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Accelerating Low-Carbon Transformation to Build Long-Term Sustainable Competitiveness

Kaori Heat Treatment Co., Ltd. (TWSE: 8996) today published its 2025 Sustainability Report, outlining the Company's progress in advancing its Environmental, Social and Governance (ESG) strategy throughout 2025. As global industries accelerate the transition toward a low-carbon economy amid evolving supply chains and increasingly rigorous sustainability requirements, Kaori continues to embed sustainability into its long-term business strategy through energy transition, digital transformation and governance excellence.

External Recognition Reinforces Sustainability Leadership

Kaori's commitment to sustainable business practices continued to receive broad market recognition in 2025. The Company was selected as one of the FINI 100, recognizing Taiwan's leading companies favored by foreign institutional investors, and earned an A Rating in the Taiwan Sustainability Assessment. Kaori also ranked No. 2 in the Mechanical Equipment and Precision Instruments category in CommonWealth Magazine's Benchmark Enterprise Survey. These recognitions reflect the Company's continued advancement in operational excellence, corporate governance, technological innovation and sustainable management.

Delivering Measurable Progress in Low-Carbon Transformation

As part of its commitment to climate action, Kaori continued expanding its renewable energy infrastructure, completing 1.216 MW of installed renewable energy capacity in 2025.

Through continuous process optimization, equipment upgrades and enhanced energy management, the Company achieved substantial improvements in operational efficiency. Compared with 2024, energy intensity decreased by 30.40%, while greenhouse gas (GHG) emissions intensity declined by 31.28%. These results demonstrate Kaori's ability to integrate decarbonization into its manufacturing and operational processes, strengthening both environmental performance and long-term competitiveness.

Strengthening Governance and Organizational Resilience

Kaori continues to reinforce corporate resilience through robust governance and risk management. Within only one year of its establishment, its subsidiary Kaori Thermal Technology Co., Ltd. successfully achieved third-party certification for both ISO 45001 Occupational Health and Safety Management System and ISO 27001 Information Security Management System. The rapid implementation of internationally recognized management systems demonstrates Kaori's strong execution capabilities and commitment to occupational safety, information security and digital governance.

Chairman's Statement

"Our industry is undergoing profound transformation driven by decarbonization, technological innovation and evolving sustainability expectations," said the Chairman of Kaori Heat Treatment Co., Ltd. "At Kaori, sustainability is more than a compliance objective, it is a strategic driver of innovation, operational excellence and long-term growth. We will continue to accelerate our low-carbon transformation, strengthen corporate governance and work closely with our customers, supply chain partners and stakeholders to build a more resilient and sustainable future."

Outlook

Looking ahead, Kaori will continue to integrate sustainability into its core business strategy by advancing low-carbon technologies, high-efficiency thermal solutions, renewable energy deployment and smart manufacturing capabilities. The Company remains committed to supporting global decarbonization while proactively responding to evolving sustainability disclosure requirements and the transition toward net zero.

By combining technological innovation with responsible corporate governance, Kaori aims to strengthen its global competitiveness and create sustainable value for shareholders, customers, employees and society.

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ESG Contacts
Please do not hesitate to contact us if you have any suggestions regarding this report or Kaori's sustainability practices.

TEL: +886-3-4527005 ext 213 | Mail: pr@kaori.com.tw