To Shareholders' Report

Dear shareholders:

In 2025, geopolitical tensions and trade policies led to intensified supply chain restructuring and a trend towards fragmentation in global economic trade. In the face of challenges, the company demonstrated strong resilience, implementing the operational policy of "corporate restructuring, innovative transformation, and sustainable future," flexibly responding to geopolitical and market fluctuations; with the efforts of all colleagues, we once again set a new revenue record and delivered impressive results. While steadily advancing our financial performance, we also focus on sustainable management (ESG) and corporate governance. In 2025, we received multiple awards in recognition:
1. International Sustainability Benchmarks: "DJSI CSA Rating Top 10% of the industry", "EcoVadis Global Supply Chain Evaluation Silver Level", "CDP Carbon Disclosure Project Climate Change Questionnaire Grade A";
2. Deepening Taiwan's Achievements: "Taiwan Sustainability Evaluation AA Level", "Top 16 Large Enterprises in the World Sustainability Citizen Award", "Taiwan Corporate Sustainability Award", "Selected Top 100 Foreign Invested Companies in Taiwan" and "Top 20% in Corporate Governance Evaluation";
3. Model of a Happy Workplace: "World Talent Sustainable Award [Large Enterprises / Manufacturing Group]", "Friendly Family Workplace Award [Large Manufacturing Group]", "TCSA Talent Development Leader Award", "Taichung City Government_Happy Workplace [Joyful Award]", "National Health Administration Outstanding Healthy Workplace Benchmark Award [Gold Award]" and other honors.

These fruitful results not only validate our commitment to social responsibility and corporate values but also serve as the strongest driving force for Meilut to pursue excellence and achieve a sustainable future. Here, I sincerely thank our shareholders, customers, supplier partners, and all colleagues for their trust and support.

Looking ahead to 2026, in the face of ongoing geopolitical conflicts and rising trade protectionism leading to an unclear economic outlook, the company will embark on the "Ace Team Strategy" as the main operational focus for 2026. It will actively implement the operational guidelines of "customer goal orientation, team collaboration for mutual benefit, and AI driving the future," transforming challenges into momentum, and is determined to become an indispensable strategic partner for customers, achieving excellence and success for them.

Customer Goal OrientedWith "customer success" as the sole core strategic goal, we demonstrate exceptional value through the comprehensive "Eight Strategic Pillars" to become the most solid strategic partner for our customers. In terms of "agility," we maximize process simplification and flexibly respond to changes to quickly adapt to market iterations; in "resilience," we accelerate production capacity in Vietnam and Thailand while laying out in North America to strengthen global supply chain capabilities; in "technology," we focus on OTC and AI Hearing Glasses to provide customers with complete solutions; in "innovation," we introduce AI intelligence to systematically assist customers in developing forward-looking products; in terms of "transparency," we will establish AI visualization dashboards and a single window to ensure zero time difference in communication; in "quality," we utilize AI predictive management and strict control of the Tier 2 supply chain to comprehensively optimize quality, delivery time, and pricing; in "cost," we implement Cost Lead and localized procurement to provide the most competitive cost advantage; finally, in terms of "sustainability," we continue to enhance efforts to achieve 45% sustainable materials and green design, practicing a low-carbon supply chain.
Team collaboration for mutual success"Team collaboration for mutual success" is the key to Meilut's victory in the era of transformation. We will build an excellent team with seamless collaboration through project-based organizations, focusing on the "eight strategic pillars." First, we require all team members to align with the "common goals," demonstrating a high level of consensus to ensure that the overall interests of the company take precedence over departmental interests. Second, we will establish a comprehensive "information transparency" mechanism to eliminate communication barriers and lay a solid foundation for efficient decision-making. Furthermore, we strongly advocate for "effective communication" that focuses on issues rather than individuals, viewing mutual trust and openness as core values. Finally, we will create a "high-trust" environment that provides psychological safety, encouraging accountability and embracing innovative trial and error. Through the deep practice of these four major steps, we will forge an indomitable ace team.
"AI Ignites the Future"AI is the core engine for our journey towards excellence. In terms of processes, we will integrate AI into various stages including order taking, research and development, procurement, manufacturing, and project management to optimize operational efficiency and free up human resources for other value creation. In terms of products, we will endow our products with AI capabilities or connect them with AI devices to provide deeper intelligent value. Through comprehensive AI-driven initiatives, we ensure that our company continues to rise and grow amidst the wave of AI.

Facing 2026, Meilut takes AI as its wings and the Ace Team as its helm, steadfastly moving forward to achieve the goal of "customer success." Through continuous breakthroughs and extreme collaboration, Meilut aims not only to become the strongest and most trusted strategic partner in market competition but also to advance alongside customers to jointly win future victories and glory. Sincere thanks to every shareholder, customer, and supplier partner. Because of your trust and support, Meilut can continue to grow and thrive. At this glorious moment of Meilut's 50th anniversary, we look forward to continuing to work hand in hand with you to create a more valuable and sustainable future!

Wishing everyone good health, peace, and happiness!

Chairman Liao Lu-li