Promotion item

Implementation status

Deviation from Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons

Yes

No

Summary

I.         Does the Company build the governance structure for promoting sustainable development and set full-time (part-time) positions for promoting sustainable development? Does the Board of Directors authorize the senior management to handle related matters and does the Board of Directors supervise the circumstances?

V

1.   Governance structure: The Board of Directors is the highest supervisory unit and is responsible for approving sustainability strategies and risk assessments.

2.   Implementation status:

(1) On 2025/07/28, the Board of Directors Approved the establishment of the position of Chief Sustainability Officer, with Chairperson Sih-Ming Li serving concurrently and being responsible for leading the ESG task force.

(2) ESG task force: Led by General Manager Hsiang-Wei Lo, with specialized sub-groups for corporate governance, sustainable environment, social welfare, and information disclosure.

(3) Reporting frequency: The responsible unit reports to the Board of Directors at least once a year. The implementation status was reported to the Board of Directors on 2025/02/13 and 2026/03/10, respectively.

3.   Describe the Board of Directors’ supervision of sustainable development:

To actively respond to the challenges of climate change, the Company launched a comprehensive greenhouse gas inventory plan in November 2025 in accordance with the standards of the competent authority. Using 2025 data as the core indicator, the Company will accurately calculate Scope 1, Scope 2, and fugitive emissions to establish a scientific carbon reduction baseline. These data are not only an important cornerstone for compiling the sustainability report, but also demonstrate the Company’s firm commitment to environmental stewardship and corporate responsibility while pursuing growth.

As described in the summary

II.        Does the Company perform risk assessments when dealing with environmental, social, and corporate governance-related issues that concern the Company’s operations according to the materiality principle and define related risk management policies or strategies?

V

1.   Risk assessment boundary

Covering the Zhonghe headquarters, Taichung/Tainan/Kaohsiung offices, and subsidiaries

2.   Risk assessment standards, process, results, and risk management policies or strategies for identifying material environmental, social, and governance issues

The ESG task force, through stakeholder questionnaire feedback in December 2025, held a material topic assessment results analysis meeting with the Chief Sustainability Officer, identifying five material topics: economic performance, market position, anti-corruption, customer health and safety, and marketing and labeling, and each team formulated corresponding management policies and actions.

No major deviations

III.      Environmental Issues

(I)       Has the Company set an environmental management system designed to industry characteristics?

V

The Company is engaged in the research and development and production of orthopedic medical devices and currently does not face any environmental management issues specific to the industry. Its headquarters and factory office are located in a building in Zhonghe District, New Taipei City. The production process does not generate waste gas, wastewater, or hazardous substances. The Company complies with the building management committee’s regulations regarding electromechanical systems, security, environmental cleanliness, and public spaces, and integrates these with its internal audit, internal control, and quality management (ISO 13485) requirements for synergy and smooth operations.

No major deviations

(II)     Is the Company committed to improving energy efficiency and using recycled materials with a low impact on the environment?

V

The Company is engaged in the R&D and production of orthopedic medical devices, and does not extensively use recycled materials with a low environmental impact. In its daily operations, the Company conserves water and electricity, implements electronic forms, maximizes the use of recycled paper, and practices sorting. These efforts are aimed at energy conservation and carbon reduction.

No major deviations

(III)   Does the Company assess the present and future potential risk and opportunities of climate change in relation to the Company and adopt related countermeasures?

V

The possible operational risks of climate change to the Company include resource shortages, transportation and supply disruptions, and raw material cost fluctuations caused by extreme climate change. Therefore, the Company has established alternative supplier information for key production raw materials. In addition, to mitigate climate change and create opportunities, the Company has incorporated environmental protection and energy-saving concepts into the product design stage to ensure that products minimize environmental impact throughout their life cycle. In addition to commencing the introduction of a greenhouse gas inventory this year, the Company also continues to promote energy-saving projects and monitor various energy consumption and energy-saving indicators.

