Workplace Safety and Health Management

To establish a safe, healthy, and comfortable working environment and continue reducing the incidence of occupational accidents, the Company has established an Occupational Health and Safety Commitment and Policy as the highest guiding principle for its safety and health management. Safety in operations is treated as the top priority, with continuous improvement at the core of management, as the Company actively enhances the workplace environment, manufacturing equipment, and work methods to safeguard the safety and health of employees and all stakeholders.

Since 2000, Nan Pao has promoted the OHSAS 18001 Occupational Health and Safety Management System, and beginning in 2020, its production plants and subsidiaries progressively transitioned to and obtained certification under the ISO 45001:2018 Occupational Health and Safety Management System. The Company has established hazard identification, risk assessment, and control planning procedures that apply across its overall operations, employees, and contractors, and effectively prevents safety and health incidents at its plants through management, oversight, and improvement measures.

To fully implement occupational safety and health management, Nan Pao established the Safety and Health Committee as the highest deliberative and consultative body for safety and health management, with management representatives from each plant serving as chairperson on a rotating basis. The Committee is responsible for planning, coordinating, and overseeing the implementation of environmental, occupational safety and health, and health-related matters across all plants. The Occupational Safety and Health Committee convenes quarterly meetings and engages in consultation with employee representatives. In addition, plant-level safety meetings are held every two weeks to discuss deficiencies identified during audits and to establish concrete action targets, in an ongoing effort to prevent occupational accidents.

Management Approach and Objectives

In accordance with the Occupational Safety and Health Policy and strategies, the Company is committed to reducing personnel health and safety incidents, enhancing process safety protection, and continuously improving occupational safety and health performance.

Emergency Response Management

As a chemical manufacturer, Nan Pao places particular emphasis on emergency response management throughout its operations, given the nature of the industry. Each plant has established emergency response procedures, and an emergency response team is convened annually to conduct on-site drills. These efforts help ensure the effective implementation of environmental and occupational safety and health systems, prevent accidental incidents, and maintain readiness for emergency rescue and response operations — enabling the prompt activation of response measures when an incident occurs, so as to immediately prevent or mitigate personnel injury, property loss, and production disruption, while also controlling the extent of damage and supporting post-incident recovery.

To ensure that correct and effective response strategies and procedures are in place in the event of an emergency — thereby minimizing potential personnel injury, property loss, and environmental impact — Nan Pao has developed dedicated training programs for relevant personnel. These programs are designed to continuously strengthen employees' awareness of emergency response and enhance the plants' overall rescue and response capabilities. The programs include:

1. Emergency Response Information: Including plant layout diagrams, equipment distribution maps, and response procedure flowcharts.
   Firefighting Equipment: Including fire suppression systems and public address systems.
   Response Equipment: Including various types of protective clothing, personal protective equipment, self-contained breathing apparatus, portable detectors, leak containment equipment, and warning devices.
2. Standardization of response procedures to strengthen personnel training.
3. The Company conducts regular personnel training to build proficiency in emergency response skills, including incident reporting, rescue operations, on-site control, casualty treatment, and support for rescue facilities. Training types include:
   Emergency Response Team Training: Including basic, advanced, and response-specific courses.
   Fire Safety Training: Company-wide fire safety training is conducted annually in accordance with the law.

Emergency Response Program Chart

Occupational Health and Safety Management System

Nan Pao has promoted the OHSAS 18001 occupational health and safety management system since 2000, and in 2020, its production sites and subsidiaries were gradually transitioned to and certified under the ISO 45001:2018 occupational health and safety management system.

We have established Hazard Identification, Risk Assessment, and Risk Control (HIRARC). The relevant procedures apply to the Company's overall operations, employees, and contractors. Through management, supervision, and improvement measures, we effectively prevent the occurrence of various safety and health hazards within plant sites.

● = ISO 45001:2018 certified

Hazard Identification and Risk Assessment

• Conduct hazard identification (HAZID) and risk assessment (HIRARC) for each operating process on a regular annual basis
• Establish special operation management procedures for high-risk operations, including work at heights, confined spaces, electrical work, hot work, and hazardous gases/chemicals
• Use safety climate indicators to implement an early warning mechanism and dynamically adjust the intensity of safety and health management
• Regularly conduct Safety Walks and behavior-based safety observations (BBS)

Figure: Emergency Response Training

Incident Investigation and Corrective Action Mechanism

Nan Pao prioritizes the work environment and employee safety and has established accident reporting and investigation mechanisms. Workplace nurses provide immediate treatment and assistance to injured employees at the first opportunity. During employees' recovery from injuries, follow-up care and tracking are also conducted, and occupational medicine physicians are asked to assist in evaluating whether the employees' work duties need to be adjusted or changed. We enhance personnel safety awareness regarding the proper use of personal protective equipment to reduce chemical exposure incidents among employees.

All occupational accident cases are subject to incident investigation and root cause analysis, and improvement plans are developed and implemented. Incident investigation forms and corrective and preventive action forms are processed through an electronic approval system to significantly reduce process time and track improvement progress more efficiently. Group incidents are also consolidated into Group reports and announced regularly each month, providing subsidiaries with references for the parallel implementation of relevant improvement measures.

Nan Pao investigates and corrects occupational injuries at its ISO 45001-certified sites, has established a Nonconformity Handling Procedure, and jointly evaluates the need for corrective actions to eliminate the root causes of nonconformities with the participation of workers and other interested parties.

