Investors

1. Intellectual Property (IP)Management Strategy

To enhance competitive advantage, Innolux (hereinafter “Company”) continuously aligns its business objectives with R&D resources to formulate an IP strategy, implementing IP deployment and protection measures. Company adopts the Taiwan Intellectual Property Management System (TIPS), utilizing the management cycle of "Plan, Do, Check, Act" to strengthen and improve our IP management capabilities.

2. IP Management Policies

1. Continued Deployment of Key Technology IP.
2. Inventory of Patent and Strengthen IP Monetization.
3. Strengthen Staff Training on the Knowledge of IP.
4. Improve IP Management.

3. Intellectual Property Management System

1. Encouraging Patent Applications:

Enhance product innovation and R&D capabilities by encouraging patent applications to strengthen the Company's control and use of IP rights. This includes proposal review mechanisms, reward systems, post-approval evaluations, and patent activation systems. Additionally, the establishment of patent management methods and systems creates a comprehensive patent control framework, enhancing the Company's grasp and utilization of patent deployment while avoiding related IP risks.

2. Enhance Trademark Strategy

The main trademarks of the Company have been applied for and obtained trademark rights or related authorizations. We continuously plan and apply for trademark layouts according to IP management policies of the Company.

3. Confidential Document Control

Implement strict security measures to control IP rights and confidential documents, ensuring the Company's IP rights are safeguarded. Systematic processes are employed to protect these rights and reduce the risk of improper disclosure.

4. Enhance employee awareness and protection of IP rights by strengthening the implementation of IP management education and training systems.
5. Conduct regular internal audits and management reviews to assess the achievement of IP objectives, ensuring the continuous revision and improvement of the management system.

4. IP Achievements

1. As of March 31, 2024, the Company has accumulated approximately 13,400 patents worldwide. The annual growth in the number of granted patents supports our leading position in unique technologies, enhancing competitive advantage and providing better protection for both the Company and its customers.
2. The Company actively executes trademark reviews and deployments according to relevant management methods. As of March 31, 2024, the Company has obtained a total of 114 registered trademarks globally.
3. In October 2023, the Company passed the Taiwan Intellectual Property Management System (TIPS) Class A re-certification review, with the certificate valid until December 31, 2025.

5. IP Risks and Countermeasures

To avoid disputes and litigation that could reduce the Company's competitiveness and impact revenue, the following countermeasures have been established:
(1) Set up procedures and communication channels to handle related internal and external events promptly, assisting units in formulating response strategies.
(2) All contracts signed with suppliers include explicit IP non-infringement warranty clauses. In the event of IP infringement litigation, the suppliers are obligated to compensate the Company and bear related legal responsibilities.

6. Primary Uses and Contributions of IP to Operations

To avoid infringement during the manufacturing process, the Company has proactively engaged in developing its own patents and technologies since its inception. We have recruited talented individuals from both domestic and international markets to join our research team and have also assessed the feasibility of negotiating with foreign firms to obtain key technology usage licenses. This enhances the Company's value and competitive advantage. Additionally, the Company continuously cultivate a strong legal support team to ensure our IP is protected. Moving forward, our IP management will continue to align with Company strategies and operational goals, focusing on the acquisition, management, and utilization of IP rights to protect operational freedom and demonstrate corporate governance performance and sustainability vision.

7. Implementation of IP Management Plans

1. In 2022, following TIPS-related regulations, the Company added the "Intellectual Property Management Manual," "Intellectual Property Management Review Procedure," "Intellectual Property Confidential Document Management Specification," " Intellectual Property Audit and Correction Procedure," and "IP Consultation, Disputes Treatment and IP Rights Disposal Procedure" to IP management system.
2. In 2022, the Company obtained the Class A certification of the "Taiwan Intellectual Property Management System (TIPS)" and passed the Class A re-certification of the TIPS system in 2023.
3. The Company reports the implementation status of various IP management systems to the board of directors annually. The most recent report was presented to the board in the first quarter of 2024.
4. In October 16, 2024, the Company had completed the TIPS Level AA certification.

8. Innovative IP Management Consulting Program

• In 2024, the Company was selected for the opportunity to participate the "Enhanced Corporate IP Management Program " and has completed the final review of (I) consultant of the integration of ESG and IP Management, and (II) IP Management Consulting in Level AA certification under TIPS.
• By integrating ESG into the innovative intellectual property management system, the Company has re-evaluated the existing IP processes, the current status of technological development, and the connections of green product patents. Leveraging our long-standing expertise in IP research and development, combined with our commitment to energy conservation, carbon reduction, and social responsibility, to concretize the Company's corporate social responsibility goals.
• For further information on the IP management system aligns with environmental protection(E), social responsibility(S), and corporate governance sustainability issues(G), please refer to the presentation below.