Employee Remuneration and Benefits

n Employee Benefits

In order to become an excellent and sustainable enterprise, EMC insists on putting people first and commits to providing employees with a remuneration system superior to that of peer industries. The company strives to improve employee benefits, cares about employees’ physical and mental health and quality of life, and aims to create a friendly work environment that demonstrates gender equality, multicultural integration, and multi-generational composition. The company has developed various systems for employees’ safety and provides employees with retirement benefits (labor pension), labor insurance, and health insurance as well as comprehensive education and training and incentive compensation in accordance with the law. The relevant remuneration policies are as follows:

■ Employee remuneration and year-end bonus are given based on the achievement rate of annual business goals (no employee stock ownership plans are provided)

■ Management bonuses are offered for management personnel based on the achievement rate of annual business goals and employees’ performance achievements

■ Monthly performance bonuses are given based on performance achievements

■ A retirement system has been implemented in accordance with the Labor Standards Act

■ Labor insurance, national health insurance, and employee group insurance (including term insurance, accident insurance, and medical & occupational accident insurance) are provided. In Mainland China plants, social insurance and the Housing Provident Fund are provided.

■ Regular health checks for employees are provided

■ Various employee training courses and reading workshops are provided on a regular basis

■ Healthy, nutritious, and delicious free meals are provided for lunch and dinner

■ Free employee uniforms

■ Parking is provided for motorbikes (free) and cars

■ Dormitories are provided

■ Year-end banquets

■ Assistive living supplies were distributed on a quarterly basis during the COVID-19 pandemic period

■ Parental leave (Taiwan plants) and childcare leave (Mainland China plants)

n Employee Remuneration

Employee salary standards are formulated by the Human Resources Department based on market salary, the company’s financial status, and organizational structure. The overall remuneration is determined according to employees’ individual professional skills, job responsibilities, work performance, and achievement status of the company’s operating goals. The salaries of new employees do not differ on account of gender, race, political affiliation, ideology, religious beliefs, sexual orientation, or marital status. The starting salary is higher than the basic salary regulated by the government. The core principle for salary calculation lies in a comprehensive consideration of employees’ expertise and the positions held.

Statistics of new hires’ salaries by gender (disclosed to the hundredth)

Entry-level employees’ basic salary

Gender	Taiwan Plants	Elite Electronic Material (Kunshan)	Elite Electronic Material (Zhongshan)	Elite Electronic Material (Huangshi)
Entry-level minimum wage (Amount)/per month	NTD28,670	RMB3,170	RMB3,120	RMB2,490
Ratio of the Company’s entry level salary to the basic minimum wage (%)	104.3%	127.3%	164.2%	127.7%

Ratio of the renumeration to the basic minimum wage for various employee categories:

Note:

1. The statistics of Taiwan plants were calculated by comparing the 2024 basic minimum wage announced by the Ministry of Labor (NT$27,470) with the Company’s entry level salary for each employee category.

2. The statistics of Elite Electronic Material (Kunshan) were calculated by comparing the 2024 minimum wage announced by the Suzhou Municipal Human Resources and Social Security Bureau (CN¥2,490) with the Company’s entry level salary for each employee category.

3. The statistics of Elite Electronic Material (Zhongshan) were calculated by comparing the minimum wage announced by the Zhongshan Municipal Government (CN¥1,990) with the Company’s entry level salary for each employee category.

4. The statistics of Elite Electronic Material (Huangshi) were calculated by comparing the 2024 minimum wage announced by the Provincial General Office (CN¥1,950) with the Company’s entry level salary for each employee category.

5. In 2024, the ratio of the annual total remuneration of EMC’s highest-paid individual to the median annual total remuneration of the organization’s other employees was 19:1. The ratio of the annual total remuneration of EMC’s highest-paid individual to the average annual total remuneration of the organization’s other employees was 15:1. In 2024, the ratio of the year-over year percentage increase in the annual total remuneration of EMC’s highest-paid individual to the year-over-year percentage increase in the annual total remuneration of the organization’s other employees (not including the highest-paid individual) was -0.2:1.

