Respect for Human Rights

Arcadyan is committed to fostering a workplace that respects human rights and protects employees' fundamental rights. We follow international human rights frameworks, including the Universal Declaration of Human Rights (UDHR), the United Nations Global Compact (UNGC), the United Nations Guiding Principles on Business and Human Rights (UNGPs), the ILO Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for
Multinational Enterprises, the Responsible Business Alliance (RBA) Code of Conduct, and the SA8000 Standard.
We also comply with all applicable labor laws in the regions where we operate. In line with these commitments, Arcadyan has developed and published a Human Rights Policy Declaration, which has been approved by the Board of Directors and serves as the foundation for our human rights management and implementation practices.

Arcadyan Human Rights Policy

1. Respect for Human Rights:
   Human rights are respected in all aspects of operations, including economic, social, cultural, and civil rights, ensuring the elimination of any form of unlawful discrimination and guaranteeing equal employment opportunities.
2. Health and Safety:
   A safe, healthy, and harassment-free working environment is provided, ensuring the physical and mental safety of all employees in the workplace.
3. Prohibition of Child Labor and Forced Labor:
   The employment of child labor is strictly prohibited, and all forms of forced labor and human trafficking are eliminated. It is ensured that all employees are voluntarily employed and free from exploitation or restrictions on their freedom of movement.
4. Fair Compensation and Working Hours:：
   Compliance with wage and working hour regulations is ensured, with fair and sufficient living wages paid on time. Salary deduction items are clearly stated.
5. Sustainable Supply Chain:
   Suppliers are prohibited from using raw materials sourced from conflict minerals, and the supply chain is required to comply with human rights and environmental protection standards.
6. Open Communication and Management:
   An environment conducive to communication is created, with an open management model established, encouraging employees to express their opinions honestly and openly.
7. Protection of Vulnerable Groups:
   The labor rights of vulnerable groups are protected, ensuring equal opportunities for all employees.
8. Privacy Protection:
   Employees' personal data is respected and protected, with the collection and use of personal information in compliance with relevant regulations.
9. Continuous Improvement and Supervision:
   Regular reviews of the human rights policy and its implementation effectiveness are conducted, with management measures optimized to ensure the continuous improvement of human rights protection.

Management Indicator

• Zero workplace accidents in the factory by 2025
• Zero cases of child labor by 2025
• Zero forced labor complaints by 2025
• Zero cases of human trafficking by 2025
• 100% human rights awareness training rate for new employees by 2025
• Employee salaries comply with fair and reasonable principles, and the compensation system is regularly reviewed
• Zero employee discrimination complaints by 2025
• Zero violations of privacy protection laws by 2025

Commitment to Upholding Labor Rights

Arcadyan is committed to protecting the fundamental labor rights of all employees. In line with international standards and our Human Rights Policy Declaration, we promote fair, safe, and respectful working conditions. Labor rights are a core part of human rights and essential to sustainable operations. To uphold this commitment, we have established the following labor practices:

Human Rights Management

Arcadyan follows the United Nations Guiding Principles on Business and Human Rights (UNGPs) and other international standards, while complying with local labor laws across all operating regions. We are committed to embedding human rights policies throughout our global operations. To proactively manage potential
risks, Arcadyan has established a human rights risk assessment framework that integrates internal audits, external reviews, grievance mechanisms, and stakeholder feedback. This framework is a core element of our sustainability governance, strengthening our ability to prevent, identify, and address human rights risks, while
informing ongoing improvements in business strategy and supply chain management.

We conduct annual human rights risk assessments covering both internal operations and the supply chain, ensuring that fundamental rights are respected and upheld throughout our business activities.

Human Rights Due Diligence Process

Human Rights Risk Issues

In 2024, Arcadyan conducted a human rights issue mapping and risk analysis in line with international standards and due diligence principles. Eight key human rights topics were identified and incorporated into Arcadyan's human rights risk management framework as a foundation for preventive and mitigation measures.
Based on the assessment of potential impact and stakeholder concerns, three issues were prioritized: legal working hours, freedom of association, and health and safety.

For these priorities, Arcadyan established actionable prevention, mitigation, and remediation measures, including enhanced internal procedures, training programs, and management systems. These efforts were also extended to our supply chain to minimize adverse human rights impacts from business operations.
Arcadyan will continue to strengthen its Human Rights Due Diligence process, improve risk identification and response, and demonstrate transparency and commitment through regular reviews and disclosures.

Protecting Human Rights and Practicing Diversity and Inclusion

Arcadyan is committed to respecting and protecting human rights, adhering to international human rights standards and the laws of our operating locations. We strive to create a workplace that is respectful, equitable, and inclusive. Through the establishment of robust systems, training, and a grievance mechanism, we have
integrated a number of core human rights issues into our risk management and governance framework. Our practices and systems are detailed as follows:

Prohibition of Child Labor

Arcadyan strictly adheres to regulations on minimum employment age, prohibiting the employment of
individuals under the age of 16. This policy is explicitly stated in the "Arcadyan Human Rights Policy Declaration." To strengthen our management mechanisms, our internal "Recruitment and Employment Management Procedures" and "Control Procedures for Child, Juvenile, and Student Workers" require all new hires to provide valid identification for age verification upon onboarding. In 2024, there were no cases of child labor at any of Arcadyan's operating locations, maintaining a 100% compliance record.

