2.2 Risk Management

In the face of a highly volatile and uncertain operating environment, an effective risk management mechanism has become a critical element for the sound operations and sustainable development of enterprises. Quanta continues to strengthen its risk governance system by establishing a comprehensive risk management framework and operational procedures that encompass strategic planning, operational management, and regulatory compliance. Through institutionalized management and risk identification mechanisms, the Company ensures it has the capability for timely response and continuous improvement when facing potential risks, thereby enhancing overall resilience and operational efficiency.

2.2.1 Risk Governance

Risk Governance Framework and Management Scope

Risk governance serves as a fundamental framework for enterprises pursuing sustainable development. To mitigate the potential impact of risk events on corporate operations and to focus on business growth and improving operational efficiency, Quanta continues to develop and uphold a comprehensive risk management system. The Company's "Risk Management Guidelines" were approved by the Board of Directors in 2020 (policy link) to enhance overall risk control effectiveness and ensure that all types of operational risks are manageable and transparent.

To achieve the Group's overall risk governance objectives, Quanta has implemented a comprehensive risk management mechanism that covers all subsidiaries. This mechanism integrates principles of sustainable governance and the protection of stakeholders' rights and benefits, thereby establishing the Group's risk management framework. In line with risk management principles, Quanta has developed a formal risk governance organizational structure, centered around the "Three Lines of Defense" model, which serves as the core foundation for effective risk identification, control, and oversight.

Risk Governance Organizational Chart

In response to the Financial Supervisory Commission's regulations, Quanta initiated the implementation plan for IFRS Sustainability Disclosure Standards by the end of 2024. This initiative aims to further clarify and strengthen the governance of sustainability-related risks, with progress and key execution items to be disclosed throughout the course of implementation. Among them, sustainability risks are assessed based on the IFRS S1 and S2 sustainability disclosure standards, integrating environmental, social, and governance (E, S, G) related risks and opportunities with financial evaluation. These risks are reported to the Board of Directors through a specific reporting mechanism to ensure effective reflection in operational strategies or financial governance.

Risk Management Process and Implementation

Quanta's risk management process primarily encompasses four core steps: risk identification, risk assessment, risk response, and execution with risk monitoring. This framework establishes a sustainable risk management system equipped with early warning capabilities and a dynamic adjustment mechanism. The overall process design is based on annual operational experience, internal expert opinions, external industry risk reports, and benchmarking against peers, with a rolling update of key assessment points and management strategies. To ensure alignment with the Company's sustainable operation and risk governance objectives, Quanta also incorporates major risk topics such as emerging technologies, climate change, social changes, and global geopolitical issues into its considerations, comprehensively assessing their potential impacts on operational opportunities and financial stability.

To further enhance the maturity of risk governance, Quanta is actively promoting the establishment of a Risk Appetite framework to serve as the foundation for risk identification, measurement, and response. The risk appetite will encompass aspects such as financial, operational, regulatory compliance, information security, and ESG. It will be defined using quantitative indicators (such as financial impact) and qualitative criteria (such as reputational damage and compliance risk). Recommendations will be proposed by senior management, discussed by the Risk Management Working Group and the Sustainability Development Steering Committee, and then submitted to the Board of Directors for approval. The risk appetite will be regularly reviewed and revised according to changes in internal and external circumstances to ensure that the Company maintains robust risk control and sustainable operational capabilities while pursuing growth and innovation.

Annual Update and Rolling Review

Risk Reporting Mechanism

Quanta places strong emphasis on the connection between stakeholders and risk governance. Through formal disclosure channels-such as the Annual Report, Sustainability Report, and designated stakeholder contact points, the Company communicates its risk governance outcomes. These results are made publicly available via official reports and website announcements, ensuring that external stakeholders can access and understand the effectiveness and progress of Quanta's risk management efforts. In addition, transparent information disclosure and feedback mechanisms are in place to support stakeholder participation in the risk governance process, enabling them to raise concerns and express opinions.

• Quanta Computer Stakeholder Communication Channel

Recent Implementation Status for the Past Two Years

2023 Risk Assessment Results

In 2023, Quanta's risk assessment covered four major sites: QCI, QSMC, QCMC, and QMB. A total of 4 high-risk, 9 medium-risk, and 65 low-risk items were identified. Corresponding contingency plans were developed for all high-risk items to strengthen risk resilience and response capabilities, serving as an important basis for formulating next year's risk responses and strategies. The relevant risk management performance was formally reported on December 20, 2023, in order to continuously enhance the Group's sustainable risk management mechanism.

2023 High-Risk Items and Contingency Plans

Based on the 2023 risk assessment results, Quanta identified multiple high-risk issues, reflecting the high expectations from both the operating environment and stakeholders for sustainable performance. To proactively address these challenges, Quanta proposed six major management guidelines in 2023, serving as the core direction for driving risk prevention, management, and transformation strategies, successfully laying the foundation for a forward-looking sustainability blueprint. Below are the concrete performance results for 2024.

1. Strengthening Employee Sustainability Awareness
   • In response to ESG evaluation requirements from high-standard customers such as in the automotive and server sectors, promoted sustainability training covering environmental, governance, and social dimensions.
   • Enhanced employee understanding of corporate sustainability goals and ESG evaluation contents, embedding a sustainability culture into daily operations and across all functional organizations.
2. Establishing a Sustainable Risk Management Framework
   • Addressed global geopolitical, inflationary, energy crisis, and supply chain risks by strengthening corporate risk management strategies.
   • Systematically identified and controlled risks in governance, strategy, operations, compliance, and finance, building a resilient risk control system.
   • Improved Business Continuity Planning (BCP) capabilities for both the company and the supply chain.
   • Continued to optimize the sustainability management organizational structure in 2024, promoting Quanta's sustainability process in a more systematic and efficient manner.
3. Driving Low-Carbon Innovation and Green Design
   • Completed the product carbon footprint platform and initiated the sustainable supplier management system project to promote comprehensive environmental and social responsibility management in the supply chain.
   • In line with Science-Based Targets (SBTs) and key customer requirements, it promoted low-carbon transformation in product design, manufacturing processes, material selection, and supply chain management.
   • Integrated innovative R&D with green design concepts to enhance the company's competitive advantage under sustainability transformation and net-zero goals.
4. Fostering Talent Sustainability
   • Following international evaluation indicators such as DJSI and MSCI, identified talent-related risks and proposed strategies for strengthening human capital management and development.
   • Focused on talent structure, demographic risk assessment, incentive mechanisms, and enhancing organizational competitiveness to ensure sustainable talent momentum for the enterprise.
5. Aligning with International Standards and Guiding Supply Chain Sustainability Due Diligence
   • Implemented responsible sourcing practices by conducting due diligence on suppliers' operations, human rights, materials, and environmental aspects, in accordance with key customer requirements.
   • Enhanced supply chain sustainability governance and overall resilience through risk identification and management.
6. Practicing Social Care and Public Engagement
   • Actively participated in various public welfare activities and continued to invest resources in caring for disadvantaged groups.
   • Fulfilled corporate social responsibility through diverse social engagement, promoting mutual benefit and amplifying positive impact.

