and releases related information on the Company’s website to ensure that all stakeholders can clearly understand the Company’s efforts and results in terms of sustainable development.

The Board of Directors will review the performance report of the organization for sustainable development at least once a year to evaluate the achievement of the goals, and shall also review the performance in the fields of environmental and social responsibility and corporate governance.

The Company intends to submit the “2023 Sustainability Report” to the Board of Directors for reporting, including the sustainability policy and promotion, risk management, ethical management, climate change, energy management, human rights policy, workplace safety, and stakeholder communication. The implementation and review of the report were approved by the 12th meeting of the 18th Board of Directors on August 12, 2024.

In compliance with the Best Practice Principles.

The Company conducts the risk assessment of environmental, social, and corporate governance (ESG) issues based on the principle of materiality and established the Security Center in the organization with relevant risk management policies to reduce or prevent the risk of possible damage to the Company. In addition, the Company is able to standardize the response process and take necessary preventive measures promptly to enhance its response ability to ensure the Company’s goal of sustainable management is achieved.

1. Environmental issues:

(1) The Company strictly abides by the government’s relevant environmental protection laws and regulations and stakeholders’ concerns, and has formulated various environmental protection regulations. The supervisors at all levels must practice the responsibility of supervision, ensure that all operating activities comply with the requirements of environmental regulations. Through continuous education and training and internal communication, the Company strengthens the employees’ knowledge on the importance of environmental protection, encourages energy conservation and carbon reduction, promotes energy conservation, resource recycling and regeneration, effectively uses limited resources, integrates the environmental management system into the operating process, adopts appropriate production technologies and pollution prevention measures, promotes waste reduction, resource recycling and energy saving plans, and uses resources well, to reduce the impact of products, services and operating activities on the environment.

(2) Evaluation of the efficiency of water use has always been the focus of improvement for water conservation. We have been promoting the idea of water conservation in various ways such as posters and slogans, in order to integrate such ideas with every aspect of office life. In addition, water discharged from the filtration process is recycled into cleaner treated water, which is stored and pressurized to be supplied to the factory and used for road cleaning, toilet flushing, and irrigation. The amount of water recycled in 2024 was 11,536 tonnes.

(3) Recently, our active promotion of energy conservation has achieved certain results, and we will continue to evaluate the performance of old equipment. If its performance is below the expected value, we will purchase new energy-efficient equipment as replacements to reduce energy consumption and improve the performance of equipment.

(4) The evaluation of solar panel installation is expected to be completed in 2025, and its construction is expected to be completed in 2026.

(5) Continuing to promote light-weight packaging materials to save energy and reduce carbon.

(6) The Company strives to conserve energy, reduce carbon emissions, and develop environmental improvement management programs under the P-D-C-A management model. We establish indicators for items related to power and water consumption, wastewater production, chemical use, waste production, and productivity density during the process with monitoring and control at all times, to achieve reasonable energy and resource use and GHG emissions.

2. Social issues:

(1) Labor rights policy: The Company adopts a labor rights policy in accordance with the basic requirements of the Ethical Trading Initiative (ETI). The Company emphasizes fair treatment of employees, prohibits all forms of labor exploitation, and ensures that all employees enjoy basic working conditions and rights.

(2) Occupational safety and health management: The Company continues to implement and improve the ISO45001 occupational safety and health management system, and conduct a PDCA (Plan-Do-Check-Act) evaluation of the effectiveness of occupational safety and health management each year, in order to ensure workplace safety and employee health, and to continue to improve the effectiveness of occupational safety and health management systems.

(3) Balance between work and family: The Company is committed to providing a safe, healthy, and pleasant working environment, and encouraging employees to maintain a good balance between work and family life. The Company has various benefits to help employees cope with the challenges of life and work, ensuring that employees can achieve the best balance between family and the workplace.

(4) Food safety and quality management: The Company has been certified by the Taiwan Food and Drug Administration as a “Food Health Inspection Institution”. As a leader in the domestic food industry in terms of inspection and analysis, the Company actively participates in foods safety protection, adheres to the standards of the ISO17025 certification, and strives to safeguard food safety for the public.

(5) Customer satisfaction and product quality: The Company remains committed to the idea of “natural product quality, optimized environmental health, and popularized customer satisfaction”, prioritizing customers’ food safety and always focusing on customers’ needs and safety.

