Material Aspects Identification

Our Company values the views of our stakeholders. Our stakeholders include shareholders and investors/creditors, government agencies, customers/debtors, current employees, potential employees, media, communities, and suppliers. We employed various channels and stakeholder communication to understand and identify their concerns. The Company conducts material assessments and reviews every year, of which the results are presented, along with the potential internal/external risks of financial-related business, and presented reports to the Board of Directors to implement Enterprise Risk Management (ERM).

The material topics for 2025 were analyzed following the GRI Sustainability Reporting Standards and reflecting the Company’s internal and external practices. Using the double materiality principle, we assessed both the "External Sustainability Impact Assessment" and the "Internal Financial Impact Assessment" of each sustainability issue. Through evaluation and discussion by the Corporate Sustainability Office, consultation with external experts, and consideration of industry trends, domestic peer focus, and the Company’s internal attention to these issues, a total of 12 material topics were ultimately identified.

Procedures for Identifying Material Topics

Step 1: Identify	Based on the GRI standards and upholding the dual importance principle, the Company selected 17 key sustainability issues by taking into account factors such as international standards (SASB, DJBIC, and TCFD), international trends, peer development in the industry, industry characteristics, and the concerns raised by stakeholders through communication channels.
Step 2: Evaluate	Based on the expertise of each sustainability group, the Company assesses the degree of internal and external impacts of each sustainability issue in the following manner: External Sustainability Impact Assessment: To evaluate the probability and magnitude of positive and negative impacts on the external economy, and environment, including impacts on their human rights (ESG) in each sustainability issue. ^Note1 Internal Financial Impact Assessment: To evaluate the potential financial impacts and likelihood of occurrence of various sustainability issues within the Company.^Note2
Step 3: Prioritization	External Sustainability Impact Assessment: To calculate the impact level of each sustainability issue based on the probability and magnitude of positive and negative impacts and rank the impact levels accordingly. Consider sustainability issues with a positive or negative impact score of 3 or higher to be material issues for the Company. Internal financial Impact Assessment: The assessment of the degree of financial impact indicates that a score of 3 or higher signifies a potential for material financial impact and is considered a material issue. In 2025, 12 material topics were identified and confirmed by the head of the Corporate Sustainability Office and the leaders of each sustainability group to ensure that important ESG information has been fully disclosed in the report.
Step 4: Review	After the completion of the report, the Corporate Sustainability Office's groups conduct a final review and report to the Sustainable Development Committee and the Board of Directors to determine whether there are any ESG information and performance improperly or unfaithfully expressed. The results of the identification of material topics and feedback from stakeholders are also used as an important reference for the next annual report.

Note：

The positive impact assessment focuses on the probability of occurrence, as well as the size and scope of the impact. The negative impact assessment focuses on the probability of occurrence and the severity of the impact.
Evaluate the financial impacts for the current year, potential future financial impacts, and the likelihood of future risks and opportunities.

Ranking of Material Topics for Double Materiality Identification

Material Topics and Their Impact Boundaries

In 2025, 12 material topics were identified, and remained the same ones as those identified in 2024. The results of the analysis differed only in the impact level order. The following is an analysis of the involvement levels of these material topics in terms of the "Impact Categories" and "Impact Dimensions".

Risk Management and Strategies for Material Topics