Social Responsibility

Food safety is Shannung Foods' most fundamental corporate responsibility and the starting point for all sustainability actions. In 2024, all five production sites across Taiwan passed FSSC 22000 V6 certification (the latest version), making the company the first among its Taiwanese peers to complete the full plant upgrade. All five plants consistently implement the HACCP (Hazard Analysis and Critical Control Points) system, conducting 196 monitoring checks on critical control points weekly, and a total of 17,640 product sampling tests throughout the year. In 2024, there were no major food safety incidents, zero proactive or reactive product recalls, and zero major customer complaints.

In terms of food fraud prevention, the company has established a "raw material authenticity verification system," conducting Stable Isotope Fingerprint Identification (SNIF) or DNA marker tracking for high-risk raw materials (imported soybeans, honey, olive oil). In 2024, a total of 842 authenticity verifications for high-risk raw materials were performed, with no adulteration cases found. Regarding allergen management, the allergen cross-contamination risk matrix for all plants was updated, resulting in 0 allergen-related customer complaints in 2024.

In terms of consumer communication, all packaged products provide complete ingredient labeling, calorie and nutrient information, and a QR Code raw material traceability inquiry function. In 2024, the "Shannung Traceability" platform received a total of 420,680 consumer traceability inquiries, with an average traceability depth of 3.2 layers back to the raw material farms. The customer complaint response rate was 100%, with an average response time of 4.2 hours, and customer complaint handling satisfaction reached 94.3%.

In terms of the governance structure for the food safety management system, the company uses FSSC 22000 V6 as its core management framework, integrating ISO 22000 Food Safety Management System, Prerequisite Programs (PRPs), and HACCP hazard analysis to establish a full-chain food safety management system covering raw material intake, process control, finished product shipment, and channel storage and transportation. FSSC 22000 V6 added enhanced requirements such as food fraud prevention, food defense, and allergen management. The company achieved an excellent "zero non-conformities" result in this certification audit, with the certification valid until 2027, undergoing unannounced audits annually to ensure the continuous effective operation of the management system.

In the operation of the HACCP system and inspection capacity, all five plants consistently implement the HACCP system, systematically identifying biological, chemical, and physical hazards and setting critical control points. 196 critical control point monitoring checks are conducted weekly, and 17,640 product sampling tests are performed annually, with multi-layered controls covering items from microorganisms and pesticide residues to heavy metals. The company also has its own quality inspection laboratory and collaborates with external accredited laboratories for cross-verification, ensuring the accuracy and credibility of test results. This dense inspection network is the technical foundation for the company's continuous achievement of zero major food safety incidents and zero product recalls.

In deepening food defense and fraud prevention, in addition to establishing a raw material authenticity verification system that conducts Stable Isotope Fingerprint Identification (SNIF) or DNA marker tracking for high-risk raw materials such as imported soybeans, honey, and olive oil (842 instances performed in 2024, with no adulteration cases found), the company has also established a Food Defense plan to assess intentional contamination risks and strengthen plant access control, surveillance, and personnel management. Regarding allergen management, the company completed an update of the allergen cross-contamination risk matrix for all plants, controlling allergen-related customer complaints to 0 through production line segregation, cleaning verification, and clear labeling, thereby ensuring the dietary safety of consumers with allergies.

In terms of transparency in the traceability system and consumer communication, the "Shannung Traceability" platform allows consumers to inquire about raw material sources via product QR Codes. In 2024, it received a total of 420,680 traceability inquiries, with an average traceability depth of 3.2 layers, traceable back to the raw material farms. This transparent mechanism not only responds to consumers' right to know about food origins but also strengthens the co-management relationship between the company and its contract farmers regarding quality. For customer complaint handling, the company has established standardized complaint reception and response procedures, achieving a 100% complaint response rate, an average response time of 4.2 hours, and a handling satisfaction of 94.3%. Complaint analysis is also fed back into product and process improvements.

In health-oriented product innovation and future planning, the company responds to consumer demand for healthy eating by continuously promoting the development of reduced-salt, reduced-sugar, plant-based protein, and Clean Label products. In 2024, revenue from low-sodium and plant-based product lines grew by over 20% year-on-year. Looking ahead, the company will maintain its goal of zero major food safety incidents across all plants and plans to deepen the application of AI image recognition in foreign object detection, expand the granularity of information disclosure in the traceability system (e.g., adding real-time pesticide residue test inquiries), and continue to safeguard consumers' dietary safety and health at every meal with the highest standards.

