To all stakeholders:
In addition to the impact of the pandemic, the Ukrainian-Russian war has added to the gloom.In the face of these uncertainties, Radiant Opto-Electronics Corporation continues to stand firm with a steady pace, achieving its goals, and to propose solutions that meets the challenges
head-on, demonstrating remarkable results. In the face of a grim future, many challenges go beyond past experience―not just the economic downturn, but also the challenges of international sustainability issues such as climate change, net-zero carbon emissions, carbon taxes and fees, renewable energy, and many others. These challenges cannot be solved in a short period of time and require intelligent management, continuous accumulation of eorts, and hard work to address.

During this unstable time, ROEC has demonstrated a steady pace of operation. With contributions from the laptop and tablet products as well as foreign exchange, overall operations have been relatively stable. Cumulative revenue for 2022 was NT$58.701 billion, which was an annual increase of 3.1% and a new high in the nine years since 2013. The Company has also consistently seen growth of NT$10 in earnings per share for the past five years.

In response to sustainability issues, Radiant Opto-Electronics has taken several measures. First, we have strengthened our Sustainability Development Committee by including independent directors, who participate in the planning of sustainable blueprints, strategies, and policies. Additionally, the committee has expanded the structure by establishing a Carbon Management Task Force to promote carbon management and the path to achieving net-zero carbon emissions. To enhance communication with stakeholders and increase transparency of sustainability information, Radiant Opto-Electronics reinforce the disclosure framework of the Task Force on Climate-related Financial Disclosures (TCFD). It is also promoting thirdparty certification based on the Sustainability Accounting Standards Board (SASB) framework.Furthermore, in response to investor demands, the corporation is responding to the Carbon Disclosure Project (CDP) questionnaire, disclosing corporate carbon information. Radiant Opto-Electronics is also actively engaging in carbon management throughout the supplier chain. We conduct carbon management surveys on suppliers, extending our influence to upstream suppliers and striving towards sustainable development.

At the same time, Radiant Opto-Electronics Corporation is continuously driving digital transformation and encouraging its employees to propose internal transformation projects. These projects include a Carbon Management Platform, an Energy Eciency Management Platform, an Industrial Bureau Information Security Enhancement Program, an RPA (Robotic Process Automation) Rollout, a SAP (System Applications and Products) Hardware Upgrade, AP (Access Point) Virtualization, an RTI Patent Knowledge Base, an eHRD (Elearning Human Resources Development) Human Resource Development System, continuous computer audits, and regulatory cloud risk control, among others. By integrating smart tools and technology, Radiant Opto-Electronics Corporation can improve or deepen work processes and eciency, starting from a management perspective to address the challenges of corporate sustainability. The Company's problem-solving expertise enables it to achieve better eciency. In 2022, ROEC participated in the CGMA Global Management Accounting Competition and received the Best
Robotics Process Automation Practice Award, capturing the judges’ attention from among a large number of competing companies.

Radiant Opto-Electronics Corporation places great emphasis on the diverse development of employee training and continuous improvement of talent development and education training. Following the PDDRO (Plan, Design, Do, Review, Outcome) cycle and utilizing the Radiant Opto-Electronics Corporation learning management system, the company has optimized its existing training operations. This eort was recognized with the TTQS Silver Medal award from the Workforce Development Agency, Ministry of Labor, Executive Yuan, arming the company's commitment to the quality of employee education and training environment. On the other hand, we value the happiness and sense of achievement of our employees, and have launched various projects to create a friendly and inclusive workplace. For example, we have introduced a new style of sta meals and implemented new dormitory management practices. We hope that these initiatives will enhance the
well-being and satisfaction of our employees.

Radiant Opto-Electronics Corporation's eorts in ESG sustainability were widely recognized in 2022. Not only have we won the TCSA Taiwan's Top 100 Corporate Sustainability Award and the Silver Award for Electronic Information Manufacturing Reporting, we have also been awarded the Contribution to Public Welfare Award by the Ministry of Economic Affairs in the Export Processing Section and the Special Service Award by the Social Aairs Bureau of Kaohsiung City Government Volunteer Service Evaluations this year.

The significance of sustainable development lies in meeting the needs of the present without jeopardizing meeting the needs of future generations, therefore, the importance of sustainable development in ROEC has also been continuously upgraded. Sustainability will continue to be a major direction in global industry development. Radiant Opto-Electronics Corporation is fully committed to preparing for the digital transformation of intelligent management and the low-carbon transformation of products. We are improving our carbon management internally and incorporating low-carbon considerations into product design at the source. We will also work with our customers and suppliers to enhance our collective sustainable impact and confront future challenges together.

As global issues such as COP27, biodiversity, and cross-regional cooperation gain traction, and as Taiwan embarks on its path towards net-zero emissions by 2050 and climate change regulations, the only way to mitigate operational risks and earn the trust of customers and suppliers is for companies to adhere to strict ESG regulations. At ROEC, every employee should possess sustainable awareness and practices, firmly committing to the sustainable goals of "coexistence of the environment, co-prosperity of society, and mutual benefit," while continuously strengthening our linkage with the United Nations' Sustainable Development Goals (SDGs). By making ESG part of the corporate cultural DNA of ROEC, we can work together to realize corporate sustainability and create long-lasting value.