2024 Risk Assessment Results

Meanwhile, Quanta's 2024 risk assessment covered six major sites-QCI, QSMC, QCMC, QMB, QMH, and QMMC-identifying a total of 8 high-risk, 10 medium-risk, and 63 low-risk items. Corresponding contingency plans have been formulated for all high-risk items, serving as an important basis for next year's risk response and strategy planning. Quanta will continue to optimize its risk management framework and gradually expand the scope of risk assessments to cover all Group operating sites, with the goal of establishing a comprehensive risk identification and control mechanism. The relevant risk management performance was formally reported on December 27, 2024.

High-Risk Items and Risk Contingency Projects for the Current Year

In response to the results of the 2024 risk assessment, Quanta identified eight high-risk issues spanning talent sustainability, carbon management, supply chain governance, and internal management mechanisms. These findings indicate that there remains room for improvement in areas such as talent development, climate action, and organizational resilience. To strengthen risk response capabilities and enhance overall sustainability performance, Quanta has formulated specific contingency plans based on the assessment results and, accordingly, established six key operational management guidelines for 2025. These guidelines focus on risk prevention, organizational capacity building, and information governance upgrades, with the aim of advancing sustainability governance strategies and building a more resilient, value-driven business model.

1. Leverage Committee Functions to Drive Achievement of Sustainability Targets
   • Establish short-, medium-, and long-term ESG goals aligned with international ESG indices (DJSI, MSCI, etc.) and IFRS disclosure standards.
   • Integrate sustainability indicators into the performance appraisal system to improve external transparency and internal execution.
   • Embed sustainability principles into business management and core employee values to deepen the sustainability culture.
2. Enhance Corporate Sustainability Risk Management Framework and Implementation
   • Build a risk identification and response mechanism covering environmental, social, and governance (ESG) dimensions.
   • Address complex risks such as geopolitical tensions, inflation, and energy challenges.
   • Establish Business Continuity Plans (BCP) to strengthen supply chain resilience and internal risk control.
3. Advance Talent Sustainability to Enhance Corporate Competitiveness
   • Strengthen human resource management by introducing diversity, equity, and inclusion (DEI) and Taskforce on Inequality-related Financial Disclosures (TIFD) indicators.
   • Develop recruitment and retention strategies while promoting sustainabilityoriented training and employee well-being systems.
   • Transform the sustainability culture into an Employee Value Proposition (EVP) to deepen organizational identification.
4. Pursue Net-Zero Emissions Through Energy Saving, Carbon Reduction, and Low-Carbon Innovation
   • Obtain Science Based Targets initiative (SBTi) verification and initiate carbon reduction actions and transition plans.
   • Implement concrete measures in low-carbon design, supplier carbon management, and process improvements.
   • Use carbon reduction as a driver for innovation, enhancing sustainability performance across the entire value chain and supply chain.
5. Promote Sustainable Supply Chain Management and Expand Due Diligence Scope
   • Require suppliers to conduct due diligence on human rights, environmental, and material-related aspects.
   • Introduce digital platforms to enhance supplier ESG information disclosure and governance mechanisms.
   • Build a resilient sustainable supply chain to meet customer and regulatory requirements.
6. Digitalize and Optimize Sustainability Information Management Systems
   • Develop an integrated data platform to improve data collection and analysis efficiency.
   • Strengthen ESG indicator tracking and decision-making support to improve the quality of both internal and external disclosures.
   • Foster collaboration and transparency across the value chain to enhance corporate sustainability competitiveness.

2.2.2 Management of information security

Information security is a crucial cornerstone for sustainable development and maintaining core competitiveness in the enterprise. At Quanta, we are committed to enhancing the overall management of information security as our goal. We have established a layered defense framework to enhance overall protection and conduct comprehensive risk monitoring. We will continue to refer to domestic and international trends, international standards, and advice from external professional consultants to allocate appropriate security budgets annually, optimize various protective control measures, strengthen education and training for all personnel, improve security awareness and response capabilities, and safeguard the Company's operations and information security.

Quanta's Information Security Strategy: "Everyone participates, controls risks, and ensures the effective operation of the information security system to protect the normal operation of the Company".

Quanta's information security policy has three objectives: "Everyone participates and controls risks", "actively prevents, continually improves", and " client trust, sustainable operation":

• Everyone participates and controls risks: Establishing an information security management system, determining the functions and responsibilities of information security, and managing information security comprehensively across all processes and staff. According to the characteristics of the Company's information security, the requirements of laws and regulations, the risk assessment procedures are established, and the risk acceptance criteria are determined. Conducting regular risk assessment and taking appropriate measures to reduce potential risks.
• Actively prevents, continually improves: In business operations, emphasis is placed on information security, identifying and analyzing weaknesses and potential threats in information systems, considering the balance of costs, benefits, and risks, classifying and protecting assets, and protecting information systems at an appropriate cost.
• Client trust, sustainable operation: By conducting performance evaluations and continuous improvement, we ensure the effectiveness of the information security management system and achieve the goals of client trust and sustainable business operation.

Information Security Management Organizational Structure

In 2022, Quanta passed a resolution through the Board of Directors to establish a dedicated information security unit and appoint an Information Security Officer. The Information Security Officer is served by the Vice President of the Management Information Center. The information security unit is called the "Information Security Center" and reports directly to the President or his designated representative. It is responsible for convening meetings of the Proprietary Information Security Committee (PIS). The "Information Security Center" has set up the "Information Security Management Department" and the "Information Security Technology Department", responsible for the management of information security matters within the group. This includes coordinating information security policies, international information security standards verification and auditing, implementing and verifying information security mechanisms, building layered defenses, enhancing information security levels, and aligning with international standards. The center regularly reports on relevant risks, issues, and management effectiveness. The organizational structure of information security management is illustrated in the diagram below.

To demonstrate the Company's good information security management and strengthen cross-departmental collaboration within the group, the PIS committee is the highest guidance unit for group-wide information security. Through biannual committee meetings, monthly meetings of the Information Security Center, and regular and ad hoc project meetings, various information security management policies and measures are continuously promoted. Comprehensive reviews and optimizations of information security policies and measures are conducted at least once a year, and the execution of information security is reported to the Board of Directors at least once a year. The most recent report was submitted on December 27, 2024.

Status of Information Security Management Implementation

Quanta has established four dimensions of information security governance to achieve its vision and goals: strengthening overall response capabilities, establishing an information security defense framework, enhancing information security protection systems, and advancing autonomous information security capabilities. In response to the increasing security risks, Quanta continuously adjusts its information security direction based on risk management results, as well as the development of information and communication technology and external environmental changes. Quanta aims to establish consistent security standards throughout the Group, strike a balance between business and security, and ensure that all employees actively participate in collaborative maintenance to meet the Company's security policy requirements. In order to evaluate the performance and effectiveness of the information security management system, the Company has established several KPIs for the organization, personnel, processes, and technical aspects of information security, strictly examining the implementation of the information security management. All KPIs were controlled, improved and successfully achieved in 2024. The relevant KPIs are shown in the table below.

