Salary and incentives

CSRC provides employees with comprehensive salary benefits. It conducts regular surveys of external salary markets each year, taking into account individual expertise in performance evaluation to calculate competitive salaries in the market. This ensures that colleagues' salary levels maintain a certain degree of advantage over external markets. For key positions we also design salary packages that are better than market conditions and we cultivate excellent talent to serve as an aid to the continued growth of CSRC’s operations.

In addition to the fixed salary, CSRC also provides qualified peer performance bonuses and rewards to effectively link the Company’s operating results, the performance of each plant, and individual performance. This is done to improve team morale, increase productivity in the organization, and ensure that the overall rewards are more competitive to attract outstanding personnel to join.

CSRC places a high value on gender equality and equal pay for equal work. The company's compensation standards and base salaries are not influenced by gender. Instead, they are determined based on factors such as business performance, industry salary levels, job evaluations, and the company's future operational needs. The policy of wage equality is also a key focus in the training and guidance provided to human resources and hiring managers.Due to the unique gender composition within the industry chain that CSRC operates in, most professional technical positions in the factories are held by male, while female predominantly occupy administrative/support roles. This results in a disparity in salaries between male and female employees across different factory locations, as market standards dictate varying pay levels for different job types. To manage the differences in salary structures among employees in various regions, the Human Resources Department conducts regular annual surveys of both internal and external market compensation. This ensures the appropriateness and fairness of salary distributions. In an effort to create a more equitable workplace and prevent unfair situations where employees performing the same work receive different pay due to information asymmetry, CSRC discloses Salary information for full-time employees who are not in a managerial position ^Note on the Market Observation Post System (MOPS). This disclosure includes both the average and median salaries for these employees over the years.

Male-to-female average salary ratio by job level for CSRC over the past 3 years (Male: Female)

Performance Appraisal

CSRC’s annual performance appraisal work mainly targets colleagues who are currently under appraisal and who have completed three months of service. Colleagues who have been employed for less than three months will be evaluated based on the standards of newcomers, considering that organizational adaptation and individual performance are still under observation. In 2024, 100% of CSRC Group employees successfully completed the annual performance assessment.

In addition, we introduced an online performance management platform starting from 2019 to enable colleagues to respond to performance more conveniently and with greater immediacy. In addition to being able to fully record the performance achievements and evaluation history of colleagues over the years, it can also connect the goals and results between supervisors and colleagues.

Completion of regular performance assessments by the Group and each region over the past three years

Insurance system of each country

Proportions of employees covered by medical insurance in each region of CSRC in the past three years

Retirement system

CSRC assists employees in proper pre-retirement planning, and each region has formulated relevant retirement systems in accordance with laws and regulations, as shown in the table below.

Other welfare measures

Number of benefit usage instances in 2024

CSRC has implemented an employee stock trust plan since 2019. Colleagues can choose to allocate a certain amount from their monthly salary, with the Company matching the same amount as a reward. Through regular investment in Company stock, this plan motivates employees to progress together with the Company, linking employee benefits to shareholder interests, thus creating a win-win-win situation for the Company, employees, and shareholders. In addition to allocating a certain amount from their monthly salaries, starting from November 2021, the "Retiring Employees' Additional Contribution Plan" and "Single Withdrawal Increased Amount Sharing Plan" have been implemented. Colleagues may apply in May and November each year, enhancing the Company's overall welfare and early retirement savings accumulation.

During employment, colleagues may apply to resign from the employee stock trust by submitting a request to the employee stock trust representative in case of significant emergencies or other unavoidable major reasons. Upon approval by the Employee Stock Trust Committee, the colleague's trust account assets will be refunded.

CSRC upholds the belief in gender equality. During pregnancy and childbirth, female employees are entitled to pregnancy leave without pay, prenatal check-up leave, and maternity leave. Male employees are entitled to paternity leave when their spouse gives birth. For employees with childcare needs, CSRC adheres to the regulations of the "Gender Equality in Employment Act" and the "Implementation Measures for Unpaid Parental Leave" to manage parental leave procedures. Upon the completion of their leave, employees are reinstated to their original positions and units, with active support provided to help them reintegrate into the workplace. Parental leave policies are consistent regardless of gender, position, or work location.

