Environmental Sustainability

Purchased electricity accounts for more than 98% of Gemtek’s total energy consumption. The remainder comes from gasoline, diesel, and liquefied petroleum gas (LPG). Gasoline and diesel are primarily used for company vehicles and backup generators at various facilities, while LPG is mainly used for kitchen operations at the Taiwan Headquarters. The table below provides a breakdown of energy consumption by site.

In 2024, Gemtek Technology’s total energy consumption reached 183,916.27 GJ, including 180,466.05 GJ from non-renewable sources and 3,450.22 GJ from renewable sources. The company’s energy intensity was 7.17 GJ per NT$1 million in revenue. The increase in energy intensity was primarily due to early-stage expansion activities at the Gemtek Vietnam facility, where equipment was still undergoing setup and testing, resulting in suboptimal capacity utilization and reduced energy efficiency.

To better understand and manage its energy usage, Gemtek Technology implemented the ISO 50001 Energy Management System at its Taiwan Headquarters and Vietnam facility in 2024, and obtained third-party certification. Based on this system, the company will set appropriate energy management goals to drive continuous improvement in energy performance. The Vietnam facility also prioritized the deployment of an energy monitoring system to accurately track electricity usage and evaluate the effectiveness of energy-saving measures. Beginning in 2024, Gemtek’s Vietnam facility installed a rooftop solar power system with a capacity of 6.5 MWp. That year, it generated 958,394 kWh of solar energy, equivalent to approximately 3,450.22 GJ. Once the system is fully operational in 2025, it is expected to produce around 9,645,408 kWh annually, raising the facility’s renewable electricity usage to approximately 25%. In 2024, renewable energy accounted for 2.1% of the company’s total energy consumption. Gemtek will continue to implement energy-saving and carbon reduction measures to lower energy use and carbon emissions, reduce environmental impact, and advance its long-term sustainability goals.

Gemtek Technology's Non-Renewable Energy Consumption (Past Three Years)

Note:
1. 1 gigajoule (GJ) = 109 joules (J).
2. Data sources: Electricity data is based on the monthly utility bills for each facility. LPG, diesel, and gasoline consumption is calculated based on actual usage, while diesel used for generators is based on purchase requisitions.
3. Energy conversion values for 2022 and 2023:
Electricity: 1 kWh = 3,600 KJ;  Diesel: Taiwan = 8,400 kcal/L; Mainland China = 10,200 kcal/kg; Vietnam = 8,400 kcal/L;  Natural Gas (LNG): Mainland China = 8,500 kcal/m³

Liquefied Petroleum Gas(LPG): Taiwan = 6,635 kcal/L; Mainland China = 10,200 kcal/kg;  Gasoline: Taiwan = 7,800 kcal/L; Mainland China = 10,300 kcal/kg (density: 0.7475 kg/L); Vietnam = 7,800 kcal/L
4. Taiwan's 2024 energy conversion values are based on the Ministry of Environment's announcement on February 13, 2025: the lower heating value for automotive gasoline is 7,609 kcal/L, and for automotive diesel is 8,642 kcal/L. All other conversion values remain consistent with those used in 2022 and 2023.
5. The Gemtek (Changshu) facility was divested in the second half of 2023; therefore, no data is disclosed for 2024.
6. Due to errors in the previously reported 2022 total energy consumption data, the figures have been corrected and restated in the current year's report.

Gemtek primarily relies on tap water provided by the Taiwan Water Company for its daily water supply, and does not use shared water resources. The Company observes the rules and egulations for water usage established by the park management authority, and its overall usage and consumption has had no significant impact on the local water sources. To assess the water stress level at respective manufacturing plantss, the Company referenced the World Resource Institute's (WRI) Aqueduct Water Risk Atlas and developed targeted strategies for high-risk areas across all its facilities. At Gemtek Vietnam,the Company has constructed a water reservoir with a generous capacity of 360 cubic meters. This reservoir is projected to meet Gemtek Vietnam’s water requirements for a span of 5 days without interruption. To date, the Company has successfully averted any water shortages or disruptions that could potentially impact its operations.

The Company initially dividing the premises into four areas, each equipped with water meters to monitor usage. This data-driven approach allows the Company to quickly identify areas with higher water consumption. Based on these insights, water-efficiency measures can be effectively implemented under the supervision of designated personnel. Year-over-year reports show that these efforts have led to significant water conservation effects. Additionally, the company has secured a contract with a water trucking company to ensure a continuous supply in case of extended water restrictions lasting more than a day. The chart below illustrates Gemtek's water consumption over the past three years.

Note: Source of Water Stress Risk Data - Aqueduct Water Risk Atlas by the World Resources Institute (WRI).

