Message from the Chairman

Formosa Laboratories has been established for 28 years. Looking back to the end of 1995 when it was founded, Formosa Laboratories was just a small laboratory that undertook process development projects. Subsequently, our products were favored by international pharmaceutical companies, and we successfully passed the FDA inspection in the United States in 2004, embarking us on the world stage. Formosa Laboratories has successively developed Active Pharmaceutical Ingredients (APIs) such as Colesevelam for treating hyperlipidemia, Sevelamer for treating renal dysfunction and hyperphosphatemia, and also developed UV filters and Vitamin D derivatives. These three major product lines of APIs have gradually made the Company grow into an internationally renowned APIs pharmaceutical company.

Afterwards, with the rapid rise of Indian APIs companies, price competition has led to a decrease in profit margin of niche products. In addition, large molecule drugs, also known as Biosimilars, have gradually become mainstream. In response to these challenges, Formosa Laboratories has adjusted its business layout. On December 21, 2012, the Company assisted in the establishment of EirGenix, Inc. (6589.TW) and acquired the right to merge with the "Protein Drug Pilot Factory of the Biotechnology Center" in 2013, becoming the largest shareholder of EirGenix, Inc. at that time. From this point on, Formosa Laboratories officially entered the field of biopharmaceuticals.

The synthesis and high potency production capacity of Formosa Laboratories, combined with the protein drug research and production capacity of EirGenix, Inc., have laid the foundation for the development and manufacturing services of Antibody-Drug Conjugates (ADCs). the Company's commitment to product quality has never wavered and has successfully passed 8 FDA on-sit inspection. In 2022, the FDA inspection of Formosa Laboratories' fermentation plant resulted in No Action Indicated (NAI). 

With our core competitiveness in process development and pathway optimization, Formosa Laboratories actively expands its Contract Development and Manufacturing Organization (CDMO) services. However, a one-stop service is expected by customers. In 2017, the Company invested in the construction of an injectable plant and introduced internationally renowned brand equipment. From clinical to commercial, conventional to high potency production lines, the construction of three injectable production lines, including freeze-dried powder for injection, Injections, and Prefilled syringe, has been completed in 2022.

At this point, the Company's CDMO service scope covers the synthesis, fermentation, analysis of APIs, and the filling of sterile injectables, completing a one-stop comprehensive service.

Formosa Laboratories invested in the establishment of a new drug research and development company, Formosa Pharmaceuticals Inc. in 2010, which acquired Activus Pharma, a subsidiary of the Japanese Sosei Group in 2017, and obtained the Activus Pure Nano-particle Technology (APNT) for the treatment of postoperative inflammation and pain in the eyes. The product, APP13007, is suitable for the US FDA 505(b)(2) new drug approval pathway. Data analysis from phase III clinical trials has shown significant clinical and statistical significance. It is expected to submit a New Drug Application (NDA) to the US FDA in the first half of 2023.

This 2022 Sustainability Report is the first report issued by Formosa Laboratories in response to the concerns of stakeholders regarding the sustainable development of the Company. In addition to following the latest version of the Global Reporting Initiatives (GRI) guidelines for reporting on sustainability content, we also appoint a third-party verification organization (SGS) to obtain AA1000 Type 1 moderate assurance to enhance the completeness and credibility of the report.

Formosa Laboratories has made sustainable development a company goal and incorporated into KPI in order to continue implementing energy conservation and carbon reduction, fulfilling corporate social responsibility, and strengthening corporate governance. In addition, the Company established a Sustainable Development Committee in May 2022, with myself as the convener of the committee, and the CEO as the advisory committee member, and the Vice President of the Engineering Department as the director committee member. The committee is divided into three executive teams: Sustainable Development Team, Social Welfare Team, and Corporate Governance Team.

In terms of environmental aspects, the Company has established a high-performance wastewater treatment plant and a Regenerative Thermal Oxidizer (RTO) based on the characteristics of the industry and the operational needs of the Company, improving the efficiency of VOCs (Volatile Organic Compounds) waste gas treatment to over 95%. A complete environmental management system has been established, continuously passing verifications such as ISO 14001, CNS 15506, and OHSAS 18001. Since 2018, the boiler fuel has been changed from heavy oil to natural gas to reduce emissions of SOx and NOx. In 2019, an energy-saving and carbon reduction plan was launched, including (1) rezone and utilize the entire plant's lighting, (2) replace traditional lighting fixtures with LED fixtures, (3) replace old chillers in the plant to improve equipment efficiency, (4) replace inverter air conditioners, (5) install inverter drives on the aeration tank blowers, and (6) implement energy-saving measures in cleanrooms: construction of solar power panels has begun in 2024 and is expected to be completed and operational by mid-2023.

Formosa Laboratories has continued to demonstrate the effectiveness of its waste source management, process optimization, and reduction measures, resulting in a year-on-year decrease in waste load per unit of output. In 2025, total waste decreased to 1,346.9538 metric tons, continuing the downward trend seen over the previous two years. Waste intensity further decreased to 1.28 metric tons per ton of production, down from 1.39 in 2024 and significantly improved from 1.81 in 2023, showing a continuous three-year improvement trend. This further reflects the concrete implementation and effectiveness of overall waste reduction management.In 2025, the total volume of recycled water was approximately 91.893 million liters, resulting in a water reuse rate of 21.19% based on annual water intake.

Formosa Laboratories is committed to developing a diverse and talented workforce and promoting diversity and shared success, and prohibits discrimination based on employees' diverse identities. As of the end of 2025, the company employed a total of 959 people, an increase of 32 from the previous year. In terms of gender, there were 646 male employees (67.4%) and 313 female employees (32.6%), with a male-tofemale supervisor/manager ratio of 1.25:1. Additionally, the company employs people with disabilities in accordance with the law. In 2025, there were six employees with disabilities, seven Indigenous employees, and 138 foreign employees from seven countries: Saint Lucia, India, Vietnam, Malaysia, the Philippines, Indonesia, and  Thailand.

Formosa Laboratories is committed to developing a diverse and talented workforce and promoting diversity and shared success, and prohibits discrimination based on employees' diverse identities. As of the end of 2025, the company employed a total of 959 people, an increase of 32 from the previous year. In terms of gender, there were 646 male employees (67.4%) and 313 female employees (32.6%), with a male-tofemale supervisor/manager ratio of 1.25:1. Additionally, the company employs people with disabilities in accordance with the law. In 2025, there were six employees with disabilities, seven Indigenous employees, and 138 foreign employees from seven countries: Saint Lucia, India, Vietnam, Malaysia, the Philippines, Indonesia, and Thailand.