Employee Policies and Overview

The Company is a traditional manufacturer, so the majority of on-site workers are male. However, regardless of gender, every colleague is given equal standards in terms of training, compensation, and promotion opportunities. In compliance with labor-related laws, gender equality, and non-discrimination principles, our recruitment policies prohibit any form of discrimination based on gender, race, age, marital or family status, and strictly forbid the employment of child labor. We expressly prohibit forced labor in accordance with the law, and these provisions are clearly stipulated in our Company Management Regulations.

The Company and each factory hold regular (or irregular as needed) labormanagement meetings every quarter. Work hours, breaks, and leave for employees of various positions in each unit are arranged according to the Company's industry attributes and business needs. Relevant labor agreement terms on labor conditions are approved by representatives from both labor and management during these meetings. In 2024, a total of 5 labor-management meetings were held. Resolutions passed during these meetings included issues such as employee travel subsidies, birthday bonuses/year-end gifts (vouchers), revision of the "Procedures for Handling and Disciplinary Action regarding Workplace Sexual Harassment," and adjustments to the subsidy amount for corporate grand floral baskets.

To uphold the basic human rights of employees and stakeholders, the Company supports and follows the United Nations' Universal Declaration of Human Rights, respecting internationally recognized basic human rights. In accordance with the guiding principles of the declaration, the Company has formulated its human rights policy, including providing a fair and inclusive working environment, respecting workplace human rights, providing a safe working environment, and safeguarding information security. In 2024, no discrimination incidents occurred within the Company, nor were there any instances of child labor or forced labor.

Additionally, to maintain labor-management harmony and compliance with relevant laws and regulations, the Company has established a grievance system. Employees can file grievances through a dedicated phone line(02-25135655) or email to HR manager
(comment@evergreennet.com).

Manpower Structure

As of the end of December 2024, the Company had 666 employees. All employees are full-time and permanent, with no temporary or part-time staff, and there are no employees that have "no guaranteed hours." 100% of the supervisors in management roles have Taiwanese nationality and were promoted from entry level. They receive training on rotations based on organizational and business requirements.

In compliance with relevant labor laws, such as the Diverse Employment Program and People with Disabilities Rights Protection Act, the Company meets the requirements of employing minorities or the underprivileged, continually promoting a friendly workplace.

Non-employees or external workers refer to individuals who work for the Company but are not officially employed by the Company. These are contractors engaging in various types of work such as cleaning, security, catering, steel structure processing, scrap handling, container maintenance, and construction site steel structure installation. In 2024, there were a total of 868 such workers, with no significant change compared to the previous year.

Talent Recruitment and Turnover

Employees are the Company's most important asset, as well as the main driving force of corporate growth. The Company upholds the principles of gender equality and non discrimination. Our recruitment policy does not permit discrimination based on gender, race, age, marital and family status and we do not allow the use of child labor. When new employees report for duty, we provide pre-employment training, which includes an introduction of the work environment of each department and organization, business philosophy and professional ethics of the corporate culture, ethical corporate management and code of conduct, description of the management system and welfare in important HR rules and human rights policies, sexual harassment prevention, information system operations, occupational safety and health, and other basic guidelines to help new employees learn and adapt to the work environment. In 2024, 152 employees reported for duty. Among them are 16 female employees and 136 male employees (including foreign employees).

The Company upholds the principles of gender equality and non-discrimination. Our recruitment policy does not permit discrimination based on gender, race, age, marital and family status and we do not allow the use of child labor. Regardless of training, remuneration, or promotion opportunity, the Company treats every employee (regardless of gender) to the same standards.

Moreover, to ensure harmonious labor relations and compliance with related laws and regulations, the Company has established complaint handling measures. To prevent workplace sexual harassment, protect gender equality and human dignity, the Company has also established Measures of Prevention, Correction, Complaint, and Punishment of Sexual Harassment at Workplace according to the Regulations for Establishing Measures of Prevention, Correction, Complaint, and Punishment of Sexual Harassment at Workplace, which is announcedon the electronic information platform for employees' reference. Employees can file complaint via phone(02-25135655) or mailbox
(comment@evergreennet.com). The Company has also formed "Sexual Harassment Investigation Taskforce" to handle related complaints. In 2024, the Company did not receive any complaints of infringement of privacy from clients, and there were no cases of discrimination or complaints.

In 2024, neither the Company nor its suppliers had employees forming labor unions or signing collective agreements. However, in order to respect the freedom and rights of employees to associate, we regularly hold labor-management meetings as a platform for coordination and communication, ensuring the protection of workers' rights and interests.

The Company values human rights and complies with labor related laws and regulations, and constructs multiple grievance channels, which are handled by supervisors of all levels and the human resources unit, while also establishing complaint handling measures to make sure that all complaints are handled in a confidential, timely, and secret manner, ensuring smooth channels of communication between employees and supervisors. The Company respects its employees' freedom of association.

Salary and Benefits

The Company has established a Renumeration Committee and formulated the Organization Regulations of the Renumeration Committee through approval by the Board of Directors. Additionally, the basic salaries of the employees are all higher than the statutory minimum wage. The salary is determined by academic records as well as professional skills and experience, but is not determined by gender, region, ethnicity, or political views. The Company sets the appropriate salary structure for different professional ranks. All salaries, allowances, performance bonuses, etc. are provided in accordance with the standards set in the Labor Standards Act. We regularly survey the salaries in the industry to ensure that the overall salary of the Company is in line with the market standard and thus maintain competitiveness in regards to salary. If the Company makes a profit in the year, the Company allocates no less than 0.5% of the annual profits for employee compensation in accordance with the Company's Articles of Incorporation. Additionally, year-end bonuses and on-site performance bonuses are granted based on operational performance and individual work performance, to reward employees. Furthermore, ESG (Environmental, Social, and Governance) promotion keys, such as environmental protection, energy conservation, carbon reduction, resource recycling, green procurement/supply chain management, occupational safety and health, and information security, have been incorporated into overall performance assessments and reward considerations. This is done to incentivize all employees to collectively strive towards fulfilling the Company's social responsibility for sustainable business operations.

