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Avalue Technology Inc. (hereinafter referred to as “Avalue” or “the Company”) publishes this Sustainability Report in accordance with the Rules Governing the Preparation and Filing of Sustainability Reports by TPEx Listed Companies. This is Avalue’s fourth Sustainability Report. Through this report, Avalue transparently discloses its sustainability initiatives and performance across the environmental, social, and governance dimensions. The report is intended to help stakeholders understand the Company’s efforts and achievements in advancing corporate sustainability and fulfilling social responsibility, as well as its commitment to continuously improving and strengthening sustainability governance.

Under the applicable regulatory requirements for the reporting year, Avalue is not yet required to obtain external assurance or verification for its Sustainability Report. After considering applicable regulations, the maturity of its sustainability disclosures, and internal management processes, the Company did not engage a third-party organization to provide external assurance for this report. Nevertheless, to strengthen sustainability governance and improve the credibility of its disclosures, Avalue submits its annual Sustainability Report plan to the Sustainability Development Committee for review and approval. In line with the progress of its sustainability initiatives, the Company also plans to introduce professional consulting resources to support the preparation and review of future reports. This report has been prepared with reference to the GRI Standards, the Sustainability Accounting Standards Board (SASB) Standards, the Task Force on Climate-related Financial Disclosures (TCFD) framework, and applicable sustainability disclosure requirements issued by the competent authorities. Avalue will progressively improve the completeness and consistency of its disclosures in response to stakeholder concerns.

Once the Company’s sustainability disclosure mechanisms and related management processes become more mature, Avalue will carefully assess the feasibility of introducing third-party external assurance or verification in accordance with regulatory requirements and the actual progress of its sustainability initiatives. This will remain an important direction for enhancing the transparency and credibility of sustainability information.

The data and information disclosed in this report primarily cover the 2025 reporting year. Where appropriate, historical background information and subsequent developments are also included to provide a complete account of Avalue’s management approaches and performance across different aspects of sustainability.

The reporting boundary primarily covers the operations of Avalue’s key locations in Taiwan, namely the Liancheng headquarters, the Lide plant, and the Taichung office. The scope of financial information is consistent with the Company’s annual report and includes the parent company and its subsidiaries, thereby ensuring consistency and completeness of disclosure.

The statistical data disclosed in this report are primarily derived from internal statistics and surveys conducted by relevant departments. Financial data are drawn from financial statements audited by KPMG Taiwan and are presented in New Taiwan dollars.

To address stakeholder interest in Avalue’s sustainability practices, this report has been prepared in accordance with the GRI Universal Standards 2021 issued by the Global Reporting Initiative (GRI). It also complies with the Rules Governing the Preparation and Filing of Sustainability Reports by TPEx Listed Companies published by the Taipei Exchange. In addition, the report references the TCFD framework and SASB Standards to strengthen disclosure of climate-related risks and industry-specific information, thereby improving the transparency and comparability of sustainability information.

Compared with Avalue’s 2024 Sustainability Report, there were no significant changes to the reporting scope or the boundaries of material topics in this report. Any information extending beyond the established reporting boundary is separately explained in the relevant sections. In addition to disclosing information in accordance with the GRI materiality principles, Avalue continues to review and optimize its internal data collection processes and management mechanisms. Through continuous year-on-year improvement, the Company seeks to enhance the completeness and quality of sustainability-related data and ensure the reliability and consistency of its disclosures.

Avalue has established a clear and institutionalized internal review and approval mechanism for the preparation of its Sustainability Report. This process is designed to ensure that the disclosed information accurately reflects the Company’s actual operations while maintaining completeness and consistency. The ESG OFFICE coordinates and consolidates report content, which is then incorporated into the existing governance process of the Sustainability Development Committee for review and discussion. This provides an appropriate management foundation and decision-making support for sustainability disclosure.

The Sustainability Development Committee convenes regular meetings each year to review the progress of report preparation and the annual results of sustainability initiatives. The related implementation status is reported to the Chairperson, enabling senior management to understand both the disclosure of sustainability information and the actual progress of sustainability initiatives, while strengthening governance-level oversight and communication. At the beginning of each meeting, the ESG OFFICE presents the preliminary review results of completed report content, greenhouse gas inventory results, and progress on annual sustainability initiatives. To improve the quality of discussion, the ESG OFFICE completes data preparation and consolidation in advance in accordance with established procedures and provides relevant documents and presentation materials to committee members before the meeting. Key discussion outcomes and matters of importance are also incorporated into reports submitted to the Board of Directors, enabling the Board to remain informed of major sustainability governance issues.

During the meetings, each working group consolidates and presents the implementation status of sustainability initiatives and the relevant report sections within its area of responsibility. This process enables the Company to review annual achievements, confirm areas for future improvement, and ensure that the Sustainability Report comprehensively presents Avalue’s actual actions and development outcomes across the environmental, social, and governance dimensions.

Through this institutionalized internal review process, Avalue ensures that the preparation of its Sustainability Report not only complies with relevant domestic and international standards and requirements, but also consistently reflects the Company’s governance structure, operating practices, and long-term development direction. The report therefore provides stakeholders with sustainability information that is consistent, credible, and useful for reference.

In accordance with its annual disclosure plan, Avalue prepares and publishes a Sustainability Report each year. The report is made available every August on the Company’s official website and the Market Observation Post System, enabling stakeholders to obtain sustainability information in a timely manner. As the Company’s annual report is published in April each year, the Sustainability Report and annual report cannot be released simultaneously. Nevertheless, the information disclosed in this report is maintained consistently with the annual report and other publicly available information to ensure completeness and reliability.

Any of questions, suggestions, or comments regarding the contents of this report, please feel free to contact Avalue. We’re welcome and sincerely appreciate feedback from all stakeholders.