In Taiwan, female employees are entitled to two breastfeeding breaks per day (each lasting 30 minutes). Both male and female employees can apply for unpaid parental leave. Additionally, CSRC offers parental benefits that exceed the current Labor Standards Act, granting an extra three days of paid childcare leave to both male and female employees with infants under six months old.

In China, in accordance with government regulations, male employees are entitled to 10 days of paid paternity leave, while female employees receive 158 days of paid maternity leave. In India, employees are entitled to 26 weeks of maternity leave as per government regulations. In the United States, employees are entitled to up to 12 weeks of parental leave.

CSRC Group’s parental leave application and reinstatement retention statistics

Our human rights policy encompasses the principles of diversity, inclusion, and equal employment opportunities, while also ensuring a safe and healthy work environment. We adhere to local regulations in various regions, such as Taiwan's "Act of Gender Equality in Employment," China's "Special Provisions on Labor Protection for Female Employees," and the spirit of the United States' "PUMP for Nursing Mothers Act." In alignment with these regulations, we have established the "Lactation Room Management Guidelines" to support our female employees in balancing their family and work responsibilities. We have designated lactation rooms or rest areas for pregnant employees at all company locations to accommodate those who need breastfeeding facilities, thereby fully protecting maternal employment and family care. In India, in accordance with the "Maternity Act," we have also provided childcare facilities.

To ensure our colleagues work with peace of mind and to promote children's welfare, the Linyuan plant has signed a preferential childcare contract with kindergartens accredited by the Kaohsiung City social and governmental authorities. This initiative aims to leverage the Company's support to alleviate the childcare burden for laborers.

Pregnant Women's Rest Area

Beyond providing a caring and comfortable working environment, CSRC cares about the lives of our employees as we adhere to a "people-oriented" ideal. With the support and encouragement of the Company, we plan diverse subsidies or welfare measures for festivals, life events, health insurance, and learning, so as to achieve a balanced life that promotes work, study, and leisure.

Employee cafeteria	CSRC attaches great importance to employee food hygiene issues. There is a staff restaurant that emphasizes the use of seasonal ingredients, cooking with less oil and less salt to provide employees with healthy meals.
Fitness plaza	The Company provides a fitness room (with treadmill, various fitness equipment, and weight training equipment) and a sports area (with yoga space, basketball shooting machine, pool table) for employees' convenience.
Relief Massage Area	The "Relief Massage Room" sympathizes with colleagues' hard work and provides free professional massage masters to help employees relieve stress.
Employee Rest Area	A dedicated floor has been specially designed for employee interaction and relaxation. This floor features a comfortable furnished space with numerous movable tables and chairs as well as small meeting rooms, allowing employees to choose between open or private conversations. Additionally, there are reading areas and beverage stations available. These spaces not only help employees maintain their best state during working hours but also allow them to use the facilities with their families during off-hours, enhancing the connection between the company and employees' families.
Volunteer system	CSRC provides employees with two days of leave per year to encourage participation in social welfare services and showing enthusiasm for service outside of work. By doing so, we aspire to implement the spirit of service and of devotion to giving back to society. In 2024, employees took a total of 5 days of volunteer leave.
Study grants	In addition to providing scholarships and stipends for the children of employees, it also provides remedial assistance for employees, and the company pays for the expenses when employees are selected for training in external institutions.
Festive gifts	We provide gift vouchers, birthday gift vouchers, and New Year gift vouchers including for the Chinese New Year, Dragon Boat Festival, and Mid-Autumn Festival.
Wedding and funeral subsidies	CSRC cares for all employees. Whenever there is marriage, childbirth or death of relatives, the Company will give congratulatory gifts or condolence stipends to support colleagues through all important stages of their lives.
Flexible working hours	CSRC has a flexible working hours system in place for non-shift employees. Each quarter, employees can choose their own working hours.
Annual gatherings	The Greater China region holds Spring Banquets and corporate year-end parties; the US region hosts holiday parties, and other activities every year to foster employee relationships.

