Life cycle assessment and product green design

Product Life Cycle

To reduce the impact of our products on the environment, Primax complies with the requirements of the international standards ISO 14040 and ISO 14044 to assess the environmental impact on different product stages and implement the green design.Since 2013, we have successively selected representative products according to the ISO 14067 standard to carry out product carbon footprint studies using the life cycle assessment methodology. Due to the wide range of products, Primax's strategy aims to complete the carbon footprint calculation of various products in steps.

The development of sustainability control tower management system has been completed in 2023 , in order to support the assessment of product carbon footprint as the basis for low-carbon product design. In 2023 , the carbon footprint life cycle evaluation for a total of 16 major products (mouse and keyboard (including wired,wireless and e-sports), network cameras, wireless charging disks, game controllers,computer docking stations, surveillance cameras, multi-function printers, thermalprinters, etc.) earphones, Bluetooth speakers, and headphones) has been completed(including raw material production, transportation, manufacturing, product transportation, product use, and product final disposal). The assessment scope accounts for about 60 % of the operating revenue. In the future, we will expand our product carbon footprint inventory and low-carbon product design.

Continue to reduce the environmental impact posed by products

Primax is mainly engaged in assembly and OEM business. On the premise that our products meet customers' needs, we expect to move towards green and circular throughout the product life cycle, from the source product design to the final disposal. In 2023 , we will continue to increase the proportion of recycled plastics inthe raw materials adopted by us. During the production and manufacturing stage,we will reduce the man-hours through product design improvement and production technology upgrade. During the waste recycling stage, we strive to control the disassembly ratio of Primax's products, insofar as it satisfies WEEE.

Ecological Design

Primax has established an Eco design management system, so that it can clearly understand the requirements of Eco design during the product development process(such as laws and regulations, customer standards, environmental protection labels and product specifications, etc.). We encourage the completion of products which meet low-carbon, non-toxic and low-environment impact requirements by controlling hazardous substances, packaging materials, recycling ratio and renewable materials combining the design process.In 2023 , through regular discussions with the Ecological Design Committee, the Group Chief Technology Officer and the ESG Office led the R&D executives of various business departments to discuss the green product design trend and internal project development opportunities. Meanwhile, we have also planned the Group's goal for development of low-carbon product projects from 2024 to 2025 .

Low-Carbon Product Innovation Design Example:Green bluetooth speaker (GBT)

Primaxoup values the opportunities for innovative technology developmentin green production and expects to continue increasing green products that meet customers' needs and also derive carbon reduction benefits at the same time. In 2022 ,the Company's subsidiary, Tymphany Acoustic Technology Limited, started low-carbon product design and development projects and started to invest in the speaker unit and acoustics departments jointly. In the same year, it launched the new HVS (High Volume Series) speaker monomer and expanded it into a product series. In 2023 , based on our experience in HVS design, we further called on engineers with passion for green product design to form an interdepartmental green design task force to conceive a complete audio product architecture, continue to seek better solutions, and successfully complete the GBT Development of bluetooth green audio products finally. Meanwhile, it also participated in the CES in January 2024 , receiving enthusiastic responses from customers and demonstrating Primax Group's determination to implement green innovative technology development.

Chemical and hazardous substance management

Primax Group strictly complies with the chemical safety regulations applicable in various countries and customers' requirements on prohibited and restricted substances. By controlling the stages including design, procurement,manufacturing and output comprehensively, it expects to move toward the goal of zero health and safety hazards and zero environmental pollution. Primax never incurred any chemical spills or other incidents in 2023 .

Focus on the chemical laws and regulations development trend

With production sites spanning across multiple regions, Primax Group willcontinue to pay attention to the chemical-related laws and regulations in each region, including but not limited to, the international standards and China's national standards, such as the Restriction of Hazardous Substances in Electrical and Electronic Equipment Directive (RoHS) of EU, Registration, Evaluation Authorization and Restriction of Chemicals (REACH), Persistent Organic Pollutants(POP), Toxic Substances Control Act (TSCA), California Proposition 65 , Limits for Volatile Organic Compounds Content in Cleaning Agents, and Limit of Volatile Organic Compounds Content in Adhesive.

Primax Group keeps an eye on the laws and regulations and standardsrelated to environmental protection/health and safety in various countries from time to time and regularly reviews the compliance status to facilitate the timely update of internal regulations. Meanwhile, it responds to customers' demand for chemical substance management that exceeds the requirements under lawsand regulations proactively, in order to ensure that its products meet the relevant customer requirements.