Ratio of Basic Salary and Remuneration of Women to Men

Employee Category	Taiwan Plants			Elite Electronic Material (Kunshan)			Elite Electronic Material (Zhongshan)			Elite Electronic Material (Huangshi)
	Male (people)	Female (people)	Pay Ratio Female : Male	Male (people)	Female (people)	Pay Ratio Female : Male	Male (people)	Female (people)	Pay Ratio Female : Male	Male (people)	Female (people)	Pay Ratio Female : Male
Managerial personnel (rank of manager or above)	86	12	0.9:1	14	2	0.9:1	15	3	0.8:1	6	0	N/A
R&D personnel	94	18	1.1:1	83	20	0.9:1	52	11	1:1	0	0	N/A
Onsite technical personnel	566	85	1:1	1,461	284	0.9:1	763	157	0.9:1	679	123	0.9:1
Sales, administrative, and other personnel	175	73	1:1	156	85	0.8:1	98	74	0.8:1	63	43	0.8:1

n rental Leave (Statistics of Taiwan plants only)

	2022			2023			2024
	Male	Female	Total	Male	Female	Total	Male	Female	Total
Number of employees entitled to unpaid parental leave	47	11	58	45	9	54	82	18	100
Number of employees who applied for unpaid parental leave	5	2	7	3	5	8	7	5	12
Number of employees expected to return to work (A)	6	2	8	1	4	5	7	3	10
Number of employees who returned to work (B)	5	2	7	0	3	3	3	3	6
Return rate (B/A)	83.33%	100%	87.5%	0%	75%	60%	42.9%	100%	60%
Number of employees who returned to work in the previous year (C)	0	2	2	5	2	7	0	3	3
Number of employees who returned to work in the previous year and have continued to work for 1 year or longer (D	0	2	2	5	2	7	0	3	3
Retention rate (D/C)	-	100%	100%	100%	100%	100%	-	100%	100%

Note： The workforce data in this report only show the statistics for Taiwan (including foreign workers).

n Work–Life Balance

EMC is committed to creating a friendly work environment where employees can interact with each other in their time after work, thereby promoting the spirit of teamwork and employees’ physical and mental health. The Company believes that a good corporate culture is not established through professional performance alone, but also through employees’ sense of belonging and enhanced job satisfaction achieved by means of diverse activities.

Therefore, the Company regularly organizes various activities to encourage employees to communicate and interact in relaxed settings, including ball games, fun competitions, and festival activities. For example, sports competitions not only strengthen teamwork but also promote a healthy lifestyle. Through festival activities, employees can enjoy a festive atmosphere with company fellows and reinforce mutual comradery. These activities not only enrich employees’ workplace experience but also effectively improve employee satisfaction and retention rate.

Badminton Club Activity  (Taiwan Plant)	Lantern Festival Riddle Guessing Activity (Elite Electronic Material [Zhongshan])	Tug-of-war Competition (Elite Electronic Material [Kunshan])	Moon Festival Party (Elite Electronic Material [Kunshan])

Talent Development, Education, and Train

n Employees’ Further Education and Training

EMC has established the Education and Training Operating Procedures, which are used as the basis for conducting various types of education and training. This training aims not only to enhance the skills and techniques necessary for employees to perform their duties and improve work efficiency but also to effectively utilize human resources, align employee competencies with the Company’s development goals, and enable employees and the Company to move forward hand in hand.

The Palace of Learning for Employees - EMC Academy’s Philosophy and Achievements

EMC has established the EMC Academy to provide employees at all levels with systematic training. The Company’s blueprint for learning takes the values of Commitment, Teamwork, and Value Creation as its foundation, the eHRD learning platform as its support pillars, and differentiation by employees duties and ranks as its roof beams. To provide more convenient and diverse learning experiences and effectively help employees develop professional skills, the E-Learning platform was officially launched in 2025.

