M3 Technology Inc.

Climate Impact & Sustainability Data (2022)

Total Carbon Emissions:35,817 kg/year

Water Consumption:308 tons/year

Reduced greenhouse gas emissions from 35,222 kg in 2021 to 35,817 kg in 2022; reduced water consumption from 285 tons in 2021 to 308 tons in 2022; participated in Tamsui River Convention for environmental protection, including mountain cleaning activities and promoting environmental education.

Provided employee benefits including labor and health insurance, holiday bonuses, birthday gifts, health examinations, and gathering subsidies; implemented employee health activities; established internal suggestion box for employee feedback; conducted annual bidirectional performance reviews.

Established Remuneration Committee and Audit Committee; implemented a spokesperson system for timely disclosure of material information; established internal control system; completed all information disclosures accurately and timely according to regulatory requirements; assessed the independence of CPAs on a regular basis.

Long-term Goals:

Strengthen process development capability; improve product quality and optimize production cost; enhance product core competitiveness.

Medium-term Goals:

Expand product completeness; continue to invest resources in technology development; continue to strengthen cooperation with main IC platform; continue develop the sales channels in Taiwan and China; continue to strengthen the long-term relationship with foundries, packaging and testing factories.

Short-term Goals:

Strengthen cooperation with key customers; enhance marketing and sales management; properly allocate semiconductor professional resources; maintain cooperation with foundries and packaging and testing factories; overcome the impact due to the risk of trade conflict between China and the US.

Impact of interest rate change; impact of exchange rate change; risk of competition in the same industry; intellectual property right related risks; risk of trade secret disclosure; insufficient analog IC design talents; shortened product life cycle due to market product specification change.

Maintained excellent relationship with banks to obtain preferred interest rates; actively reviewed information and future trend of foreign exchange market; developed products with differentiation and high function specification; focused on patent application and acquisition of patent rights for core technologies; implemented multi-layer network architecture and information security protection systems; promoted humanized management system and provided employee benefits; enhanced personnel training and improved manpower quality; implemented e-commerce ERP system to control product manufacturing progress.

Partners adhere to social responsibilities of the supply chain, including green environmental protection, labor human rights and ethics, health and safety, risk management and ethics, and the prohibition of minerals from conflict zones.

Frameworks Used: IFRS

Certifications: ISO9001

Third-party Assurance: Deloitte Taiwan