UNI-PCSC Sustainability Development

President Chain Store Corporation prioritizes product quality management. To safeguard customer health and safety, the Company has implemented comprehensive management measures across three key stages of the value chain, including raw materials, logistics, and stores. The measures adopted at each stage of the value chain, as well as those implemented across the overall quality management system, are summarized below:

Raw Material Management	Logistics Management	Store Management
Tracking and traceability system Product quality inspection	Logistics management	Product labeling Service Quality Evaluation Quality Assurance Inspection Quality Assurance and Ethical Corporate Management Certification Training Inspection
Training for the quality management system Internal audits of the quality management system External audits of the quality management system

Product Raw Material Contingency Plan

President Chain Store Corporation works proactively to ensure a stable supply of raw materials for its private-label products. The Company has established a multiple-supplier mechanism and requires at least two qualified suppliers for each key raw material. Contingency plans are also in place to respond to unexpected disruptions. The Company also regularly reviews the supply status of key raw materials through the following measures:

Key raw materials are included in the annual procurement plan for demand forecasting and procurement planning to ensure sufficient safety stock.
Regular meetings are held to track inventory levels and supply conditions, allowing the Company to continuously monitor risks and adjust strategies in a timely manner.
New suppliers must pass a rigorous quality review process prior to onboarding to ensure the quality and resilience of the supply chain.

Quality Management Audits

Internal Audits

President Chain Store Corporation conducts internal audits across the three key stages of the product value chain, including manufacturing, logistics, and stores, to confirm the effectiveness of its quality management system. The internal audit measures implemented by each department are summarized below:

Stage of Product Value Chain	Manufacturing (Products)	Logistics	Retail Stores
Quality Assurance Department	President Chain Store Corporation achieved a 100% completion rate for internal audits in 2025. The audit scope covered a wide range of suppliers, including raw material suppliers, private-label product suppliers, and store supply vendors. The Company also required suppliers to submit improvement plans and tracked their implementation to strengthen its quality management system.	The Company conducts an annual food safety system assessment for each distribution center. The assessment covers general requirements under Good Hygiene Practice, pest control management, and other operations. In 2025, assessments were conducted at 29 DCs, with a completion rate of 100%.	Project based internal audits are conducted at stores when special circumstances arise.
Logistics Planning TEAM	NA	The Company conducts two DC assessments and four delivery route audits for logistics personnel each year at all distribution centers. The audit scope covers picking quality, on-site management, delivery route quality, and other logistics operations. In 2025, internal audit results showed that DC assessments and delivery route audits were completed at 26 DCs in the first half of the year and 25 DCs in the second half, with a completion rate of 100% for both periods.	NA
Operations Planning Department	NA	NA	District consultants visit each store once a week to audit quality assurance operations. If a store identifies any abnormality in products on the shelves, it reports the issue to the district consultant and notifies the Joint Service Center in accordance with the quality assurance abnormality reporting process. The product is then removed from the shelves. The completion rate in 2025 was 100%.

External Audits

To strengthen credibility and ensure consistency with international standards, President Chain Store Corporation also applies external audit mechanisms across the three major stages of its product value chain. The audit scope and status are as follows:

Stage of Product Value Chain	Manufacturing (Products)	Logistics	Retail Stores
Scope	All private-label food contract manufacturers in Taiwan	Logistics subsidiaries	President Chain Store retail locations
External Audit Status	In 2025, 100% of suppliers for private-label food products, including contract manufacturers, direct-trade raw material suppliers, and egg suppliers, obtained ISO 22000 certification for international food safety management systems.	The logistics subsidiaries previously obtained ISO 9001 certification and continue to maintain service quality through processes aligned with ISO 9001.	The Company regularly audits store quality assurance processes in accordance with ISO 9001 standards through an external management consulting firm certified under ISO 9001. The audits cover equipment operation, product shelf life and labeling, environmental cleanliness, the store checklist mechanism, and so on.