EMC invests ample resources in employee training from the moment new hires join the Company. Moreover, EMC implements various training programs, such as on-the-job training and self-study, to attain optimal training results. Furthermore, the Company promotes annual highlight projects according to its annual business goals and external trends to effectively respond to changes in the environment and closely integrate the training trajectory with the company’s strategies.

EMC Academy Framework	E-Learning Platform

Reinforcement of Competence Development and Friendly Learning Experience

With the aim of continuously improving the Company’s competitiveness and facilitating employees’ professional development, in 2024, the Company launched various training projects based on EMC’s training systems that focused on reinforcement of competence development and friendly learning experience.

Training Plans		2024 Achievements
New employee training	Employee onboarding training Employee onboarding training courses are organized to help new employees quickly adapt to their roles and understand the Company’s culture. The course contents encompass corporate culture, the organization’s systems, basic work norms, core competencies, etc.	l Participants: New employees l Total participants/hours: 2,053 employees/30,457 hours
Professional training	Plant-related professional training With the aim of developing complete learning plans and standardized training materials for production line personnel, the Company invites experts from relevant plant departments to draw up learning maps and provide online courses for new hires to learn in an efficient, effective, and systematic way so that they can quickly adapt to production line procedures.	l Six major professional programs, and 78 online courses, totaling more than 20 hours l New employees will be scheduled to take courses related to their work in 2025
Management training	Onsite supervisor management skills The onsite supervisor management skills courses are aimed at strengthening onsite supervisors’ management skills and improving their leadership and implementation competence for day-to-day operations. The course contents encompass onsite management concepts, practical exercises and case discussions.	l Participants: Onsite supervisors l Total participants/hours: 541 employees/4,328 hours l Target group’s training completion rate: 97%
	Performance management and interpersonal skills The performance management and interpersonal skills courses are aimed at improving managers’ leadership and communication skills when carrying out performance management. The course content encompasses performance target setting, process tracking, feedback techniques, and mock face-to-face performance meetings.	l Participants: Personnel with a rank of manager or above l Total participants/hours: 193 employees/1,351 hours l Target group’s training completion rate: 98%
	Recruitment Interview Skills The recruitment interview skills courses are aimed at strengthening supervisors’ talent-recognition ability and communication skills for recruitment procedures. The course content encompasses pre-interview preparation, behavioral interview techniques, key question design, and assessment principles.	l Participants: Supervisors engaged in recruitment l Total participants/hours: 75 employees/112.5 hours l Target group’s training completion rate: 97%
Learning platform	Introduction of the E-Learning Platform The Company has introduced a professional and complete online training system to effectively manage its growing number of E-Learning courses. The platform provides a user-friendly learning mode and allows employees to create personalized learning schedules that accommodate their work commitments. Through the introduce of this platform, learning resources will be effectively utilized and managed to create an optimal learning environment for employees.	l Completed the introduction of the E-Learning Platform, with more than 100 courses provided for learning (officially launched in January 2025).

Note：In 2024, a total of 2,053 participants attended online quality-related training courses across the Taiwan and Mainland China manufacturing sites, accumulating 521.5 training hours.

Achievements

Functional Training for the Group’s Plant Supervisors

n Performance Management

Performance appraisal is a measure that allows an organization to understand the implementation status and progress of scheduled programs through objective performance standards and fair appraisal procedures, which can be referenced for human resource planning such as salary adjustments, transfers, promotions, and other operations. Performance appraisal also provides employees with developmental feedback and information to clarify the relationship between performance goals and organizational development strategies. Performance appraisal feedback guides employees and assists them in realizing their potential by encouraging them to improve and develop themselves.

Appraisal items and frequency are determined based on the targets being appraised, the content of which is summarized in the table below:

Structure of Employee Appraisal	Items for Appraisal	Appraisal Timing
New Hires	Learning attitude and ability, interpersonal interaction, professional performance	Three months (before the expiry of probation period)
Direct Labor	Work performance, work attitude assessment, competence and motivation	Monthly
Indirect Labor		Quarterly
Managerial Leaders	Work performance evaluation and competence development evaluation	Yearly

Note：Scheduled appraisals are carried out during an employees’ tenure. In 2024, performance appraisals were completed for 100% of employees (excluding those on leave due to work-related injuries and those on unpaid leave).