Constructing an Overall Information Security Framework

Quanta places great importance on information security. Since 2008, the Company has maintained information security insurance and, in 2009, formulated the "Information Security Management Policy" and "Information Security Risk Management Framework." Beginning in 2020, Quanta initiated planning for ISO 27001 certification, actively advanced implementation in 2021, and successfully obtained certification in the second quarter of 2022. In the third quarter of 2024, Quanta completed the transition to ISO 27001:2022 and expanded the certification scope-covering all information systems and increasing the number of certified personnel by 2.5 times-to meet rising information security demands. Currently, three sites-QCI, QSMC, and QQCMC-have obtained ISO 27001 certification. The Company plans to certify two additional sites by 2025 and one more site by 2026, continuing its efforts to implement a comprehensive information security management system across all global locations.

With rapid technological development and growing reliance on digital tools, information security has become a key issue for business continuity. Even minor vulnerabilities can result in significant operational disruptions. Quanta recognizes the need for evolving cybersecurity mechanisms to counter increasingly sophisticated cyber threats. To this end, the Company has established a comprehensive defense mechanism, encompassing both regular and ad hoc risk assessments, threat and vulnerability scans, corresponding control measures, and real-time detection and protection systems. This approach ensures timely identification, control, and mitigation of high-risk issues. All high-risk information security items identified in 2024 have been successfully addressed and strengthened according to the planned corrective actions.

To address supplier-related risks, Quanta conducts necessary risk assessments based on suppliers' level of access to the Company's information and communication technology environment and the services provided-such as information services, hardware, system construction and maintenance, and cloud services. Suppliers are required to sign information security confidentiality agreements and security acknowledgment forms aligned with the respective security requirements. In addition, Quanta performs annual monitoring and reviews of information hardware and service vendors. If a supplier's evaluation score falls below the acceptable threshold, an online or on-site audit is initiated. Suppliers who fail the audit and are unable to implement corrective actions will have their supplier status revoked. In 2024, a total of 18 suppliers were assessed, all of whom met the qualifying standards.

Furthermore, to stay abreast of the latest threat intelligence and information security incident investigation techniques, Quanta actively participates in both domestic and international information security response organizations. The Company continues to deepen its information security defense capabilities, optimize protective measures, promote a Zero Trust Architecture, and leverage information security AI technologies to strengthen protection intensity and enable comprehensive, real-time monitoring. Rigorous risk assessment and control procedures are implemented, and dedicated information security budgets are allocated annually to reinforce information and communication technology security safeguards. Regarding the handling of informaiton security incidents, Quanta has implemented a information security incident response procedure and established an incident management process plan. The Company conducts annual internal drills and coordinates with clients to carry out information security incident reporting, response, and business continuity exercises. Furthermore, Quanta ensures the enforcement of information security incident reporting and the disclosure requirements for significant information security information.

Quanta also regularly conducts self-assessments and improvement activities in accordance with the "Guidelines for Information Security Control of Listed and OTC Companies" and implements a personal data protection system to comply with relevant information security and personal data protection regulations. Quanta places great importance on information security issues of concern to all stakeholders. By integrating the Company's sustainable development and information security policies, it provides open and transparent information security management information, establishes effective communication channels with stakeholders, and responds to their expectations. The Company's main information security operations are as follows:

• Notes 1: Other income includes interest income, dividend income, and other gains or losses.
• Notes 2: Operating expenses include selling, general and administrative expenses, as well as research and development expenses.
• Notes 3: Other costs include financial expenses and the share of profit or loss of associates accounted for using the equity method.

2.3.2 Tax Policy

Quanta places great importance on tax governance and compliance, regarding the honest payment of taxes as one of the fundamental responsibilities that a corporation must fulfill. To enhance the quality of corporate governance, strengthen risk management, and respond to global trends in tax regulation, Quanta has clearly established a tax governance framework and principles, covering aspects such as regulatory compliance, risk control, and information transparency. The Board of Directors is the highest supervisory body for tax governance, and the head of the Financial Center is the chief executive responsible for coordinating the Group's tax management and information disclosure. The core principles of Quanta's tax management are as follows:

• Regulatory Compliance and Integrity Filing

  Comply with the tax regulations and legislative intent of the countries or regions where each operational site is located, accurately file tax returns within the statutory deadlines, and pay taxes on time to ensure lawful tax payment and the implementation of internal control mechanisms.

• Principle of Substantive Taxation and Business Integrity

  All commercial activities should have a reasonable operational substance and business purpose, avoiding the use of non-substantive tax structures for tax avoidance, thereby implementing the spirit of business integrity.

• Management of Related Party Transactions and Transfer Pricing

  Transactions between related enterprises should adhere to the arm's length principle and be documented in accordance with the Transfer Pricing Guidelines of the Organization for Economic Co-operation and Development (OECD) as well as the transfer pricing regulations of the tax jurisdictions where the related enterprises operate. Profit shifting for tax avoidance purposes is prohibited, and the use of tax havens for tax evasion is not permitted.

• Transparency in Information Disclosure

  Tax information and financial statements should be disclosed truthfully in accordance with accounting and tax-related laws and regulations, ensuring consistency, traceability, and transparency of the information to meet the expectations of stakeholders.

• Professional Competency Development

  Actively enhance the professional capabilities and compliance awareness of the tax team through regular training sessions, strengthen understanding of regulatory changes, and establish contingency mechanisms to promptly respond to potential impacts.

• Regulatory Authority Relationship Management

  Establish a communication mechanism with tax authorities based on mutual trust, respect, and integrity; proactively clarify uncertain tax issues; and maintain a positive and stable communication relationship.

• Risk Identification and Management

  Continuously monitor changes in international and local regulations as well as potential contentious issues, carefully assess the tax risks involved in operational activities, and implement corresponding control measures to reduce overall tax risk.

Quanta will continue to enhance the transparency of tax governance, optimize the identification and response capabilities for risks in multinational operations, ensure alignment between tax strategies and corporate business models, and support the Company's long-term stable development and the establishment of social trust.

2.3.3 Participation in External Public Associations

Quanta upholds the principle of political neutrality. In 2024, the Company made no political contributions and did not engage in any political lobbying activities. The Company actively participates in various industry associations and public organizations, establishing positive engagements through cross-sector platforms. These engagements promote industry exchange, technological innovation, and sustainable development. Focus areas include environmental sustainability, supply chain resilience, talent development, and digital transformation, with the aim of amplifying positive impact through collective action.

Regarding the public associations in which Quanta participates, the Company will conduct rolling reviews based on the level of substantive involvement and the relevance of the issues. It carefully evaluates whether their positions align with international carbon reduction initiatives and sustainability values, such as the Paris Agreement, to ensure that all engagements remain consistent with Quanta's commitments to climate change and corporate responsibility.