The Company may terminate a labor contract in one of the following situations:

• Where the employers' businesses are suspended, or has been transferred.
• Where the employers' businesses suffers an operating losses, or business contractions.
• Where force majeure necessitates the suspension of business for more than one month.
• Where the change of the nature of business necessitates the reduction of workforce and the terminated employees can not be reassigned to other suitable positions.
• A particular worker is clearly not able to perform satisfactorily the duties required of the position held.
• When other reasons of termination of labor contract arise.

Where an employer terminates a labor contract the provisions set forth below shall govern the minimum period of advance notice:

• Where a worker has worked continuously for more than three months but less than one year, the notice shall be given ten days in advance.
• Where a worker has worked continuously for more than one year but less than three years, the notice shall be given twenty days in advance.
• Where a worker has worked continuously for more than three years, the notice shall be given thirty days in advance.

Employee Development and Training

Talent Cultivation

The Company attaches great importance to the physical and mental health of employees, workplace safety, environmental protection, and employee compliance with moral codes and workplace ethics. We have created a comprehensive training system to provide employees with sufficient training. We cultivate excellent employees with the comprehensive training system to ensure smooth operations of the Company. As employees are the most important assets of the Company, we value their rights and opinions and pay special attention to their safety and health. The Company always pays attention to the safety and health of the work environment, and takes care of the employees in all aspects to cultivate employees and help them develop and improve themselves. We want employees to be happy at work and pursue their personal development so that we can make Evergreen Steel a happy enterprise with harmonious labor relations.

The Company provides diverse training programs including employee education and training, which are divided into pre-employment training and on-the-job training. Regarding pre-employment training: the HR Department arranges educational training for new employees, which includes corporate culture and core values, HR regulations, information security and awareness, employee health education, occupational safety and health education, code of ethics, integrity guidelines, human rights protection, and sexual harassment prevention.

Through relevant education and training, employees not only can enhance their professional capabilities but also assist the Company in acquiring business, contracts, and professional certifications. Through diverse learning resources, the Company helps employees to enhance their professional skills and develop potential, while also strengthening their continuous employability, and assisting them in career management and lifelong learning plans. Depending on the operational needs of each business unit and compliance with occupational safety and health, fire regulations, etc., the Company fully subsidizes employees to obtain relevant certifications. In 2024, a total of 123 certifications were obtained, and the main categories of certifications obtained over the past three years are as follows:

In 2024, there were a total of 152 new employees (including international migrant workers), all of whom received orientation training on their first day to help them become familiar with the work environment and quickly adapt to their roles.

We evaluate the work skills, work performance, and conduct of employees in a fair, impartial, and reasonable manner. The Company requires supervisors of each level to produce records of their employees' work, conduct, and service attitude on a regular basis and implement the performance evaluations in March and September each year to review the results. All employees will be reviewed based on their employee levels and the aforementioned principles, and the performance evaluation results are not sorted by gender-based differentiation. The performance evaluation results of all employees are sorted by employee level with no gender-based differentiation. All evaluation results are kept by the HR unit as confidential documents, and are not disclosed except with the knowledge of the evaluator and the HR supervisor. The evaluation results are used as references for promotions, salary adjustments, and distribution of the year-end bonus, and used as an important basis for talent cultivation and support for employee development. Performance evaluation ratio are listed below:

Employee Care

Evergreen Steel is committed to maintaining a rational and compliant system for all employment-related matters. Attendance, leave, retirement, and related practices are handled in accordance with the provisions of the Labor Standards Act. Additionally, annual bonuses are granted based on the Company's operational performance and individual performance evaluations. Under a well-structured personnel and welfare system, the Company enjoys a sound and harmonious labor-management relationship. Key agreements and employee rights protections are outlined as follows:

To encourage employees to embody the "Evergreen Spirit" in their daily work, the Company holds an annual selection of model employees. Each department nominates candidates who best exemplify the spirit of "Challenge, Innovation, and Teamwork." These exemplary employees serve as role models for all colleagues and are publicly recognized and awarded medals/gift vouchers. Additionally, the Company organizes retirement parties to bid farewell to retiring employees and present them with commemorative gifts as a token of appreciation for their hard work and contributions during their tenure.

The Company's Labor Pension Supervisory Committee was established on January 23, 1987. It was approved in the Taoyuan County Government Fu-She-Lao-Zi No. 10389 Letter ( 府社勞字第 10389 號函). The Company established the "Employee Retirement Regulations" and appropriates 6% of the employees' total monthly salary to the dedicated account in the Bank of Taiwan as the pension reserve fund in accordance with Article 2 of the Regulations for the Allocation and Management of the Workers' Retirement Reserve Funds((full allocation of pension reserve in exclusive account)) .

According to the Labor Pension Act, the employer shall pay 6% of the employees' monthly salary as the pension reserve fund to the employees' personal pension account for all employees who opt for the pension system under the Act starting from July 1, 2005.

In 2024, the Company did not incur any losses due to labor disputes.

The Company proactively complies with government policies, encouraging childbirth, as well as those eligible to apply for paternal leave. All regulations regarding employees' unpaid parental leave are established in accordance with government regulations.