Supplier Sustainability Management

Supplier Sustainability Management Policy

Apex's operating entity has built long-standing, close relationships with its suppliers, achieving win-win outcomes on a basis of mutual trust and mutual benefit. Among them, raw material suppliers have a significant influence on product manufacturing, and Apex therefore attaches great importance to suppliers' compliance with environmental protection regulations: suppliers must comply with local government regulations on air pollution control, water pollution control, and the management of waste and toxic substances, and must promptly submit improvement plans in the event of any violation. In addition, Apex requires suppliers of process raw materials to provide statements guaranteeing that their products do not contain internationally prohibited substances harmful to the environment, ensuring that products meet customer and international legal requirements such as EU RoHS, freedom from perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA), and the EU REACH directive. Where significant deficiencies are identified during supplier environmental audits, the procurement supervisor will require the supplier to make improvements. Establishing an environmental management system and environmental objectives, and assessing during supplier audits whether suppliers hold ISO 14001 or RC14001 certification, are also part of Apex's supplier management policy. Apex strictly adheres to the RBA Code of Conduct and encourages suppliers to respond in kind — procuring conflict-free raw materials, promoting humanitarian principles and the social ethic of upholding human dignity, fulfilling corporate social responsibility, and avoiding the use of raw materials extracted in situations involving armed conflict or human rights violations.

Supplier Management Implementation

Apex's procurement department conducts assessments, audits and reviews of major suppliers once a year. In 2025, in accordance with the Company's supplier audit mechanism, audits were completed and comprehensive performance evaluations were given for 100% of major suppliers and new suppliers. Related management surveys were also carried out for new suppliers. The assessment takes ESG dimensions into account, referencing standards including the Responsible Business Alliance (RBA) Code of Conduct and ISO 14001, ISO 9001 and ISO 45001 certification, so that both parties jointly fulfill their social responsibilities in quality, environmental protection, and the elimination of any form of forced or compulsory labor.

For suppliers that do not meet the Company's supplier management policy and standards, the Company will continue to provide guidance for improvement and follow up. Where a supplier is still unable to comply, the Company will consider reducing transaction volumes or terminating the business relationship depending on the specific circumstances.

Local Procurement

The Company's principal operating sites are located in Thailand, and its procurement strategy is based on supporting local economic development and enhancing supply chain resilience, giving priority to local suppliers. Local suppliers are defined as vendors registered in Thailand or whose principal operations are located in Thailand. In 2025, excluding related-party transactions, local procurement accounted for 38.57% of total procurement and overseas procurement for 61.43%. In terms of supplier structure, local suppliers accounted for 67.95% of the total by number, indicating that the Company's supply chain consists primarily of local suppliers in terms of headcount.

Overall, the Company's supply chain displays a structure characterized by "a high number of local suppliers but procurement value concentrated overseas." A certain level of local supply capability has been established, while some key raw materials still rely on overseas supply sources, resulting in a relatively high proportion of non-local procurement by value.

The Company's local suppliers are mostly concentrated in operational support categories, indicating a solid localized foundation in day-to-day operations and production support. Overseas suppliers account for 32.05% by number; although relatively few, this reflects the Company's continued reliance on international supply chains for core process materials. Going forward, while ensuring quality and cost competitiveness, the Company will continue to evaluate the feasibility of raising the proportion of local procurement, and will strengthen supply chain stability through diversified supply sources and supplier management mechanisms, while reducing potential operational risks and transportation-related environmental impacts.