Occupational health and safety management

To align with the international trends in occupational health and safety management and enhance regulatory compliance, Primax Group has proactively responded to customer concerns regarding occupational safety and health. Our main production sites, including three facilities in China, one in Thailand, three facilities for Tymphany in China, and one in Thailand, a total of eight sites, have all implemented the ISO 45001 Occupational Health and Safety Management System(except for Primax Taipei and Tymphany Taipei office locations, which are in the process of adopting the system, as described in Appendix8 . 1 ). These sites have also obtained certification from a third-party verification agency, SGS. The management system, verified externally, covers 100 % of employees and non-employees (including temporary workers and on-site contractors) across all eight main production sites. Additionally, Primax Taipei Headquarters officially implemented relevant management processes in 2020 , demonstrating the company's strong commitment and support to occupational health and safety management through concrete actions.

| Occupational Health and Safety management unit |

Primax believes that providing a safe and healthy workplace for employees is the company's fundamental obligation and responsibility. To effectively safeguard the rights and interests of employees concerning health and safety, each Primax Group facility forms an Occupational Health and Safety Committee, consisting of representatives from both labor and management, in accordance with local regulations. Regular meetings are held to allow employees to raise issues they encounter or may encounter in their work environment, and to implement improvements and preventive measures for a safer and more comfortable workplace.

In Taiwan, employee representatives make up approximately 50 % of the committee, exceeding the regulatory requirement. In China and Thailand facilities, labor representatives account for 13 % and 45 %, respectively. The Occupational Health and Safety Committee in China and Thailand convene regular monthly meetings to address various occupational health and safety topics. The discussions are based on the operational conditions and annual priorities of each facility, covering areas such as training planning and implementation, incident and accident reviews, medical room usage statistics, auditing deficiencies review and improvement, fire safety, equipment operation safety, electrical safety, and chemical safety. The committee helps supervise, recommend, and plan occupational health and safety-related issues. Other indirect workers including outsourced cleaners, security guards, drivers, and electromechanical personnel may express opinions to the head of General Affairs and have them proposed during committee meetings.

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| Occupational hazard identification and risk assessment procedures |

Primax identifies Occupational Health and Safety hazards and assesses risks by following Primax identifies Occupational Health and Safety hazards and assesses risks by following the terms of ISO 45001 : 2018, which requires a separate hazard identification team to be assembled as part of the environmental safety and health management system. Members of this team shall comprise representatives from relevant departments. All department representatives must undergo training and be certified for hazard identification and risk assessment. Hazard identification and risk assessment are performed on all routine and non-routine activities, any activities or services conducted by employees, contractors, suppliers,or  visitors within the workplace, as well as all facilities provided by the organization or other units within the workplace.

Issues that have been identified as high-risk and above using the Hazard Identification and Risk Assessment Worksheet are prioritized for improvement and provide the basis for future Occupational Health and Safety goals and plans, whereas issues of lower risk level are managed as part of routine activities.

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| Incident reporting and investigation procedures |

All plant sites of Primax Group have implemented "Safety and Health Incident Reporting Procedures" and "Incident Investigation and Resolution Procedures"; workers are able to escalate any work-related injuries, accidents, and close calls to the line manager/shift leader/head of production line/security staff upon occurrence.

Should any life-threatening emergency arise in relation to the works performed, workers are allowed to cease work activities or take appropriate response measures and evacuate from the workplace. The Company may not reduce workers' wage or benefits, or terminate employment or contract with workers, for the above actions.

In the event of injury or death, workers are expected to call the emergency reporting hotline immediately and help the injured seek medical attention, and shall notify and file reports with relevant government agencies within 24 hours. For each incident occurred, the Company will assign a level to the investigation depending on the severity, and then assemble an investigation team comprising members from appropriate levels of management to establish the cause of accident as well as improvement solutions. All improvement measures are to be strictly enforced and monitored. Based on the outcome of the accident investigation, the Company will revise its safety and health procedures to prevent recurrence of similar accidents.

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Training and injury prevention

Primax Group undertakes active prevention and enhanced training to improve the safety of its factory environment while minimize work injuries. Its training program applies to all employees including senior managers and safety auditors, and covers a broad range of Occupational Health and Safety-related topics such as first aid, machinery safety,environment, safety and health risk identification, occupational health, and emergency response. Each production site has a safety officer who is regularly trained and certified. The safety-related training expenses of Primax Group amounted to NTD 924 , 963 in 2022 .

