Talent Cultivation

THSRC implements human rights policies, values the rights and welfare of the Company's employees, and regularly reviews its remuneration policy with reference to the results of market remuneration surveys, evaluates the remuneration and related systems for directors and managers, and makes recommendations to the Remuneration Committee and the Board of Directors for approval. Considering various internal and external evaluations and needs, salary adjustments are carried out to provide competitive compensation and benefits, and employee remuneration is determined based on work experience, education, and professional expertise, without discrimination based on gender, race, religion, or political position. In 2025, THSRC continued to be selected as a constituent stock of the Taiwan Employment Creation 99 Index, as one of the leading companies in terms of employee scale in Taiwan.

The starting salary of THSRC junior employees in each job category is higher than the statutory minimum wage in Taiwan and does not differ due to gender. As most of THSRC's technical professionals are males and their salaries are higher than other positions due to the nature of their professional services, there is a difference in the salary ratio of females to males among general employees; however, the salary ratio is comparable at the section chief and managerial levels. Due to the relatively small number of staff at the Assistant Vice President and Vice President levels, and the influence of tenure in these positions, the difference in the ratio of female to male salaries is relatively larger, but there is no significant disparity. In addition, to protect the rights of secondees and contract employees, their salaries are determined and approved by THSRC, and labor contracts and salary-related documents of manpower agencies are reviewed to safeguard their labor rights.

Comparison with Basic Salaries in Taiwan

Ratio of Basic Salaries of Females to Males

Note:
1. THSRC calculates the base salary ratio between female and male employees based on the monthly fixed salaries paid to non-fixed term contract employees. The ratio is determined by dividing the base salary of female employees by that of male employees.
2. THSRC calculates the remuneration ratio between female and male employees based on the monthly salaries, relevant allowances, and bonuses paid to non-fixed term contract employees. After calculating the average annual base remuneration for female and male employees, the ratio is determined by dividing the average annual base remuneration of female employees by that of male employees.

In 2025, the number of full-time non-supervisory employees was 4,922, an increase of 180 compared to 4,742 in 2024. The total salary amounted to NT$6,289,019 thousand, with an average salary of NT$1,278 thousand and a median salary of NT$1,198 thousand. Compared to the previous year, the total salary increased by NT$661,550 thousand, the average salary increased by NT$91 thousand, and the median salary increased by NT$99 thousand. The following table summarizes the salary status of full-time non-supervisory employees over the past two years:

Information on Salaries of Full-Time Non-supervisory Employees

The 2025 annual total compensation of THSRC is calculated based on the compensation information of full-time employees without executive positions. However, to meet the statistical requirements of "the highest paid individual" and "other employees," employees in executive positions are also included in the calculation. The highest paid individual in the Company earned an annual total compensation 6.83 times higher than the median annual compensation of employees. Additionally, the annual increase in the compensation of the highest paid individual was 0.91 times that of the annual increase in the median annual compensation of employees.

Training Based on Three Major Competencies

THSRC places great emphasis on the development of employee competencies. To ensure the integration of training and practice, the Company plans employee education and training based on two main aspects: "safety" and "service." THSRC also strengthens the professional knowledge of the three major competencies, namely core competencies, professional competencies, and management competencies. To cultivate professional talents in the transportation industry and stimulate employee enthusiasm for learning, the Company combines multiple learning channels, including external training, online digital courses, and practical exercises. THSRC has established a "Training Management and E-Learning System" and a mobile learning app to effectively monitor the learning process and enhance learning efficiency.

In 2025, the number of attendances in THSRC's e-learning programs reached 69,192, with a monthly average of 5,766 attendances. Additionally, a total of 482 online courses were offered in 2025, representing an 8% growth compared to 2024. To align employee career growth with corporate development, the Company has planned a comprehensive competency development program. THSRC provides training programs for competencies based on the needs in different stages of employees' careers to all employees and managers at all levels. In 2025, the overall training included 573 courses across three major competency categories. Courses on core competencies included mental health protection, gender equality, summer internship programs for students, and general information security awareness. Courses on professional competencies included AI development and application, legal compliance related to information security and intellectual property, occupational safety and disaster prevention, customer relationship and customer service, and ESG and environmental protection training programs. Courses on management competencies included managerial assessment of proficiency (MAP), training within industry (TWI) for front-line supervisors, supervisory skills, and accountability training for high-potential management talents.

Training Based on Three Major Competencies

To strengthen the professional knowledge and technical capabilities of THSRC employees and address the growing demand for in-house professional courses, THSRC has established internal lecturer course management regulations and qualification procedures. Each year, the Company continues to cultivate internal lecturers across all departments to meet requirements for professional instructions (including safety, services, and technologies). Candidates must be recommended and selected by senior colleagues and managers. They must undergo training and practical simulations before obtaining internal lecturer qualifications. In 2025, the Company trained 46 qualified lecturers (a 12% increase in the number of trained personnel compared to the previous year). Internal lecturers primarily focused on professional competency training and provided management of competency training. In 2025, internal training hours totaled 378,206 hours (a 9% increase compared to the previous year). The number of internal lecturers participating in teaching reached 604 person-times, with an average of 626 teaching hours per lecturer.

