Message from the ESG Committee Chairman：

In recent years, global industries have faced multiple challenges, including geopolitical tensions, inflationary pressures, supply chain restructuring, the rapid development of artificial intelligence (AI), and increasingly stringent net-zero emissions and sustainability regulations. In addition to pursuing steady growth, companies must also consider environmental protection, social responsibility, and corporate governance, integrating sustainability into their core strategies to enhance long-term competitiveness and create sustainable value.

NAE is committed to the research, design, and manufacturing of professional audio products. We continuously deepen our expertise in acoustics, electronics, mechanics, wood products, and software integration technologies, providing complete product solutions for internationally renowned audio brands. Facing rapidly changing market demands, we continuously invest in technological innovation, process improvement, and smart manufacturing to enhance product quality, operational efficiency, and supply chain resilience. Through our global production capacity layout, we offer customers more flexible and efficient services.

Sustainable development has become a core element of business operations. NAE integrates ESG principles into its daily operations and decision-making processes, and takes “environmental sustainability, social prosperity, and integrity governance” as its three main axes of sustainable development to continuously improve corporate governance quality and sustainable competitiveness.

Regarding environmental sustainability, we continuously promote energy conservation and carbon reduction, energy management, and process optimization. By improving equipment efficiency, reducing energy consumption, and strengthening resource recycling, we gradually reduce the environmental impact of our operations. At the same time, we continue to improve our greenhouse gas inventory and carbon management systems, actively responding to the global net-zero emissions trend and our customers’ expectations for a low-carbon supply chain, steadily moving towards low-carbon manufacturing and sustainable operations.

In terms of social responsibility, we uphold the “people-oriented” philosophy, creating a safe, healthy, diverse, and friendly work environment. We value talent development, career advancement, and employee care, and continuously improve our occupational safety and health management so that employees can work with peace of mind and utilize their professional skills. At the same time, we actively engage in social welfare, care for community development, and give back to society with our corporate strength, creating shared value.

In terms of corporate governance, we continuously improve the functions and governance system of the board of directors, implement integrity management, risk management and internal control mechanisms, enhance the transparency of information disclosure, incorporate sustainability issues into corporate business decisions, and build a mutually trusting and cooperative relationship with shareholders, customers, suppliers, employees and other stakeholders to jointly build a sustainable supply chain and a solid business foundation.

Looking ahead, NAE will continue to deepen its core technology research and development, actively develop high-value-added products, strengthen its smart manufacturing and digital transformation capabilities, and enhance product competitiveness and operational efficiency. We will also continue to promote low-carbon transformation, sustainable supply chain management, and corporate resilience building to respond to rapid changes in the global market and international sustainability trends, moving towards becoming a sustainable enterprise that balances economic, environmental, and social value.

Sustainable development has no end, but is a journey of continuous improvement. In the future, NAE will uphold the business philosophy of integrity, innovation, quality, and sustainability, and work hand in hand with all colleagues, customers, suppliers, and all stakeholders to meet new challenges and opportunities, continuously create long-term value, and realize the vision of sustainable business operations.