As of December 31, 2024, Shannung Foods had a total of 2,847 full-time employees, comprising 1,560 males (54.8%) and 1,287 females (45.2%). The proportion of women in management positions reached 38.7%, a significant increase from three years ago (28.4%), demonstrating the company's concrete achievements in promoting workplace diversity. Regarding employee age structure, those under 30 accounted for 14.2%, those aged 30 to 50 accounted for 58.7%, and those over 50 accounted for 27.1%, indicating a good level of age diversity. Additionally, 476 middle-aged and older employees aged 45 and above were hired (accounting for 16.7%), aligning with the government's policy to promote employment for middle-aged and older individuals.

Regarding salary equity, the company implements a comprehensive equal pay for equal work policy. In 2024, the maximum gender pay gap across all job levels was 1.4% (administrative positions), with all other gaps within 0.8%, attributable to individual seniority differences. The basic salaries of all employees are more than 17.3% above the statutory minimum wage standard. The median monthly salary for non-management employees was NT$52,400, which is higher than the average median salary of NT$44,200 in Taiwan's food industry.

In terms of investment in education and training, total training expenses in 2024 amounted to NT$38.4 million. The company conducted 847 training courses, with a total employee training duration of 42,360 hours, averaging 14.88 hours per person. Training categories included: food professional technology (31%), management and leadership (22%), regulatory compliance (18%), safety and health (15%), and digital transformation skills (14%). Additionally, the "Shannung Academy" online platform offers 1,240 courses for employees' self-directed learning, with an average of 8.4 online courses completed per person in 2024.

In human capital strategy and talent retention, the company designates "talent development and employee well-being" as a material topic, committed to creating an attractive workplace environment with high retention rates. In 2024, the employee stock ownership trust plan participation rate increased to 82%, allowing employees to share in the company's growth. The overall voluntary employee turnover rate decreased to a five-year low of 4.7%, and the retention rate for core talent in the R&D department reached 97.8%. These achievements reflect the company's comprehensive investment in compensation systems, career development, and corporate culture, gradually transforming employees from mere hires into business partners who grow with the company.

In terms of compensation, benefits, and employee sharing mechanisms, in addition to implementing an equal pay for equal work policy and narrowing the gender pay gap to 1.4%, the average salary for all employees in 2024 grew by 6.3% compared to the previous year, with entry-level employee salaries exceeding the industry average by 14%. The benefits system covers employee stock ownership trusts, special leave and parental leave measures superior to legal requirements, group insurance, and diversified employee assistance programs. The company believes that a competitive and fair compensation structure, coupled with an employee stock ownership mechanism that allows employees to participate in the company's growth, is key to attracting and retaining excellent talent and building long-term trust relationships.

In its education and training system and career development, the company has established a comprehensive training blueprint covering five major categories: food professional technology, management leadership, regulatory compliance, safety and health, and digital transformation. In 2024, NT$38.4 million was invested in training, 847 courses were conducted, totaling 42,360 hours (14.88 hours per person), with R&D personnel averaging 28.4 training hours per person, highlighting the deep cultivation of core technical talent. The "Shannung Academy" online platform offers 1,240 courses for employees' self-directed learning and plans tiered training paths based on position development needs, assisting employees in continuous growth on both professional and managerial tracks.

In workplace Diversity, Equity, and Inclusion (DEI), the company continues to increase female participation in management positions, with the proportion of women in management rising from 28.4% three years ago to 38.7%. Additionally, 476 middle-aged and older employees aged 45 and above were hired (accounting for 16.7%), aligning with the government's policy for middle-aged and older employment. The company adheres to the principle of non-discrimination (corresponding to GRI 406), eliminating discriminatory factors such as gender, age, and ethnicity in all aspects of recruitment, promotion, compensation, and training, and establishing diverse and open employee communication and grievance channels to foster a workplace culture that respects differences and provides equal opportunities.

In employee satisfaction and listening mechanisms, the company conducts annual employee satisfaction surveys. In 2024, overall satisfaction reached 87.4 points (on a 100-point scale), and the recognition rate for "Shannung is a company worth long-term employment" reached 82%, indicating high employee identification with the company. Through quarterly all-hands meetings, direct supervisor interviews, and an anonymous feedback platform, the company has established multi-layered employee listening channels and translates survey results and feedback into concrete improvements in welfare systems and the workplace environment. Looking ahead, the company will continue to expand its employee stock incentive program and deepen career development support, allowing more partners to share in the fruits of the company's sustainable growth.

