Building a Green, Low-Carbon Supply Chain

To accelerate the creation of a green, low-carbon supply chain, improve production efficiency, and reduce Scope 3 greenhouse gas emissions, Radiant Opto-Electronics considers cost, supply quality, delivery timelines, and risk factors, prioritizing "local procurement" as a key factor in supplier selection. The Company systematically plans to increase the annual goal ratio of local sourcing. In recent years, Radiant Opto-Electronics has actively adopted localized procurement, encouraging suppliers to establish manufacturing facilities locally to reduce energy consumption from air and sea transport, and to shorten lead times.

Analysis indicated that, in 2025, the Group’s overall local procurement ratio was 69.11%; the Kaohsiung plant’s local procurement ratio was 74.43%; and the Mainland plant’s local procurement ratio was 69.02%. The differences were attributable not only to adjustments in transaction models and price fluctuations, but also to discrepancies arising from the redefinition of local procurement.

Note 1: The definition of the local procurement ratio was as follows: (A) The data scope primarily covered Taiwan plants (excluding new business) and China plants; (B) The definition of localization was that, for China plants, the supplier's factories were located in China, and for Taiwan plants, the supplier's factories were located in Taiwan. Therefore, the aggregate was calculated using definitions A and B.

Note 2: Important operating locations are defined as locations whose operating revenue accounts for more than 10% of total revenue.

Supply Chain Sustainability Literacy Training

To continuously enhance the sustainability capabilities of the overall supply chain, Radiant Opto-Electronics continues to promote knowledge sharing related to low-carbon transition. In 2025, Radiant Opto-Electronics specifically organized a "Green Power Procurement" seminar for supplier partners, inviting external industry experts to explain renewable energy market trends, procurement models, and regulatory requirements. This helps supply chain partners stay abreast of energy transition developments and more clearly assess the feasibility and benefits of adopting green power, working together with Radiant Opto-Electronics toward carbon reduction and net-zero targets.