As a leading global electronic components manufacturer, we are committed to providing customers with the highest-value products and services. In addition to meeting customer requirements and integrating upstream and downstream supply chain resources, we actively incorporate Environmental (E), Social (S), and Governance (G) values into our operations. Through close collaboration with supply chain partners and continuous enhancement of internal supply chain management systems, we strive to build a sustainable supply chain.

Chicony Value Chain

Organizational Structure

Chicony's Board of Directors serves as the top overseeing unit for sustainable supply chain promotion. Day-to-day operations are jointly managed by the Central Procurement Division of each Business Unit, the Quality Assurance Center, and the ESG
Sustainability Office, while implementation is carried out by site-level teams or task-based units (SER Teams) to collaboratively promote a sustainable supply chain. We report progress and performance annually to the Corporate Sustainable Development Committee and subsequently to the Board of Directors.

When receiving procurement requests from BU, if the supplier is an existing one, the Unified Purchasing Center of the Business Unit is responsible for supplier sourcing and procurement price negotiation. The BU’s procurement team then places the order with the supplier. For miscellaneous items, sourcing and price negotiation are handled directly by the individual factory. To mitigate the risk of material shortages or supply chain disruptions, each type of raw material is sourced from at least two
suppliers. We also prioritize long-term strategic partnerships with various suppliers to ensure stable and reliable relationships.

Supply Chain Management Process

In the second half of 2024, to effectively promote sustainable supplier management, the ESG Sustainability Office integrated relevant documents from various units and factories, and updated existing documents including: “Chicony Electronics Corporation Supplier ESG Agreement,” “Chicony Electronics Corporation Supplier Code of Conduct,” “Chicony Electronics Corporation Conflict Minerals Policy,” “Chicony Electronics Corporation Integrity Declaration and Undertaking,” “Chicony
Electronics Corporation Human Rights Policy,” and “Chicony Electronics Corporation Supplier ESG Risk Assessment Questionnaire.” These documents will serve as the foundation for promoting sustainable supply chain management in 2025. The implementation status for 2024 and the measures to be promoted starting in 2025 are described as follows.

 

1. Supplier Document Management Requirements

(1) New Suppliers

When onboarding new suppliers, information such as company size and financial status is required. An integrity risk assessment is also conducted by reviewing public records and official government websites, covering operational status, risk profiles, legal disputes, and other relevant matters.

(A) Documents to be signed: “Chicony Electronics Corporation Supplier ESG Agreement,” “Chicony Electronics Corporation Supplier Code of Conduct,” “Chicony Electronics Corporation Conflict Minerals Policy,” “Chicony Electronics Corporation Integrity Declaration and Undertaking,” and “Chicony Electronics Corporation Supplier ESG Risk Assessment Questionnaire.” Starting in
2025, new suppliers will only be required to respond to the “Chicony Electronics Corporation Supplier ESG Risk Assessment Questionnaire” if they are raw material suppliers.
(B) In 2025, 100% of new suppliers are required to complete the signing and return of the aforementioned old version documents, with an actual achievement rate of 56%.

(2) Current Suppliers

The retention of current suppliers supports our continuous operations; however, associated supplier risks must also be carefully managed to minimize potential supply chain disruptions. To address this, we have implemented a four-tier supplier management approach.

 

Note: Major Suppliers: Key suppliers are defined based on all current raw material suppliers, totaling 997 vendors. After excluding transactions with related parties, suppliers are ranked by total procurement value in 2024. The final list of key suppliers is jointly determined through meetings held by the Unified Purchasing Center, Quality Assurance Center, and ESG Sustainability Office. For 2025, a total of 55 key suppliers were identified, representing 29% of the total procurement value—demonstrating significant representativeness. To ensure stable supply from key suppliers, this methodology will be applied annually, using the previous year’s procurement data to define the key suppliers for the following year.

Project-based Management of Key Suppliers

 

2. Supplier Risk Assessment Mechanism

(1) Business Unit’s Corporate Unified Purchasing Center

In accordance with the internal supplier management regulations, the unified purchasing unit of each business unit conducts regular annual evaluations of suppliers to ensure that quality, delivery, pricing, and cooperation levels meet the required standards, thereby achieving preventive risk control.

