Friendly Workplace

THSRC is committed to eliminating sexual harassment and established the "Sexual Harassment Prevention and Handling Regulation." The Company organizes in-person and online awareness campaigns and training programs for managers and all employees, as well as customized education for units where incidents have occurred. THSRC continuously conducts legal awareness training on sexual harassment prevention based on case scenarios. In 2025, 5,053 colleagues participated in the online sexual harassment prevention e-learning course, achieving a participation rate of 100%.

In response to changes in domestic and foreign regulations and the diverse stakeholder groups encountered in THSRC's operations, the Company has implemented training designed to prevent unlawful infringement in the workplace since 2018 to strengthen employee awareness of the importance of preventing discrimination and sexual harassment. The Company conducts these awareness campaigns for all employees through new employee orientation, management training, and physical posters or email communications. In 2025, THSRC organized two types of education and training including "Prevention of Unlawful Infringement in the Workplace, Interpersonal Boundaries, and Communication" and the "Gender-Friendly Workplace Seminar – Sexual Harassment Prevention." The curriculum covers updated legal concepts of sexual harassment prevention and enhances managers' sensitivity and response to workplace scenarios. It also helps them recognize how different communication styles may lead to potential unlawful infringement, thereby improving friendly interpersonal interactions and managers' response to employee issues. In addition to encouraging the participation of employees, the Company established reporting channels for sexual harassment cases and a regular training management system for managers so that they can provide immediate assistance to employees. Training programs for prevention of discrimination and sexual harassment in 2025 were as follows:

THSRC established the Sexual Harassment Complaints Committee. In addition to internal members, the Company appointed 13 external experts, scholars, and legal professionals to serve as investigation and deliberation members on a rotational basis. THSRC has established a Reference Table for Suggested Disciplinary Actions and a Penalty Scale for Sexual Harassment Cases to provide open and fair deliberation standards and protect the physical and mental safety of all THSRC workers. In the event of an incident, the Company provides immediate psychological counseling assistance to the parties involved and provides channels for psychological reconstruction to ensure their recovery. In 2025, five sexual harassment complaints were filed. Among them, two cases were substantiated and three were unsubstantiated. All substantiated cases involved inappropriate interpersonal boundaries between employees. The Company has implemented relevant improvement measures, including mandatory education and legal compliance courses (e.g., respect for physical space, interpersonal boundaries, and compliance with regulations), workplace relocation, and the provision of necessary psychological counseling for both parties. All cases were handled in accordance with statutory procedures and provided with relevant remediation measures. The Company also regularly organizes sexual harassment prevention lectures for all employees and puts up promotional posters and information on grievance channels at all work sites to prevent similar incidents from recurring.

To create a more people-oriented work environment, THSRC has formulated internal care measures based on the "Gender Equality in Employment Act" and the "Labor Health Protection Rules." The Company has also established the "Mental Health Protection Regulation" for employees to properly address diverse employee needs. Furthermore, the Company continues to implement external Employee Assistance Programs (EAPs) to help employees cope with various issues, provides timely support, and protects their physical and mental health. Detailed descriptions are as follows:

THSRC values the opinions and respects the rights of every employee and firmly believes that effective two-way communication is an indispensable factor for the Company's sustainable development. On January 1, 2026, THSRC once again signed a Collective Agreement with the enterprise union, marking another significant milestone in the ongoing collaboration between labor and management. The primary objective of the Collective Agreement is to continuously enhance and optimize the rights and welfare of union members and employees, strengthen the professional development between the Company and the union, and promote mutual respect. The Company formulated the contents of the agreement following comprehensive discussions between labor and management representatives. THSRC referenced labor-related laws and collective agreements in the industry. For example, the Company designated the day of the annual health checkup as "Employee Health Day" for all employees to provide one day of official leave and assistance for using HSR trains to support employee health management. The signing of the Collective Agreement demonstrates the harmonious relationship between labor and management and reflects our determination to jointly improve employee rights and advance labor-management relations.

