Environmental Sustainability

The primary energy that Gemtek Technology uses is electricity, which accounts for over 87% of its total energy consumption.
Liquefied petroleum gas is mainly used by the cafeteria kitchen at the Taiwan headquarters, while gasoline and diesel are
used by company-owned vehicles and industrial generators at various factories. Details of energy usage at each factory
are shown in the table below. The company actively monitors energy usage and implements energy management practices
to reduce environmental impact. In 2023, Gemtek Technology's total energy consumption was 169,898.47 GJ, with an energy
intensity of 0.0065 GJ per thousand NTD --an 8.3% increase from 2022, largely due to increased electricity use from expanded
production capacity at the Vietnam plant. To overcome this matter, Gemtek plans to install solar panels in 2024, aiming for a
20% self-generation rate by 2025.

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 five days without interruption. To date, the Company has successfully averted any water shortages or disruptions that could potentially impact its operations.
The Company launched its water management plan in 2021, 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.

In 2023, Gemtek Technology's total water withdrawal was 146.02 megalitre, with a water intensity of 0.0056 megalitre per million NTD in revenue—a 24% reduction compared to 2022. This significant decrease was largely due to the discovery of the excess sediment levels of the ecological pond at the Taiwan headquarters. After dredging the pond and installing a mechanical float valve to monitor the water level, the overall water usage was greatly reduced. Moreover, due to the fact that each facility has been eagerly promoting water-saving measures, such as installing water-efficient fixtures, reusing non-potable water from cooling towers in non-human-use areas, and improving manufacturing processes to reduce water consumption—the results of these conservation efforts have been exceptional. Moving forward, the company will continue to implement more water conservation measures and explore the feasibility of water recycling in various operations.

Gemtek Technology's wastewater discharge is mainly municipal wastewater. All wastewater generated by its manufacturing plants undergoes proper treatment at authorized sewage treatment plants.The treated wastewater is then discharged in compliance with required emission standards, ensuring no significant impact on local water sources. To date, there have been no major sewage pollution incidents. Sewage treatment plants regularly send personnel to collect water samples from our facilities. These samples are used to assess water quality and determine fees. If the water quality doesnot  meet the standards set by the sewage treatment plant, the company is required to make necessary improvements within a specified time frame upon receiving notice. The water quality test results for 2023 are as follows, and all results meet the required standards.

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 2023, the total amount of waste generated was 1,105.62 tons, of which 583.451 tons accounted for 52.7% of the total waste, were recycled waste, while 524.14 tons, or 47.4% 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 Technology makes substantial efforts to mitigate environmental impacts caused by air pollutants through continuous monitoring. The primary source of the Company's gas emissions is the small amount of exhaust gas generated from printing and soldering operations. To ensure compliance with regulations, the Company regularly commissions an accredited environmental
inspection agency to conduct tests and submits reports to the Environmental Protection Agency on a quarterly basis. All employees in relevant positions are provided with personal protective equipment (PPE), and corresponding exhaust systems are set up in place to ensure employee health and safety. This approach not only safeguards their well-being but also helps minimize any potential adverse effects of VOCs on the environment. In the future, we plan to increase the frequency of activated carbon replacement in our exhaust systems to further reduce VOC emissions.Moreover, we are actively exploring eco-friendly solvents as alternatives to lessen our environmental impact. Over the years, our gas emissions have consistently met regulatory standards, and there have been no instances of air pollution.