CSC

Functional team	Results of 2025
Corporate Governance and Ethical Corporate Management	Promoted listed and OTC group subsidiaries to endorse the TCFD (Task Force on Climate-related Financial Disclosures) initiative. All listed and OTC group subsidiaries have disclosed relevant information in their sustainability reports in accordance with the TCFD framework. In the results of the 11th Corporate Governance Evaluation, the Company and its listed and OTC group subsidiaries were all ranked within the top 6% to 20%. Continued to promote suppliers' endorsement of the “Supplier Code of Conduct.” Maintained zero major information security incidents.
Ethical Corporate Management	In 2025, CSC implemented the ISO 37001: 2016 Anti-Bribery Management System and successfully passed examination conducted by British Standards Institution. In 2025, CSC recorded zero material breach of laws and regulations. In 2025, the timely execution rate of Regulatory Compliance Determination exceeded 99%, while the ratio of outstanding internal regulations rectification pursuant to the aforementioned compliance work was below 1%. CSC will continue to strengthen the immediacy of the Regulatory Compliance Determination. In 2025, CSC promoted compliance and integrity management through awareness promotion and training programs, including: A total of 16 training sessions for new employees, with 116 participant attendances. Integrity management-related training programs, including intellectual property rights awareness and corporate management philosophy, reaching 3,352 participant attendances in 2025, with a total of 11,294 training hours completed.
Sustainable Environment Development	Continued implementation of air pollution reduction measures. Continued coordination with the Fengshan River reclaimed water project (including incremental compliance through reclaimed water substitution for the Hofa Industrial Park) and the introduction of Linhai reclaimed water. Establish a quick evaluation method for CO₂ adsorbents in co-production steel and chemicals process, with the goal of finding an adsorbent that can achieve 90% purity of the CO₂ product. Achieved a waste resource recovery and reuse rate exceeding 90%, with zero solidified waste sent to landfill. Continued deployment of renewable energy in alignment with national green energy policies and compliance with renewable energy usage requirements for major electricity consumers.
Employee Care and Social Engagement	4 singles networking events were held, with 272 participants in total. 2 psychological adaptation seminars were arranged; psychological counseling services were utilized by CSC employees, their family members, and employees of affiliated companies, totaling 536 service sessions. Childcare center for CSC employees' children was proposed and the planning is underway. A contract was signed with the selected professional childcare institution in November 2025, and construction commenced thereafter. The center is scheduled to officially open, begin operations, and enroll children in July 2026. In collaboration with the Kaohsiung Municipal Social Education Center, United Daily News, the Teacher Chang Foundation, and other organizations, a total of 10 ten seminars were held. Additional collaborations included promoting the preservation of shadow puppetry and string music with Kaohsiung Nanan Elementary School and conducted parent-child activities; cooperated with the Kaohsiung Children's Museum of Art to hold a series of Children's Day activities. Participate in overall community construction, the greening of major community parks and main roads, and engaged 2,200 people to join the water environment patrol team. Assisted the Labor Affairs Bureau of Kaohsiung City Government in producing video clips for its 2025 labor administration program, themed “Electrocution Laboratory: Welder Survival Challenge!!”. Provided support to the Institute of Labor, Occupational Safety and Health for the “Chemical VR Training Script Development Project” and the “Physiological Monitoring Project for High and Low Temperature Differences. Assisted domestic government agencies as well as associations and labor unions in organizing multiple occupational safety and health training courses and promotional events, including the “428 World Day for Safety and Health at Work” hosted by the Labor Standard Inspection Office, Labor Affairs Bureau of Kaohsiung City Government and the “Smart Occupational Safety and Sustainable Development Promotion Seminar” organized by the KCCTU. Organized a wide range of occupational safety-related training programs and promotional activities, including in-service regulatory certification training, immersive safety experience training, practical training on hazardous machinery operation and inspection, supervisor patrol and safety observation courses, and hazard prevention training for confined space operations.
