Our acquisition of a U.S. company in 2019 brought us established brand equity, a portfolio of patents (including invention, utility model, and design), and international distribution channels. This move enhances our development of innovative home products, strengthens brand management, and advances vertical integration across the value chain to drive global competitiveness.

To reinforce industry leadership and safeguard technological achievements, we have established an intellectual property strategy aligned with our business objectives and R&D resources. This framework leverages IP rights to create corporate value—ensuring freedom to operate while strengthening competitive advantages and supporting long-term profitability.

In the initial stage of our IP management strategy, we tailor our approach based on the nature of different product technologies, strategically deploying various forms of intellectual property protection—such as patents and trade secrets—rather than relying solely on patent filings. In the mid-stage, we review the quality of past applications and establish standardized internal procedures to avoid redundant or insufficient protection. In the later stage, we actively enforce our patent and trademark rights against infringers to defend our rights and create a strong deterrent in the market.

Our IP management function operates under the Office of the CEO, with direct oversight from senior leadership. Internally, we foster innovation by encouraging employees to develop new inventions and designs, and by supporting participation in international home and lifestyle exhibitions to stay aligned with global design trends. Externally, we maintain close communication with patent offices across key markets. In cases of suspected infringement, our in-house patent attorney within the Office of the CEO works directly with external firms to take prompt action, including issuing cease-and-desist notices.

We also engage third-party monitoring services to conduct regular and systematic online enforcement to remove unauthorized counterfeit products. When necessary, we collaborate with local legal firms in relevant jurisdictions to issue formal warning letters or initiate direct intervention from the Office of the CEO, demonstrating our strong commitment to protecting intellectual property rights.

Trade secrets are critical to maintaining our technological leadership and competitive advantage. Employees in key development and design roles are bound by confidentiality clauses in their employment agreements. In addition, clear provisions are in place regarding the ownership and filing rights of intellectual properties for inventions and works created within the scope of employment.

Intellectual property matters are reviewed and reported to the Board of Directors on an annual basis.

Most recently, these matters were presented at the 7th meeting of the 9th Board on January 27, 2026.

a. The Company currently possesses 124 active patents worldwide, with an additional 17 applications pending.

b. This year, several infringement cases were identified across U.S. e-commerce platforms, Taiwan social media, and upstream factories in mainland China. The Company has exercised its legal rights by filing takedown notices with e-commerce platforms, issuing public announcements, and sending cease-and-desist letters, achieving significant results in multiple countries.

The Company currently maintains 102 active trademarks worldwide, with an additional 19 applications pending.

In response to the intensifying competition in the global market, the value of intellectual property rights has a critical impact on corporate survival. Given that a comprehensive IP portfolio strategy can help the Company mitigate risks, expand market share, and counter competitors, the Company plans to further strengthen its dedicated IP management function by expanding personnel resources in line with operational needs, and to implement the Taiwan Intellectual Property Management System (TIPS).