No major deviations

(IV)   Does the Company make statistics on greenhouse gas emissions, water consumption, and total waste weight in the past two years, and formulate policies for greenhouse gas reduction, water reduction, or other waste management?

V

Data statistics and inventory planning:

The Company launched its greenhouse gas inventory operation in Q4 2025, in strict compliance with the regulations of the Ministry of Environment and relevant competent authorities, using 2025 as the base year to comprehensively collect data for Scope 1 (direct emissions), Scope 2 (energy indirect emissions), and related fugitive sources. These statistics will serve as the baseline for future carbon reduction targets and will also be incorporated into the preparation of the sustainability report to implement transparent disclosure and the commitment to sustainable operations.

Although the Company has not yet compiled statistics on greenhouse gas emissions for the past two years, 2023 to 2024, it has adopted the following measures in formulating energy-saving, carbon reduction, and greenhouse gas reduction initiatives:

1.   The office air conditioning system is centrally controlled, operating only during work hours. Lights are switched off during lunch breaks, and all non-essential lighting and computer equipment are turned off at the end of the workday to conserve energy and reduce carbon emissions.

2.   Promote paperless operations to reduce paper consumption and related consumables.

3.   Encourage employees to use eco-friendly tableware, implement garbage sorting and recycling.

4.   The Company's non-high-energy-consuming industries do not have or use facilities that generate large amounts of greenhouse gas. We have planted trees to increase green spaces and reduce the heat island effect, thereby minimizing our environmental impact.

Although the Company has not yet compiled statistics on water consumption for 2023 and 2024, the design of its medical material cleaning process allows repeated cleaning to reduce water consumption.

No major deviations

IV.      Social Issues

(I)       Does the Company formulate relevant management policies and procedures in accordance with relevant laws and regulations and the International Bill of Human Rights?

V

The Company complies with the Labor Standards Act and related laws and regulations, has established an "Employee Handbook," and respects international human rights conventions. The Company has purchased labor group insurance for employees and does not engage in illegal child labor or forced labor. The Company protects the legal rights of employees, and its employment policy provides equal treatment. The Company also holds regular labor-management meetings to safeguard the basic rights and interests of employees.

No major deviations

(II)     Does the Company formulate and implement reasonable employee benefits and measures (including salary, leave, and other benefits), and properly connect its operating performance or results to employee remuneration?

V

The Company follows the Labor Standards Act and related laws and regulations, has established work rules and salary cycles, including remuneration, leave, and other employee benefits, and regularly reviews work performance to adjust employee remuneration every year. The Company gives bonuses based on individual Performance, and in accordance with the Company's Articles of Incorporation, the Company appropriates a certain percentage of employee remuneration based on the Company's operating performance.

The Company has established a workplace diversity and gender equality policy. Convene labor-management meetings quarterly to provide group insurance for all employees.

No major deviations

(III)   Does the Company provide employees with a safe and healthy work environment, and provide employees with regular safety and health education?

V

The Company is classified as Class III "Low Risk" in the occupational safety business category. A Class A occupational safety and health supervisor is appointed in accordance with the law, and the occupational safety and health policy is regularly reviewed to meet the requirements of occupational health and safety laws and regulations, and to continuously provide employees with a safe working environment.

The Company provides employees with a warm, safe, and comfortable working environment, annual health check-up subsidies, public holiday leave, employee group insurance, and a monthly birthday celebration.

The Company had a total of 0 occupational accident cases in 2025.

No major deviations

(IV)   Has the Company established effective career development training programs for employees??

V

The Company encourages employees to pursue further education and training, with the aim of cultivating exceptional talent. Besides offering internal education and training programs, employees are also welcome to apply for external courses to enhance their capabilities and advance their career development.

In 2025, the Company organized a total of 1,104 hours of internal and external training courses – covering quality systems, technology cultivation, new employee training, and occupational safety – with 158 participants.

