Chicony Electronics is active in improving water efficiency and value, reducing environmental impacts on water resources, and increasing the use of recycled water. With the aim of precisely grasping the water risk levels at Chicony Electronics' factories located in different parts of the world, the Company has adopted the water risk assessment tools provided by the World Resources Institute (WRI) to identify the possible water risks faced by its factories and the production sites of its top 50 major suppliers prior to 2023. The water risk identification was conducted by referencing the water-related physical risks recommended in the TNFD framework, including the five major water resources indicators―water stress level, riverine flooding risk, coastal flooding risk, untreated connected wastewater, and coastal eutrophication potential (CEP).

Water risk identification for CEC bases and the top 50 major suppliers

Note:

1. CEC's operation sites/bases includes HQ, CEM2, MR, CEM3, CEM5, CET and CEZ.
2. The top 50 major suppliers were determined by sequencing the Company's 84 Significant Suppliers from 2023 according to total procurement amount.

In terms of the water stress level indicator, the Company's CEM3 and CET have been assessed as being located in high water stress areas. However, as water stress is defined as "the ratio of overall water demand to water supply in the area", water resources risks are only more likely to occur when a factory is located in a high-water-stress area and belongs to a higher water-consumption industry, which causes the factory to compete with local ecosystems for water resources.

Therefore, further scenario analysis of local water supply changes in the river basins where the factories are located has been conducted based on the Weathernews database, and assessments linked with water consumption indicators of CEM3 and CET have also been performed. Since the water consumption by both CEM3 and CET constitutes far less than 1% of the overall water consumption in the areas where they are located, the likelihood that the two factories will be impacted by local water resources conditions is not high. Chicony Electronics will continue to promote various water conservation measures, including internal water saving practices, reinforced wastewater classification systems, process water consumption reduction, and reuse of recycled/reclaimed water to cope with possible water risks.

Water Supply in CEM3 and CET Areas

Chicony Electronics primarily sources water from municipal water supply, with a small portion from rainwater harvesting and reuse. Water is mainly used for employee domestic use, air-conditioning systems, and equipment operations at manufacturing sites. Except for a limited number of equipment requiring purified water, all other uses rely directly on municipal water. Domestic wastewater is treated through wastewater treatment facilities before being discharged into the municipal sewer system. In 2025, CEC’s total water withdrawal amounted to 1,128.324 million liters, representing a 15.55% increase compared with 2024. Water intensity was 0.0187 million liters per NT$ million of output value, a 13.45% decrease from 2024, achieving the target set under our “Water Security Policy.” This improvement was mainly attributable to our continued efforts in water pipe leakage inspection and repair, water conservation measures, process water efficiency improvements, and wastewater recycling and reuse.

In addition, CEM2, CEM5, CEM3, and CET successively launched water recycling and reuse systems. In alignment with our internal water recycling targets, both the volume of recycled water and the recycling rate continued to increase. Reclaimed rainwater is treated and used for irrigation and cooling towers, while reclaimed process water is reused in production operations.

Water Withdrawal and Water Consumption

Unit: Megaliters

CEC takes a rigorous approach to managing the environmental impact of its water usage at all sites. The majority of wastewater discharged from facilities consists of domestic sewage, which is collected via dedicated pipelines and sent to nearby wastewater treatment plants for secondary treatment before discharge. All operations strictly comply with local environmental regulations, with regular monitoring and testing conducted at factory discharge outlets. In 2025, there were no instances of exceeding regulatory discharge limits.