2025 remained a year of profound uncertainty. We witnessed the continued acceleration of geoeconomic fragmentation alongside shifting trade policies among major economies. In particular, the renewed rise of tariff barriers has significantly disrupted global supply chains and introduced further uncertainty to global economic growth. At the same time, the explosive growth in demand for AI computing power has ushered in a new wave of technological transformation. While greatly enhancing efficiency, it has also placed unprecedented pressure on global energy systems, especially on the stability and availability of renewable energy supply. According to the Global Risks Report published by the World Economic Forum (WEF) in January 2026, “geoeconomic confrontation” has, for the first time, ranked as the most significant short-term global risk. As the world moves toward “multipolarity without multilateralism”, regional cooperation faces mounting challenges, weakening collective capacity to address critical issues such as extreme climate events and financial stability. From a long-term perspective, however, environmental risks remain dominant. Extreme weather events as well as loss of biodiversity and ecosystem collapse remain the top two risks, with half of the top ten long-term risks being environmental in nature. Economic losses from natural disasters have also risen steadily in recent years. According to Munich Re data, total losses reached US$224 billion in 2025, with 92% attributed to climate factors. Against this backdrop of persistent uncertainty and the increasing normalization of extreme climate events, resilience remains the cornerstone of SinoPac Holdings’ strategy. We navigate change with discipline and foresight, committed to transforming risks into opportunities, safeguarding assets and creating long-term value for all stakeholders.

Environmental Resilience: Advancing the Low-Carbon Transition

Climate change has become a systemic risk that directly impacts corporate costs and long-term resilience. As a capital provider in the financial sector, we are committed not only to improving the energy efficiency of our own operations, but also to channeling capital toward industries and enterprises that contribute positively to the environment. Our approach is guided by a clear “subtraction and addition” framework. On the one hand, we define and phase out activities that no longer align with our transition pathway. We have therefore committed to fully exit financing and investment in thermal coal and unconventional oil and gas exposures without credible transition plans by 2030, thereby reducing climate-related risks within our portfolio. On the other hand, we continue to scale up businesses that contribute positively to the environment and climate, steadily expanding our green asset base. Sustainability has been a core strategic pillar since 2022.

Clean energy financing has long been a key focus, and since 2025, we have further expanded into the circular economy, aligning with Taiwan’s Pathway to Net-Zero Emissions and its energy and industrial transition strategies. Under this framework, SinoPac has developed deep expertise in renewable energy financing, maintaining a leading position in solar PV equipment financing. We are also the only financial institution to have received the Top Solar Award from the Energy Administration of the Ministry of Economic Affairs for ten consecutive years. In addition, we actively promote free trading of green electricity, underwrite sustainable bonds to support green enterprises with fundraising, striving to build a robust green energy financial ecosystem. For assets facing decarbonization pressure but not meet the criteria for “subtraction” or “addition,” we deepen our engagement to support their low-carbon transition.

In response to Taiwan’s national strategy for “lifestyle transition”, we leveraged digital technologies to develop the “Carbon Off Show Time” platform, integrating sustainability into customers’ daily financial activities, from immersive in-branch service experiences at Carbon Off Show Time counters to online green deposits, digital transactions, wealth management, and day-to-day payments, enabling customers to easily adopt a net-zero green lifestyle. Operationally, we continue to upgrade to energy-efficient equipment, implement paperless processes, and actively sign Power Purchase Agreements (PPAs). As of the end of 2025, renewable energy consumption accounted for 27% of total power consumption of SinoPac Group.