(6) Compliance with laws and regulations: The Company has established a regulatory identification management procedure to ensure that all products and services continue to comply with the latest laws, regulations and customer requirements, especially in the field of food safety, where the Company pays close attention to regulatory changes and ensures that all business operations comply with relevant regulations.

(7) Establishment of a sustainable supply chain: In addition to quality, delivery time and technical capabilities, suppliers are also required to fulfill corporate social responsibility and work together with the Company to build a sustainable supply chain. The goal is to ensure that suppliers meet the Company’s standards in terms of environmental protection, labor conditions and social responsibilities, and thereby achieve a win-win situation and promote the sustainable development of the entire value chain.

3. Corporate governance issues:

(1) The structure and operation of the Board of Directors: The Company’s highest corporate governance body is the Board of Directors, comprised of a total of 9 members (including 3 independent directors). A sound and efficient Board of Directors is the foundation of excellent corporate governance. Members of the Board of Directors are highly concerned about the overall operation of the Company and ensure the effective implementation of the Company’s policies.

(2) Internal control and risk management: The Company has established an internal control mechanism to monitor compliance and risk management of all business operations.

(3) Stakeholder communication: The Company analyzes the issues of concern to stakeholders every year and establishes effective communication channels. This not only enhances the Company’s brand image, but also helps the Company identify potential risks and opportunities, and optimize the decision-making process.

(4) Corporate social responsibility: While realizing sustainable operation and maximizing shareholders’ interest, the Company also pays great attention to consumers’ rights and interests, community environmental protection, and public welfare issues. The Company is committed to fulfilling its corporate social responsibility by actively promoting various measures related to consumers, society and the environment, ensuring that the Company’s business development and social values are complementary.

(5) Director liability insurance: The Company purchases director liability insurance for directors to provide protection for directors in the event of legal liability during the performance of their duties, and to ensure that the directors have reasonable control over the risks when performing their duties.

(6) Compliance and monitoring of regulations: The Company has established an internal system that covers corporate governance, ethics, and anti-corruption, and ensures compliance with relevant laws and regulations. The Company also continues to monitor and grasp the amendments and changes in laws and regulations, to ensure that the Company’s business operations comply with the latest legal requirements.

(7) Information disclosure and transparency: The Company discloses information related to the Company’s business operations and corporate governance information on the Company’s website (https://www.agv.com.tw/), for the reference of shareholders, investors and other stakeholders. The website also announces the channels for reporting of internal and external personnel, and provides confidentiality protection for the files provided by the reporter, to protect the privacy and safety of the reporter.

1. In accordance with the ISO14064-1:2018 standard, the Company conducts a comprehensive greenhouse gas inventory covering all operating scopes to ensure the Company’s accurate understanding of environmental impacts. The inventory process includes: regularly collecting the Company’s greenhouse gas emissions data during operations, identifying and quantifying various emission sources, setting specific carbon reduction targets, and adjusting environmental strategies based on data analysis.

2. The Company has received accreditation badges for a healthy workplace and health promotion to provide a healthy, safe and comfortable working environment for employees.

3. The Company has established a department dedicated to environmental management to maintain its environmental management systems. The Company has set up an energy-conservation performance system, optimized energy use during the production process, and regularly maintained and upgraded equipment to ensure its operating efficiency.

4. The Company complies with the environmental protection and occupational safety & health laws and regulations, and other requirements. All of the Company’s employees continue to promote improvement in order to effectively control the risk of environmental safety and health in the operating environment and in the process of activities, products or services, prevent accidents, and build a safe and comfortable working environment to protect employee health and wellbeing.

5. The Company continues to promote the ISO14001 and ISO45001 management system, regularly assess and identify occupational health and safety risks, adopt appropriate risk control measures, strengthen the safety facilities and operation specifications in the workplace, reduce the injury or misconduct of operators, and ensure that the Company’s operations meet the requirements of occupational safety and health regulations.

1. The Company is committed to improving the efficiency of energy use. The energy used by the Company mainly includes steam, electricity, and natural gas.

2. The Company currently has three factories. Compared to 2023, in 2024, the proportion of steam consumption in the production process increased by 7.9%, the proportion of electricity consumption in the main process increased by 5.3%, and the proportion of natural gas consumption increased by 10.8%. In the face of increasing energy consumption, the Company continues to improve product yield and further reduce food waste generation through process optimization and equipment upgrades. At the same time, in order to implement the environmental sustainability concept, the Company actively promotes the introduction of green power and energy storage equipment establishment, in order to strengthen corporate social responsibility while reducing environmental impacts.

