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Message from the Management

As the owners of HOTAI DEVELOPMENT Co., Ltd., we deeply understand that corporate responsibility extends beyond revenue growth and market expansion. It also encompasses long-term commitments to environmental protection (E), social development (S), and corporate governance (G). Since its founding in 1963, HOTAI DEVELOPMENT has consistently upheld the belief of "changing before we are exhausted, striving for excellence, and having to change." Through continuous innovation and transformation, we have grown from a humble beginning in stainless steel tableware to a leading company in Taiwan's air conditioning industry and the exclusive distributor of Daikin air conditioners in Taiwan.

Facing the global trend of sustainable development and the high expectations of our stakeholders, we are actively deepening our ESG strategy, demonstrating our commitment and actions across the board, from corporate governance and green operations to social engagement. In 2024, we completed our greenhouse gas inventory in accordance with ISO 14064-1 and obtained third-party verification, supporting our 2050 vision of net-zero carbon emissions with concrete actions. We are also establishing a comprehensive education and training system and a diverse career advancement mechanism, striving to create a happy workplace and enhance the competitiveness of our talent and corporate cohesion.

At the same time, in terms of corporate governance, we also adhere to the "safety, profit, and development" advocated by the founder of Hotai Group, Huang Liehuo; and the belief and principles of "no best, only better" advocated by President Su Yanhui. We strengthen the functions of the Board of Directors, attach importance to information transparency, risk control and honest business operations, and fully implement internal audits and regulatory compliance to ensure that interactions with all stakeholders are based on trust and professionalism.

This is the first ESG report issued by HOTAI DEVELOPMENT, marking a significant milestone on our journey toward sustainable governance. Going forward, we will continue to uphold a professional, service-oriented, and innovative business philosophy, working collaboratively with all colleagues and stakeholders to advance our corporate vision of "a better life and a harmoniously society," and together create a sustainable future.

We sincerely invite everyone to continue to pay attention and provide guidance. Let us embark on the journey towards sustainability together, taking one step at a time and steadily fulfilling our commitment to society and the environment.

Sustainable development of enterprises

Our sustainable commitment is to "invest in refrigeration and air conditioning, industrial development, improve quality of life, environmental sustainability, and create a better life and a peaceful society."

Sustainability Report

In pursuit of sustainable business operations and to enhance information transparency, HOTAI DEVELOPMENT has issued 2024 Sustainability Report, explain to stakeholders the measures and performance in integrity management, environmental protection, occupational safety and employee welfare.

Stakeholder identification and communication

While pursuing sustainable business operations, HOTAI DEVELOPMENT also values the voices of its stakeholders. We designate any individual or group that could significantly impact the company's operations as a stakeholder. Each department initially screens the types of stakeholders encountered through routine business dealings. Based on the frequency of interaction, mutual influence, and mutual importance of each stakeholder, internal discussions and reference to industry practices led to the final selection of four key stakeholder categories deemed significant to HOTAI DEVELOPMENT: shareholders/investors, suppliers, customers, and employees.

Key Stakeholder Categories Stakeholders' Significance to the Company Issues of Focus Communication Channels/Frequency
Shareholders/
Investors		 Shareholders are the investors of the company. The company should protect the rights and interests of shareholders, treat all shareholders fairly, and ensure that shareholders have the right to fully know, participate in and decide on major matters of the company. Operational performance, ethical integrity, information security, talent development, product responsibility/product safety Contact: Investment Management Department
EMAIL: petrina@hotaidev.com.tw
Shareholders' Meeting/Annual
Suppliers The company maintains long-term and positive interactions with its supply partners. Our products and services rely on the stable supply of products from numerous suppliers. In addition, the company leverages its influence in the industry to work with its supply partners to prevent environmental pollution and violations of labor rights. Operational performance, product innovation, customer relations, protection of trade secrets and transaction security, ethical integrity, and product and service labeling Contact: Commercial Product Department
Email: jeffchan@hotaidev.com.tw
Target: Daikin Industries, Ltd.
Product Development Meeting / Every Six Months
Customers Customers are the main source of the company's revenue. The company regards product quality, safety and after-sales service as its highest commitment to customers. Maintaining high customer satisfaction will help the company continue to gain customer recognition. Customer relations, product innovation, operational performance, product and service labeling, product liability/product safety Contact: Customer Satisfaction Committee
EMAIL: may@hotaidev.com.tw
Customer Meetings/Quarterly
Business Visits/Monthly
Satisfaction Survey/Annual
Employees Employees are the indispensable foundation of the company's operations. The company is committed to providing a workplace environment that is healthy and diverse for employees, allowing them to work without worries. Compensation and benefits, labor-management communication, operational performance, employee equality/non-discrimination, customer relations, and occupational safety Contact: Human Resources Department
Email: hr@hotaidev.com.tw
Phone or Email: Irregular
Welfare Committee Meeting: Annual
Employee Complaints Channel: Irregular

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Contact us

If you have any comments or suggestions regarding the content of this report, please contact us:

HO TAI DEVELOPMENT CO., LTD. ESG Sustainability Committee

Address: No. 18, Lane 36, Xinhu 1st Road, Neihu District, Taipei City

E-mail:esg@hotaidev.com.tw