Intellectual Property Management Plan

Basic Policy on Intellectual Property Rights

We appropriately manage and protect our information, intellectual property (IP), and assets while respecting the IP rights of third parties (including clients and suppliers) and avoiding infringement.

Management and Protection of Intellectual Property Rights

1. In order to improve the quality and added value of our products and to create higher profitability, Allied Supreme Corp. actively conducts research and development of various technologies and products to plan the patents.

2. The Company employs a professional patent law firm to assist in retrieving relevant technology patents to avoid infringement risks, as well as to examine and assist in filing IP applications in order to increase the approval rate with the Intellectual Property Office.

3. All of our employees have signed an employment contract, which clearly defines the management and protection of IP rights and trade secrets.

4. As a way to encourage employees to be innovative, the Company has instituted a comprehensive incentive system to prompt staff members to create highly valuable IP by combining the Company's IP strategy with a diversified incentive system.

5.The Company conducts regular training on IP rights for employees in order to carry out its IP management policy and to promote the idea that the protection of IP rights is the responsibility of every employee, to reduce the possibility of infringement, and to encourage employees to innovate.

Links between Business Objectives and Intellectual Property Rights

1. Motivation: To offer higher quality products and to actively engage in R&D activities in response to the market's forward-looking product needs.

2. Management and protection: Hiring a professional patent law firm to assist in retrieving relevant technology patents to avoid infringement risks, as well as to review and assist in filing IP applications in order to increase the approval rate with the Intellectual Property Office.

3. Utilization: R&D product→commercialization→mass production to create revenue and achieve business goals.

4. Investment: The Company makes a profit and allocates funds to support R&D activities, creating a cycle of sustainability.

Disclosure of Future R&D Plans and Estimated Investment Costs

Innovation and research and development are the driving force for Allied Supreme Corp.'s continuous growth. As a leader of professional Teflon manufacturing services in Taiwan, Hong Kong and China, the Company adheres to the concept of green design and green operations management, listens to customer needs, devotes itself to process improvement and R&D, provides the most stringent customer confidentiality protection, and assists customers to create the highest quality products with leading technology and comprehensive solutions. Allied Supreme Corp. is committed to mitigating the impact of its operations on the environment and to building a supply chain that aims for sustainability.

R&D Plans

Establishing Taiwan's leadership in technology:→Continual refinement of design and manufacturing processes.

Deepening customer trust:→Providing efficient and trustworthy solutions to our clients.

Commitment to green chemistry:→Reducing environmental footprints, optimizing manufacturing processes, implementing pollution prevention practices and saving energy consumption.

 Research on environmentally sustainable technologies:→Providing more energy-friendly and energy-efficient products and services in the "recycling, waste reduction and purification" projects.

R&D Expenses

Allied Supreme Corp. continues to expand the scale of research and development: continues to refine new technologies, explores new business possibilities and devotes itself to training core technical personnel; continuously improves core products and develops new business groups to meet and lead the development trend of the industry.

R&D expenses incurred in the most recent year:

Unit: NT$ thousands

Item 2015 2016 2017 2018 2019
R&D expenses 23,382 21,851 40,325 57,756 76,705
Net operating revenue 1,361,477 1,580,524 2,295,817 2,381,795 2,585,329
percentage of net revenue 1.72% 1.38% 1.76% 2.42% 2.97%
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