Workplace Safety and Occupational Health Training

2025 Nan Pao Resins Occupational Health and Safety Training Statistics

Occupational Disease Prevention and Long-Term Health Risk Management

As a chemical manufacturer, Nan Pao has established comprehensive prevention mechanisms for potential long-term health hazards, including corrosive substances, organic solvents, coating monomers, and polymer materials:

Chemical Exposure Control

• Regularly conduct work environment monitoring to assess concentrations of hazardous substances in the air at each plant site and ensure compliance with Permissible Exposure Limits (PEL)
• Arrange special health examinations for special hazard operations, such as exposure to organic solvents and acidic or alkaline substances
• Promote standardized use of personal protective equipment (PPE) and conduct education and training to strengthen employees' awareness of PPE use
• Automate and enclose manufacturing processes to reduce opportunities for personnel to be directly exposed to hazardous substances

Occupational Medicine Support

Nan Pao Taiwan has hired full-time occupational health nursing personnel and established a health center to provide employees with first aid, one-on-one health consultations, and health management services, helping employees access more medical resources and professional guidance. Occupational medicine physicians also conduct monthly on-site visits to identify and improve operational hazards, and to provide health consultations, follow-up management, and intervention services.

For management personnel at Level 2 and above, Nan Pao provides personal health guidance and arranges consultations with occupational medicine physicians and occupational disease prevention training as appropriate.

Health Examinations

The Company arranges annual general health examinations and special health examinations for employees. Examination items exceed statutory requirements and include electrocardiograms, abdominal ultrasounds, cancer screenings (CEA, AFP, PSA), thyroid examinations, and the four major cancer screening services provided in conjunction with government subsidies. Health examination results are subject to health classification management. Occupational health nursing personnel enter the results into the health management system for subsequent follow-up and health education consultations.

Safety Management of Work Partners

Nan Pao has established the Contractor Occupational Health and Safety Management Regulations to ensure the safety of both the Company's and contractors' personnel working within the plant premises. Contractors are subject to strict management upon entering the facility. High-risk activities — including work at heights, confined space entry, electrical hazards, hot work, and potential leaks of hazardous gases/chemicals — are designated as key areas of focus for training, education, and inspections.

The Company also engages in regular communication with suppliers and contractors on environmental, safety, and health issues, encouraging them to improve their environmental, safety, and health performance. To ensure project safety, the Company trains safety supervisors in areas such as general work, hot work, work at heights, roofing, confined spaces, and lifting operations. Qualified personnel receive certification badges after passing the required examinations. When construction work is underway, safety and health inspections are initially conducted by trained on-site safety supervisors, in order to reduce and prevent the occurrence of construction-related safety hazards.

Nan Pao convenes an annual contractor conference to brief all attendees on the implementation of health and safety standards and measures. Additionally, it requires contractors to cooperate with the Company on safety management matters and sign the Safety Partner Declaration.

Figure: Contractor Conference

Occupational Injury Statistics

Nan Pao Taiwan 2025 Occupational Injury Statistics (Excluding Commuting Traffic Accidents)

Note: Nan Pao Taiwan did not employ any contract/temporary personnel in 2025.

In 2025, the Nan Pao Group recorded 14 occupational accidents involving 14 injured workers, accounting for 0.39% of the total employee headcount at the end of the year. Among these, there were 14 disabling injury cases, resulting in a disabling injury frequency rate of 2.49. Consequently, the target of zero occupational safety incidents for 2025 was not achieved.

Note: The above Group occupational injury performance statistics include Nan Pao Taiwan and the following subsidiaries: Nan Pao Foshan, Nan Pao Dongguan, Kunshan Nan Pao, Nan Pao Fuqing, Nan Pao Vietnam, Vietnam Materials, Nan Pao Materials Viet Nam, NNV, Nan Pao Indonesia, and Nan Pao Thailand.

Nan Pao Taiwan Process Safety Indicators (%)

Process Safety Indicator Formula: TRIR = number of recordable incidents × 200,000 / total hours worked; SR = (total days lost to work-related injuries × 10⁶) / total hours worked; FR (disabling injury frequency rate) = (total number of disabling injuries × 10⁶) / total hours worked

Violation Records and Compliance Management

Nan Pao is committed to compliance-based operations. The 2025 safety, health, and environmental violation records are as follows. All violations have been remediated.

※ In 2025, the Company was not subject to any material penalties, other than fines, such as work suspension or license revocation, imposed by competent authorities due to violations of occupational safety and health laws and regulations.

Health Center and Health Examinations

Nan Pao Taiwan has hired full-time occupational health nursing personnel and established a health center to provide employees with first aid, one-on-one health consultations, and health management services, helping employees access more medical resources and professional guidance. In addition, occupational medicine physicians conduct monthly on-site visits to identify and improve operational hazards, and to provide health consultations, follow-up management, and intervention services.

To prevent disease and protect employee health, the Company arranges annual general health examinations and special health examinations for employees. Examination items exceed statutory requirements, and the Company provides the four major cancer screening services in conjunction with government subsidies. Health examination results are subject to health classification management, followed by health education consultations.

For special operation sites, based on environmental monitoring results provided by occupational safety and health personnel, annual health examinations for operations involving special health hazards are arranged, with comprehensive classification management conducted. For management personnel at Level 2 and above, consultations with occupational medicine physicians and occupational disease prevention education and training are arranged as appropriate.