3. The Company will continue to promote the environmental protection program to improve its environmental protection performance and also strive to promote energy conservation and carbon reduction, recycling and reuse, protection of water and soil resources, and strengthen the education to employees on the office premises. In addition, the Company also focuses on the improvement of environmental awareness of employees. Through education, training and promotion activities, the Company deepens the concept of sustainability, and implements environmental actions in daily work.

1. Given the low carbon emission policy currently implemented in Taiwan, the Company actively introduces a mechanism for analysis and control of production capacity and engages in production under the energy-conservation model. Meanwhile, the Company engages in big data analysis for different products to continue to optimize production processes, reduce carbon emissions, and achieve the goals for an eco-friendly environment.

2. The Company evaluates the impact posed by climate change to the Company’s operations based on the recommendations of the “Task Force on Climate-related Financial Disclosures (TCFD)” published by the Financial Stability Board (FSB). Through regular meetings, the Company works with a team of CPAs and professional consultants to analyze climate risks from a multi-disciplinary perspective, formulate specific response strategies, and implement them through project management in order to fulfill its commitment to sustainable corporate development.

Most of the Company’s subsidiaries engage in sales. Therefore, their related disclosures are focused on the Company. (Excluding subsidiaries); the categories for inventory and their data are as follows:

1. Direct GHG emissions (Category 1):

Unit: Tonne-CO2e/year

2. Indirect GHG emissions (Category 2):

Unit: Tonne-CO2e

Greenhouse gas emissions for both 2024 and 2023 remained consistent, showing no material fluctuation.

3. Indirect GHG emissions (Category 3):

Unit: Tonne-CO2e

Transportation-related emissions increased in 2024, primarily due to increased employee headcount compared to 2023.

4. Indirect GHG emissions (Category 4):

Unit: Tonne-CO2e

In 2023, waste disposal emissions were higher due to the use of Department of Environmental Protection emission factors for garbage trucks. In 2024, the Company adopted emission factors from the contracted waste collection provider, resulting in an 86.97% reduction in waste-related emissions compared to 2023.

5. Water consumption:

Unit: Ton

Water intensity = Water consumption / Operating revenue (in NTD millions).

Water consumption in 2024 saw a slight increase compared to 2023, primarily due to the addition of a new production line, which resulted in higher water consumption needs.

6. Gross weight of waste:

Unit: Ton

The total amount of waste in 2024 decreased by 9.7% compared to 2023, due to the effect of results of the reduction of plastic packaging materials and waste.

In the future, we will achieve recycling and sustainable use of resources via the “3R” environmental protection policy, namely, reduce, reuse, recycle, in order to mitigate environmental damage and pollution.

• Short-term target: Our set target is to reduce the amount of waste by 1–3% per year, and we expect to reduce the total amount of waste by 5% by 2025.

• Medium-to-long-term target: Our set target is to reduce the total amount of waste by 8% by 2030.

7. The Company is expected to conduct a company-wide (including subsidiaries) inventory of carbon emissions and formulate corresponding reasonable emission reduction plans in 2025.

8. For related environmental protection including energy savings and carbon reduction, water resources management, pollution prevention, and waste management, please refer to the ESG report of the Company.

1. In order to ensure human rights protection, the Company has established its human rights policy with reference to the International Bill of Rights (IBR) and the International Labor Organization’s Declaration of Fundamental Principles and Rights at Work (DFPR) and other internationally recognized human rights standards. The Company’s work rules, reward and punishment system, performance evaluation, gender equality, occupational hazards, etc. are established in accordance with the Labor Standards Act and with reference to international labor conventions, in order to create a friendly, equal and highly efficient working environment. The human resources department carries out, revises and announces employee awareness in accordance with the regulations, to ensure that employees fully understand and comply with relevant labor regulations.

2. Prohibition of child labor and forced labor: The Company has clearly stipulated that it is strictly prohibited to hire child labor and force labor. The Company also prohibits any form of forced labor. In the recruitment process, the Company will ensure that all employees are of the legal age and voluntarily accept the work. To prevent sexual harassment, discrimination and bullying in the workplace, the Company has established clear rules and regulations and publicly announced the “Declaration of Prevention of Sexual Harassment in the Workplace” to provide employees with a safe working environment free of sexual harassment and discrimination.

