Tainergy Tech Co., Ltd.

1. Has the company constructed a governance structure to promote sustainable development and established a dedicated (part-time) unit for the promotion of sustainable development, which is managed by senior management by authorization of the board of directors and is supervised by the board of directors?

In December 2022, the company established the "Corporate Sustainability Development Task Force" (hereinafter referred to as the Task Force), the highest-level decision-making center for sustainability within the company. The chairman serves as the top responsible executive. Annually, through reports presented by the ESG Task Force, the board reviews the company’s sustainable development and ESG management strategies, supervises and monitors the operational team’s execution, and evaluates the achievement of sustainability goals to enhance corporate resilience.

The ESG Task Force continuously monitors and assesses domestic and international corporate sustainable development, conducts risk assessments in response to international trends, and oversees four functional subgroups: "Environmental Sustainability," "Social Responsibility," "Corporate Governance," and "Economic Implementation." These cross-functional subgroups consist of representatives assigned by various departments within the company, including HR, Environment, Health & Safety, Sales, project managers, procurement, etc. They form the company's sustainable governance structure to promote corporate social responsibility and fulfill the company's social responsibilities. Each subgroup has a leader who identifies sustainable issues relevant to the company's operations and stakeholders through monthly subgroup meetings, formulates corresponding strategies and work policies, allocates budgets related to organizational and sustainable development, plans and executes annual programs, and is responsible for setting sustainable strategic goals and tracking performance. The focus is on ESG issues and continuous improvement to ensure the full implementation of sustainable development strategies in the company's daily operations, collaborating with stakeholders to create win-win outcomes.

During the annual board meetings, the Board provides professional opinions to the management team, reviews the possibilities of strategies based on the report content, and offers timely recommendations to the management team.

2. Has the company implemented the risk assessment of environmental, social, and corporate governance issues related to corporate operation and established relevant risk management policies or strategies based on the principle of materiality? (Note 2)

Our company conducts regular significant analysis investigations based on six systematic steps to understand issues of concern to internal and external stakeholders. These steps involve analyzing the characteristics of the solar photovoltaic industry, international trends reports, customer feedback, and data from previous surveys to select the company's key topics of concern. We use this information to determine the major issues for our sustainability report, establish the boundaries for data collection, and identify stakeholders. Additionally, we develop risk management mechanisms for major issues to strengthen the operational resilience and sustainable value of the company, meeting the expectations of stakeholders for Taiji Energy.

We adhere to the GRI Sustainability Reporting Standards and AA1000SES Standard, using a significant topics identification process to pinpoint the internal and external issues with the greatest impact and concern for the company and stakeholders. After review and confirmation by the ESG Sustainable Development Implementation Team, this information is submitted to the Chairman for approval, serving as a critical basis for defining the scope, focus, and sustainable strategy formulation for this report.

3. Environmental issues

1. Has the company implemented environmental policies suitable for the Company’s industry characteristics?

1. The Company has established an environmental management system suitable for the Company’s industry characteristics, such as the promotion of the 6S system.

2. Is the company committed to enhancing the use of energy efficiency and use recycled materials that pose low impact on the environment?

2. The Company dedicates itself to increasing employees’ environmental protection awareness and ensuring that the Company’s products are in compliance with environmental protection policies. We have been making an effort in increasing the utilization of resources, such as the facilitation of e-operations, plant waste reduction, and resource recycling in order to seek the maximum efficiency of resources.

3. Does the Company assess the present and future potential risk and opportunities of climate change in relation to the Company and adopt countermeasures related to climate issues?

3. We have evaluated the current and future potential risks and opportunities of climate change posed on the Company and incorporated it into risk management. At the same time, we proactively promote energy saving and carbon reduction, and have installed a solar power system and smart power saving control system.

4. Does the Company gather statistics of the greenhouse gas emissions, water consumption and the gross weight of waste in the past two years and establish policies for the reduction of greenhouse gas emissions and water consumption or other waste management?

4. We continue to promote energy-saving and carbon reduction strategies to effectively reduce greenhouse gas (GHG) emissions and water consumption. We have set improvement objectives for ourselves and will make gradual improvements in the future. Other specific measures include adding smart current indicators to facilitate electricity control, replacing old lighting with energy-saving lighting, replacing old air conditioners with energy-saving ones, installing water-saving valves to reduce unnecessary waste of resources, and installing solar power systems. Our products harness the infinite power of sunlight from the natural world, embodying the concepts of energy efficiency and environmental sustainability. By utilizing solar energy, we strive to fulfill our role as responsible global citizens and fulfill our social responsibility towards the Earth..