Prevention of Forced Labor and Human Trafcking

Upholding its commitment to respecting and protecting human rights, Arcadyan adheres to international human rights standards and the labor laws of all its operating locations to implement human rights protection measures. To strengthen human rights risk management, Arcadyan explicitly prohibits all forms of forced labor and human trafficking in accordance with the UK Modern Slavery Act 2015. We are dedicated to safeguarding employees' personal freedom and fundamental labor rights, including voluntary employment, freedom to resign, reasonable overtime, and freedom of movement. We strictly prohibit practices such as contract-bound labor, debt bondage, and the retention of employees' personal documents (e.g., passports, work permits). Furthermore, we do not tolerate employees being forced to provide labor under any pressure of retaliation,
coercion, or debt.

To reinforce the enforcement of these policies, Arcadyan has established an internal audit and oversight mechanism. We regularly review human resource management practices at all our operating locations to ensure there are no violations of forced labor-related regulations. In 2024, there were no reported cases of forced labor or human trafficking violations across all of Arcadyan's global sites.

Promoting a Diverse, Inclusive, and Equitable Workplace

Arcadyan fosters a workplace culture that embraces diversity, inclusion, and equality, respecting individual differences and supporting employees' physical and mental well-being. To promote gender equality and inclusion, all-gender restrooms have been installed at headquarters, providing a safe and accessible space
for employees of all gender identities and those with physical or mental needs—reflecting our commitment to diversity and dignity in the workplace.

As part of its talent development strategy, Arcadyan promotes gender diversity and equal opportunity, with a focus on increasing female participation in the technology sector. During campus recruitment events, female managers represent the company in dialogues with students, sharing their career journeys in tech to inspire
women with STEM backgrounds to pursue careers in the industry and support greater gender balance in the workplace.

Freedom of Association and Labor-Management Communication

Arcadyan respects and safeguards the right of employees to freedom of association. We provide an open, transparent, and inclusive communication platform to foster positive interaction between labor and management. Across all of our global operating locations, employees can elect their representatives through formal organizations such as labor unions, employee groups, or labormanagement conferences. These representatives can participate in relevant communication meetings to fully voice employees' opinions and suggestions. This system helps strengthen our two-way communication mechanism, ensuring that employees' voicesare heard and considered in company decisions, thereby shaping a workplace culture of respect and cooperation.

Fair Disciplinary Action and Protection of Employee Rights

To ensure fair management and respect for employee dignity, Arcadyan prohibits any form of corporal punishment, psychological abuse, humiliating disciplinary actions, or other improper disciplinary behaviors. Our policies on rewards and punishments are clearly stipulated in the "Work Rules," and all disciplinary actions must be handled in accordance with the law and ensure a just and reasonable process. Employees also have the right to express their opinions and file complaints, utilizing the grievance system to protect their legitimate rights and prevent improper penalties from infringing upon their interests.

Working Hours Management and Rest Assurance

Arcadyan values the physical and mental well-being and labor rights of our employees. All our operating locations strictly comply with local labor laws and regulations to manage standard working hours and rest periods. We have established "Work Rules" and "Overtime Management Regulations," which clearly stipulate the maximum daily and weekly working hours, overtime procedures, and wage premium standards. Overtime arrangements are made on a voluntary basis. We have also implemented a working hours recording and monitoring system to track and prevent excessive overtime, ensuring that employees receive sufficient rest and maintain a healthy worklife balance. Through continuous internal audits and monitoring mechanisms, Arcadyan optimizes its working hours management to effectively uphold the fairness and legality of employee labor conditions.

Prevention of Discrimination, Harassment, and Workplace Misconduct

Arcadyan strictly prohibits all forms of discrimination and is committed to fair and equitable treatment throughout the employee lifecycle—including recruitment, compensation, training, promotion, and retirement. We do not tolerate bias based on nationality, race, ethnicity, social background, religion, disability, gender, sexual orientation, gender identity, pregnancy, age, appearance, political views, or union membership. Through clear policies and daily practices, we uphold a workplace that respects human rights and protects employee dignity.

To prevent and address workplace sexual harassment, Arcadyan has implemented the Guidelines for the Prevention, Complaint, and Disciplinary Measures of Sexual Harassment in the Workplace, in accordance with the Act of Gender Equality in Employment. These guidelines aim to ensure a safe, respectful, and fear-free environment where all employees are protected through a fair and transparent process.

Arcadyan provides anonymous and named reporting channels to ensure safe, confidential complaint handling, with protections against retaliation. An impartial team investigates all cases. In 2024, no reports of discrimination, harassment, or workplace misconduct were received, reflecting the effectiveness of our prevention and response mechanisms.

Zero Placement Fee Commitment for Migrant Workers

Arcadyan Taiwan Headquarters and its overseas manufacturing facilities currently do not employ migrant workers. In the event that operational requirements necessitate the recruitment of migrant workers in the future, Arcadyan hereby commits to:
Fully implementing a zero-fee policy across all phases of employment, including recruitment, hiring, onboarding, contract renewal, and safe repatriation. Under no circumstances will migrant workers be charged recruitment fees, placement fees, government processing fees, or any other associated costs. All such expenses shall be borne entirely by the Company.

Arcadyan remains steadfast in its commitment to safeguarding migrant workers' rights and fostering an equitable and inclusive workplace environment.