The THSRC Collective Agreement covers more than 2,500 employees, representing a coverage rate of approximately 50%. Since the current Collective Agreement is based on the Company's existing labor conditions, the labor conditions and benefits of employees not covered by the agreement remain unaffected except for specific labor education activities. The Company respects the employees' right to freedom of association. The Company actively learns about employees' needs through regular meetings with the two THSRC unions (the enterprise union meets every month, and the industrial union meets every two months), as well as quarterly labor-management meetings held at the corporate level and across 18 business locations.

In 2025, the primary topics of discussion included recommendations for the talent retention strategy and adjustments to the eligibility for natural disaster attendance subsidies. These discussions resulted in an expansion of the scope of subsidies, improvements in work environments and processes, and optimized manpower allocation for roles and duties.

In terms of employee care, in response to the impact of Typhoon Danas, the Company implemented a special leave program to help employees expedite the cleanup and restoration of their disaster-struck homes. The program was available to employees, as well as their spouses or parents, whose place of residence or household registration was located in areas affected by the typhoon. A total of 48 employees applied for this leave, totaling 84 person-days.

THSRC also established the Guidelines for Employee Grievances and procedures for handling employee grievances. In 2025, the Company received a total of 18 employee complaints, primarily concerning interpersonal communication issues such as emotional communication and difficulties in accepting different views. All cases were handled in accordance with the employee complaint handling process, and responses and case closures have been completed for all cases. THSRC will continue to handle employee complaints in a supportive and positive manner to maintain harmonious labor-management relations and build a healthy workplace with open communication channels.

Employee Grievances Process

Occupational Safety Management Mechanism and Effectiveness

Since the commencement of operations, THSRC has implemented an Occupational Safety and Health Management System and continues to enhance its performance. In 2017, the Company first completed third-party verification and obtained dual certifications for the Taiwan Occupational Safety and Health Management System (TOSHMS) CNS 15506 and the international OHSAS 18001. The Company continues to obtain annual external certification for (TOSHMS) CNS 45001 and ISO 45001. The scope of the THSRC Occupational Safety and Health Management System covers stations, maintenance depots, wayside facilities, and office premises. As of the end of 2025, the system covered 5,053 workers and a cumulative total of 348,550 person-times for contractors.

In accordance with the provisions of the Occupational Safety and Health Act, THSRC has formulated the "Safety and Health Policy" and regularly convenes with the "Occupational Safety and Health Committee." The Committee comprises one chairman and 17 members, including 7 labor representatives, accounting for one-third of all committee members. The Company also holds occupational safety and health management meetings to encourage all units and labor representatives to jointly review various occupational safety and health issues. The resolutions are announced through internal and external websites.

To strengthen employees' awareness of our corporate culture of occupational safety and health, THSRC continuously conducts occupational safety and health training for both new and current employees by providing a variety of training programs for managers, regular workers, and maintenance personnel. In addition, for employees engaged in special (high-risk) operations, the Company provides training for production machinery, elevated work platforms, winches, construction, oxygen deficiency, electric welding, and chemical use and disposal. These programs are designed to enhance operational competencies and emergency response capabilities. The aforementioned employees must complete the training program and pass evaluations to obtain the corresponding licenses or permits before they are qualified to operate specific machinery and equipment on-site. 5,357 participants completed the training with a total of 22,710 training hours in 2025. The statistics for the training programs are shown in the table below:

THSRC implements management and monitoring through quantified and traceable indicators, supplemented by regular and unscheduled inspections and audit mechanisms. The achievement status of THSRC's occupational safety and health management goals and the occupational safety indices for employees and contractors/suppliers in 2025 are shown in the table below:

Occupational Safety and Health Objectives and Effectiveness

Notes:
1. The settlement date for occupational safety and health management targets was December 31, 2025.
2. Frequency-severity indicator =√(Disabling Injury Frequency Rate × Disabling Injury Severity Rate ÷ 1,000). In 2025, there was 1 workplace occupational accident with lost days, and the frequency-severity indicator was 0.005; however, in accordance with regulatory requirements to present values to two decimal places, it is disclosed as 0.00 in the above table.
3. In 2025, THSRC employees experienced a total of 13 traffic accidents outside the workplace.