THSRC signs Memorandums of Understanding (MOU) on Industry-Academia Cooperation with domestic colleges and universities. The Company uses partnerships in projects and seminars to enhance our technical expertise, strengthen the technical capabilities of the local railway industry, and accelerate the localization of equipment and components. Highlights of industry-academia collaboration in 2025 included the development of an overhead contact line inspection data management and trend analysis system, which integrates inspection data management and maintenance mechanisms, automatically compares inspection results across different months to identify locations requiring attention for wear or determine abnormal wear conditions, and features a work order instruction function. The Company also implemented local production of the BS-RTU system equipment for substations and signaling communication rooms by redesigning the hardware and software architecture and completed CE certification and EN 62368-1 low-voltage safety regulation certification in April 2025. The localization of PA broadcasting microphones and communication handsets for 700T trains has reduced procurement costs, ensured broadcasting system reliability, and enhanced autonomous maintenance capabilities. The program also resolved raw material issues caused by discontinuation of production at the original manufacturers and maintained good and stable communication quality. The results are shown in the figure below.

Since 2015, THSRC has continuously enhanced industry-academia collaboration with National Kaohsiung University of Science and Technology. The two parties jointly established the Railway Equipment Laboratory (which obtained TAF certification in 2021) and have developed 38 systems and 4 specialized instruments to date. THSRC also provides opportunities every year for students to learn about the railway transportation industry. Since the implementation of the internship program in 2014, 547 students have participated and 105 of them became regular employees after completing their training. In 2025, THSRC collaborated with 32 colleges and universities to promote the internship program and enrolled 136 students. By accumulating practical experience and industry knowledge, students strengthen their readiness for professional life, and the Company cultivates future technical and operational talent for the railway industry.

Performance Appraisal Process

THSRC conducts annual performance appraisals to review the performance of all employees and managers and help employees evaluate their professional skills and achievements. The Company has also set up a performance interview mechanism to ensure effective communication between managers and employees, and meet the targets for feedback, mentorship, and motivation. This process also allows managers to identify gaps in core, professional, and management competencies required for employees' performance results and future development. In alignment with the annual training plan requirements compiled in April, the Company provided training plans targeting the functional goals necessary for employee development. The Human Resources unit reviews the overall plan contents and compiles training budgets (including internal and external training). The training system cycle is executed in accordance with the PDDRO principles of the Talent Quality Management System (TTQS) to achieve the talent development goals required for sustainable operation.

The ratings are classified into five levels, namely "Outstanding," "Significantly Exceeds Requirements," "Exceeds General Requirements," "Meets Requirements," and "Requires Improvement due to Inability to Perform Existing Work." Employees who receive the last rating are required to undergo performance counseling to enhance their work, and unit supervisors provide necessary assistance and counseling to address the causes of poor performance. In 2025, the total number of full-time employees subject to performance appraisal was 4,856; except for 1 employee who did not complete the appraisal due to illness during the appraisal period, all other employees completed their performance appraisals, and the number of completed appraisals accounted for 99% of the total number of appraisals due.

THSRC's Performance Appraisal Process

Percentage of Appraisal by Ranks and Genders In 2025

THSRC has implemented the "Career Path" talent development plan, designing different retention and career development paths for outstanding talents in front-line units and colleagues in different positions, and planning relevant manpower allocation based on the annual manpower assessment to meet various business units' manpower needs. Based on organizational needs and personal development, the Company provides annual promotion opportunities for outstanding talents to achieve the purpose of motivating and retaining talents. For those who are interested in management positions and meet the requirements, they can also expand their career path and fully realize their potential through the "Job Promotion" channel.

Starting from 2022, THSRC has planned a specific career development path for maintenance and operation employees, expecting maintenance professionals to develop diversified skills and enhance communication abilities through different job experiences, expand the cultivation of future maintenance and operation supervisors, and improve organizational efficiency. In 2025, a total of 43 newly hired maintenance personnel received professional training certification, 311 completed the training, and 51 are still in training. Cumulatively, as of 2025, THSRC has cultivated 19 station masters, 23 train supervisors, 22 chief controllers, 40 deputy station managers, 46 operation team leaders, 32 controller supervisors, 47 station supervisors, 52 station train controllers, 1 train driver, and 3 train controllers.

As the Company continues to grow, cultivating future successors, building a talent pool, and developing a talent pipeline remain important strategies. THSRC continues to implement the "management capability evaluation project," using scientific evaluation tools to identify gaps in supervisors' management capabilities and potential, enhance management skills, and select high-potential talent to establish individual development plans for future successors. From 2019 to 2025, a total of 31 managers at various levels have been evaluated, and learning passports have been developed. Key training programs such as "communication skills," "cognitive skills," "supervisory skills," "accountability," and "innovation" have been implemented to address competency gaps.