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Greetings,

Climate change is currently an issue of high priority. In alignment with the global 2050 Net Zero emissions pathway, the sustainable performance of the construction industry plays an indispensable role. International trends and policy directions are aiming towards near-zero energy buildings. Therefore, when conceptualizing and designing our architectural works, in addition to integrating our original brand philosophy of "Beautiful City, Happy Community," we connect with sustainability goals to become a driving force towards the Net Zero objective.

We published our first Sustainability Report in 2023. We utilized "Sustainable Management" to explain our sustainability framework, strategies, and goals. Furthermore, we detailed the Company's ESG execution status through four chapters: "Sustainable Governance," "Sustainable Architectural Design," "Happy and Healthy Workplace," and "Social Harmony and Co-prosperity." This initiative enables us to comprehensively inventory sustainability risks and periodically review annual sustainability performance. It serves as a foundation for adjusting strategies and action goals, while allowing stakeholders to better understand the Company's efforts in sustainability.

The Company has been deeply rooted in Taichung for thirty-two years since its establishment. Under the leadership of Founder and Chairman Wu, Hsi-Kun, we have built a robust and responsible corporate culture and financial foundation. The Company has set different goals at various stages, with humanistic thinking and social care as core values, lighting up the city with conscientious construction and building happy communities with warmth. In the future, the Company will continue to drive transformation, promote substantive sustainable actions, and combine existing lifestyle aesthetics with a sustainable environment, aiming to create a beautiful city.

Chairman, Wu Hsi-Kun
Responsible Unit The Company designates the Customer Service Department as the concurrent unit for Sustainable Development Promotion. The promotion is led by the Chairman and composed of senior executives.
Code of Conduct Renamed to "Sustainable Development Practice Principles," approved by the 6th meeting of the 12th Board of Directors on March 15, 2022.
Reporting Time The Sustainable Development Promotion Team regularly reports the sustainability promotion plan and execution status to the Board of Directors annually. The Board supervises the identification of sustainability-related risks, the formulation of plans, and the achievement of targets, providing suggestions to serve as a basis for subsequent review and improvement.
Core Values
  • Empathy
  • Benevolence
  • Value for Money

Community Management

  • Art in the Community: Public art, community music festivals, community galleries, art sponsorships, etc.
  • Creativity in Life: Happy community events, community health checks.
  • Deep Local Engagement: Community housewarming events, festive cooking activities, creative furniture exhibitions, etc.
  • Community Development: Community art academies, lectures for homeowners, sports days, etc. Encouraging residents to pursue "slash" entrepreneurship and set up stalls at the Co-prosperity Market. This fosters a co-prosperity economic model among residents, utilizing public facility spaces to bring more possibilities to community life.

Charity & Public Welfare

  • Fuhwa Innovation "One Acre of Land" Project (formerly Zongtai One Acre).
  • Action Bodhisattva Scholarship Assistance.
  • Charity Bazaars.
  • Road Runs and Blood Donation Drives.
  • Scholarships for the Underprivileged.

Caring for Taiwan

  • Deepening Green Energy & Environmental Protection: Community energy-saving planning, adoption of green building materials, planting space planning, etc.
  • Adoption of Public Spaces: Adoption of Dakeng Hiking Trails No. 9 and 9-1 / Liyuan Park.
  • Sponsorship of athletes and sports tournaments.

Employee Growth

  • Project visits / Overseas visits / Luxury hotel stay experiences.
  • Training on defect review and improvement guidelines.
  • Fuhwa Innovation Academy (formerly Zongtai Academy): Strengthening professional skills, passing on experience, and cultivating talent.
  • Reading Club Sharing: Company-wide purchase of designated books with regular meetings to share insights.
  • EMBA Subsidy: Encouraging further education, continuous learning, and constant growth.
  • Participation in non-construction clubs or charity groups to broaden horizons and engage in cross-domain learning.

Construction Site Culture

  • Site Safety & Health Standards: "Safety & Responsibility," "Zero Occupational Risk," "Zero Work Risk."
  • Alcohol-Free Sites: Strict implementation of the alcohol ban.
  • Dust-Free Site Offices: Implementation of a shoes-off policy upon entry.




