Chicony Electronics has established a comprehensive employee compensation management system that balances external market competitiveness with internal pay equity. The Company's compensation strategy is developed by the HR Department through rigorous market benchmark analysis. All employees, both newly hired and existing workforce, are treated in accordance with the Chicony Electronics Corporation Human Rights Policy, ensuring non-discrimination based on gender, race, political affiliation, ideology, religion, sexual orientation, or marital status. Compensation decisions consider labor market dynamics and internal pay equity principles. Base salaries are set above statutory minimum wage requirements at all operational locations to ensure employees' fundamental living standards are met. We determine appropriate compensation levels based on organizational level, professional competencies, job responsibilities, individual performance, and overall business performance. Through competitive total compensation packages that exceed regulatory requirements, we attract, retain, and motivate talent while creating sustainable value for both the Company and our employees.

Regarding compensation governance, the Company's compensation framework is overseen by independent directors serving on the Remuneration Committee. The compensation policy for directors and senior management (detailed in Corporate Governance Framework) is formulated in accordance with Remuneration Committee guidelines and has received Committee approval. We conduct regular market competitiveness analyses to ensure our compensation positioning remains market-competitive. Through disclosure of key metrics including average salary, median salary, and gender pay gap for non-managerial full-time employees, we demonstrate our commitment to pay equity and transparency.

To ensure pay equity implementation, we adhere to the principle of "equal pay for work of equal value," determining compensation based on job evaluation, competency assessment, and performance contribution, thereby eliminating disparities related to gender, age, ethnicity, and other protected characteristics. The Company continuously monitors compensation equity indicators and remains committed to fostering a diverse and inclusive workplace. Moving forward, we will further optimize our performance-based compensation structure, enhance market competitiveness analysis capabilities, and integrate ESG key performance indicators (KPIs) into senior executive compensation evaluation frameworks. This approach strengthens strategic alignment with sustainable development objectives and supports talent capital development goals prioritized by responsible investors.

All regular employees of the Company are covered by comprehensive insurance and retirement plans in accordance with local labor laws and social security systems at each operational location, achieving 100% employee coverage. 

All Company employees, including the Chief Executive Officer and senior management, are subject to uniform retirement benefit standards with no additional severance arrangements or special retirement benefit systems, reflecting our commitment to equitable and consistent talent management. Our retirement policy demonstrates long-term commitment to employee welfare, ensuring reasonable protection for each employee throughout their career lifecycle, enabling secure employment and dignified retirement. Chicony Electronics is committed to establishing a competitive, equitable, and transparent compensation and benefits framework that enhances employee well-being and organizational commitment while maintaining constructive labor-management relations and creating sustainable value for the Company and stakeholders. In 2025, we will launch an Employee Satisfaction Survey and Employee Forum initiatives to optimize our compensation and benefits strategy, foster a more inclusive workplace environment and advancement opportunities, and implement our people-centered approach to corporate sustainability.