The main public associations currently joined by Quanta are as follows:

1. Taipei Computer Association (Quanta Computer)
2. Cloud Computing and IoT Association in Taiwan
3. Taipei Computer Association (Quanta Cloud Technology Inc.)
4. Dafeng (Shanghai) Computer Co., Ltd. Labor Union
5. Songjiang Federation of Trade Unions of Economic and Technological Development Zone
6. Women's Workers Committee of the General Labor Union of Songjiang District
7. Songjiang District Intellectuals Association
8. Shanghai Songjiang Safety Production Association
9. Shanghai Fire Protection Association
10. Shanghai Songjiang District Environmental Protection Technology Enterprises Association
11. Responsible Business Alliance (RBA)
12. Index Nuevo León, the Foreign Trade Manufacturing Association of Nuevo León, Mexico
13. Environmental Quality Monitor Committee of Taiwan HwaYa Technology Park

Quanta will continue to actively participate in sustainability initiatives through industry alliances and local exchange platforms, promoting knowledge sharing and joint actions among enterprises, thereby expanding positive influence on issues related to climate change, sustainable governance, and social responsibility.

2.4 Supply Chain Management

Quanta places great importance on the critical role of the supply chain in corporate sustainable development, continuously enhancing its overall stability and resilience through institutionalized management and collaborative partnerships. Beyond fundamental quality and delivery management, Quanta progressively integrates Environmental, Social, and Governance (ESG) principles into supply chain operations, encouraging suppliers to improve responsible governance and sustainability awareness, thereby establishing long-term, trust-based, and mutually beneficial partnerships.

2.4.1 Quanta Value Chain

Quanta is a global leader in the development and manufacturing of electronic products, designing and assembling products based on customer requirements and delivering finished goods to designated locations for sale. The Company's value chain covers the complete process from product development, component procurement, and manufacturing to final delivery, with a commitment to providing competitive, highquality electronic solutions. Quanta's suppliers operate across multiple key technology fields and span both upstream and downstream manufacturing processes. These suppliers possess strong technical and manufacturing capabilities and are located in Taiwan, the United States, Japan, South Korea, China, Thailand, Mexico, and Europe. As of 2024, the total number of suppliers reached 2,029. Quanta's supply chain management strategy is driven by the overall competitiveness of suppliers, with evaluation criteria including price, research and development capabilities, manufacturing and quality performance, delivery reliability, and sustainability performance.

Localized Procurement

To reduce supply chain risks, lower carbon emissions, and enhance operational resilience, Quanta continues to advance its supply chain localization strategy by increasing the proportion of procurement from nearby regions at each manufacturing site. This approach also strengthens partnerships with suppliers.

In 2024, localization procurement rates (measured by procurement value) reached 34.22% for operations in Mainland China and 82.98% in the United States, with a global average of 37.3%. Moving forward, Quanta will further optimize supplier distribution and raise the share of local sourcing as a key driver for building a sustainable supply chain.

Supply Chain Quality Management

Suppliers are key business partners and quality stakeholders for Quanta. Their performance in areas such as environmental protection, labor practices, human rights protection, social impact, and compliance with local regulations directly or indirectly impacts Quanta's operational stability, product quality and delivery timelines, and corporate reputation. To ensure that supply chain performance aligns with the Company's objectives, Quanta has established a rigorous supplier management framework covering new supplier assessments and annual audits, thereby strengthening risk control and fostering sustainable value creation among its partners. During the new supplier selection process, Quanta applies 13 comprehensive evaluation criteria, including quality systems, customer requirements, and design and development control. Sustainability topics such as "Environmental and Social Responsibility" and "Green Product Management" are incorporated as equally weighted assessment indicators alongside traditional manufacturing capabilities. Through a multi-dimensional review and guidance mechanism, Quanta ensures that its partners uphold quality, environmental stewardship, and social responsibility, equipping them with the comprehensive capabilities needed to support sustainable development.

Following evaluation, new suppliers are classified into three categories: Qualify, Conditional Qualify, and Unacceptable. Evaluation results are communicated through direct audits or bilateral engagement. Where deficiencies are identified, a Supplier Corrective Action Report (SCAR) is issued, and suppliers must submit an improvement plan or results report within the specified timeframe. If improvements require longterm measures-such as amendments to procedures or equipment upgrades-these are addressed through separate discussions and tracked under follow-up mechanisms. In addition, Quanta explicitly identifies and manages high-risk human rights issues during new supplier audits, including child labor, the employment of underage workers in hazardous operations, and forced or compulsory labor. If a supplier is found to violate labor and human rights standards and cannot resolve the issue within the specified timeframe, they will be disqualified from becoming an approved Quanta supplier.

In 2024, the audit completion rate for new suppliers at QCI, QSMC, and QCMC reached 100%. The number of required and completed audits for new suppliers at each site is shown in the table below.

In addition to onboarding new suppliers, Quanta also carries out annual audits for existing suppliers at its QCI, QSMC, and QCMC facilities. Through a structured audit process, the Company can promptly identify potential risks, drive continuous improvement, and foster responsible governance among suppliers-jointly establishing a stable and resilient supply chain system.

2.4.2 Sustainable Supply Chain Management

With growing global expectations for corporate sustainability, the management of Environmental, Social, and Governance (ESG) risks within the supply chain has become a critical business priority. In recent years, market expectations for corporate supply chain responsibility have risen steadily, with increasing requirements for companies to implement Human Rights Due Diligence (HRDD). The European Union's Corporate Sustainability Due Diligence Directive (CSDDD), which came into effect in 2024, further advances systematic governance based on the Human Rights and Environmental Due Diligence (HREDD) framework. Taiwan has also begun requiring companies to disclose greenhouse gas emissions data covering Scope 1 through Scope 3, strengthening the identification and management of supply chain carbon emissions. In addition, international clients now integrate supply chain sustainability performance into partnership evaluations and require suppliers to pass recognized audits such as those conducted by the Responsible Business Alliance (RBA). In response to growing stakeholder attention on sustainability, Quanta will continue to deepen sustainable supply chain management, enhance risk control and compliance capabilities, and strengthen the overall resilience and sustainable value of the supply chain.

Quanta has established a "Supplier Sustainability Code of Conduct," centered on business integrity and responsible commercial practices. Suppliers must comply with applicable laws and international standards such as the RBA Code of Conduct, covering topics including-but not limited to-fair trade, anti-corruption, personal data protection, intellectual property rights, and export controls. In 2024, Quanta conducted UFLPA (Uyghur Forced Labor Prevention Act) compliance investigations for targeted suppliers to ensure the supply chain is free from activities that could trigger legal risks. On the environmental side, Quanta requires suppliers to actively advance energy-saving and carbon reduction initiatives and disclose greenhouse gas emissions data. On the social side, suppliers must fulfill their human rights due diligence obligations toward the Company and, where necessary, provide supporting certifications and documentation to minimize and eliminate human rights risks across the supply chain. For critical raw materials, Quanta mandates sourcing from smelters or refiners certified by the Responsible Minerals Initiative (RMI) or the London Bullion Market Association (LBMA), thereby supporting responsible mining and avoiding conflict mineral concerns.