Quality Management Training

Internal Quality Management Training

To strengthen the overall quality assurance capabilities of our personnel, food hygiene standards are included in onboarding training for new back-office employees. For staff in departments responsible for product quality management, targeted training is provided on a variety of quality control topics, such as product inspection and review processes for new product launches and category-specific quality assurance standards. Additionally, both new and existing store employees receive relevant training to ensure they clearly understand their responsibilities within President Chain Store Corporation’s comprehensive quality assurance system. This collective effort is essential for maintaining product quality and protecting consumer health and safety.

Type of Employees	Type of Training	Training Objectives	Training Outcomes in 2025
Newly hired back-office employees	Basic Store Training (basic concepts, quality assurance, counter service, payment, equipment operation)	Help employees understand their roles within the quality management system through food hygiene standards, case studies, and customer complaint scenarios; understand the key regulations in store operations.	Starting in 2025, to centralize course management, the above courses were consolidated into a single mandatory course covering basic store concepts, quality assurance, counter service, payment, and equipment operation. A total of 139 participants passed the course, with total viewing hours of 17.98 hours.
Marketing Supervisors	Quality Assurance Operations	Understand the role in quality systems through promotion of food safety policies, product management, and reporting procedures; execute group policies and comply with company processes.	In 2025, a total of 47 participants passed the course. The course duration was 2 hours, with total training hours of 94 hours.
Supervisors in Marketing, Innovative Integration Projects, QA, Procurement	Quality Assurance Inspection and Review for New Product Launches	Clarify the procedures and standards for new product reviews, and the available QA consultation and inquiry channels; execute group policies and comply with company processes.	In 2025, a total of 43 participants passed the course. The course duration was 0.5 hours, with total training hours of 21.5 hours.
New and Existing Store Employees	Quality assurance, mandatory/core courses How to reduce common deficiencies identified in quality assurance audits Key summer quality assurance reminders Store raw material audits Tips for preventing expired products Safe and reliable food Food safety and hygiene Good Hygiene Practice Senior Interns – Quality Assurance Store quality assurance abnormalities and case studies Communication of store quality assurance abnormality cases CITY series beverages: quality assurance improvements for coffee and freshly brewed tea Store quality assurance and ethical corporate management certification In-service training test for food handlers – basic level In-service training test for food handlers – advanced level In-service training test for quality assurance personnel – advanced level Physical and online training for new employees	Annual recertification required in accordance with the Ministry of Health and Welfare’s “Good Hygiene Practices” and company integrity principles Passing score is 80, with one training hour recognized upon passing Unlimited attempts; highest score recorded New hires must certify within 2 weeks of onboarding	In 2025, a total of 73,661 participants completed store quality assurance and ethical corporate management certification training, including employees who later resigned. The certification was conducted through online testing. In 2025, a total of 391 newly hired back-office employees passed ethical corporate management training, with total course hours of 391 hours.

Supplier Quality Management Training

To strengthen product quality and the supply chain management mechanism, as described in Section 4.1 Sustainable Supply Chain Management of the Sustainability Report, the Company continues to manage the quality performance of contract manufacturers and raw material suppliers through its supplier assessment system. Suppliers are clearly required to follow specific standards for product manufacturing, packaging, inspection, and assessment processes, ensuring that business partners meet the Company’s requirements for quality, safety, and management.

In 2025, President Chain Store Corporation updated its assessment standards and conducted a communication session on the “Policy Update on Assessment Management Procedures for Contract Manufacturers and Raw Material Suppliers” for contract manufacturers and raw material suppliers. Professional quality management personnel explained the latest management requirements to business partners, including changes to assessment frequency, the assessment grading system, and assessment requirements for new suppliers. Through this policy communication, the Company clearly conveyed its quality standards and management requirements, encouraging suppliers to continuously improve their quality management capabilities.

Going forward, the Company will continue to update its supplier assessment system in a timely manner in accordance with laws and regulations, customer requirements, and internal quality management standards. It will also communicate the latest policy requirements to suppliers through meetings, notifications, training, and other communication channels to strengthen supply chain quality management and product safety assurance.