3. The Company is committed to providing and maintaining a safe, healthy and sanitary work environment, and regularly inspects and improves safety facilities in the workplace in accordance with the requirements of laws and regulations, to ensure the physical and mental health of employees. The Company has also established an occupational safety and health management system to assess and formulate preventive measures for risks in the workplace.

4. The Company values its relationship with employees and has established an effective and transparent communication mechanism internally to ensure that employees can express their needs and opinions. Encouragement and assistance in open communication to promote continuous improvement of the work environment. The Company’s sustainable development report has been published on the official website (https://www.agv.com.tw) and MOPS, and all employees are free to access it.

1. HR regulations:

The HR regulations of the Company have established a comprehensive system, including the work rules, remuneration management regulations, hierarchical responsibility regulations, subsidy payment standards, attendance standards, promotion and transfer regulations, performance regulations, rules for leave application, performance and year-end bonuses, remuneration for employees, insurance payments, welfare fund, and bonuses for proposed improvements, and regulations for prevention, complaint and handling of sexual harassment.

2. Remuneration system:

The design of the Company’s remuneration system is based on an employee’s competency, performance and contribution, as well as his/her position, the salary level of peer companies, the supply and demand of manpower in the market, and the Company’s future operating risks. It includes:

Salaries: Determined based on the position of employees, with reference to the peer level and market condition.

Bonuses: Based on the actual operation of the Company, when the Company makes a profit, the Company’s operating profit is used to distribute part of the profit to employees to improve the job satisfaction and loyalty of employees.

Benefits: If the Company makes a profit in a year, no less than 1% of the profit shall be appropriated as remuneration to employees and the benefits set forth by the Welfare Committee. The Company upholds the principle of harmonious labor relations and is committed to creating a win-win labor relation.

3. According to the Labor Standards Act, the Company has a comprehensive leave system, which is clearly stated in the employee handbook to ensure all employees understand and comply with it.

4. Workplace diversity and equality: The Company values gender equality, equal pay, and equal opportunity for promotion. In 2024, among the Company’s employees, female employees accounted for 56.52%, and female managers accounted for 33.72% of all managers.

5. Other benefits: The Company provides employees with a wide range of benefits, including cash gifts and subsidies; health examinations for employees, free parking lots, lactation rooms, dormitory for migrant workers, profit sharing, cash gifts for retired employees, birthday cash gifts, subsidies for marriage, parental care, children’s education and funeral, maternity, paternity and parental leave, and company gifts, ensuring a comprehensive welfare system for employees.

6. Implementation of employee safety and health measures: The Company values the physical and mental health of all employees, and is committed to creating a healthy and safe working environment, and actively promoting a healthy and safe culture. The Company also conducts regular health checkups for all employees every year, and selects health risks based on the results of the checkup.

In the 2024 health examination, screening was conducted for employees with abnormal total cholesterol, low-density cholesterol (LDL), triglycerides, and blood pressure. A total of 103 people were screened. From February 29 to November 21, 2024, the Company completed individual health education and health promotion recommendations for 103 employees to help them understand their own health status and reduce health risks.

7. In recent years, the Company’s operating performances or results have been appropriately reflected in the remuneration for employees (full pay raise in 2023, partial pay raise in 2024, and full pay raise in 2025) to reward employees and encourage them to work together in achieving the Company’s goals.

1. The Company has established a complete safety and health work code and has implemented it, and has a dedicated safety and health management organization and management personnel responsible for daily supervision and management. All machinery and equipment are inspected and maintained regularly to ensure that the work environment meets the safety standards. The Company also provides safety training to employees every year to enhance their awareness of possible hazards in the workplace, and strengthens the prevention measures against occupational diseases to create a safe, healthy and comfortable working environment.

2. To ensure the health and safety of employees, the operating environment is monitored regularly twice a year. Improvements are made based on the monitoring results, including adjusting the workflow, improving the ventilation system and using safety equipment, to ensure and maintain the occupational health of employees.

3. In addition to regular occupational safety training, the Company also organizes training courses to enhance employees’ occupational safety awareness. These include: stacker operation training, quality safety and health education training, first-aid personnel training, and fire drills. In addition, the Company also organizes daily seminars to promote communication between employees and management, and to enhance employees’ health knowledge and quality of life.

4. Safety and health training for employees organized in 2024:

5. In 2024, 5 employees suffered work injuries on the way to/from work, and 6 employees suffered work injuries in the workplace.

1. Career development planning for employees: The Company arranges suitable training courses based on the position and future career planning of employees, and based on the work performance and development needs of employees, to help employees understand new technologies, gain new knowledge and improve their overall capabilities.