In supplier management, Quanta is building a supplier sustainability evaluation and carbon management platform, implementing it in phases. For potential suppliers, sustainability background checks will cover ISO certifications, sustainability management systems, carbon reduction initiatives, and human rights strategies. New suppliers must sign the Supplier Code of Conduct, complete a sustainability self-assessment, and undergo audit verification. Key existing suppliers are required to complete sustainability self-assessments and supply chain risk evaluations, with higher-risk suppliers subject to on-site or remote audits. A results management mechanism is used to track ongoing improvements. Minor deficiencies will be addressed through guidance and corrective measures, while major deficiencies may result in termination of cooperation.

By the end of 2024, a total of 1,038 suppliers had signed Quanta's RBA Compliance Declaration-994 before 2024 and 44 added during the year-achieving the annual target and demonstrating shared commitment to sustainability.

To further ensure CSR compliance, Quanta conducted CSR questionnaires and on-site or remote audits across all sites. In 2024, questionnaires were distributed to 80 Tier 1 material suppliers, 102 Tier 2 material suppliers, and 50 service suppliers, with CSR audits completed. Among them, 51 suppliers had already implemented RBA or SA8000 standards, confirming their practices and performance in labor rights, environmental protection, ethical business conduct, and management systems.

CSR Questionnaire Distribution Statistics

CSR Audit Deficiencies Statistical Report

CSR Audit Statistical Report

Follow-up Actions for CSR Supplier Audits Statistical Table

• Note 1: The above data includes the scope of QCI, QSMC, QCMC, QMB, QMH, QMMC, QMF, QMN, and QCG.
• Note 2: The CSR audit deficiency statistics indicate that the Environmental (E) aspect involves deficiencies in the management of hazardous substances and greenhouse gas emissions; the Social (S) aspect includes deficiencies related to labor and health safety; and the Governance (G) aspect is primarily characterized by deficiencies related to business ethics.

Supply chain communication and transparency are also key priorities for the Company. To this end, Quanta has established a supplier grievance and whistleblowing mechanism and publicly discloses contact information for each manufacturing site on its official website. This mechanism enables stakeholders to report potential violations and risks. To ensure accountability extends throughout all levels of the supply chain, Quanta requires suppliers to proactively communicate whistleblowing mechanism details to their subsuppliers and subcontractors. Relevant responsibility clauses are also embedded in contracts with subcontractors to reinforce principles of integrity management and sustainable governance.

Human Rights Risks and Management of Suppliers

Forced Labor

During audits and inspections of suppliers, working hours and the absence of forced labor remain key focus areas. Quanta addresses these issues through daily communication and oversight to strengthen suppliers' awareness and enforcement of the Code of Conduct. Suppliers are strictly prohibited from engaging in any human rights violations; in the event of a serious violation that cannot be rectified, the business relationship will be terminated.

Forced labor risks are often found within labor dispatch arrangements and foreign migrant worker agencies. To ensure dispatched workers receive equal protections as regular employees, Quanta sites sign a "Labor Dispatch Agreement" with labor dispatch agencies that outlines mutual responsibilities, including equal pay, equal social benefit contributions, and workplace safety. Quanta also reduces human rights risks by directly paying wages and benefits to workers.

At QCI, which employs foreign migrant workers, a "zero-fee policy" and robust due diligence process ensure that no recruitment fees are charged to workers, safeguarding their basic rights.

In terms of management execution, the Company conducts diverse methods, including on-site audits at supplier factories, employee interviews, and written surveys, to verify whether the policies of non-discrimination and non-forced labor are implemented. In particular, the factories in mainland China require labor dispatch companies to display anti-discrimination posters. The CSR department, in a joint task force, conducts antidiscrimination surveys for new employees. This is complemented by employee training and interviews to ensure that all employees―whether directly hired by the company or from a labor dispatch firm―are not subject to differential treatment based on non-jobrelated factors, and that they are not required to pay any recruitment fees.

Supplier Human Rights Due Diligence

In response to the EU's Corporate Sustainability Due Diligence Directive and growing international emphasis on human rights in supply chains, Quanta has reinforced its due diligence practices. Guided by the principles of the Uyghur Forced Labor Prevention Act, the Company has developed a more comprehensive mechanism to assess suppliers' labor treatment, child labor prevention, freedom of employment and association, and recruitment practices. This initiative not only fulfills corporate social responsibility but also helps prevent and mitigate human rights risks across the supply chain.

Responsible Mineral Management

In conflict-affected and high-risk areas such as the Democratic Republic of the Congo, non-state armed groups control the mining and trade of minerals including Au, Ta, W, Sn, Co, and mica, causing severe social, environmental, and human rights impacts. Quanta's Conflict Minerals Management Policy commits to avoiding any support for such activities. Following the OECD Due Diligence Guidance and RMI standards, Quanta requires suppliers to submit the Conflict Minerals Reporting Template (CMRT) and Extended Mineral Reporting Template (EMRT), and demands that upstream smelters/refiners be certified by third-party organizations such as RMI or LBMA.

From the perspective of international industry trends, the Responsible Minerals Initiative (RMI) and customers have clear requirements for due diligence and risk management for two minerals in the supply chain: cobalt and mica. In response, Quanta has established a conflict minerals management policy, committing not to support any activities that would lead to the deterioration of social conditions, the environment, or human rights. At the same time, the Company follows the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals and the RMI standards, requiring suppliers to submit the Conflict Minerals Reporting Template (CMRT) and the Extended Mineral Reporting Template (EMRT). The Company also requires upstream smelters/refiners in the supply chain to actively participate in certification by independent third-party organizations such as the RMI or the London Bullion Market Association (LBMA).

Overview of Quanta's 2024 Due Diligence Investigation

1. Preparatory Stage

• Clearly identify the investigation targets, verify the contact windows for the investigation targets, determine the internal procurement personnel responsible for the investigated suppliers, and take charge of upgrading and optimizing the responsible mineral procurement management system.
• The Company identified and investigated material suppliers that may use cobalt and mica in 2024.

2. Investigation Stage

• Send the due diligence system link to the suppliers and notify the corresponding internal procurement responsible personnel to more efficiently follow up on the investigation status. When risks are identified, continue to communicate with the suppliers to control and eliminate the related risks.
• In addition to CMRT, the Company also sends the due diligence system link to suppliers for EMRT investigation and requires suppliers to use the latest version of EMRT disclosed on the RMI official website to report information on the two minerals, cobalt (Co) and mica.
• The CSR department conducts regular checks on the RMI and LBMA official websites to confirm compliant smelters and updates the latest results to the responsible mineral procurement management system for effective management of compliant smelters. Furthermore, on a quarterly basis, the Company issues investigation notices to suppliers who either submit non-compliant CMRTs or fail to respond.