No major deviations

(V)     Has the Company complied with the relevant regulations and international standards and formulated policies for protection of consumers and clients’ rights and interests and grievance procedures with respect to consumer health and safety, customer privacy, marketing and labeling of products and services?

V

The Company is engaged in the research and development and production of orthopedic medical devices. The Company's products are certified by the strict laws and regulations of the countries where they are sold before being allowed to market them. The Company also abides by ISO13485:2016, the Medical Devices Management Act, the Medical Devices Advertising Act and its review principles, GMP, GDP, and other related laws and regulations and international standards. Relevant operating procedures are equipped with SOPs and records are retained, and the Company has purchased product liability insurance. The Company has also established a clear Customer complaint handling procedure, maintains good relationships with Customers, and has set up a sustainable development/stakeholder section on the official website to provide contact channels for feedback.

No major deviations

(VI)   Has the Company established supplier management policies which require suppliers to comply with regulations on environmental protection, occupational safety and health or labor rights, and reported the implementation?

V

All suppliers of the Company must pass a standard certification procedure before qualifying as suppliers. Materials intended for implantation in the human body require batch-by-batch submission of production inspection data for traceability. Incoming materials are subject to quality assurance inspection before acceptance into the warehouse; any failing materials will be returned to the supplier. Suppliers will undergo regular evaluations and on-site audits, and those failing to meet requirements will have their cooperation terminated immediately.

No major deviations

V.        Has the Company referred to international reporting standards or guidelines in its preparation of sustainability reports and other reports which disclose the Company's non-financial information? Have the aforesaid reports been assured or certified by a third-party verification agency?

V

The Company was listed on 2025/06/10 and will disclose the 2025 sustainability report before the designated deadline in 2026.

As the aforementioned report is under preparation, there is no assurance or guarantee opinion from a third-party verification institution.

In preparation

VI.      If the Company has adopted its own sustainable development best-practice principles based on the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies, please describe any deviation from the principles in the Company’s operations:

The Company’s “Sustainable Development Best Practice Principles” were Approved by the Board of Directors on 2023/04/10. On 2025/11/10, amendments were made in accordance with revisions by the competent authority to enhance the conservation of marine or terrestrial biodiversity and ecosystems, the sustainable use of resources, and fair and reasonable benefits. The Company will continue to design and improve trauma products suitable for Asians, promote the advancement of orthopedic medicine, fulfill corporate citizenship responsibilities, implement information transparency externally, and strive for harmonious labor-management relations internally, in line with the spirit of the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies.

VII.    Important Information that helps to understand promotion of sustainable development:

(I)       Environmental protection: Both the office and the factory promote energy conservation and carbon reduction initiatives, encouraging waste sorting and recycling, and the use of reusable chopsticks and cups, to minimize environmental impact.

(II)      Social Contribution: Providing high-quality, reasonably priced bone plates and agency products, offering physicians more user-friendly tools, enabling smaller surgical incisions for patients, providing better fixation, reducing patient pain, and accelerating recovery time.

(III)    Public welfare feedback: The Company implemented responsible procurement and, during the 2025 Mid-Autumn Festival period, commissioned the well-known brand “Aunt Stella Handmade Biscuits” and ”Charity-Brand Collaboration” to produce charity gift boxes, transforming commercial procurement into support for public welfare organizations.

(IV)   Consumer rights: strictly control product quality and obtain product liability insurance.

(V)     Human rights: Comply with labor-related laws and regulations, provide group insurance for all employees, regularly convene labor-management meetings, and share the Company's profitability status

(VI)   Safety and Health: Regular safety education and training are scheduled for employees, and health examination subsidies are provided; product manufacturing and quality inspection procedures have been established to ensure product safety, and the company has obtained ISO 13485 certification.