Retirement System (Only Taiwan Plants’ Data is Disclosed)

In order to encourage employees’ professional commitment and assure employees of stable living after retirement, EMC has formulated the Directions for Employee Retirement and allocates pensions for all employees in accordance with regulations. Additionally, a Pension Supervisory Committee has been established in accordance with the law to take responsibility for the implementation of pension management and retirement measures for employees covered under the old pension system. According to the old pension system, 2% of the monthly pay of employees with tenure acknowledged under the old pension system will be allocated to the old-system retirement pension account at the Bank of Taiwan on a monthly basis. Actuaries are appointed and actuarial reports are submitted on a yearly basis to ensure that sufficient funds have been allocated to protect the rights and interests of employees. Furthermore, in accordance with the new labor retirement system, the company allocates 6% of employees’ monthly pay every month to the individual retirement account in accordance with the employee’s pension level. In addition to the regular allocation made by the company, employees can also choose to deposit up to 6% of their pension fund in special accounts for tax exemption.

Employees who meet the statutory retirement conditions may apply for retirement. After the retirement procedures are completed, those with tenure acknowledged under the old pension system can receive their pensions from the old system, and the pensions deposited in the individual special accounts can also be withdrawn by law when employees reach the age of 60. Five employees applied for retirement in 2023, and their pension funds under the old pension system have been settled and paid in accordance with the law. Nine employees applied for retirement in 2024, and their pension funds under the old pension system have been settled and paid in accordance with the law.

Human Rights, Employee Communication and Care

n Human Rights Policy

As a corporate citizen of the global community, EMC upholds the Responsible Business Alliance (RBA) Code of Conduct, Social Accountability 8000 (SA 8000) standards, and other internationally recognized human rights norms, including the Universal Declaration of Human Rights, the International Labour Organization standards, and the UN Guiding Principles on Business and Human Rights. On the basis of the aforementioned guidelines and principles, as well as the local laws and regulations of the locations in which it operates, EMC has formulated fundamental labor standards and established the Company’s Labor and Ethical Management Code of Conduct, Corporate Social and Environmental Responsibility Policy Statement, and Corporate Social Responsibility Best Practice Principles as guidelines for the practice of corporate social responsibility. ()

EMC regularly examines its operations and related activities through practices such as paying attention to major social issues, data monitoring, and questionnaire surveys to identify and assess the risk groups and potential human rights risks that it may confront. The Company develops corresponding control plans for human rights issues based on potential risks, and it continuously monitors and improves the implementation results. In 2024, the Company provided a total of 4,584 hours of human rights protection related training to 2,389 participants. EMC will pay constant attention to human rights issues and promote relevant education and training to raise awareness of human rights protection and reduce possible human rights risks.

Human Rights Management Policy	Specific Plans
Provide a safe and healthy work environment	l Please refer to the information about “Building a Safe and Healthy Workplace” disclosed in EMC’s Sustainability Report.
Help employees maintain physical and mental health and work–life balance	l healthy, nutritious, and delicious free meals for lunch and dinner. l Conduct regular employee health checks. l Provide labor insurance, national health insurance, and employee group insurance (including term insurance, accident insurance, and medical & occupational accident insurance).
Provide competitive remuneration and promising career development opportunities	l Provide a remuneration system superior to that of peer companies. l Allocate employee remuneration and various bonuses based on each year’s business target achievement rate and performance status. l Offer opportunities for on-the-job training and domestic/overseas rotation.
Prohibit forced labor and comply with local governments ’labor laws	l Explicitly prohibit the use of child labor and ensure that no laborers under the legal working age are employed. Protect the physical and psychological health and safety of underage employees and never assign them to dangerous work. l Implement a leave system and encourage employees to maintain a work–life balance.
Require suppliers to comply with human rights clauses, and examine their practices through audits	l Require all suppliers to complete the Sustainable Development Self-Assessment Form and conduct audits on an irregular basis.

