To focus on issues of concern to external stakeholders and those that are critical to its own operations, Radiant Opto-Electronics conducts a materiality analysis every year. In accordance with GRI 3 and the principles of double materiality, Radiant Opto-Electronics evaluates the impacts of its operations on the environment, society, and governance, as well as the financial and non-financial impacts of sustainability issues on its business operations, while also considering stakeholder concerns and feedback. Radiant Opto-Electronics incorporated the analysis results into the Company's risk management process (ERM) to establish short-, medium-, and long-term sustainability goal, and linked that goal to senior management remuneration, thereby effectively implementing the goal setting.

[Material Topic Identification Results]

Following internal discussion and analysis, the 2025 materiality topic was compiled and comprised of 10 material topics: GHG management; energy management, talent attraction and retention, occupational health and safety, talent cultivation and educational development, human rights, product responsibility and innovation, risk management, corporate governance, and integrity management.

Radiant Opto-Electronics’ 2025 material topic list, compared with the prior year, was reduced by four topic items: sustainable strategy, information security management, legal compliance, and economic responsibility. The omission of these four items from that year’s material topic did not indicate they were unimportant; rather, through strengthened routine management, their likelihood of causing negative impacts had been substantially reduced, and stakeholder level of concern to other issues had relatively increased. Accordingly, more resources were allocated to managing and tracking those other issues.

Although the three issues—GHG management, human rights, and energy management—were located in the moderate risk area of the material topic identification matrix, Radiant Opto-Electronics, in response to global sustainability concern trends, international customer requirements, the Ministry of Environment's decarbonization requirements, and increasingly stringent human rights regulations, included them as material topics, established a corresponding goal, and continued to monitor and manage them on a regular basis.

The above identification process has been verified and approved by a third party. The results of the identification are reported to and approved by the Sustainable Development Committee and the Board of Directors. Topics that have significant impacts on both "Radiant Opto-Electronics’ internal operations" and "external operations related to the economy, environment, and human rights" are defined as “highly significant topics.” The following are definitions and management strategies for theme significance:

 Short-, medium-, and long-term goals for key Material topics