Items

Implementation status

1.  Describe the oversight and governance by the Board of Directors and management of climate-related risks and opportunities

On 2025/07/28, the Board of Directors Approved the establishment of the Chief Sustainability Officer position and appointed Chairperson Sih-Ming Li to concurrently serve as Chief Sustainability Officer. The General Manager is responsible for leading members of the ESG task force in the overall planning and promotion of environmental sustainability, social welfare, sustainability information disclosure, and corporate governance matters, and regularly reporting implementation progress to the Board of Directors.

2.  Describe how the identified climate risks and opportunities affect the Company's business, strategy, and finance (short-term, medium-term, long-term)

Risk impacts: Extreme weather events, such as typhoons and flooding, may cause supply chain disruptions and production stoppages; stricter environmental regulations may also increase carbon fee expenditures and compliance costs.

Opportunity impacts: Increasing market demand for low-carbon products enables the Company to enhance market competitiveness and develop green business opportunities through the research and development of sustainable technologies, such as the application of environmentally friendly materials.

3.  Describe the financial impact of extreme climate events and transition actions

Financial risks: Disasters may result in asset losses and repair expenditures; electricity shortages caused by rising summer temperatures will increase the Company's operating costs (electricity and water charges).

Financial opportunities: Through promoting energy-saving and carbon reduction measures and equipment replacement plans, the Company can reduce product energy costs and optimize operational efficiency in the long term.

4.  Describe how the identification, assessment, and management processes for climate risks are integrated into the overall risk management system

The Company has incorporated climate change into its risk management framework and reduced the risk of supply chain disruption by diversifying raw material sources and implementing preventive recovery plans.

5.  If scenario analysis is used to assess resilience in response to climate change risks, the scenarios, parameters, assumptions, analytical factors, and principal financial impacts used shall be explained.

Not currently implemented; will continue to evaluate and plan.

6.  If there is a transition plan for managing climate-related risks, describe the content of the plan and the indicators and targets used to identify and manage physical risks and transition risks

The Company commissioned a professional sustainable development consulting company in Q4 2025 to carry out two major projects: sustainability consulting and greenhouse gas inventory. The objectives include preparing a sustainability report and monitoring the overall target achievement rate of the ESG task force.

7.  If internal carbon pricing is used as a planning tool, the basis for pricing shall be explained.

Not currently implemented; will continue to evaluate and plan.

8.  If climate-related targets have been set, information such as the activities covered, greenhouse gas emission scopes, planning schedule, and annual progress achieved shall be explained; if carbon offsets or renewable energy certificates (RECs) are used to achieve the relevant targets, it shall

explain the source and quantity of the carbon reduction credits offset or the quantity of renewable energy certificates (RECs).

The Company will set annual greenhouse gas emission reduction targets. The current progress is that 2025 is used as the base year to conduct a greenhouse gas inventory (Scope 1, Scope 2, and fugitive sources) as the basis for subsequent reduction and preparation of the sustainability report.

9.  Greenhouse gas inventory and assurance status, reduction targets, strategies, and specific action plans

According to the Financial Supervisory Commission’s “Sustainable Development Roadmap for TWSE/TPEx Listed Companies” and relevant regulations, the mandatory schedule for greenhouse gas inventory and assurance applicable to Apis Biotech (capital of approximately NT$ 345 million) is as follows.

Mandatory inventory year: 2026

Mandatory assurance year: 2028

【Inventory Plan and Baseline Establishment】

The Company initiated a comprehensive greenhouse gas inventory plan in Q4 2025 in accordance with the regulations of the competent authority and the ISO 14064-1 international standard.

【Scope and Objectives】

1. Core indicators: Using 2025 data as the base year, the Company will accurately compile emissions for Scope 1 (direct emissions), Scope 2 (energy indirect emissions), and related fugitive sources to establish a scientific carbon reduction baseline.

2. Specific actions: Simultaneously implement old equipment replacement and power-saving plans, and use the inventory data as the cornerstone for preparing the sustainability report.