In 2024, Gemtek Technology’s total water withdrawal reached 174.48 million liters, with a water withdrawal intensity of 0.0068 million liters per NT$ million in revenue. This represents a 13.9% decrease compared to 2022, mainly attributed to the divestment of the Gemtek (Changshu) facility. At the Taiwan Headquarters, the company has begun gradually replacing and upgrading aging mechanical float valves in the dormitory basement and flush toilet systems throughout the building to conserve water more effectively. Meanwhile, the expansion of the Gemtek Vietnam facility led to increased water consumption due to the conversion of its air conditioning system to a chilled water setup. To address this, the facility plans to implement a cooling tower system to recycle water for use in non-critical clean water areas and related processes. The facility is also actively exploring additional measures to reduce overall water consumption.

Gemtek's Water Consumption (Past Three Years)

Note:
1. Water consumption = Water withdrawal – Water discharge.
2. Discharge volumes for Gemtek Taiwan Headquarters, Gemtek (Kunshan) Facility, and Gemtek Vietnam Facility are estimated figures, calculated at 80% of their respective total water withdrawals.
3. Water usage is calculated based on the operational control approach, consistent with the boundary setting used for greenhouse gas inventories. Data for 2022 and 2023 have been adjusted accordingly.
4. The Gemtek (Changshu) facility was divested in the second half of 2023; therefore, no data are disclosed for 2024.

Gemtek Technology primarily generates domestic wastewater. All wastewater from its facilities is treated at authorized wastewater treatment plants and discharged only after meeting regulatory standards. These operations have not caused significant impacts on local water sources, and no major leakage incidents have occurred. Treatment plants regularly dispatch personnel to collect water samples from Gemtek facilities to assess discharge quality and determine billing rates. If any test results exceed acceptable thresholds, the company is notified and required to implement corrective measures within a specified period. In 2024, all water quality test results complied with applicable standards, and each site has maintained compliance since its establishment.

Note:
1. The water quality test values represent the annual average monitoring results.
2. Page 67 of the 2023 ESG Report incorrectly identified "COD" as a water pollution testing item for Gemtek's Vietnam facility. The correct item is "BOD," and the information has been updated accordingly.

Waste removal and treatment strictly adhere to local regulations, including proper reporting and contracting of qualified vendors for cleanup, ensuring no environmental pollution or significant impact on the environment. Each year, on-site audits are conducted for vendors handling hazardous industrial waste to ensure that their operations, including transportation, storage, and treatment, meet all relevant standards. The results of these audits are also used as criteria for selecting vendors.

Gemtek Technology's main type of wastes are municipal and industrial wastes, both of which are managed off-site. In 2024, the total amount of waste generated was 1871.1 tons, of which 1327.1 tons accounted for 70.9% of the total waste, were recycled waste, while 543.9 tons, or 29.1% of the total waste, were waste directed to disposal. Waste management at the Taiwan headquarters follows the "Waste Classification and Management Guidelines" and the "Waste Disposal Act.” Manufacturing facilities in Mainland China adhere to the "Prevention and Control of Environmental Pollution by Solid Waste of the People's Republic of China," while Gemtek Vietnam complies with the "Law No. 72/2020/QH14: Article 72. Waste Management Requirements." All waste is handled by qualified local disposal service providers and there were no incidents of leakage or regulatory violations.

Gemtek's Waste Handling Summary in 2024

Gemtek Technology continuously monitors and strives to reduce air pollutant emissions to minimize environmental impact. The company’s main sources of emissions are limited to trace amounts of exhaust generated from printing and soldering operations, as well as volatile organic compounds (VOCs) released from process-related solvents such as flux and cleaning agents. Gemtek is not classified as a high-pollution industry subject to regulatory oversight. At Gemtek’s Taiwan Headquarters, process improvements have been implemented by diluting the high-concentration organic solvents originally used in the SMT cleaning process. This approach reduces the amount of solvent consumed and helps lower emissions of air pollutants. At Gemtek’s Kunshan facility, a cleaning agent with a volatile organic compound (VOC) concentration of 154 g/L originally used in the steel plate cleaning process was successfully replaced with an alternative containing only 62 g/L of VOCs. This substitution has significantly reduced VOC emissions, cutting annual emissions by approximately 60%. The facility remains committed to reducing the use of high-pollution materials and continuing to expand its emission reduction efforts.

Gemtek regularly engages accredited environmental testing agencies to perform inspections and submits the results in compliance with regulatory requirements. All relevant personnel are provided with personal protective equipment (PPE), and exhaust systems are installed at operational sites to safeguard employee health and safety while minimizing the potential environmental impact of VOCs. Over the years, Gemtek’s air emissions have consistently remained within regulatory limits, with no major air pollution incidents reported.

Gemtek's Air Pollutant Emissions (Past Three Years)

Note:
1. The use of emergency generators may produce nitrogen oxides (NOx) and sulfur oxides (SOx); however, as these are non-routine emissions, they are not classified as major emission sources.
2. As part of its annual reporting requirements, Gemtek's Vietnam facility presents data based on testing results provided by Dai Nam Environmental Joint Stock Company under report number 13/2022/GEMTEK/KQPT-DN.
3. The Gemtek (Changshu) facility was divested in the second half of 2023; therefore, no testing data is available for 2023 and 2024.