3. Supplier Report Summary Tracking Stage

• This year, Quanta not only completed the due diligence tasks but also utilized the Responsible Minerals Procurement Management System's CMRT and EMRT quarterly update notification functions, CMRT and EMRT annual update notification functions, CMRT non-compliance/compliance notification functions, and the CMRT vendor code lock reminder function for overdue effective date updates, in order to better and continuously provide suppliers with effective information.

4. Supplier Report Analysis and Risk Mitigation Measures

• The Responsible Mineral Procurement Management System can analyze due diligence reports submitted by suppliers and generate summary reports, including the overall response status of suppliers and the due diligence information disclosed by them. The company's responsible unit then analyzes potential issues based on this data. For critical materials that could pose a significant risk to our operations (such as high-carbon raw materials and specific imported components), the Company implements strategies like diversifying suppliers, introducing alternative materials, and strengthening supplier due diligence. This helps us reduce the risks of supply chain disruption, price volatility, and compliance issues. Subsequently, the Company can combine summary reports to provide customers with CMRT and EMRT due diligence reports upon request.
• For the risks identified during the investigation, the Company refer to the "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals" and combined with actual circumstances. Suppliers will be required to procure alternative materials or obtain certification, and if necessary, terminate relationships with the suppliers.

Quanta's 2024 Responsible Mineral Procurement Annual Results

1. In 2024, 99.36% of suppliers have signed the Quanta Supplier Responsible Mineral Sourcing Compliance Statement as required.
2. For the CMRT part, 99.36% of suppliers submitted/updated CMRT as required by our company.
3. For the EMRT part, 98.66% of suppliers submitted or updated EMRT as required by our company.
4. Based on the responsible mineral procurement supplier online training launched in 2023, the Company conducted one annual update online training in 2024, and the attendance rate of suppliers reached 60.17% (counted by the registered online training username).

2.5 Products and Clients

Quanta places clients at the center of its operations, committed to providing high-quality, innovative, and sustainable products and services, while continuously strengthening cooperative relationships with global clients. Through quality management, green design, client satisfaction surveys, and real-time communication mechanisms, Quanta continuously optimizes user experience and product reliability, collaborating with clients to jointly advance industry innovation and sustainable transformation.

2.5.1 Green Product Design

Quanta is deeply aware of its environmental responsibilities and influence within the supply chain. Therefore, it actively leads transformative efforts centered on green design principles, comprehensively considering the environmental impacts at every stage of the product life cycle-from design and production to use and recycling. The Company systematically evaluates and optimizes product design to reduce carbon emissions and resource consumption. By selecting low-impact materials, strengthening supply chain transparency, and incorporating reduction-oriented and modular design strategies, Quanta effectively reduces environmental impact and carbon footprint. Furthermore, products are designed to meet energy efficiency standards such as ENERGY STAR, equipped with low-power consumption modes, and engineered for enhanced durability and extended service life-making sustainable practices more accessible in daily use. At the same time, Quanta strictly complies with regulatory requirements related to product health and safety, information labeling, and customer privacy. As of the reporting period, there were no incidents of non-compliance with regulations concerning product and service health and safety, no violations related to product information and labeling requirements, and no confirmed complaints regarding customer privacy breaches or data loss-demonstrating the Company's strong commitment to product compliance and information management.

On this basis, Quanta continues to strengthen every aspect of product design to ensure that the green concept is deeply embedded in all stages of the product life cycle. The Company is committed to achieving sustainable goals that combine high performance and environmental friendliness across the entire product line. This is actively implemented through the introduction of designs that are easy to disassemble and the promotion of recycling and reuse programs, thereby effectively realizing the concept of a circular economy. By addressing each phase of the product life cycle-from material selection and design processes to end-of-life recycling management-Quanta ensures that every stage contributes to greater resource efficiency and environmental sustainability. Through these efforts, the Company creates long-term value on the path toward sustainable development, achieving both enhanced corporate responsibility and strengthened competitiveness.

Green Product Design Strategy

Quanta has long been committed to the research and development of green products, striving to integrate environmentally friendly concepts into the design of the entire product life cycle. To enhance the effectiveness of green design, the Company adopts a systematic approach across six core dimensions, optimizing material selection, structural design, and recycling applications. The following will explain how Quanta implements a product strategy that simultaneously achieves high performance and low environmental impact through these six major aspects.

1. Product Material and Chemical Composition Control

Quanta's "Full Materials Declaration (FMD) System" supports a wide range of data exchange formats and can generate outputs that comply with various international standards, such as IPC-1752A and IEC 62474, based on individual client requirements. This ensures seamless integration with client systems. The system can quickly consolidate relevant data to provide compliance reports that meet various customer requirements and regulatory standards, effectively enhancing supply chain compliance management efficiency and reducing overall operation time. Through the FMD system, Quanta also works closely with supply chain partners to collect detailed information on chemical substances, including their usage and quantities. This not only helps mitigate risks related to hazardous substances and strengthens chemical management capabilities across the supply chain but also enables in-depth material composition analysis. As a result, the Company can proactively identify optimization opportunities and support suppliers in sourcing safer alternative materials.

As the management mechanism has matured, FMD has been fully implemented since June 2024 across all parts and materials, further enhancing Quanta's material management capabilities in collaboration with its suppliers and improving supply chain transparency and compliance. Currently, numerous suppliers are actively participating in the FMD system, providing chemical substance lists for materials. To date, more than 120,000 approved component records have passed the review process. Quanta will continue to expand the application of the FMD system and strengthen green material management across the supply chain to ensure full compliance with international environmental regulations.

2. Quanta Green Design Standards and Supply Chain Compliance Management

Quanta continuously monitors and analyzes the latest developments in international regulations, actively respond to various countries' restrictions on PFAS, and pays close attention to updates and implementation schedules of the EU Battery Directive, the EU REACH Substances of Very High Concern (SVHCs), and packaging material regulations. These regulatory requirements are incorporated in advance into the standard specifications for product development. All parts and materials must comply with the Quanta General Material Specification - Substances Restricted for Use before entering the product design and manufacturing processes.

Simultaneously, to enhance the supply chain's awareness and responsiveness to green regulations, Quanta regularly holds supplier conferences to promote green supply chain management, carbon reduction strategies, and regulatory trend awareness. Through surveys and interactive meetings, Quanta accurately assesses suppliers' current status, effectively communicates key information, and provides necessary support. These efforts help reduce the environmental impact of products and safeguard consumer health and safety.

2024 Focus Areas and Management Measures

A. Prohibited Substances List

• According to Annex 17 of REACH, international environmental protection conventions, and client requirements, mandatory restrictions and prohibitions are imposed on the addition of certain proportions of banned substances.

B. Halogen-free Requirements

• Strict controls are implemented over the use of brominated and chlorinated flame retardants and halogen-containing materials for certain clients and product components to prevent unnecessary environmental pollution.