4. Social issues

1. Does the Company develop management policies and procedures in accordance with the relevant regulations and international human rights conventions?

1. In order to fulfill our corporate social responsibility and safeguard the basic human rights of all employees, customers, and stakeholders, we adhere to the principles outlined in international human rights conventions such as the United Nations Global Compact and the Universal Declaration of Human Rights. We respect internationally recognized fundamental human rights and abide by labor-related laws and regulations in the countries where we operate. Our human rights policy applies to our company, domestic and international subsidiaries, joint ventures, and other group-related entities under our substantial control. The summary of our human rights management policy and specific measures are as follows:

1.Diversity and equal employment opportunities: We comply with national labor laws, prohibit child labor and forced labor, and eliminate employment discrimination. We are committed to creating a diverse, inclusive, equal, and harassment-free work environment. We strictly prohibit any human rights violations. Our employees are not subject to differential treatment or any form of discrimination based on personal gender (including sexual orientation), race, class, age, marital status, language, ideology, religion, political affiliation, birthplace, appearance, facial features, disabilities, etc.

2.Safe and healthy working environment: We provide a safe and healthy working environment, protect labor rights, foster harmonious labor-management relations, ensure fair employment, compensation, benefits, training, performance evaluation, and promotion opportunities. We establish effective and appropriate grievance mechanisms to prevent and respond to any matters that may harm employee rights. We provide necessary health and safety measures and facilities, mitigate hazards that may affect employee health and safety, and reduce occupational risks. We actively monitor and manage abnormal workloads, prevent overtime work, and provide regular free health check-ups for employees. We also organize health management seminars.

3.Respect for freedom of assembly and association: We respect the basic human rights of employees to freedom of assembly and association. We enhance the care of labor rights and provide diversified communication mechanisms. We establish open communication channels and hold regular labor-management meetings to ensure a harmonious win-win relationship between labor and management.

4.Employee education and training: We regularly conduct labor safety-related education and training, including fire safety training, first aid training, and general safety and health education. New employees receive orientation on relevant regulations, ensuring humane treatment and providing a healthy and safe environment.

5.Prevention of sexual harassment: To create a quality workplace, we provide a work and service environment free from sexual harassment. We have established channels for reporting sexual harassment incidents and take appropriate preventive, corrective, disciplinary, and remedial measures in accordance with the provisions of the Gender Equality in Employment Act Article 13, Guidelines for Measures for Complaints and Disciplinary Actions in Sexual Harassment Prevention in the Workplace, Sexual Harassment Prevention Act Article 7, and Guidelines for Sexual Harassment Prevention. We have also established a complaint channel in accordance with the "Complaint Handling Guidelines" to protect employee rights when their legitimate interests are violated or cannot be reasonably resolved. in 2023, we conducted a one-hour sexual harassment prevention training for all employees, and all employees completed the training. In the future, we will continue to pay attention to human rights protection issues, promote relevant education and training, and raise awareness of human rights protection to reduce the likelihood of related risks.

2. Does the company establish and implement proper employee benefit measures (including the salary, holidays, and other benefits) and reflect the corporate business performance or achievements in the employee remuneration?

2. We have a rigorous system in place with comprehensive management rules, including salary management rules and leave management rules, to clearly specify regulations regarding remuneration, leave and employee benefits. Employees also receive an annual health examination, three major festival allowances, wedding and bereavement support payment, and group insurance. For newcomers, we also provide special leave that is better than the provisions prescribed in the Labor Standards Act. In addition, we allocate 5% to 15% of our profits as remuneration to employees, so that the remuneration and the Company’s business are growing together. By taking such an approach, we also promote a harmonious labor–management relationship and fulfill corporate social responsibility.

3. Does the Company provide employees with a safe and healthy work environment, and provide safety and health education to employees regularly?

3. We To prevent workplace accidents, provide a friendly working environment, and ensure the safety of employees and contractors, we regularly conduct annual employee health checks and periodic labor safety first aid training. Additionally, we have established an internal epidemic response unit and developed an epidemic response plan to provide a safe and healthy working environment for employees. We also provide relevant health information on the intranet to enhance employees' safety and health knowledge.

Before outsourcing contractors perform construction work in our related facilities, we conduct occupational safety and health education and toolbox meetings to ensure a safe and healthy working environment. We also hold regular fire safety drills to establish immediate response mechanisms. In the fiscal year 112, no fire-related incidents occurred within our company, with zero casualties and no injuries among employees, representing 0% of the total workforce.