Fitness plaza

Employee rest area

Employee communication channels

CSRC values positive employee relations and actively establishes diverse, two-way communication channels. In accordance with local labor regulations at each operational site, CSRC holds labor-management meetings at least once per quarter in each region. During these meetings, both parties discuss a range of topics, including but not limited to compensation and benefits, working conditions, Employee Assistance Programs (EAP), and vacation planning. The company adheres to relevant labor laws and emphasizes labor-management harmony. Through a variety of measures, CSRC ensures zero-distance communication with employees. These measures include the establishment of labor unions in accordance with local regulations, regular labor-management meetings, and occasional small-scale employee forums. In Taiwan, although a corporate union has been established, but no collective agreement has been signed. For related discussions, the company utilizes the aforementioned diverse channels to achieve two-way communication. If employees have any grievances, they can email the union president. The union will review and communicate the grievance content, facilitating mutual understanding and consensus through meetings, thereby fostering a harmonious working environment.

The Linyuan Advanced Plant in Greater China registered a labor union in 2019, with 172 employees participating in 2024 and accounting for 73% of the plant's workforce. According to the “Articles of the Kaohsiung Labor Union of Linyuan Advanced Materials Technology Co., Ltd.”, the union will assist members in the following tasks:

In the Greater China region, none of the factories in China have established labor unions. However, all factories have set up employee suggestion boxes to solicit feedback and suggestions from employees. The keys to these suggestion boxes are kept by the plant managers, who open them once a month to compile employee feedback. Each piece of feedback and suggestion is promptly addressed and responded to. In the India region, the CCIPL plant has a union with 7 members, representing 4% of the total workforce. The CCET plant does not have a union. In the United States, all factories have established labor unions. The total number of employees participating in the unions across the two plants is 67, which constitutes 29% of the total workforce in the United States.

Number and proportion of CSRC employees participating in unions over the past three years in each region

CSRC is committed to providing a comfortable working environment while encouraging colleagues to balance family life, physical and mental health, and work enthusiasm.

The company actively maintains a positive relationship between labor and management by offering diverse internal communication channels. These include regular labor-management meetings, union communication and coordination, internal company website announcements, newsletters, and other ad-hoc meetings.

To better understand employees' opinions and voices, regular employee forums have been held since 2021. These forums collect feedback and suggestions from employees, and the company regularly responds to these inputs through announcements. We have partnered with Hsinchu Lifeline to offer Employee Assistance Programs (EAP), leveraging professional psychological counseling services to enhance communication channels while ensuring confidentiality and protecting employee privacy. In 2024, the Linyuan plant in the Greater China region has hosted four labor-management meetings. Feedback and issues raised during these meetings will be included in the improvement process and tracked for resolution.

In 2024, there was a total of one labor dispute case between CSRC Group and its employees. After full communication and consultation with employees, all differences have been put asideand resolved. The Company also reviewed internal regulations related to the dispute, adjusted operational procedures based on the actual dispute situation, and aimed to prevent similar cases from arising. If there are any labor rights or welfare suggestions or complaints, all employees of CSRC Group can express their opinions through the employee communication mailbox (csrc_hr@csrcgroup.com) or the suggestion boxes provided in the plant and office.

At CSRC, we prioritize our employees' perspectives. In addition to regular, smooth labormanagement meetings, we conduct employee opinion surveys to understand their level of recognition and engagement with the company. Based on employee feedback, we continuously improve our practices. We assess individual employee needs while striving to meet the expectations of the majority, aiming to respond to individual requirements and provide a platform for employees to realize their own value. Our goal is to establish a positive mechanism that offers employees developmental direction. The principle of being people-oriented is the foundation of our company's development philosophy, and we continuously enhance various company measures to boost employee recognition and retention rates.

In addition to the group-wide employee opinion surveys, the Maanshan and Anshan plants have separately conducted employee satisfaction surveys. The results showed an average recognition rate of 85% and 98%, respectively. Based on the statistical analysis of the surveys, the Maanshan plant has replaced traditional festival gifts with supermarket vouchers or festival bonuses and reviewed welfare measures to better meet employees' actual needs. The Anshan plant, addressing lower satisfaction levels regarding the work environment, succession and training, and welfare systems, has convened mid-level management meetings to propose and implement improvement plans for the onsite environment. Experienced senior employees and engineers have been tasked with developing training content for internal training. Additionally, employee suggestions for salary adjustments proportional to local living costs have been incorporated into the continuous improvement plan.

In India, no employee satisfaction survey was conducted this year; however, there were no labor disputes, indicating that employees are still communicating through other channels. In the United States, employee forums were held this year in place of satisfaction surveys, with a participation rate of 50%.

Employee satisfaction survey dimensions