C. Restricted Substances for ME/EE Components

• In compliance with the EU RoHS Directive, restricted substances in mechanical and electronic components are controlled to ensure that products meet international environmental standards.

D. Restricted Substances for Batteries and Battery Packs

• In compliance with international battery directives and related regulations, comprehensive control is implemented over the content of chemical substances, labeling, and management requirements.

E. Restricted Substances for Packaging Materials

• According to major international packaging material regulations, restrictions are established on regulated substances in packaging materials to reduce the use of non-recyclable and harmful substances.

F. Future Reduction Substances

• Continuously monitor regulatory trends in various countries, environmental conventions, and client requirements. Proactively manage and respond to chemical substances that are soon to be regulated by implementing early control measures. Actively require the supply chain to disclose relevant components and conduct advance evaluations of alternative materials and technologies to gradually reduce the use of such substances.

G. REACH SVHCs Requirements

• In response to the biannual updates of the EU REACH SVHCs list, the supply chain is promptly notified to ensure the legal compliance of product components.

H. PFAS Management

• Tracking global regulatory developments on PFAS control, including TSCA reporting requirements for PFAS and the latest provisions of EPEAT 3.0.
• Conduct a comprehensive investigation of the usage status of PFAS in products, promote manufacturers to select PFAS-free materials, and evaluate alternative materials.

3. Use of Sustainable Materials

Quanta incorporates sustainable materials into the core of product design, prioritizing the use of materials that are sourced from recycled content, have low environmental impact, and possess reusable characteristics. Particularly in plastic and metal components, continuously increase the proportion of recycled materials used to promote resource circularity and material efficiency. The primary sources of recycled materials include:

• PCR (Post-Consumer Recycled): Plastics discarded by consumers after use, collected, cleaned, and reprocessed into new materials.
• PIR (Post-Industrial Recycled): Waste generated during manufacturing, recovered and reused before consumer use.
• OBP (Ocean-Bound Plastic): Plastic waste at risk of entering oceans, collected to reduce marine pollution.

A. Plastic Materials

Depending on functional requirements, the proportion of recycled plastic ranges from 30% to 85%. The types of recycled plastics used include PC, PC/ABS, and ABS, mainly applied in critical components such as product casings, speakers, and fans.

B. Metal Materials

Incorporate recycled metals into the product's metal casing and mechanical components to reduce the environmental impact of mining and smelting processes. Currently, the applications of metal materials are as follows:

• Enclosure Materials: Recycled aluminum (50%-100%), recycled steel (10%)
• Internal Supports and Mechanical Components: Continuously increase the application ratio of recycled aluminum and recycled steel and actively evaluate the introduction of other recycled metals. Furthermore, regarding the management of the use of rare earth elements (such as Neodymium, Nd) and other critical metals, Quanta discloses material components through FMD to ensure supply chain transparency. The Company continuously explores ways to increase the application of recycled rare earth materials in components to reduce reliance on newly mined resources.

C. Modular Design and Recyclability

Through modular design, enhance the upgradability of products, enabling easy replacement and maintenance of components, thereby extending product lifespan and reducing resource consumption. Furthermore, recyclability is considered from the design phase. Optimized product design ensures easy disassembly to facilitate effective end-oflife recycling.

4. Packaging Material Reduction and Green Design

Quanta is committed to promoting innovation and reduction in packaging materials, actively eliminating unnecessary packaging and single-use plastics. Packaging design prioritizes recyclability, reusability, and material reduction principles, and gradually incorporates recycled materials. Through sustainable design orientation, reduce the overall environmental impact of packaging, and implement resource efficiency and product life cycle management.

A. Utilize Recycled Materials to Reduce Plastic Usage

Adopt recycled pulp and fiber-based materials as substitutes for conventional plastic and foam. These alternatives provide effective cushioning to ensure product safety during transportation while enhancing overall resource utilization efficiency. In order to further reduce the use of plastic, paper tape and pull-tab designs have been adopted to replace traditional packing tape, ensuring secure sealing while delivering improved environmental performance.

B. Reducing Packaging Volume, Enhancing Efficiency

By optimizing packaging design to minimize total volume and integrating multiple products into a single, efficient bulk package, Quanta reduces transportation volume and enhances logistics efficiency.

• Streamlined Lightweight Design: Optimized packaging dimensions and reduced packaging weight through structural engineering techniques, while ensuring product safety.
• Transition from single-item packaging to multi-item packaging: Consolidate multiple units into a single package to enhance storage and distribution efficiency.
• Reusable Packaging Model: An internal circular packaging reuse strategy has been implemented to minimize packaging waste across the supply chain.

5. Improving Energy Efficiency

Actively implement low power consumption strategies to effectively reduce energy consumption. This includes the adoption of low-power electronic components; the implementation of efficient power management technologies to dynamically adjust the device's power consumption during operation, thereby reducing energy use during standby and idle periods; the optimization of heat dissipation module design to enhance system efficiency and stability during operation while minimizing the additional energy required for cooling equipment; and the application of energy efficiency testing and monitoring to ensure that the product meets or exceeds international energy efficiency standards throughout both production and usage.

The products manufactured comply with multiple international energy efficiency standards for recognition and certification, including the European Union's ErP Lot 3, Lot 6/26, and Lot 9 directives, ENERGY STAR(r), the U.S. Department of Energy (DOE) Battery Charger System (BCS) specifications, and the requirements of Natural Resources Canada (NRCan).

6. Participation in Sustainable Labeling for Electronic Products and Sustainable Product Design

Quanta actively engages in internationally recognized sustainability certifications for electronic products, including EPEAT and TCO Certified. The Company not only incorporates existing standards into its green design blueprint but also monitors the development trends of new standards. Furthermore, Quanta collaborates closely with clients during the product design process, focusing on the following areas to enhance the sustainability value of its products:

A. Supply Chain Responsibility

Through supply chain investigations, ensure that partners comply with social responsibility and environmental responsibility standards, including the implementation of the RBA Code of Conduct, and actively promote energy management and environmental management, in order to reduce the environmental impact of the supply chain.

B. Sustainable Product Design

Quanta enhances the environmental performance of its products from the design stage by carefully selecting materials, improving maintainability and upgradability, and integrating rigorous reliability testing. It continuously optimizes the quality of materials, components and assembly to extend product life, maximizes the value of the circular economy and achieves sustainable use of resources.

C. Reduction of Hazardous Chemicals and Material Transparency

Enhance material transparency through FMD to ensure compliance with the latest global environmental regulations and standards and actively reduce the use of brominated and chlorinated flame retardants. Simultaneously, Quanta continues to monitor issues related to PFAS, identify its applications in products, and assess and mitigate potential impacts on the environment and health.

Product Sustainability and Energy Efficiency Certification

In response to market expectations for green products, Quanta continuously monitors and implements various labeling and certification mechanisms related to the sustainable performance of its products. These certifications not only signify recognition of the product's environmental performance but also help enhance consumer awareness and trust in sustainable products, thereby further strengthening the Company's responsible brand image and competitive advantage in the global market.