Risk Management	In accordance with the Company's Risk Management Policies and Procedures, we have established and maintained an effective risk management framework. By utilizing the "Three Lines of Defense," we ensure the integrity of our risk management operations and implement a robust system of checks and balances. Regularly review the Company's operational, financial, information security, environmental, and compliance risks to respond to and manage potential threats in a timely manner, thereby avoiding or mitigating risk impacts. The Risk Management Execution Task Force periodically consolidates risk assessment results. These findings are reported to the Corporate Governance and Sustainability Committee and the Board of Directors during the first half of the year and at year-end to ensure proper oversight and control. Operations in 2025 : According to the 2025 assessments, items identified as high-risk include: " Demand may slow down or disappear due to tariff policies and export restrictions driven by protectionism" and " Restrictions on greenhouse gas emissions or rising emission costs" Relevant departments have been assigned to develop and execute follow-up risk management strategies and action plans. Due to the increased frequency of earthquakes over the past year and intensified exchange rate volatility in the first half of 2025, two new operational risks have been added: "Risk of old building collapse due to earthquakes" and "Risk of decreased demand caused by exchange rate fluctuations (rapid appreciation)." Given the rapid global changes in economic, social, and environmental landscapes, the Risk Management Group identified six emerging risk issues. Management prioritized the top three for focused monitoring: " Restrictions on greenhouse gas emissions or rising emission costs," " Demand may slow down or disappear due to tariff policies and export restrictions driven by protectionism," and " Deterioration in the corporate labor structure." Relevant departments have formulated mitigation and contingency measures accordingly. To foster a risk-aware culture and enhance internal awareness, we have drafted the Company's Risk Appetite Statement, referencing industry benchmarks and internal regulations.
Task Force on Energy Saving & Carbon Reduction and Carbon Neutrality	Strengthened greenhouse gas target management. In 2025, CSC continued to enhance its dual control framework for both the “total greenhouse gas emissions target” and the “carbon emissions intensity target,” with regular tracking and review to pragmatically deepen the Company's internal carbon management mechanisms. Continued to promote the “Greenhouse Gas Reduction Incentive Program” to drive company-wide carbon reduction momentum. In 2025, a total of 178 carbon reduction action plans were completed, achieving an estimated carbon reduction of approximately 71,000 tons of CO₂e. Strengthened the R&D organizational structure for carbon-neutral metallurgy by consolidating existing metallurgy unit into the "Low-carbon Blast Furnace Unit" and establishing a new "High-scrap-ratio Metallurgy Unit."
Task Force on Digital Transformation	Advanced CSC's digital transformation initiatives in alignment with the “Dual-Core” strategy and “Three Transformations” development framework. Modernized the ERP system by deploying value-added applications encompassing intelligence, visualization, mobility, and automation, thereby enhancing overall operational efficiency and quality. Restructured and continuously optimized the “Customer Order Management System,” aiming to boost satisfaction with export e-commerce services and increasing the adoption of self-service ordering among export customers. Continued to advance the adoption of innovative technologies—including remote human-machine collaboration, digital twins, hybrid cloud, and generative AI—to strengthen organizational knowledge transfer and further enhance operational efficiency. Conducted AI-related education and training programs, as well as digital transformation seminars, while continuously offering relevant courses through the digital learning platform to broaden the coverage of employee digital empowerment training. The “Smart Re-Engineering of Ironmaking Sintering” project was honored at the 2025 Ding-Ge Digital Transformation Award with the Grand Prize (First Place) in the Smart Manufacturing Upgrade & Transformation category (Large Enterprise Division), as well as the ESG Special Award. The project was also named a winner in Business Weekly's “AI Innovation Top 100” under the entry title “AI-Powered Sintering Intelligence Innovation.” Within the production division, five major smart projects were completed during in 2025 as part of the intelligent upgrade of the closed material yard. These initiatives increased coke and iron inventory capacity by approximately 20-40%, reduced demurrage costs and lowered raw material moisture levels, thereby contributing to reduced blast furnace coke oven gas consumption. In addition, the deployment of an Advanced Driver Assistance System (ADAS for overhead cranes significantly enhanced operational safety and operator efficiency).