4. Does the Company have an effective career capacity development training program established for the employees?

4. KENMEC has formulated the “Employee Development Plan Rules”, and passed the Taiwan Training Quality System (TTQS) standards. We conduct systematic and structured talent cultivation and enhance the career development of our employees in a planned manner to help improve the Company’s business performance. Professional training for functions is provided depending on the needs of different duties. We hold exchange activities for newcomers, annual supervisor training courses for middle management cadres, and annual strategy-based activities for senior management.

5. Does the company comply with relevant laws and international standards with regard to issues of customer health and safety, privacy, marketing and labeling in relation to products and services and establish relevant policies and complaint procedures to protect the rights of consumers or customers?

5. We comply with applicable laws and regulations and international standards in respect of the marketing and labeling of our products and services. We have attained the ISO9001 2008 quality management verification and we comply with confidentiality agreements and personal data protection laws when it comes to the privacy of our customers. To ensure consumer rights, we have a customer service unit in place and an outlet for stakeholders to make complaints.

6. Has the company established the supplier management policy to require the supplier to comply with relevant regulations on issues of environmental protection, occupational safety and health or labor rights and provide its status of implementation?

6. We have established a "Supplier Management Policy" that includes provisions on environmental regulations, intellectual property rights, and integrity clauses in contracts with our key suppliers. This is done to safeguard the interests of all stakeholders. We have also developed a "Supplier Evaluation Survey" that requires suppliers to comply with relevant norms in environmental protection, occupational health and safety, and labor rights. We maintain good communication and interaction with our suppliers, aiming to establish a cooperative partnership and achieve mutual benefits. Additionally, we conduct regular assessments of our suppliers, and the evaluation scores impact the purchasing volume. This strengthens the cooperation aspects of our supply chain vendors and collectively contributes to enhancing corporate social responsibility.

5. Has the company taken reference from the internationally accepted reporting standards or guidance when preparing sustainability reports to disclose non-financial information? Has the report mentioned above been assured, verified, or certified by a third party?

We comply with the regulations and requirements of the competent authorities in carrying out our corporate sustainability initiatives. The company has The company complies with relevant regulations and guidelines set by regulatory authorities for corporate sustainability practices. We have established a Corporate Social Responsibility (CSR) section on our website and prepared the 2022 sustainability report in accordance with regulations, which was published on our website and the Public Information Observation System in 2023. We disclose relevant information based on actual operational practices.

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 any discrepancies between the principles and their implementation: None

VII.Other important information to facilitate better understanding of the company’s practices toward the promotion of sustainable development implementation:

1. Sustainable management: We set high ethical standards for ourselves alongside the Company’s management philosophy “ethical management and compassionate service”, and adhere to the labor and retirement laws and regulations of the government and competent authorities. Our employees all sign an “Integrity Commitment” and comply with the principles of integrity, confidentiality obligations and avoid conflict of interest. Our employees perform corporate activities upholding the concept of “prosperous company and happy employees” to fulfill CSR.
2. Human capital: KENMEC provides a motivating reward system, performance bonus, year-end bonus, comprehensive and open promotion channel; provides employees with a healthy and safe workplace with a breastfeeding room in place; plans annual health examinations, health education consultation and labor safety and health management to prevent occupational disasters and diseases; and organizes all-inclusive employee activities, such as departmental dinners, year-end meals, domestic and overseas employee trips, birthday parties, and special store discounts.
3. Environmental management: We conduct maintenance on water, electricity and air-conditioning equipment each year to save energy and reduce carbon emissions so that they stay on top form. At each plant, we promote environmental operation such as garbage classification, food waste recycling and recycling of waste scraps, and have installed a solar power system on the roof or ground to cut down power consumption. We do our utmost to implement environmental protection policies while at the same time raising employees’ environmental awareness.
4. In addition to cooperating with social welfare organizations in the three festivals, the company purchased gift boxes to give to employees, and also donated its own solar modules and systems to social welfare organizations, and Tai Chi was responsible for the follow-up 20 years of maintenance. The company's purchase amount from social enterprises in 2023 was NTD101 thousand.
5.  Supply chain management:Internally: We arrange a labor–management meeting on a quarterly basis and performance appraisal interviews every six months for supervisors to review work performance and communicate with employees regarding work issues. By doing so, we establish communication channels for our employees and at the same time we also encourage our employees to directly talk to management.Externally: Sufficient business and financial information is disclosed on the Company website and MOPS for investors or stakeholders.
6. Product features: Through our green manufacturing capabilities, we are engaged in green product manufacturing. We install solar power systems on roofs of office buildings and plants, public agencies, schools, outlying islands and residential homes as well as developing streetlight integrated solar power systems. We care very much about environmental protection and are doing what we can to save energy and reduce carbon, steadily creating value.