Review & Outlook on
Operational Sustainability

Deepening the 3 Pillars of "AI Intelligent Automation · Green Energy · Semiconductors"
to Drive New Momentum for Double-Digit Growth

Over the past year, despite global challenges posed by tariff policies and supply chain shifts, Ace Pillar has demonstrated strong operational resilience. Our consolidated revenue for the full year reached NT$4.442 billion, representing growth of over 24% compared to 2024, with gross margin improving to 25%. These results are attributable to the collaborative efforts of all colleagues and strategic partners, as well as the effectiveness of our product portfolio optimization strategy.

In the course of pursuing revenue growth, impacted by changes in the Chinese market environment, an overdue accounts receivable incident occurred at our subsidiary Tianjin Ace Pillar. The related credit losses have been prudently recognized in the 2025 annual report. This serves as a painful reminder for our internal management, and also as an opportunity to strengthen corporate governance and resilience. We have already comprehensively optimized our credit management system and reinforced our risk early-warning mechanism. Although there has been a short-term impact on profitability, this does not affect our long-term strategic resolve. Revenue reached a new high in early 2026, demonstrating that Ace Pillar's transformation toward AI robotics and semiconductors is on the right track. We will safeguard this growth with the most rigorous internal control mechanisms, converting it into a sustainable competitive advantage for the company.

At the end of 2025, Ace Pillar made a strategic investment in Racing Electric, integrating motor, actuator, and module design technologies with our existing vision systems and computing capabilities, and applying them to high-value critical modules in the mobile vehicle and robotics industries. In the semiconductor sector, our subsidiary STC operates steadily, with talent being the core asset driving all these transformations, particularly in wafer transfer and inspection equipment. In response to the advent of the AI era, in addition to implementing RPA process optimization and an AI product database and expanding internal training, we have further empowered our colleagues with the ability to leverage AI tools to solve problems. We remain committed to building a diverse and inclusive workplace, ensuring that our supply chain partners comply with human rights and occupational health and safety standards, and achieving shared prosperity for both the company and society.

Ace Pillar has transcended the traditional scope of distribution and agency, transforming into a "high value-added solution provider" and establishing a value creation model centered on "AI Intelligent Automation, Green Energy, and Semiconductors." We are grateful to all of you for your continued support. Ace Pillar will move forward steadfastly on the path of sustainable development, co-creating a sustainable future together.