THSRC has implemented the "Hazard Identification, Risk Assessment, and Risk Control Procedure" to address occupational hazards and reduce the likelihood and severity of occupational accidents. This procedure involves identifying hazards, inspecting existing protective facilities, conducting risk assessments, and implementing control measures. THSRC has also adopted a hierarchical control system to eliminate hazards and minimize risks. Each unit has trained hazard assessment personnel who disclose hazard assessment information on the internal platform and re-check the effectiveness of hazard control measures annually to continuously mitigate and control the risk of each operation. In 2025, THSRC completed over 14,155 hazard identifications and risk assessments.

Hazard Identification, Risk Assessment and Risk Control Procedure

THSRC reminds all workers quarterly by memorandum to implement reporting occupational safety and health incidents, to identify root causes, prevent similar incidents, and reduce associated risks. THSRC also encourages the reporting of Near Miss Report incidents and integrates them with railway operation events into the "Voluntary Safety Reporting Platform." In 2025, there were 275 Near Miss Report incidents in THSRC, of which 145 were confirmed by the review committee. Through strengthening Near Miss Report reporting, potential hazards are mitigated, and a safer working environment is provided for employees. In addition, THSRC continues to remind employees of safety-related precautions through the "Occupational Safety and Health Bulletin Board," "Safety Slogan," consultative organization meetings at various sites, and reminder emails from the Occupational Safety and Health Office.

If a worker discovers that there is a risk of immediate harm when performing his/her duties, the "Occupational Safety and Health Act" shall prevail in priority, and the worker can stop the operation and retreat to a safe place. The immediate supervisor who is informed will initiate subsequent measures to eliminate hazardous situations to ensure the safety of workers. In case of a disaster, after the internal and local competent authorities are informed, THSRC will immediately initiate an investigation process as per the "Occupational Accident Notification and Investigation Process," with the aim of handling the incident effectively and alleviating the negative impact as quickly as possible. During the investigation, the immediate unit supervisor of said worker will lead the occupational accident investigation team to carry out the investigation jointly with labor representatives to ensure labor rights.

Occupational Accident Notification and Investigation Process

In 2025, there were no incidents of work-related fatalities or serious injuries occurred involving THSRC employees. However, one case of occupational injury resulting in temporary disability occurred within the workplace involving an electric shock (220V). For all workers who are not employees, but whose work or workplace is managed by the organization, there were no occupational injury incidents resulting in deaths or three or more victims.

THSRC regularly uses a diverse range of communication channels such as email, occupational safety and health bulletins, coordination organization meetings, toolbox meetings, case studies of past occupational injury and near-miss incidents involving employees and contractors to enhance safety awareness. The Company also invites occupational safety and health experts to hold safety culture seminars. The management strengthens on-site management and inspections to promptly eliminate or improve unsafe conditions while consistently showing care for employees' safety at work. Under the principle of "non-hidden reporting," THSRC accurately reported all occupational injury incidents in 2025, and no incidents related to occupational diseases occurred. The Company will continue to optimize occupational safety and health management measures to enhance employees' safety awareness.

Occupational Safety Index

Notes:
1. This table has been computed in compliance with the Occupational Safety and Health Act, the definition of occupational disasters, and the indicators released by the Global Reporting Initiative (GRI).
2. Ratio of deaths resulting from occupational injuries = (Number of fatal occupational injuries/Total working hours) x 200,000.
3. Ratio of severe occupational injuries = (Number of severe occupational injuries/Total working hours) x 200,000. Note: 0 employees for 0 day; 0 contractors for 0 days.
4. Ratio of disability occupational injuries on record = (Number of reported disability occupational accidents/Total working hours) x 200,000. 1 employee for 79 days; 0 contractors for 0 days. This calculation excluded Notes 2 and 3.
5. Total working hours for employees were 9,668,912 hours. For contractors, the total working hours were calculated as: annual cumulative number of people entering and leaving the venue (343,359 people) * 8 hours per day = 2,746,872 hours.

