In 2025, the global political and economic landscape remained highly dynamic. Intensifying U.S.-China competition, supply chain restructuring and reshoring, rapid advances in artificial intelligence (AI), and escalating climate-related risks continued to create new challenges for businesses worldwide. As companies pursue operational growth and technological innovation, integrating sustainability into business strategy - while balancing resource efficiency, low-carbon development, and organizational resilience - has become essential to long-term competitiveness. Against this backdrop, SEYI has further strengthened its commitment to a resilient path centered on resilient governance, green manufacturing, and technological innovation. Leveraging our core technologies, global presence, and increasingly integrated sustainability strategy, we continue to translate sustainability into tangible improvements in corporate resilience. Throughout 2025, SEYI continued to advance its ESG initiatives under the three pillars of Environmental Coexistence, Social Prosperity, and Shared Value, systematically integrating sustainability into business operations, product development, and corporate governance to build a resilient and sustainable business model that creates long-term value.

Environmental Coexistence: Advancing Low-Carbon Smart Manufacturing and the Net-Zero Transition

SEYI continued to advance its carbon reduction strategy and net-zero transition by establishing clear emissions reduction targets and focusing on process optimization and energy management. Through improvements in production processes, reductions in electricity consumption and waste generation, and more efficient use of resources, we continue to reduce the environmental impact of our operations. We have also introduced an Energy Management System (EMS) to monitor energy consumption in real time, optimize energy use, and reduce overall operational energy consumption. In parallel, SEYI continues to align its efforts with international climate goals. In 2025, the Company participated in the Corporate Carbon Reduction Thermometer (TRIPs) initiative jointly organized by CommonWealth Magazine and Tunghai University. SEYI received an “Outstanding Performance” rating, corresponding to a global warming trajectory of 1.504°C, demonstrating tangible progress along our net-zero pathway. We also successfully completed the government-supported low-carbon transformation initiative for manufacturers and worked with supply chain partners on greenhouse gas inventories and carbon reduction initiatives, further extending our commitment to low-carbon manufacturing across the value chain.

Social Prosperity: Empowering Talent, Fostering an Inclusive Workplace, and Creating Social Value

SEYI is committed to fostering a friendly, diverse, and inclusive workplace culture that respects and protects fundamental human rights while supporting employees’ physical and mental well-being. We continue to build a safe, healthy, and supportive working environment. Through structured talent development and professional training programs, we strengthen employees’ capabilities and career development while promoting constructive labor-management relations and shared growth. SEYI also continues to deepen industry-academia collaboration, supporting talent development and knowledge transfer to strengthen the long-term competitiveness of the machinery and manufacturing industries. Through community engagement, local ecological conservation, support for social welfare organizations, volunteer services, and the application of technology for social good, we seek to fulfill our corporate citizenship responsibilities and expand our positive social impact.

Shared Value: Strengthening Integrity and Building a Sustainable Value Chain

In governance, SEYI continues to strengthen its corporate governance framework, enhance Board effectiveness, uphold business integrity, strengthen financial risk management and regulatory compliance, and promote transparent communication with stakeholders. In 2025, the Company advanced to the 21% ~ 35% ranking range in the Corporate Governance Evaluation, reflecting continued progress in corporate governance and sustainability management. SEYI also actively advances a sustainable supply chain through systematic monitoring and assessment mechanisms, working closely with business partners to drive continuous improvement in sustainability performance. In terms of products and market development, the Company continues to develop smart, low-carbon press solutions that enable customers to enhance production efficiency while reducing environmental impact. By strengthening customer partnerships and advancing the adoption of innovative technologies, SEYI strives to create shared and sustainable value across the value chain.

Looking Ahead: Upholding Our Core Values and Driving Resilient Growth

SEYI remains committed to its core values of Integrity, Accountability, Service, and Innovation, which serve as guiding principles for our business decisions. We regard ESG and sustainable development as essential foundations for long-term growth. In response to the global net-zero transition, we continue to integrate energy conservation, carbon reduction, and environmental considerations throughout product R&D, manufacturing, and quality management, creating new opportunities for sustainable competitiveness.

Looking ahead to 2026, SEYI will continue to advance its transformation in response to industrial change and global uncertainty. We will deepen the application of artificial intelligence (AI) and smart manufacturing, accelerate digital transformation to enhance operational efficiency, and empower employees through capability development to build high-performing teams and strengthen the human capital required for smart manufacturing. Operationally, we will further diversify and integrate our supply chain to respond flexibly to geopolitical and trade uncertainties while ensuring stable and resilient delivery. In the market, we will focus on high-value-added applications and provide high-precision, high-quality, differentiated metal-forming solutions to strengthen customer trust and enhance our overall profitability.

Looking forward, SEYI will continue to strengthen corporate governance, enhance risk management mechanisms, and improve information transparency. Together with our shareholders, customers, employees, and all stakeholders, we will build long-term competitiveness through sound management and create a more resilient and sustainable future for our industry and society.

Chairman and CSO of Shieh Yih Machinery