 

(2) Quality Assurance Center

Regarding quality, the Quality Assurance Center and the on-site Quality Assurance Unit will jointly conduct relevant evaluations, performing either written audits or on-site audits based on the circumstances of the raw material suppliers. On-site audit results are categorized into three rating tiers: 0–64, 65–79, and 80–100. Suppliers receiving the lowest tier (0–64) will be disqualified. For suppliers in the other two tiers, follow-up actions are taken on identified deficiencies to ensure compliance with the Company’s raw material quality standards. No supplier was cancelled in 2025, and all deficiency items were also tracked to completion.
If suppliers have any concerns regarding the routine management or audit results conducted by the Quality Assurance Unit, they may raise the issue with the designated factory personnel, the management department, or through the direct reporting mailbox.

Chicony Electronics has long been committed to sustainable governance and implementing corporate social responsibility at
the highest standards. In 2025, Chicony reached a significant sustainability milestone: All major production sites were 100%
successfully certified as Responsible Business Alliance Factory of Choice (RBA Factory of Choice, FOC), concretely demonstrating
our operational resilience in respecting human rights, labor rights, environmental sustainability, and business ethics.

Our responsible management system has undergone years of continuous enhancement. Since joining the Electronic Industry Citizenship Coalition (EICC) (the predecessor of the RBA) in 2011, we have consistently upheld our core values. To fully align with international standards, Chicony officially launched the RBA FOC certification initiative in 2021 and completed certification
for five major production sites in 2023. Building upon this successful experience, Chicony initiated a fullsite certification program at the end of 2024. Through systematic standards assessments and continuous improvement mechanisms, Chicony successfully fulfilled its commitment to achieving certification across all production sites in 2025. Going forward, we will continue
strengthening our ESG competitiveness and advancing our corporate vision of “responsible operations and shared value creation.”

To achieve Chicony’s short-term 2030 target set under the Science Based Targets initiative (SBTi) and our self-defined long-term 2050 carbon reduction goal, managing Scope 3 procurement emissions remains the most challenging task. In response, Chicony launched the “Chicony Green Octagon” project in 2023, within which the “Green Procurement” initiative focuses on reducing upstream raw material emissions. This initiative centers on three primary objectives: green procurement, local sourcing, and green suppliers.

1. Green Procurement

We have no relevant regulations regarding green procurement at our various factory locations. Therefore, in 2023, we referred to Taiwan's Green Procurement System for Private Enterprises and Organizations and required our procurement department to implement green procurement and conduct the initial inventory. In 2025, as certain production lines of various business units were gradually relocated to Thailand, Chicony became increasingly familiar with green procurement options available in the Thai market, resulting in a gradual recovery in both the overall amount and number of green procurement transactions.

Contribution of Green Procurement Amount and Suppliers

Note:
1. Internal transfers were excluded when calculating the above percentages.
2. Definition of green procurement: The procurement of PCR, PIR materials / packaging materials, PIR materials, water - based paints, environmental - protection - related consultations, renting instead of buying, renewable energy, LED tube lights, bicycles (including electric bicycles), electric vehicles, and various eco-labels.
3. % of green procurement amount = Total green procurement amount ÷ Total procurement amount x 100%
4. % of green procurement suppliers = Number of green procurement suppliers ÷ Total number of suppliers x 100%

Advancing Sustainability Together and Co-creating Value

We continued to deepen sustainable supply chain partnerships. In 2025, our ESG Sustainability Office and the Business Unit’s centralized procurement unit jointly held an “Online Supplier Conference,” which was attended online by a total of 85% of suppliers. At the meeting, in addition to announcing CEC’s ESG strategy and environment targets, additional emphasis was placed on the labor rights topic, with in depth discussions of key practical issues including approaches to advancing a sustainable supply chain,the RBA code of conduct and common deficiencies, human rights due diligence, and conflict minerals investigations. Concurrently, the sharing of low carbon case studies was used to stimulate supplier momentum toward net zero implementation.To strengthen the quality of two-way engagement, this conference introduced a mechanism of “pre-vent inquiry collection, on-site response, and post-event feedback.” This approach enabled Chicony to accurately identify suppliers’ practical pain points and use them as a basis for continuously optimizing its guidance and support strategies. Following the event, a complete Q&A summary was distributed to all suppliers to ensure transparent and timely information sharing. Post-event survey results:As many as 80% of suppliers expressed “verysatisfied” feedback regarding the practicalityof the conference and agenda arrangements,while the remaining 20% indicated that theoutcomes “exceeded expectations,” fullydemonstrating CEC’s effective communicationand implementation of sustainability initiatives.Going forward, we continue fostering in-depthengagement and collaboration with partnersto jointly advance a sustainable supply chainand a green, low-carbon future.