Retirement System and Collective Bargaining Agreement-Taiwan Paiho ESG

Retirement System and Collective Bargaining Agreement

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Retirement System
The Company has established the Retirement Management Measures in accordance with the Labor Standards Act, the Labor Pension Act, and other relevant regulations. As of the end of 2024, approximately 7.93% of employees have chosen the old pension scheme, while approximately 92.07% have opted for the new pension scheme (including about 24.04% of employees who retain seniority under the old scheme). The labor pension reserves at the end of 2024 have been fully accrued and are sufficient to cover pension payments for eligible retirees in the following year.

Operating Location	Retirement System
Taiwan Paiho Limited	Handled in compliance with applicable government labor laws, retirement regulations, and internal Company management systems and procedures. The retirement pension system, as outlined in the "Labor Pension Act," mandates that retirement pensions be allocated to individual accounts at the Bureau of Labor Insurance based on specific ratios. Employees who opt to comply with the "Labor Standards Act" will have their retirement funds allocated and deposited into the Taiwan Bank Retirement Reserve Account, which will be held under the name of the Supervisory Committee of Labor Retirement Reserve. According to Article 4-1 of the Company's "Labor Retirement Guidelines," to improve the utilization of human resources, employees who have worked for more than ten years and are over the age of 55 are encouraged to apply for retirement according to the conditions specified in this article.
Vietnam Paiho Limited	According to Vietnamese laws, employers must pay monthly contributions for local social security insurance, medical insurance, and unemployment insurance for employees. These contributions amount to 21.5% of the employees' basic salary. Employees who have reached the statutory retirement age are eligible to apply for retirement benefits from the Social Security Bureau. In compliance with legal regulations, Paiho manages the necessary retirement procedures for these employees.
PT. Paiho Indonesia	In accordance with relevant Indonesian laws and regulations, various social security services-including accident, death, old-age, and retirement benefits-are administered on a monthly basis. Furthermore, pursuant to the Indonesian Labor Law, employees who reach the statutory retirement age are entitled to apply for retirement and receive pension benefits from the Company.

Labor-Management Agreement
In accordance with its human rights policy, Paiho respects employees’ freedom at all operational sites to organize or join labor unions and provides labor-management communication mechanisms to ensure harmonious labor relations. Currently, Taiwan Paiho Limited has not established a labor union nor signed any collective bargaining agreements; instead, labor-management meetings serve as the communication channel. In 2024, a total of four labor-management meetings were held, covering topics such as workforce dynamics, activities, welfare programs, and workplace environment improvements. Both Vietnam Paiho Limited and PT. Paiho Indonesia have established labor unions. Vietnam Paiho Limited signs a collective bargaining agreement every three years, which is negotiated and signed by the union chairperson on behalf of employees after soliciting and obtaining 100% consent from all employees. The agreement applies to all employees. PT. Paiho Indonesia has two labor union organizations but has not yet signed a collective bargaining agreement. Employee rights matters are negotiated through the union based on the employee handbook, with timely adjustments and supplements made in accordance with relevant legal provisions.