Shannung Foods manages occupational safety and health (OSH) matters across all its facilities in accordance with the ISO 45001:2018 Occupational Safety and Health Management System standard. A "Occupational Safety and Health Committee" serves as the highest governing body, holding quarterly meetings, with employee representatives occupying 50% of the committee seats. In 2024, the total working hours for all employees (including contract workers) were 7,234,560 hours. There were 7 recordable injury incidents (3 disabling injuries, 2 restricted work incidents, 2 medical treatment incidents), resulting in a Total Recordable Injury Rate (TRIR) of 0.97 (per million hours worked), which is lower than the Taiwan food manufacturing industry average of 2.14 (Ministry of Labor statistics). There were no fatalities or major injury incidents.

Major safety improvement projects for the year included: completing a comprehensive update of safety guards for mechanical equipment at the Changhua Noodle Factory (covering 286 pieces of equipment), implementing an industrial AI vision system at the Kaohsiung Beverage Factory to automatically detect personnel entering hazardous areas and provide real-time alerts, and completing a re-evaluation of the OSH risk matrix across all facilities (identifying 84 high-risk operations, all of which have completed engineering or administrative control measures).

In terms of employee health management, the participation rate for regular health check-ups for all employees reached 97.3% in 2024 (non-participants were mainly those on long leave or sabbatical), and the follow-up counseling rate for abnormal findings after health checks was 100%. The company provides mental health support programs for employees, collaborating with external psychological counseling institutions to offer up to 12 free consultations per year. In 2024, a total of 147 employees utilized this service, with the utilization rate for psychological counseling growing by 28% compared to the previous year.

In the governance structure of occupational safety and health, the company has established a systematic OSH management system based on the ISO 45001:2018 standard. An Occupational Safety and Health Committee, with employee representatives occupying half of the seats, serves as the highest governing body, holding quarterly meetings to review OSH policies, accident investigations, and improvement plans. This co-participatory governance design ensures that the safety needs of frontline workers are directly reflected in decision-making. The committee's operations, in conjunction with OSH personnel and department heads at each facility, form a vertically integrated OSH responsibility system, implementing a safety culture of "all-employee participation and prevention first."

In terms of OSH performance and injury rate trends, the company's Total Recordable Injury Rate (TRIR) in 2024 was 0.97 (per million hours worked), showing a significant year-on-year decrease from 2.14 in 2020, 1.98 in 2021, 1.63 in 2022, and 1.24 in 2023. This rate is also significantly lower than the Taiwan food manufacturing industry average of 2.14 reported by the Ministry of Labor, with no fatalities or major injury incidents throughout the year. Among the 7 recordable injury incidents, there were 3 disabling injuries, 2 restricted work incidents, and 2 medical treatment incidents. The company conducted root cause analyses and implemented improvements for all, and this continuous downward trend reflects the concrete effectiveness of OSH investments and the establishment of a safety culture.

In the implementation of risk identification and engineering controls, the company completed a re-evaluation of the OSH risk matrix across all facilities, identifying 84 high-risk operations, all of which have completed engineering or administrative control measures. Major annual safety improvements include a comprehensive update of safety guards for 286 pieces of mechanical equipment at the Changhua Noodle Factory, and the implementation of an industrial AI vision system at the Kaohsiung Beverage Factory to automatically detect personnel entering hazardous areas and provide real-time alerts, applying technology at the forefront of hazard prevention. The company adheres to the hierarchy of hazard control principle: "engineering controls over administrative controls, and administrative controls over personal protective equipment," reducing operational risks at the source.

In contractor and operational environment safety management, the company extends its OSH management scope to contractors performing work on-site, requiring them to adhere to the same safety regulations and undergo pre-entry safety education and work permit management. This ensures the implementation of agreed-upon organizational arrangements for joint operations and hazard communication, preventing contracted work from becoming a loophole in OSH management. The company also regularly conducts drills for fire safety, emergency response, and chemical spills, strengthening the overall emergency response capabilities of the facilities and ensuring continuous safety of the operational environment.

In employee health promotion and mental health support, the company provides regular health check-ups superior to legal requirements (97.3% participation rate in 2024) and offers 100% follow-up counseling for those with abnormal findings, elevating health management from passive checks to proactive care. For mental health, the company collaborates with external psychological counseling institutions to offer up to 12 free consultations per year. In 2024, 147 employees utilized this service, with the utilization rate growing by 28% compared to the previous year, reflecting the company's emphasis on the overall physical and mental well-being of its employees. Looking ahead, the company will continue to deepen its health promotion programs and strive towards the long-term goal of zero occupational injuries, creating a safe, healthy, and resilient work environment.