2. Design and implementation of training courses: A variety of training courses are available, including professional skills, leadership and management ability training, occupational safety and health education, communication ability and ethics training, etc. The different training contents are carried out in different ways, such as external professional lecturers, internal lecturers, online learning or practical exercises, etc., to provide comprehensive development support for employees.

3. Assessment and feedback mechanism: After each training session, the effectiveness is assessed, and a questionnaire is conducted or employees are invited to give their feedback to understand the effectiveness of the training. Based on the assessment results, optimize and improve the training content.

4. Employees’ career development and promotion opportunities; The Company actively provides opportunities for employees to develop their career and promotes employees through internal promotion mechanisms to encourage them to exert their potential.

5. Implementation: The Company’s internal training courses have been attended and well received by most employees.

In terms of training effectiveness, most employees can apply what they have learned in practice after participating in the training, and their work performance has also improved. It is also observed that the employees’ career development has significantly improved. Many employees participating in the training demonstrate stronger work capabilities and are successfully promoted to higher positions.

6. The Company’s employee training and development program not only focuses on improving the professional skills of employees, but also on the comprehensive development of employees, providing employees with diversified learning and growth opportunities, and providing long-term support for employees’ career development. The implementation of this program helps the Company and employees to achieve a win-win situation, and promotes the Company’s sustainable development.

7. In 2024, a total of 1,091 employees attended training for a total of 7,134 training hours.

1. Customer health and safety: Customer health and safety are the top priorities of the Company. We strictly abide by food safety laws and international food safety standards (such as ISO22000) and conduct safety inspections and reviews on all products. We regularly conduct risk assessments and quality inspections on products to protect customer health.

2. Customer privacy protection: The Company complies with the Personal Data Protection Act and has established a comprehensive privacy policy to protect customers’ personal data. Data collection, use and storage are only within the scope agreed upon by customers. Employees receive regular data protection training to ensure the compliance of internal processes.

The quantitative data and management indicators related to the personal data protection policy in 2024 are as follows:

A. In 2024, the total number of employees receiving the employee data protection policy was 40, and the total number of training hours was 93. The number of employees receiving the training accounted for approximately 7% of the total number of employees. The pass rate of the post-training test was 100%.
B. In 2024, the Company organized training courses for 74 new employees on the Personal Data Protection Act, and achieved a 100% rate of completion.

C. No violation of the Personal Data Protection Act occurred in 2024.

3. Marketing and labeling; the Company follows the principle of honesty in marketing to ensure that all product labels are clear and accurate. All product labels are designed in accordance with food safety regulations, and the Company has developed dedicated standard operating procedures to ensure compliance with relevant regulatory requirements. The Company’s product labeling is reviewed by a professional team responsible for reviewing food safety and health regulations to ensure that all product labels comply with government regulations, including nutrition labeling, ingredient labeling, etc., to ensure that consumers can obtain transparent and accurate product information. In addition, the team reviews product labeling in accordance with health certifications, international awards, organic, green, and clean marks to further enhance product transparency and market credibility.

4. R&D innovation and technology investment: Having spared no effort in its investment in food safety and R&D innovations, the Company has strived to ensure all of its products meet the requirements of national food laws and regulations, and has continued to utilize more manpower and resources for upgrade its own regulations to enhance its capacity for self-inspection. The Company maintains control of food additives with designated personnel, department and records, and has received international food safety certifications. The Company received approval of its application for the “Project on Encouragement by the Department of Industrial Technology, MOEA for Domestic Businesses to Establish R&D Centers in Taiwan” to promote the plant-based milk technology of AGV. This is an honor for AGV as it builds a reliable brand image.

5. Service improvement and feedback mechanism: The Company can optimize services or improve products based on the opinions of consumers through the 0800 hotline service. The Company optimizes the service flow based on the problems reported by consumers, improves the training and service quality of employees, and requires the customer service center to respond to customers within 24 hours after receiving customer complaints. The response rate in 2024 reached 95%.

6. Preventing fraud and misleading behavior: The Company organizes regular employee education and training programs to help them understand ethical standards, fraud prevention policies and relevant laws and regulations; employees should have the ability to identify frauds and respond correctly; and ensuring that suppliers can also comply with the same ethical standards and legal regulations; continuous supervision of all business processes of the Company; and timely discovery and correction of any potential frauds or misbehavior to prevent any form of fraud or dishonesty.

