2024 is a year of both challenges and transformation for global enterprises. Geopolitical tensions are escalating, trade protectionism is rising, extreme climate events are intensifying, and the green energy transition triggered by the energy crisis has made business operations face unprecedented uncertainty. As a publicly listed company in Taiwan, we deeply understand that businesses must seek order amidst drastic changes, and build resilience under risk pressure, in order to move forward steadily toward sustainability.

In the face of the five key challenges below, we choose to meet them head-on:

1. Geopolitical risks increasing：As global geopolitical tensions intensify, supply chain arrangements and investment directions are continuously affected. We actively monitor developments in China-U.S. relations, European policies, and the rise of Southeast Asia, and flexibly adjust our operational strategies based on market changes. Through these measures, we ensure stable production capacity and efficient customer service even in a volatile political and economic environment, further strengthening the Company’s resilience and competitiveness.

2. Trade barriers and tariff conflicts：Countries around the world have introduced trade protection policies for strategic industries, creating more procedures and cost pressures for enterprises in exports and cross-border cooperation. In response to this challenge, Win Win Precision has re-examined the supply chains and tariff planning of its major markets, strengthened the localization of key components, and expanded into diverse markets to reduce dependence on a single market and enhance risk resilience and long-term competitiveness.

3. Extreme climate events becoming the norm：Climate change has led to high temperatures, heavy rainfall, droughts, and water shortages, gradually  impacting the stability of operations and raw material supplies. We proactively evaluate the impact of climate risks on our operations, optimize energy consumption management in our plants, introduce energy-saving equipment, and strengthen environmental management systems. We are progressively achieving carbon footprint tracking and carbon reduction targets, enhancing environmental resilience and sustainable development capabilities.

4. Energy issues and transition pressures：The global green energy transition is accelerating, but energy costs continue to rise, creating dual pressures for the manufacturing industry. In response, we actively explore increasing the proportion of renewable energy usage and cooperate with suppliers to develop higher-efficiency process technologies, striving to achieve an operational model that combines economic benefits with environmental friendliness, thereby driving sustainable development.

5. Global supply chain restructuring：Under the combined influence of the pandemic and political risks, the global manufacturing landscape continues to undergo restructuring, creating supply risks and delivery uncertainties. In response, Win Win Precision has strengthened its supplier management system, introduced ESG evaluation mechanisms, enhanced supply chain resilience and transparency, and built long-term strategic partnerships to ensure stable supply and a solid market position.

Facing these challenges has further reinforced our belief in sustainable management. Therefore, we are promoting green transformation as our core, building sustainable resilience as our goal, and fulfilling the expectations of regulators, shareholders, customers, and employees as our mission. In May 2025, we officially established the “ESG Office,” led by the Legal Department to coordinate and implement ESG strategies, and we have incorporated sustainability targets into our KPI and operational evaluation system. Accordingly, we have proposed four key pillars of sustainable development to comprehensively implement our sustainable transformation blueprint:

1. Low Carbon Management：In response to Taiwan’s “2050 Net Zero Emissions”goal, the Company has optimized machinery energy consumption and reduced carbon emissions by 73 tCO2e in 2024. We are systematizing greenhouse gas inventories, conducting carbon hotspot analysis, and preparing for Scope 3 emissions management. The Company has taken the lead in the industry by obtaining EPD (Environmental Product Declaration) international Type III certification, marking an important step toward net zero.

2. Sustainable Supply Chain：In line with the EU “Corporate Sustainability Due Diligence Directive (CSDDD)” and the “EU Forced Labor Prohibition Regulation (EUFLP),” we have incorporated environmental sustainability and human rights management into supply chain management indicators and proactively introduced a due diligence system. This system covers more than 90% of the Company’s annual transaction value and includes carbon content management for selected products, building a responsible and resilient supply chain.

3. Inclusive Governance：To strengthen sustainability resilience, Win Win Precision has embedded sustainability into daily operations and governance, while improving the sustainability task force and risk map. We will publish our first TCFD report in 2025, using effective governance and strategies to manage climate risks, promote climate adaptation and mitigation, and establish ourselves as industry leaders. Furthermore, Win Win Precision is one of the few companies in Taiwan to obtain SA8000 social responsibility certification, and actively promotes diversity, equity, and inclusion (DEI), creating a workplace environment that respects human rights, health, and safety.

4. Create a Win-Win Situation：We are committed to becoming a one-stop service provider for green energy, supporting stakeholders in their green transition, enhancing sustainable competitiveness, and fulfilling corporate social responsibility. We actively support the United Nations Sustainable Development Goals (SDGs), particularly Goal 7 “Affordable and Clean Energy” and Goal 12 “Sustainable Consumption and Production.” We provide corporate energy management services covering solar installation and energy storage systems, and focus on R&D and manufacturing of consumable components to reduce resource and energy waste. We have received the TSMC Excellent Supplier Award for two consecutive years, demonstrating the trust and recognition of our customers. Guided by the principle of “giving back to society,” we actively participate in public welfare activities, promoting a virtuous cycle toward a sustainable future.

We believe that a company’s value comes not only from revenue and profits, but also from respect for  the environment, contributions to society, and commitment to corporate governance. WIN will continue to uphold the spirit of “Integrity in Governance, Innovation and Improvement, and Shared Prosperity,” building a resilient, transparent, and forward-looking sustainable enterprise that creates long-term value and impact in an era of change.