Shannung Foods believes that as a food enterprise, its most direct social contribution is to ensure that everyone has access to safe and sufficient food. The "A Box of Warmth" Food Bank program, launched in 2018, donated a total of 214,680 food items in 2024, including 108,000 kg of white rice, 48,000 ready-to-eat meals, 36,000 packets of seasonings, and other daily necessities. Beneficiaries include low-income households, elderly living alone, homeless shelters, and rural schools. As of the end of 2024, the program has cumulatively donated over 1 million items since its inception, benefiting more than 150,000 person-times.

In rural revitalization, the company established the "Rural Sustainable Innovation Fund" this year, with an initial amount of NT$50 million, providing low-interest loans (annual interest rate of 1.5%) and technical guidance to young farmers interested in sustainable agriculture. 37 applications have been received, and 25 have been approved. Additionally, the company sponsored the "Food and Agriculture Education Program" for 12 elementary schools in Yunlin County, inviting local farmers to share agricultural knowledge with students, benefiting 3,200 students annually.

In employee volunteer services, the company has established a paid volunteer leave system, allowing each employee to apply for 3 days of paid volunteer leave annually. In 2024, a total of 612 employees participated in volunteer activities, contributing a combined 4,896 volunteer hours. Service items included environmental cleaning, food bank sorting and packaging, companionship for elderly living alone, and academic tutoring for rural students. The employee volunteer participation rate was 21.5%, an increase of 4.7 percentage points from last year (16.8%), and is continuously improving.

In the strategic positioning of community engagement, the company designates "Community Food Security Contribution" as a material topic (corresponding to GRI 413), systematically promoting social well-being through four main pillars: "food security, rural revitalization, food and agriculture education, and employee participation." As a food enterprise, the company deeply understands its unique role in the food supply chain, and thus chooses to invest its core capabilities and resources in social issues where it can achieve the greatest synergy. This ensures that the company's social contributions are not merely charitable donations but long-term social impact investments deeply integrated with its core business.

Regarding the scale and impact of the "A Box of Warmth" Food Bank program, from its launch in 2018 to the end of 2024, cumulative donations exceeded 1 million items, benefiting over 150,000 person-times. In 2024 alone, 214,680 items were donated, reaching low-income households, elderly living alone, homeless shelters, and rural schools across 21 counties and cities in Taiwan. Through collaboration with local social welfare organizations and food bank networks, the company has established stable logistics and distribution mechanisms to ensure that donated food reaches the most in-need populations precisely. A long-term goal of cumulatively donating 2 million items by 2027 has been set, demonstrating a commitment to continuously expanding social care.

In rural revitalization and supporting young farmers, the company's "Rural Sustainable Innovation Fund" made an initial investment of NT$50 million, supporting young farmers in sustainable agriculture with 1.5% low-interest loans and technical guidance. In 2024, 37 applications were received and 25 were approved, injecting new vitality and sustainable momentum into rural areas. This fund complements the contract farming carbon reduction program, jointly forming the company's long-term investment in agricultural sources: on one hand, assisting young farmers in obtaining capital and technology to lower transformation barriers, and on the other hand, safeguarding farmers' income through stable contract farming relationships, creating a positive cycle of mutual benefit and prosperity for the company and its agricultural partners.

In food and agriculture education and youth empowerment, in addition to sponsoring food and agriculture education programs for 12 elementary schools in Yunlin County (benefiting 3,200 students annually) and inviting local farmers to share agricultural knowledge in schools, the company's social enterprise program "Ah-Nong Career Academy" specifically provides food processing technical training for young people in rural areas of Yunlin, Chiayi, and Tainan. The courses integrate HACCP, GHP hygiene management, and practical food safety. Over three years, it has helped 380 trainees obtain Class C food-related certifications, with an employment matching success rate of 88%. The program also plans to expand collaboration with five vocational schools to offer credit courses starting in 2025. These initiatives transform food expertise into career opportunities for rural youth, realizing the value of educational transformation and social mobility.

In employee volunteer participation and social impact measurement, the company has established a system of 3 days of paid volunteer leave per person per year. In 2024, 612 employees participated, contributing 4,896 volunteer hours, with the participation rate increasing from 16.8% last year to 21.5%, internalizing the spirit of corporate citizenship into employees' daily practices. The company is also gradually establishing a mechanism for tracking the effectiveness of social investments, measuring the number of beneficiaries, employment matching rates, and long-term impact of various programs, ensuring that the allocation of social resources generates measurable and sustainable positive change. Looking ahead, the company will continue to deepen its three-pronged approach of food security, rural revitalization, and food and agriculture education, solidifying its role as a benchmark for social responsibility in Taiwan's food industry.