At the same time, to enhance employees' responses in the event of emergency, Primax Taipei organizes drills on situations such as fire disaster and evacuation on a regular basis, whereas production plants in China hold fire drills on a rotating basis (by plant and by shift) once every six months. Employees are taught on the use of fire safety equipment and emergency evacuation, as well as key points concerning property recovery and first aid. In2022 , Primax Group conducted a total of 23 , 639 evacuation and emergency drills related to fire evacuation, chemical spillage, food poisoning, elevator entrapment, and emergency response for special equipment. The participation breakdown was as follows: 191 participants from Taiwan, 22,006 participants from Mainland China, and 1 , 442 participants from Thailand.

Uses of plant equipment are strictly managed; any addition and change of equipmentis subject to review by the environment safety personnel before installation. The purpose of the above requirements is to control risk of accident, and they represent our commitment to creating a safe and healthy work environment. In the future, we hope to further expand our emergency response system to better protect our employees in the event of fire, earthquake, explosion, or any natural disaster or workplace accident.

Contractor Safety Management

In addition to complying with local regulations, Primax also assumes responsibility for the occupational safety of its employees and non-employed workers. All contractors are required to sign a "Contractor Statement" to be qualified to perform works for the Group. All contractors that perform works on plant premises will have to be informed of "Work Environment and Hazards" and "Important Notes for Contractors Working within Plant Premise," and are instructed to comply with "Contractor Safety and Health Code of Conduct" and sign the "Work Safety Commitment." Contractors are required to submit a "Safe Work Permit" and seek approval before commencing work; once construction has been completed, the supervising unit will issue a "Completion and Safety Confirmation Form." If the construction fails to meet safety rules, the responsible department will issue an improvement order and demand corrections to be made by the contractor within the given time. All plant sites have implemented "Contractor Management Procedures," and any accident that arises in relation to the works performed on Primax's premise, such as occupational hazard, fire, explosion etc., will be reported, investigated, analyzed, and recorded according to the Company's accident investigation and improvement procedures. Primax Group encountered no work-related injury or safety accident involving any contractor in 2022.

Occupational injuries

In addition to correcting existing and potential workplace safety concerns, Primax Group monitors statistics such as employees' work injury, occupational illness, days lost, absenteeism etc. as a means for assessing the effectiveness of workplace health and safety measures, and tracking reduction or even total avoidance of safety and health incidents. Primax Group also monitors its operations for defect and areas of improvement concerning specific health and safety management issues. Any defects uncovered are resolved in the shortest time possible with prevention measures implemented to eliminate safety/health concerns or unfair treatments.

In 2022, Primax Group recorded a total of 25 occupational injuries (15 in Mainland China, 10 in Thailand). All incidents were promptly handled, and we provided assistance to the injured employees in filing insurance claims and adjusting their work duties based on their recovery status. Furthermore, to prevent future occupational injuries, we conducted thorough analysis of the root causes of these incidents and developed corresponding action plans. These measures include organizing safety training courses, increasing onsite inspection frequency, and enhancing personnel safety awareness to reduce accidents caused by negligence. Additionally, we have been gradually phasing out old equipment and installing protective covers to prevent accidents resulting from inherent equipment defects or malfunctions.

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  • The data of 2019-2021 includes six operation sites in China and Primax Taipei office. Data from Thailand operating site and Tymphany Taipei office have been included in the statistics from 2022.
  • Total work hours in the above chart were estimated (employee count * 8 hours * work days).
  • Lost-Time Injury Frequency Rate (LTIFR) - Employees = Recordable occupational injuries (including fatalities and severe occupational injuries) × 1,000 , 000 / total work hours.
  • The number of recordable occupational injuries is based on the internal occupational injury incident summary and does not include commuting accidents.
  • Occupational diseases: Diagnosed by occupational medicine specialist physicians or recognized by relevant authorities. (There were no cases of occupational diseases determined among Primax Group employees in 2022 ).
  • Occupational Disease Rate (ODR) = Number of occupational disease cases × 1,000,000 / total work hours.