The main pillars of the THSRC employee health promotion are: "Health Management," "Health Protection," "Health Promotion," "Legal Compliance Affairs" and so on. By the results of employees' physical examinations, questionnaire feedback, and the holding of various health promotion activities and lectures, the Company hopes that our employees will strengthen their attention to their own health, and through the information provided by various activities, they can change their lifestyles and develop healthy habits.

THSRC has consecutively passed the "Healthy Workplace Certification - Health Promotion Label" certification of the National Health Administration for the second time (certification every 3 years), and actively implements a smoke-free environment in the workplace. It has been awarded the Sports Enterprise Certification Mark of the Ministry of Education for three times, which shows that the Company's investment in promoting employee health and sports has been affirmed. The health promotion activities carried out in 2025 are as follows:

Health Promotion Activities

Note:
1. THSRC's health examination measures are superior to those stipulated in the relevant laws and regulations, where general employees aged 45 years old and above undergo health examination once a year, and those aged under 45 years old undergo health examination once every two years, while train personnel undergo health examination once a year.
2. Contractors can also access health promotion services (excluding annual medical check-ups).

THSRC provides a diverse range of benefits across four major categories including childcare support, work-life balance, work assistance, and general support, helping employees balance professional and personal responsibilities. In addition, the Company also set up the Employee Welfare Committee in accordance with the law. THSRC uses regular market surveys conducted by external consulting firms to review internal welfare policies, ensuring that the benefit system remains competitive in the market. Furthermore, to enhance employee care, promote work-life balance, align with industry welfare levels, and meet corporate sustainable development goals, the Company increased the appropriation rate for the Employee Welfare Fund from company revenue from 0.10% to 0.15% starting in 2025. This increase aims to enhance employee subsidies and improve the coverage of employee care.

Implementation of retirement plan system

To provide stable lifestyles for employees after retirement, the Corporation has set retirement procedures in accordance with law, and has established a Pension Reserves Supervisory Committee which convenes every quarter to discuss distribution of pensions and other matters.

The Corporation has established a retirement benefits plan according to the Labor Standards Act and the Labor Pension Act

(a) Defined benefit plan: Includes pension plans under the Labor Standards Act and the Labor Pension Act, as well as prior pension plans where tenure of services rendered was retained. The Corporation places 2% of employee monthly salaries into pension funds, and these are turned over to the Pension Reserves Supervisory Committee and deposited in a special savings account at the Bank of Taiwan in the Committee's name. Qualified actuaries review pension reserves every year and the Pension Reserves Supervisory Committee convenes periodically in accordance with relevant laws to protect the pensions and rights of our employees.
(b) Defined contribution plan: Includes pension plans under the Labor Pension Act. The Corporation places 6% of employee monthly salaries in individual labor insurance accounts to serve as pension reserves.
(c) Pension distribution table

Retirement conditions

(a) Voluntary retirement: An employee may apply for voluntary retirement under any of the following conditions:
I. Has reached the age of fifty-five and has worked for fifteen years.
II. Has worked for more than twenty-five years.
III. Has reached the age of sixty and has worked for ten years.
(b) Forced retirement:
I. Has reached the age of sixty-five.:
II. Is unable to perform his/her duties due to disability.
(c) Pension payments and standards:
I. Defined benefit plan: Employers shall pay employee pensions within 30 days from the day of retirement. According to Article 55 of the Labor Standards Act, pensions are calculated according to bases of tenure of services rendered and the six-month average salary amount following approval of retirement application. Two bases are given for each full year of service rendered. But for the rest of the years over 15 years, one base is given for each full year of service rendered. The total number of bases shall be no more than 45. An additional 20% on top of the amount calculated according to the preceding subparagraph shall be given to workers forced to retire due to disability incurred from the execution of their duties.
II. Defined contribution plan: According to the Labor Pension Act and relevant regulations, employees under the new pension system can collect pensions from their pension reserve accounts directly from the Bureau of Labor Insurance.