7. The Company complies with international standards and regulations: In addition to complying with domestic regulations, all factories of the Company have passed the ISO22000 and FSSC quality system certifications (100% pass rate) to establish and maintain high-standard products and service quality, not only enhancing the brand image, but also helping to protect the interests of consumers.

1. In order to strengthen the mechanism for sustainable management of suppliers, the Company will conduct on-site evaluation of its suppliers in accordance with the Regulations on Good Hygiene Practices for Food and the Regulations on Food Safety Control Systems to ensure its suppliers meet relevant health and safety standards and continue to improve themselves.
2. The four core categories in the “Supplier Commitments on Social Responsibility” to be implemented concern workers and human rights, health and safety, environmental issues, and ethical standards to enhance the importance of issues such as environmental protection, occupational safety and health, and labor rights in the supply chain, with the aim to ensure suppliers comply with the regulations and improve their practices.

3. The Company will conduct supplier evaluations and source inspections and provide audit guidance from time to time, and will require suppliers to implement the relevant requirements in the daily management of their food supply chains, to ensure the performance of suppliers in all aspects meet the Company’s standards.

4. 4. In 2024, an evaluation was conducted for a total of 198 suppliers (188 were rated A, 8 were rated B, 0 was rated C, and 2 were rated D). The two non-conforming suppliers were paper straw manufacturers trading with the Company for the first time. Due to the incompatibility of paper straw molds and on-site machinery, the purchased products were not applicable. Subsequently, technical exchanges and counseling were conducted between the Company and the suppliers, and the products provided in the second half of the year were in line with the Company’s needs. The two suppliers are now qualified.

The information of business and factory registration of the suppliers is in compliance with the regulations, and the suppliers have registered in accordance with the “Regulations Governing the Category and Scale of Food Businesses Who May Commence Their Business Operations After Applying for Registration and the Date of Implementation”, while meeting the food hygiene requirements.

1. The sustainability report has been prepared in accordance with the 2021 Universal Standards published by the GRI in 2021, as well as the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”, the frameworks of the Task Force on Climate-related Financial Disclosures (TCFD), and the standards of the Sustainability Accounting Standards Board (SASB).

2. The Company has engaged Crowe Taiwan to provide independent limited assurance in accordance with the Standards on Assurance Engagements No. 3000 “Assurance not Classified as an Audit or Review of Historical Financial Statements” issued by the Accounting Research and Development Foundation. The independent limited assurance was provided in accordance with the Standards on Assurance Engagements No. 1 “Assurance not Classified as an Audit or Review of Historical Financial Statements”, and its result can be downloaded from AGV’s website for review.

In compliance with the Best Practice Principles.

VI. If the Company has established its own sustainable development best-practice principles based on the “Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies,” please describe the status, and any deviation thereof from said Principles:

The Company has been in compliance with the “Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies”, and the report does not indicate any material differences. At the end of August 2024, the Company disclosed the 2023 sustainability report on the Company’s website and the MOPS for public access.

VII. Other information useful to the understanding of the sustainable development implementation:

1. . The product commitment of “For a Healthy Tomorrow” is the cornerstone of AGV. Whether in terms of product traceability and tracking, simple formulas, or the use of clean labeling, the Company always insists that natural products provide the health, flavor, and sustainability that consumers demand.

2. We have established a Sustainable Development Organization, supported by our management in mobilizing manpower and corresponding resources to achieve the integration of corporate social performance (CSP) and corporate financial performance (CFP), with CFP sustaining CSP in the short term and CSP promoting CFP in the medium to long term. The whole team works together to promote the mission of corporate sustainability.

3. AGV’s Food Factories 1, 2 and 3 have acquired a number of internationally recognized certification systems including ISO22000 and HACCP.

4. We are committed to providing a safe, healthy and harmonious workplace for employees to achieve work-family balance. We also actively enhance the professional skills and abilities of our employees, and assist them to grow and prosper together with the Company.

5. We have continued to increase investment in software, hardware, and intellectual property to enhance our overall competitiveness and innovation capability.