Social Resilience: Fostering Inclusion and Shared Prosperity

We believe that the essence of sustainability lies in ensuring that no group is left behind during the transition. The elderly, people with disabilities,and migrant workers are among the most vulnerable groups in the financial system, and also those most in need of protection. As societies age and digitalization accelerates, the financial sector has the responsibility to provide inclusive and accessible financial products and services. This strengthens social resilience and prevents credit risks, fraud risks, or rising social costs caused by structural changes, which could increase the fragility of the financial system. This is not merely an act of corporate social responsibility, but a necessary step to maintain a sound and stable financial system. SinoPac is committed to developing diverse financial solutions for these groups. Our initiatives include dedicated credit programs for the underprivileged, the 24-hour hotline service for the elderly, and the launch of the first Braille combo card in Taiwan. We have also installed ATMs with audio services and wheelchair-accessible features. To address barriers arising from language, cultural differences and limited access to financial information, we have since 2013 offered lending programs for migrant workers, and introduced ADMigrant Pay, which supports multiple languages including Indonesian, Vietnamese, Filipino, and Thai, improving their access to financial information and services. We have integrated digital tools to make financial services simpler, more convenient, and more secure. Examples include the "DAWHO x DAWHOTOU Integrated Digital Services", enabling customers to perform deposit, remittance, and investment transactions at any time. We have also launched "Rich Saving Club" to help investors to diversify their asset allocation across Taiwan and U.S. stocks. Our official website features a dedicated user-friendly financial services section with an integrated accessible portal, which has received certifications in accordance with recognized accessibility standards. In addition, we innovatively launched "SinoPac iWish," customers only need to submit requests via text or images at the branch and the AI quickly understands and assists them in completing operations such as deposits, withdrawals, and remittances. We have also developed the innovative "Orbit.AI Investment Crystal Ball” that utilizes generative AI to help customers stay ahead of investment trends, as well as "ibrAin” robo-advisor services which utilize advanced data analytics to provide automated investment advice.

2025 also marked a significant milestone in SinoPac’s social resilience efforts as Amret Plc., Cambodia’s largest microfinance deposit-taking institution, joined the SinoPac Holdings family. Amret specializes in inclusive finance and provides flexible loans to farmers and medium-term loans to MSMEs.In the future, we will provide customers with more diverse and convenient financial services by leveraging Amret’s comprehensive suite of financial products and SinoPac’s resources and professional management capabilities to expand the positive impact of sustainable finance.

Governance Resilience: Strengthening Sustainable Governance

Robust governance represents the ultimate line of defense for resilience. We set high governance standards and enforce them through a comprehensive top-down governance framework. The Board of Directors serves as the highest supervisory body for our sustainable governance. The Board delegates authority to the Sustainable Development Committee to assist it in the oversight and management of sustainable development policies, as well as the planning, execution and performance of related tasks. Members of the Sustainable Development Committee include Directors of SinoPac Holdings (including all independent directors) and major subsidiaries including Bank SinoPac, King’s Town Bank which joined SinoPac Holdings family in October 2025, SinoPac Securities, and SinoPac Leasing. This ensures that subsidiaries participate in high-level sustainability decision-making and that decisions are implemented consistently across all subsidiaries.

SinoPac was the first financial holding company to establish a dedicated sustainability department with direct reporting lines to the Board of Directors. The department, known as the Sustainability Office, is led by an Executive Vice President who serves as the Chief Sustainability Officer (CSO) and is responsible for coordinating SinoPac Holdings’ overall sustainability strategy. We established five cross-departmental teams under the Sustainability Office. These teams, led by heads of corresponding functional departments of SinoPac Holdings, are responsible for planning and executing sustainability development tasks. Subsidiaries also have corresponding sustainable development teams, led by the Presidents of individual subsidiaries and linked to the organizations of SinoPac Holdings. This top-down governance framework builds group-wise consensus and ensures the implementation of SinoPac Holdings’ sustainable development strategies. Progress on sustainable development tasks is regularly reported to the Sustainable Development Committee or sustainable development teams for tracking and review. The results are also presented to the Boards of Directors of each company for review and discussion. This mechanism of continuous review and correction allows SinoPac to keep its sustainable development tasks aligned with international trends, applicable laws and regulations, self-regulatory requirements, and company strategies.

I would like to extend my sincere gratitude to the Board of Directors for their supervision and support, to the management team for their leadership, and to our employees for their dedication. In 2025, our sustainability efforts continued to receive top honors and recognition in leading domestic and international awards and rankings.

Outlook: Harnessing Technology for a Brighter Future

The cover of this Sustainability Report conveys a warm and meaningful vision—one where, empowered by AI technology, people, nature, and the environment thrive in greater harmony. This is the future I deeply aspire to. The girl depicted on the cover represents every employee at SinoPac Holdings. We continue to invest in AI empowerment, guided by our Agent Universe Blueprint as the strategic framework for AI development. Our goal is to use AI to enhance employees’ insights in business development and risk management, ensuring that capital finds its way to destinations that are friendly to the environment and society. Together, we shall build a resilient and sustainable future for ourselves and the next generations. I firmly believe that together, we can make a better life.