The Company's greenhouse gas emissions and water usage inventory data for the past three years are as follows:

Category

Implementation Status and Plans

Fuhua Innovation (formerly Zongtai Real Estate) has been deeply rooted in Taichung for many years. With the brand goal of "Sustainable City, Happy Co-prosperity," we illuminate the city with conscientious construction and build happy, co-prosperous communities based on the dreams of architects. Based on the concept of sustainable development, Fuhua Innovation proposes three main ideals regarding employee welfare, resident happiness, and giving back to society: "Happy Enterprise & Good Employees," "Empathetic Customer Service," and "Virtuous Cycle of Giving Back to Society." We implement corporate sustainable development through various concrete actions.

2025 Sustainable Development Implementation Status

01 Happy Enterprise & Good Employees
  • Monthly company meetings inviting guest lecturers to promote continuous learning and team cohesion.
  • Encouraging employees to form clubs through the Welfare Committee regulations to enrich their lives.
  • Irregularly holding training events to improve service quality and employee spiritual well-being.
  • Establishing a badminton team through the Welfare Committee, allowing employees to take care of their health outside of work.
  • Setting up breastfeeding/lactation rooms to assist employees in continuing breastfeeding and creating a family-friendly environment.
02 Empathetic Customer Service: Heart Life Aesthetics Community
  • "Taste the World" Tea Tasting Events.
  • Healing Yoga Courses.
  • Halloween and Winter Solstice Festival Activities.
03 Virtuous Cycle of Giving Back to Society
  • Continuous adoption of Taichung Dakeng Hiking Trails No. 9 and No. 9-1, including planting, green space maintenance, and environmental preservation; maintenance of the cherry blossom path in Liyuan Park.
  • Donating feed and flea drops needed by the Taichung City Moon-Round Stray Animal Care Association.
  • Donations to the Xinping Community Development Association in Beitun District, Taichung (a community care stronghold).
  • Donations to the Beitun District Office, Taichung City (Neighborhood Watch Promotion Committee) and Double Ninth Festival events for the elderly.
  • Donations to the Syin-Lu Social Welfare Foundation and Hui-Ming Blind Welfare Foundation.
  • Donations to the Dajia Merit Association, aiming to care for the lonely elderly, provide emergency relief, and look after vulnerable children.
  • Donations to the Taichung City Volunteer Fire Corps / Taichung Police Friends Association.

2025 Sustainability Issues - Risk Assessment, Policy, and Action Plans

Material Issues Risk Assessment Items Risk Management Policy or Strategy
Environment Environmental Protection & Ecological Conservation Responding to EPA policies, the Company prioritizes the procurement of "low pollution, resource-saving, and recyclable" energy-saving green building materials to reduce the excessive consumption of earth's resources.
Social Occupational Safety
  • Passed ISO45001 and TOSHMS (CNS45001) Occupational Health and Safety Management System verification in 2023 (valid from 2023/10/11 to 2026/10/11).
  • Executing self-inspections for occupational safety and quality during the construction phase to ensure construction safety and quality requirements, with all inspection results recorded and preserved.
  • Developed and obtained a patent for scaffolding anti-fall brackets to enhance construction safety.
  • Providing group injury insurance for engineering personnel working on-site to improve safety protection.
  • Installing fire detection and alarm systems to reduce hazards and risks caused by fire.
Corporate Governance Socio-economic & Compliance Adhering to all legal regulations, strictly observing trade secret confidentiality, and implementing integrity management and internal control systems.
Strengthening Board Functions
  • Planning relevant advanced study topics for directors and providing them with the latest regulatory data annually.
  • Insuring directors with Directors and Officers (D&O) Liability Insurance to protect them against lawsuits or claims.
Stakeholder Communication
  • Setting up a Stakeholder Section on the official website and disclosing external communication emails and contact windows for various stakeholders to maintain good interaction.
  • Establishing various communication channels to communicate actively and reduce confrontation and misunderstanding. Setting up an Investor Relations email, handled and responded to by the spokesperson.

2026 Corporate Sustainable Development Promotion Plan

01 Happy Enterprise & Good Employees
  • Irregularly inviting guest lecturers to promote continuous learning and gather team strength.
  • Encouraging employees to form clubs through the Welfare Committee regulations to enrich their lives.
  • Establishing a badminton team through the Welfare Committee allowing employees to take care of their health outside of work.
  • Setting up breastfeeding/lactation rooms for employees to assist in breastfeeding and create a friendly environment.
  • Irregularly holding monthly meetings with training to improve service quality and team-building games to bring colleagues closer.
02 Empathetic Customer Service: Heart Life Aesthetics Community
  • Irregularly cooperating with the community to co-organize festival activities.
  • Sponsoring local neighborhood activities.
03 Virtuous Cycle of Giving Back to Society
  • Continuing adoption of Taichung Dakeng Hiking Trails No. 9 and No. 9-1 and Liyuan Park, including planting, green space maintenance, and environmental preservation.
  • Regular donation of relevant supplies to stray dog shelters.
  • Targeting the procurement of eco-friendly green building materials.
  • Continuing to focus on student sports issues, aiming to support school sports education and talent cultivation in the long term.
  • Focusing on education issues and providing educational scholarships.