6. In 2024, the Company received the following domestic and foreign awards:

Instant oat powder for Premium Oat Drink (Original) won one-star Superior Taste Award; Oat Milk with Peanuts won one-star Superior Taste Award; Instant oat powder for Premium Oat Drink (Original) won Monde Selection Gold Award; Sweet Chili Sauce won Monde Selection Gold Award; Unsweetened Activate Green Tea won Monde Selection Gold Award; Premium Oat Drink (Original) won Monde Selection Gold Award; Tube Savory Rice Pudding won Monde Selection Bronze Award; Tube Savory Rice Pudding received Eatender certification; Premium Oat Drink (Original) received Anti-Additive (A.A.) Three Stars certification (6th year); Instant oat powder for Premium Oat Drink (Original) won three-star A.A. Taste Award (organized by A.A.); Premium Oat Drink (Original) won three-star A.A. Taste Award (organized by A.A.); Honey Oat Drink won three-star A.A. Taste Award (organized by A.A.); Premium Oat Drink (Maca-Zinc) won two-star A.A. Taste Award (organized by A.A.); Unsweetened Activate Green Tea won two-star A.A. Taste Award (organized by A.A.); Tube Savory Rice Pudding won Good Awards for Grain Food Products; Polyphenol Buckwheat Drink was nominated for Good Awards for Grain Food Products; Tube Sticky Rice Cake won one-star Food Innovation Award – Food and Beverage Innovations.

7. The Company has actively engaged in social charity activities, such as the organization of beach or mountain cleaning activities, the selection of road sections for greening and maintenance, and assistance in the development of leisure activities, to have a positive influence on society.

8. The Company’s contribution to society not only includes monetary donations but also investments in manpower, donations of items, and service provisions. The main contents of various social activities are summarized as follows:

a. By establishing an energy-saving performance system, AGV is striving to optimize its manufacturing processes and enhance competency training for production line personnel and equipment maintenance to further improve the production efficiency of equipment. Moreover, AGV is enhancing employees’ awareness of energy conservation and carbon reduction, which can not only effectively reduce GHG emissions, but also decrease operating costs from the perspective of sustainable corporate development.

b. As of the date of publication of the annual report, the money and supplies donated and visits conducted by Company are as follows:

Dinner party for Double Ninth Festival organized by Minxiong Township’s Fule Community; 4th Art and Culture Exhibition and Charitable Carnival organized by Spinal Cord Injury Association of Chiayi County; charitable carnival “A Warm New Year: Happy You&Me Bazaar” organized by Chiayi Branch Office of Taiwan Fund for Children and Families; parent-child walking and charitable carnival organized by Chung Yi Social Welfare Foundation; National Cheng Kung University’s open badminton tournament; dragon boat race organized by Chiayi County; road running event “2024 Run for the Golden Tiger” organized by Hsin Kang Feng Tian Temple of Chiayi County; 18th Christmas card writing event organized by Nice Prince Hotel of Chiayi City; charity bazaar “2024 Generation of the Infinite” organized by Kaohsiung Branch Office of Taiwan Fund for Children and Families; “Elementary School Storytelling Competition” organized by Paramitas Foundation, etc. The total value of donated goods for the year 2024 amounted to approximately NT$889,000. The recipients included disadvantaged groups, local government agencies, students, and temples.

9. For other related important information, see the relevant information in the section for sustainable development on the Company’s website (www.agv.com.tw/企業社會責任之使命).www.agv.com.tw/企業社會責任之使命)。

The Company actively develops solutions to reduce the impact of climate change on its operations and finances to improve the organization’s climate resilience.

The Company has assessed the aforementioned risks, and identified the climate-related risks and opportunities that may cause significant financial effects, as well as the response strategies:

Financial effects of extreme climate events:

Floods caused by typhoons or heavy rain will lead to the suspension of operations at the business locations and equipment damage, resulting in a half in shipments in the short term. Droughts or water shortages will affect the normal operation of the production line. In the event of water shortage, the Company must reduce the consumption of water, engage in cross-region water transportation by water trucks, or purchase from other manufacturers to maintain supply, resulting in an increase in operating and transportation costs.

Financial effects of transition actions:

The transition to a low-carbon economy may face a wide range of changes in policies and regulations, technology and market. Based on the nature, speed and focuses of such changes, within the time range of analysis, carbon fees and GHG capping, renewable energy regulations, and changes in consumer preferences may increase operating costs or reduce sales.

The Company has introduced energy-saving and carbon reduction projects to minimize the climate impact of energy, water, and waste consumption from operations and supply chains. We enhance energy use efficiency, invest in green energy equipment and engage in the R&D and innovation of green products to meet consumer needs in response to these transition risks. These projects have a financial impact on the consolidated company, which will result in an increase in the Company’s capital investment and operating costs.

The Company has not yet used internal carbon pricing as a planning tool in the current year.