n Employee Communication and Care

Since no labor union has been established at EMC’s Taiwan plants, no collective bargaining agreement has been signed. EMC has formulated the Regulations for Implementing Labor–Management Meetings in accordance with Article 83 of the Labor Standards Act and relevant regulations announced by the Ministry of the Interior, based on which labor–management meetings are held regularly for labor–management negotiation and discussion of labor-related issues. The labor–management meeting participants comprise the same number of representatives from both the labor and the management sides, which in principle is a minimum of 5 and a maximum of 15 representatives for each side. Labor representatives are directly elected by all workers and serve a 4-year term. The representatives may serve consecutive terms if reelected. Labor–management meetings are held once every 3 months. Currently there are 10 management representatives and 10 labor representatives for the two plants. All employees can make suggestions on Company issues through management and labor representatives. During the quarterly labor–management meetings, labor representatives can clearly learn about the Company’s recent important operational information, workforce status, and labor related communication issues; this facilitates the establishment of harmonious labor–management relations and the promotion of labor–management collaboration. Labor Unions have been established at EMC’s plants in Mainland China. No collective bargaining agreement has been signed. Committee representatives have been elected in accordance with the Regulations on the Fundamental Organizational Election Affairs of Labor Unions of the People’s Republic of China to facilitate communication through regularly held internal meetings. The Labor Union status of the plants is listed in the table below:

Labor–Management Meetings

Plant	EMC’s Taiwan Plants	Elite Electronic Material (Kunshan)	Elite Electronic Material (Zhongshan)	Elite Electronic Material (Huangshi)
Union status	No labor union has been established for EMC, so no collective bargaining agreement has been signed. Communication is carried out in the form of Labor–Management Meetings (composed of 10 management representatives and 10 labor representatives).	1. A Labor Union has been established. 2. Meetings are held on a monthly basis by all union members, through which the establishment of harmonious labor–management relations and the promotion of labor management collaboration is facilitated. (Seven meeting representatives have been set.)	1. Personnel of each location hold communication workshops on a quarterly basis and record meeting minutes for subsequent tracking and improvement. 2. The communication workshops shall facilitate harmonious labor– management relations, through which the opinions, suggestions, complaints, etc. proposed by employees to the Company can be immediately received and promptly handled.	The first Member Representative’s Conference of Elite Electronic Material (Huangshi) Co., Ltd. Was successfully held on March 17, 2022, with a total of 41 representatives attending. Through the conference, the plant’s first Labor Union Committee, Budget Review Committee, and Female Employee Committee have been formed.

Moreover, the company has formulated the Measures for Employee Mailbox Management, according to which an Employee Opinion Form can be filled out and submitted in the following situations:

1. When employees would like to make suggestions on issues related to the Company’s management, benefits, work environment, etc. or something about the individual’s life.

2. When employees would like to report illegal practices or complain about inequality in the workplace.

3. When employees’ doubts or expectations fail to be dealt with or transferred to a higher level of management after the issues have been fully described and communicated to their team leaders, or when the issues of concern are related to their team leaders.

The Employee Mailbox is placed in the employee canteens at each plant, and it is checked every week for letters to be collected. Employees can also send mail to the mailboxes of each business unit.

The Company maintains the confidentiality of employees who submit opinions, and promises that employees will not suffer any reprisal or unfair treatment as a result of filing a grievance. If a submitted opinion is helpful to the company, the submitter will be rewarded after the submission is recognized, and the case will be handled in a public or confidential manner depending on the nature of the case. All mail will be responded to in writing or through other means within 3 months after receipt, and a carbon copy will be sent to the President’s Office. A total of 22 suggestions were received in 2024 (2 from Taiwan, 15 from Kunshan, 5 from Zhongshan, and 0 from Huangshi). No complaints or grievances were received in 2024.