Long-term Commitment to Public Welfare and Fulfilling Social Responsibility

"Fuhua Innovation One Acre of Land" (formerly Zongtai One Acre) has launched a local quality ingredient adoption plan since 2011, encouraging everyone to participate in public welfare activities supporting local small farmers. Under the scorching sun, we roll up our trousers and step into the fields barefoot, learning to respect the earth and experiencing the hard work of farmers where "every grain of rice involves a hundred drops of sweat."

In addition, the "Community Development Plan" aims to optimize the living environment, promote friendly interactions among neighbors, and enhance the overall value of the community. Fuhua Innovation has planned various activities and courses for the community, activating the use of public facility spaces (e.g., music and art classes). Residents with expertise within the community can also propose to open classes, further promoting harmonious relationships among neighbors.

Corporate Integrity Management Team

Responsible Unit The Company's Administrative Service Center concurrently serves as the Integrity Management Promotion Team.
Established Codes
  1. Ethical Corporate Management Best Practice Principles (Amended by the Board on March 25, 2020)
  2. Procedures for Handling Material Inside Information and Prevention of Insider Trading (Amended on November 9, 2022)
  3. Code of Ethical Conduct (Amended on March 24, 2021)
  4. Regulations for Handling Reports of Illegal, Immoral, or Unethical Behavior (Amended on March 14, 2023)
Reporting Schedule The Corporate Integrity Management Team reports the review of operational effectiveness to the Board of Directors annually. The implementation status of ethical management for 2024 was reported to the Board on March 11, 2025.
Duties and
Responsibilities
  1. Assist in integrating integrity and ethical values into the Company's business strategy, and formulate relevant anti-fraud measures to ensure ethical management in compliance with legal systems.
  2. Establish programs to prevent unethical conduct, and define standard operating procedures and behavioral guidelines related to business activities within each program.
  3. Plan the internal organization, structure, and duties to establish mutual supervision and balancing mechanisms for business activities with higher risks of unethical conduct.
  4. Promote and coordinate integrity policy awareness and training.
  5. Plan the whistleblowing system and ensure its effectiveness.
  6. Prevent products and services from directly or indirectly damaging the rights, health, and safety of consumers or other stakeholders during R&D, procurement, manufacture, provision, or sales.
  7. Prevent bribery (offering and accepting), illegal political contributions, improper charitable donations, or sponsorships.
Implementation
Status
Item Policy Status
Full Information Disclosure Fully disclose information regarding ethical management policies and their implementation. The Company's website and annual report have disclosed regulations and implementation status regarding ethical management policies. The "Ethical Corporate Management Best Practice Principles" and "Code of Ethical Conduct" established by the Company have been disclosed in the "Corporate Governance" section of the Stakeholder Center on the Company's website.
Implementation of Internal Controls for Ethical Management The Company has established and strictly executes sound "Accounting Systems" and "Internal Control Systems." Internal auditors conduct regular audits of all Company units according to the audit plan. CPAs also perform annual audits of the "Internal Control System" to ensure the implementation of ethical management and to jointly manage and prevent unethical conduct. No incidents of corruption or anti-competitive behavior occurred in 2025.
Internal Education and Training Strengthen colleagues' awareness of integrity through regular advocacy and integrity education training courses. Content included procurement risks/trade secrets. A total of 102 participants attended. (20 mins/person).
Whistleblowing System Established the "Ethical Corporate Management Best Practice Principles," "Procedures for Handling Material Inside Information and Prevention of Insider Trading," and "Regulations for Handling Reports of Illegal, Immoral, or Unethical Behavior." These clearly define reporting procedures and review units, encouraging all employees (including directors, managers, and employees) to report any illegal conduct or violations of laws or ethical codes. A complaint contact email is also provided in the Stakeholder section of the Company website. No whistleblowing cases occurred in 2025.
Green Consumption & Procurement Responding to environmental policies, the Company prioritizes the procurement of "low pollution, resource-saving, and recyclable" energy-saving green building materials to reduce excessive consumption of earth's resources. In 2024, procurement amounted to NT$75.52 million, honored as an Excellent Enterprise in Manufacturing for green procurement amounts reaching NT$50 million.
Procurement amounted to NT$78.04 million in 2025.