Employee health and comprehensive care

Primax Group has attached great importance to employees’ health. In addition to regular health promotion activities and health education awareness-raising events, each plant has set up a clinic to provide health consultation and health management services, with the aim of creating a healthy workplace.

Primax Group provides special examinations for employees who are exposed to high-risk activities/substances such as: gluing, printing, soldering, forklift, electrical works, noise, dust, laser, X-Ray etc. For these employees, examinations such as B-scan ultrasonography, pulmonary function, bilirubin, hearing, trace element, and eye function are provided before, during and after performing work. Employees who operate X-ray related equipment are subjected to full body examinations that cover potential skin, liver, kidney, lymphatic, and thyroid diseases; In 2022, a total of 23 abnormal inspection results were discovered at the main operational production plants and factories. These cases were confirmed by doctors to raise concerns about hazardous operations. Proper measures have been taken to prevent relevant employees from engaging in hazardous operations, including avoiding assignment to such tasks during job allocation and relocating them from their original positions as necessary.

The Taipei Headquarters also organizes general health checks with more comprehensive coverage than what the laws require. Employees who have been identified as a part of a high-risk group will be closely monitored by nurses and given complimentary checkups six months later. These efforts are intended to enable early discovery and treatment of life-threatening diseases.

| Risk mitigation and preventive protection measures |

To Primax Taipei, with an office-oriented work approach, promoting the physical and mental well-being of employees and maintaining a work-life balance are our main directions in mitigating workplace hazards and showing care for employees. The Taipei Headquarters has implemented plans to identify employee risk factors and develop risk reduction and preventive measures related to gender hazards prevention, prevention of abnormal workloads leading to illnesses, protection against unlawful harm in the line of duty, and maternal health care.

Referring to the 2021 employee health examination results, we have planned risk reduction measures for 2022. The analysis of colleagues' health examination results showed a significant risk of metabolic syndrome and hypertension. Therefore, in 2022, we are implementing comprehensive employee health enhancement actions, focusing on health awareness, a healthy diet, and health management. We follow the principles of soft promotion and daily integration to enhance employees' willingness to participate and implement preventive measures effectively.

  • Dissemination of Health Awareness

Health awareness is conveyed to colleagues through organizing seminars and workshops on physical and mental health enhancement. In 2022 , a total of 142 individuals participated in these seminars and workshops on physical and mental health enhancement. 

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  • Health Promotion Activities

Encouraging employees to move more, be willing to exercise, and adopt a habit of regular physical activity is our goal. In 2022, Primax Taipei organized various health promotion activities to help employees increase their vitality and prioritize their health while balancing their work commitments.

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  • Implementation of Healthy Diet

Implementing healthy diet is a continuous goal for us to ensure that our employees eat well and stay healthy. To achieve this goal, we have a spacious and well-lit employee cafeteria and coffee shop, offering meal subsidies and providing weekly menus in advance. We also label the calorie and nutritional information for each set meal, giving colleagues more choices.

At Primax, we aim to reduce the risk of cardiovascular diseases and metabolic syndrome caused by unhealthy eating habits in our employees' daily work routines. For a nominal fee of just 45 NT dollars, our colleagues can enjoy delicious and nutritious lunches. In 2022, due to the restaurant renovation in the first half of the year, a total of 36,411 meal subsidies were used in the second half of the year. The bustling crowd in the cafeteria during lunchtime reflects the strong support Primax receives for providing daily health protection to our employees.

  • Mental Health Promotion and Caring

Primax places great importance on maintaining the psychological well-being of its employees, as creating a friendly and balanced workplace is the company's foremost responsibility. At the Taipei Headquarters, we have established an Employee Assistance Program (EAP) helpline to ensure that employees' medical, legal, and psychological issues are effectively addressed. In 2022, a total of 278 employees used the first-stage consultation service, and 29 employees further utilized the second-stage service. The main consultation topics were related to legal issues and interpersonal relationships. The satisfaction survey revealed a score of 5.8 out of 6 , indicating that the EAP helpline effectively helped employees reduce negative impacts on their work and life, providing positive assistance in balancing both aspects.

Moreover, we conduct employee mental health workshops and seminars to share experiences and positive energy, showing our care and concern for employees' psychological well-being. In 2022, a total of 3 , 516 employees participated in these workshops.

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