Integration of emerging technologies to enhance product quality

To prevent temperature-controlled products from being exposed to temperature excursions during delivery and transportation, which could affect product quality, President Chain Store Corporation has introduced a real-time temperature monitoring system for all vehicles used to deliver temperature-controlled products. Through thermometers installed inside the vehicle compartments and networked on-board systems, temperature data before, during, and after delivery is transmitted in real time.

Pre-delivery	The temperature control system confirms whether the delivery vehicle has maintained the required temperature for the products before departure. This ensures that the vehicle compartment temperature is suitable before products are loaded. If the compartment temperature does not meet the required standard, temperature-controlled products may not be delivered.
During delivery	The temperature control system is equipped with a temperature excursion alert mechanism. If the temperature exceeds the standard for a specified period of time, supervisors and delivery personnel are notified immediately. This helps prevent temperature excursions caused by oversight by delivery personnel, effectively reducing the risk of temperature abnormalities during transportation and ensuring that products remain in optimal condition.
Post-delivery	In accordance with government regulations, temperature control data is retained for five years for future reference.

The real-time temperature monitoring system serves as a dual safeguard. It primarily uses the vehicle’s on-board system and the Internet of Things to transmit real-time data. To prevent data loss caused by abnormalities in the vehicle system or network connection, each vehicle is also equipped with a standalone temperature recorder during operations. After completing delivery, logistics personnel return the recorder. If no data is available due to an abnormality in the on-board system, the records from the standalone temperature recorder are used instead.

Corrective Actions for Product Quality Incidents

In addition to removing products from shelves in response to major product quality complaints as required under contracts, President Chain Store Corporation also places strong emphasis on quality control and continuous improvement for its private-label products. For contract manufacturers and suppliers, the Company actively promotes corrective and preventive actions for customer complaints through on-site audits, routine assessments, and various management mechanisms. Specific measures include the following:

Private-label product suppliers conduct routine assessments in accordance with President Chain Store Corporation requirements. When improvement opportunities are identified during assessments, suppliers are required to submit specific improvement plans. The assessment mechanism is used to prevent recurrence and ensure management effectiveness.
President Chain Store Corporation has established a Joint Service Center dedicated to handling customer complaints. Product quality complaints are referred to the Quality Assurance Department for follow-up, root cause analysis, and determination of responsibility. If a product abnormality is confirmed and meets the criteria for a major product quality issue, the Company requires the product to be removed from shelves to protect consumer rights and interests.
President Chain Store Corporation assigns on-site personnel to the contract manufacturers of its private-label products. By combining customer complaint records with assessment findings, the Company continues to promote problem improvement and prevention. It also regularly evaluates the implementation and effectiveness of remedial measures to ensure ongoing improvements in product quality and customer satisfaction.

Product Quality & Recall Management

President Chain Store Corporation is a leading company in Taiwan’s convenience store and retail service industry. Its business scope covers modern retail channels, logistics and distribution, agency sales, and a diverse range of convenience services. The Company’s private-label products are mainly developed and manufactured by partner suppliers and contract manufacturers and are managed through a rigorous quality control system. Major private-label product categories include CITY series coffee beverages, and a wide range of fresh food products, such as lunch boxes, bread, and cooked foods.

From 2022 to 2025, President Chain Store Corporation had no recalls of private-label products due to impacts on consumer health and safety, and the quantity of products recalled was zero. In addition, the Company had no material violations of the Act Governing Food Safety and Sanitation or other related regulations enforced by the competent authorities. President Chain Store Corporation has consistently complied with applicable standards for consumer protection, food safety, product labeling, and quality management. The competent authorities did not take any material enforcement actions against the Company’s products or operations, such as major fines, business suspension, or other legal proceedings.

	FY 2022	FY 2023	FY 2024	FY 2025
Number of recalls issued	0 times	0 times	0 times	0 times
Quantity of products recalled	0	0	0	0

Note 1: The scope of product recall statistics covers private-label products.