Environment and Safety

Work Environment and Personal Safety Protection Measures

Creating a safe work environment and fostering a correct work attitude are crucial links in maintaining the safety of construction personnel and building quality. "To foster a sense of honor among workers regarding their work, we have an obligation to first provide them with a relatively comfortable work environment; this is also a form of respect." At every Fuhua Innovation construction site, in addition to basic insurance, we provide additional construction site insurance for on-site personnel, insisting on the highest standards for site safety maintenance.

  1. When investing in construction projects, the Company strictly requires contractors and their subcontractors to comply with all regulations regarding labor laws, such as the "Occupational Safety and Health Act" and the "Labor Standards Act." They must also possess relevant license qualifications and pass professional training during operations.
  2. The Company's 100% owned subsidiary, Zongtai Construction Co., Ltd., is a Class A General Construction Contractor. To prevent occupational disasters, provide a friendly work environment, and safeguard the safety of employees and workers, we continuously establish an autonomous safety and health management system and improve safety and health facilities. In 2023, it passed the ISO45001 and TOSHMS (CNS45001) Occupational Health and Safety Management System verification (valid from 2023/10/11 to 2026/10/11). This fully exerts safety and health self-management functions, effectively controls occupational disaster risks, enhances occupational safety and health management performance, and achieves the dual standards of protecting labor safety and health while promoting competitiveness.
     
  3. Construction Sites:
    • Personal Protective Equipment (PPE): Safety helmets must be worn when entering all Company workplaces. Safety harnesses must be attached when working at heights of two meters or above and on scaffolding.
    • Access Control: Implementation of access control and facial recognition systems.
    • Alcohol-Free Site: Alcoholic beverages are strictly prohibited from being brought into any Company construction site.
    • Environment Organization and Cleaning: Work areas must be kept clean. Work areas should be organized and cleaned before finishing work daily; waste materials and domestic waste should be concentrated in designated areas.
    • Safety Audit Team: A team is established to spot-check construction conditions at various sites, with defects reviewed quarterly in meetings.
    • Regular Inspection: Regular inspection of safety protection equipment and safety education training.
    • Patents: Obtained a patent for scaffolding anti-fall brackets.
    • Fire Detection: Fire detection alarm system during construction combined with LINE notifications.
  4. Office Locations:
    • The Company has surveillance systems to ensure employee safety.
    • Water dispenser filters are replaced annually to ensure the hygiene and quality of drinking water.

Welfare and Retirement

Welfare Measures Implemented by the Employee Welfare Committee

  • Domestic and Overseas Travel Activities

    2025: Overseas; 2023: Overseas; 2020/2021/2022: Cancelled due to COVID-19 pandemic; 2019: Travel subsidy; 2018: Overseas; 2016: Domestic; 2015: Overseas.

  • Club Subsidies

    Badminton Club

  • Establishment of Breastfeeding/Lactation Rooms for a Friendly Nursing Environment
  • Group Employee Insurance
  • Holiday Bonuses, Birthday Bonuses, and Celebrations

    Birthday bonuses are distributed during monthly meetings; holiday bonuses are distributed before the three major holidays.

  • Occasional Team Dinners
  • Employee Stock Ownership

    10% of shares are reserved for employee subscription during each capital increase; subscription rates are allocated based on performance evaluations.

  • Performance Bonus

    Distributed based on employee performance evaluations.

  • Profit Sharing

    Distributed according to regulations based on annual surplus settlement.

Retirement System and Implementation Status

New Labor Pension System: Implemented since July 1, 2005.

The Company contributes 6% of wages monthly to the individual labor pension account established by the Bureau of Labor Insurance; ownership of the account belongs to the employee.
(Implementation Status: No retired employees currently.)

Advanced Studies and Training

The Company has established employee education and training regulations. Employees may propose training on their own initiative, or supervisors may assign them to participate in various training programs based on business needs.

Labor-Management Agreements and Employee Rights Protection

All Company systems are handled in accordance with the Labor Standards Act. An Employee Welfare Committee has been established to promote various welfare measures. Labor-management relations are harmonious, with no disputes or losses occurring.