In accordance with the relevant laws and regulations and customers' requirements, Primax Group has established the "Specifications on Restrictive Chemical Substances Used in Green Products of Primax," in order to have various related departments, including the ESH Department, Production Department,Green Product Department, and Product R&D Department, jointly supervise the chemicals used in the products at the different stages in the process of product manufacturing.

Primax Group's Green Product Management Platform

In order to implement the source management, Primax, primarily with the PDM^® (Product Data Management) system, integrated GP Portal^®, SAP^® and other information platforms to form a complete management information system to effectively reduce the cost of work and improve the processing time. This integrated system controls virtually every aspect of our operation from customers' requirements, regulations, design, suppliers, procurement and production to training. It is mandatory for suppliers to guarantee that all products sold to the Group are free of hazardous substances prohibited by local regulations, whether in raw materials, dyes, solvents, consumables, packaging, or production process.Furthermore, suppliers are also demanded to comply with Primax's specific requirements on Green Product Chemicals Specification.

Full Material Declaration (FMD)

Primax Group integrates management systems, such as PDM^®, Primax GPPortal^®, and SAP^® to identify the constituent substances of all our parts. Suppliers shall upload all raw materials and compositions of parts and components to the GP Portal and update them in a timely manner, in order to help us understand the impact posed by these parts on health and the environment. We incorporated all regulated substances specified by IEC 62474 into the GP Portal database. This allows us to clearly identify whether the materials provided by suppliers contain any of the controlled substances regulated by IEC 62474  . In addition to meetingthe requirements of IEC 62474 , the database also enables us to trace the usage of chemical substances by upstream suppliers.

Primax also discloses the hazardous substances in response to customers' needs, including a statement that all products have passed health and safety assessments, a statement of compliance, hazardous substances test reports,substance safety surveys, and safety/EMC standards conformity reports. In2023 , no product and service was found to have violated any health or safety regulations or self-regulating rules. There was also no record of fines imposed inthis respect.

IECQ QC 080000 Hazardous Substance Process Management System Certification

Primax Group's hazardous substance management efforts are guided by International Electrotechnical Commission's IECQ HSPM QC 080000 standards(Electrical and Electronic Components and Products Hazardous Substance Process Management System Requirements), and we have obtain a third-party verification certificate, as per which we duly manage hazardous substancesin products. These standards are being followed strictly from customer/legal requirements, component identification, supplier management, raw materialexamination, production, inventory, shipment, to employee training.

Results and plans for elimination of hazardous substances

In 2023 , Primax listed 9 chemicals targeted by the RBA policy on key process chemicals into the inventory, and prohibited the use of them comprehensively before the end of 2023 . For the time being, all raw materials and auxiliary consumables used meet the requirements.In 2024 , we are expected to launch a survey of perfluorinated and polyfluoroalkyl substances (PFAS) and reduce PFAS other than polymers step by step until 2026 . Meanwhile, based on the reduction of VOCs emissions, a VOCs source reduction plan will be formulated to increase the consumption of low-volatility glues actively.

Environmental Labels & Declarations

The products produced by Primax are mainly OEM and ODM products, and we will assist clients to apply for type 1 eco labels, such as Energy Star, EPEAT,(for multifunctional office machines and scanners), Taiwan's Green Mark (formouses), China's Ten-Ring verification (for scanners), and electrical safety verification (such as EU CE or China CCC). The power supplies of audio productshave all received the Energy Star mark. We combine the product green design capabilities and realize the concept of green environmental protection and sustainable operation, expecting to meet customers' needs and also increase the competitiveness of the Company's products.

Green Procurement

Since 2020 , Primax Group has been prioritizing the procurement of information products with large purchasing quantities (such as computers,monitors, multifunction printers, and printers) and high-energy-consuming products like refrigerators, water dispensers, and ice machines. Our priority is to select products that carry domestic or international environmental certifications or energy-saving labels (such as EPEAT, Eco label, Energy Star, TCO, Blue Angel,etc.). In 2023 , the purchase amount of products bearing environmental protection labels reached NT$ 27,544 thousand, accounting for 79.12% of the total purchase amount.

Raw material consumption statistics

Primax Group consumed 86,312 metric tons of raw materials in 2023 , which was 0.08% less than 2022 .

Table of raw material consumption (Unit：kg)