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1. The Company’s Audit Office is responsible for promoting ethical management and implementing related measures in accordance with the Ethical Management Best Practice Principles. The Board of Directors may audit the establishment and implementation of the ethical management policy through its audit function. The Chief Auditor attends and reports relevant activities at Board of Directors meetings while reporting regularly to the independent directors.

2. Employees may express opinions to and communicate with the management, Human Resources Department, and Audit Office via multiple channels, including internal e-mail, employee opinion mailbox, and the Company’s website.

3. In 2024, there were 0 cases reported externally or internally, and no major unethical behavior occurred.

1. The Company established the “Procedures for the Management of Material Insider Information” The procedures specify that a director, manager, or employee knowing material inside information shall not disclose the known information to others nor may they inquire about or collect any non-public material inside information of the Company not related to their individual duties from a person with knowledge of such information or disclose to others any non-public material inside information of the Company of which they become aware for reasons other than the performance of their duties.

2. The Company has established a comprehensive internal audit system and a mechanism for opinion, communication and risk management to maintain effective operation of the internal control system, prevent conflicts of interest, and provide effective communication channels, which contribute to maintaining the fairness, transparency and efficiency of the Company’s operations and preventing potential issues or risks.

3. In case any proposal at a meeting of the Board of Directors involves those with conflicting interests, the emcee will announce the names of those requiring recusal and the reasons for their recusal before reading the proposal, and will again remind these stakeholders to recuse themselves. The minutes of the Board of Directors meeting will record in detail the specific circumstances of the avoidance of conflicting interests and the process of recusal of the members concerned.

4. In 2024, the Board of Directors held 5 meetings in accordance with the Rules of Procedure for the Board of Directors.

The Company has set up a section for “Employee’s Opinion and Real-time Feedback” and the President’s mailbox, and established a whistleblowing system for violations of business ethics, so that employees, suppliers, shareholders and other related persons can report illegal or unethical behavior, including corruption, bribery, fraud, etc.

The whistleblower system is published on the Company’s website to ensure that all insiders and outsiders can clearly understand the operating guidelines of the system, how to submit a report, and the handling process after the receipt of a report. The system also ensures the confidentiality of the identity of the whistleblower and prevents the occurrence of retaliation, encouraging more people to report improper behavior.

Any employee violating the requirements of ethical management of the Company will be punished depending on the severity of the violation in accordance with the “Regulations Governing Reward and Punishment of Employees”. The President and the manager of the Human Resources Department are designated to address such violations.

Website: www.agv.com.tw/投資人專區/公司治理專區/違反從業道德行為檢舉系統; Email: yuehchu@mail.agv.com.tw

The Company has disclosed the information related to corporate governance on its website and the MOPS, so that shareholders, investors and other stakeholders can understand the status of its corporate governance.

Website: https://www.agv.com.tw

The Company has also disclosed its ethical management philosophy in its sustainability report, demonstrating its commitment to ethical management, as well as its emphasis on corporate social responsibility and sustainable development.

V. Where the Company has established its own principles of ethical management in accordance with the “Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies”, the differences between the operations of the Company and such principles must be described:

The Company has established the “AGV Products Corporation Ethical Management Best Practice Principles” based on the Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies promulgated by TWSE, and has disclosed the Ethical Management Best Practice Principles on the Company’s website. (Website: https://www.agv.com.tw) while implementing them accordingly without any discrepancy.

VI. Other important information useful for understanding the status of ethical management at the Company: (e.g., review and amendment by the Company of its ethical management principles)

1.The Company integrates the “Ethical Corporate Management Best Practice Principles” with employee performance evaluations and human resource policies to ensure the implementation of integrity in business operations.

2. The Company consistently adheres to the principles of ethical business conduct, ensuring compliance with various legal regulations such as the Company Act, Securities and Exchange Act, Act Governing Food Safety and Sanitation, relevant TWSE/TPEx regulations, the Anti-Corruption Act, and the Government Procurement Act. These serve as the foundation for ethical management. In terms of employment policies, the Company prioritizes integrity and character, and emphasizes anti-corruption mechanisms such as job rotation. No incidents of corruption, bribery, or extortion have occurred within the organization.

3. The Company continues to promote corporate sustainability and upholds its vision of “Making Tomorrow Healthier,” emphasizing the importance of sound governance.

4. The Ethical Corporate Management Best Practice Principles were established in May 2017 and were first amended in August 2019.