Product Sustainability Certification:

Quanta actively responds to the international mainstream standards for sustainable product certification, focusing on increasing the use of renewable energy in factories, enhancing the proportion of recycled materials, reducing the use of hazardous chemicals, and seeking safe alternatives to ensure that products achieve excellence in environmental friendliness and competitiveness. Through continuous innovation and optimization, Quanta's products have successfully obtained certifications including EPEAT, TCO, and TGM, significantly improving both environmental performance and market competitiveness. In 2024, Quanta further targeted the latest sustainability standards, including TCO Certified 10.0 and EPEAT 3.0. The Company actively worked with customers and suppliers to meet evolving requirements in social responsibility, sustainable materials, and hazardous substance management, ensuring strong environmental competitiveness across its product portfolio.

Number of products that obtained sustainable certification in 2024:

• Note 1: EPEAT (Electronic Product Environmental Assessment Tool) is a global environmental assessment system for electronic products, designed to assist purchasers in selecting more sustainable electronic products. EPEAT 3.0 is the latest version of the standard, enhancing requirements for PFAS, the use of recycled materials, carbon emission management, and the circular economy, while aligning with international sustainable development policies.
• Note 2: TCO Certified is a globally leading sustainability certification standard for IT products, dedicated to promoting social responsibility, ecological design, and product durability. TCO 10.0, the latest version launched in 2024, places greater emphasis on supply chain compliance, reduction of hazardous substances, and product durability and reparability.
• Note 3: The Taiwan Green Mark (TGM) is a sustainable product system that was established by the Taiwan's Ministry of Environment . It aims to reduce environmental pollution, conserve resources, and promote waste reduction and recycling.
• Note 4: The above data only includes cases related to new product introductions in 2024 and does not cover extended cases currently in mass production.

Energy Efficiency Certification:

Quanta is dedicated to improving energy efficiency during the product usage phase by adhering to relevant energy standards such as Energy Star. This is achieved through the integration of high-efficiency components, the implementation of low-power consumption modes tailored to various operating states, and the establishment of power consumption limits for standby, startup, and sleep modes-ensuring energy-efficient product design.

Number of energy efficiency certifications obtained in 2024:

• Note 1. Energy Star: Energy efficiency standards for consumer electronic products that are set by the U.S. Environmental Protection Agency.
• Note 2. California Appliance Energy Efficiency: The California Energy Commission (CEC) sets energy efficiency certification standards for electrical appliances sold in the California market.
• Note 3. MEPS (Minimum Energy Performance Standards): Developed and introduced by the governments of New Zealand and Australia. They establish standards for energy efficiency in products.
• Note 4. Department of Energy (DOE) BCS Energy Efficiency: The U.S. Department of Energy has recently issued updated energy efficiency requirements for Battery Charger System (BCS) products.
• Note 5. Korean E-Standby Energy Efficiency: Certification System Established by the Korea Energy Agency (KEA) for Standby Power (E-Standby)
• Note 6. China Energy Label (CEL): The China Energy Label is a performance indicator that is jointly issued by the National Development and Reform Commission and the General Administration of Quality Supervision, Inspection, and Quarantine. It is designed to provide energy efficiency ratings for products.
• Note 7. NRCan (Nature Resource Canada): the energy efficiency requirements for specific product categories imported into Canada.

Expanding the Use of Sustainable Materials

Quanta continues to dedicate efforts to the integration of recycled materials, responding to clients' dual demands for product performance and sustainability. Taking plastic materials as an example, Quanta prioritizes the use of recycled content in products applying for EPEAT certification to meet client expectations for both performance and sustainability. Recycled plastics-ranging from 30% to 85% content-are widely incorporated into key components such as casings, speakers, and fans. The specific proportion of recycled plastic used varies by product category, as outlined below:

Simultaneously, in the area of metal materials, the primary focus is on the application of recycled aluminum and recycled steel, utilizing 50% to 100% recycled aluminum and 5% recycled steel in metal casings and internal brackets. The primary recycled metal materials used include:

• ADC12: High-pressure die-cast aluminum alloy, 100% PIR
• AL6063: Aluminum-magnesium-silicon alloy, 75% PIR
• AL5052: Aluminum-magnesium alloy, 50% PIR
• BTRC5: Steel material incorporating recycled content, 5% PIR

In addition, Quanta serves as an Original Design Manufacturer (ODM), and the ownership of the final products belongs to the clients. Therefore, product recycling cannot be carried out by Quanta.

2.5.2 Customer Relationship Management

To strengthen long-term cooperative relationships with customers and accurately gauge service satisfaction, Quanta conducts a customer satisfaction survey each year in the fourth quarter through its business units using the "Customer Satisfaction Survey System". The survey collects feedback on key topics such as quality management and green products. This mechanism serves not only as a reference for the annual operational review but also as a key tool for continuous improvement in quality and environmental management, strategic planning, and stakeholder communication. The 2024 survey covered multiple dimensions related to product responsibility. By leveraging quantitative feedback and a structured anomaly tracking process, Quanta effectively enhances customer trust and value recognition.

Quality Management Satisfaction

According to the customer satisfaction survey results, Quanta's quality management encompasses six core aspects: product quality management effectiveness, service quality and attitude, speed and effectiveness of problem resolution, product development capability, product protection during transportation, and on-time delivery performance. These aspects comprehensively reflect the quality management performance of products and services from development and manufacturing to delivery. The overall satisfaction rate for quality management in 2024 reached 96%, indicating that Quanta has received high recognition from customers across all dimensions of quality management

Satisfaction Rate for Green Products

According to the 2024 Customer Satisfaction Survey, Quanta's Green Product Management was evaluated across six key dimensions: clarity and accessibility of communication channels, responsiveness to green product requirements, capability for hazardous substance detection, product compliance with customer specifications, effectiveness of control measures, and speed of abnormal event resolution. These criteria provide a comprehensive assessment of Quanta's performance in eco-friendly product design, regulatory compliance, and operational responsiveness. The overall satisfaction rate for 2024 reached 91%. Survey results show that customers highly appreciated Quanta's communication and control processes related to green products. However, some customers did not respond to the item on "abnormal incident handling speed," primarily because no such incidents occurred during the year, leaving them unable to provide relevant feedback. To improve the completeness of future surveys and the quality of customer participation, Quanta will provide clear, item-specific guidance during the questionnaire distribution phase. Assigned account managers will also proactively engage with customers to support the response process, ensuring that all evaluation dimensions accurately reflect management performance and customer expectations.

In response to feedback and suggestions collected through customer surveys, Quanta has implemented a mechanism for immediate response and improvement. The results are regularly consolidated and analyzed during management reviews to inform adjustments to the focus areas of quality and green product management for the following year, thereby continuously enhancing overall service quality and product delivery performance. Through this continuous improvement cycle, Quanta strengthens trust-based relationships with customers and deepens long-term partnerships grounded in sustainable values, establishing a key foundation for the Company's sustainable business operations.