Sustainability Management

Sustainability Development Strategy

As a responsible corporate citizen, ALPS Biotech is committed to balancing economic, social and environmental needs through our sustainability strategy. We uphold integrity-driven operations, strengthen supplier management and optimize governance mechanisms, with the goal of becoming a “carbon-neutral company” and integrating health innovation, natural capital and corporate responsibility into one traceable value chain.

Future Development Directions:

• Carbon-Asset Agriculture: Using napier grass as our core crop, we develop an agricultural carbon-sequestration model. Napier grass offers high carbon-sink capacity and generates quantifiable carbon sinks that can connect to the carbon credit market; its whole biomass can be converted into biofuel and bio-based materials, creating a circular resource economy with diversified revenue streams.
• Environmental Sustainability: Developing green chemistry processes to reduce pollutant emissions, promoting bio-based materials, mitigating the impact of climate change and protecting environmental health.
• Social Responsibility: Advancing rare-disease drug development, organizing public welfare activities to assist underprivileged groups, and protecting the living environment of future generations through proactive environmental and social action.

Stakeholder Engagement

ALPS Biotech maintains close communication with its stakeholders through multiple channels:

• Employees: Internal communications and regular staff meetings.
• Customers: Customer satisfaction surveys and service hotlines.
• Investors: Institutional investor conferences and investment forums.
• Suppliers: Long-term partnerships that drive supply-chain sustainability.
• Community: Participation in agricultural cooperative initiatives.

In 2025, the Company held its annual shareholders’ meeting on June 27 at the Howard Civil Service International House, reporting on its capital increase plan, HMF product development and sales, the botanical drug development for spinocerebellar ataxia, the collaboration with the National Defense Medical University (NDMU) on bio-adhesive development, and the HMF scale-up research program. Four key outlooks were set for the future: accelerating drug development, deepening precision medicine, delivering environmental sustainability and expanding into international markets.

Material Topics Assessment

ALPS Biotech has identified a range of material topics, including new drug development, agricultural carbon sequestration, corporate governance, integrity-driven operations, regulatory compliance, economic performance, social participation, care for the underprivileged, employee training and development, climate action, green procurement, greenhouse gas (GHG) management and waste management.

By combining biotechnology with agricultural innovation, the Company develops new drugs while actively investing in agricultural carbon-sequestration technologies, tackling climate change and medical innovation at the same time. Agricultural waste can be converted through biotechnology into useful substances for drug development, or carbonized into biochar to sequester carbon and improve soil quality, creating dual environmental and economic benefits.

Chairman Dr. Shui-Tien Chen received the top honor in the “Outstanding Business Leader” category at the 22nd National Brand Yushan Award, organized by the ROC National Enterprise Competitiveness Development Association, in recognition of his long-term commitment and institutional achievements in corporate management, brand development and industrial leadership.

Corporate Governance

Business Philosophy - Integrity First

Integrity-driven operations are the key to ALPS Biotech’s sustainable development. Through integrity, the Company earns the trust of customers, employees and investors, creating long-term value. We uphold four core values: transparency, accountability, fairness and compliance.

• Transparency: Open and clear communication and decision-making processes that build a strong reputation and attract more partners and customers.
• Accountability: Taking responsibility for our actions and decisions – beyond profitability, we actively give back to society, protect the environment and safeguard employee rights.
• Fairness: Treating all stakeholders fairly so that everyone can participate and benefit on an equal footing.
• Compliance: Strictly adhering to laws, regulations and ethical standards to reduce legal and operational risks and enhance long-term sustainability.

Key Regulatory Compliance Areas:

• Anti-corruption and anti-bribery: formulating and enforcing anti-corruption policies, training employees to identify and report suspicious conduct, and implementing appropriate internal controls.
• Data privacy and protection: complying with data protection regulations such as GDPR, implementing robust data security measures, and respecting the privacy of customers and employees.
• Labor regulations: complying with labor laws on working hours, minimum wage, occupational safety and health to protect employee rights.
• Environmental regulations: complying with environmental laws on waste management, emission control and energy efficiency to drive sustainable development.

Operating Performance

In fiscal year 2025, revenue decreased by approximately 4.67% compared with the previous year, operating costs fell by approximately 38.19%, and operating expenses decreased by approximately NT$710,000. With continuous improvements in cost control and operational efficiency, brand value is growing steadily, with an outlook for stable growth.

Risk Management

The Company continues to strengthen the role of its Corporate Sustainability Committee, has established a comprehensive risk-management mechanism, and has created effective stakeholder communication channels to ensure effective governance. The Committee meets regularly and reviews progress against working goals on a rolling basis to continuously improve the Company’s risk management.

Responses to Climate Risks:

• Physical risks: Typhoons, rainstorms or droughts in the Hualien-Taitung region may affect the planting and harvesting of napier grass.
• Transition risks: Government requirements for carbon inventorying or additional renewable energy installations such as solar PV will increase expenses and financial investment.
• Opportunities: Global carbon-reduction initiatives create development opportunities for agricultural carbon sequestration and bio-based materials.

Pharmaceuticals & Healthcare

New Drug Development - For Human Health

ALPS Biotech focuses on new drug development. Our spinocerebellar ataxia (SCA) program is currently in the preclinical stage, alongside programs addressing viral infection after-effects, Huntington’s disease and radiation-treatment side effects. We are also committed to long-term research on natural products, particularly Taiwan’s endemic Antrodia cinnamomea: we have mastered its cultivation technology and active-ingredient extraction methods and developed a range of health products.

Diversified Products and Innovative Services:

• New drug development, natural product research, analytical testing platforms, cross-institutional research collaboration, cancer screening platforms and Antrodia cinnamomea log-cultivated fruiting-body drops.

New Drug Development Pipeline:

In 2025, the Company launched an investigator-initiated clinical study (IIT) for its Antrodia cinnamomea botanical drug AC-04, advancing the clinical development of the spinocerebellar ataxia program.

Risk Management in New Drug Development:

The Company’s risk management focuses on developing its rare-disease drug for spinocerebellar ataxia while seeking development partners. Diversified R&D pipelines spread development-failure and market-competition risks, and we closely monitor policy developments and adjust strategies flexibly to respond to regulatory changes.

Medical Devices

Lung Cancer Screening Platform:

Lung cancer has been the leading cause of cancer death in Taiwan for many years, and airborne fine particulate matter (PM2.5) continues to threaten lung health. Because early-stage lung cancer is difficult to detect, it is often diagnosed at an advanced stage – on average, one person dies of lung cancer every 57 minutes in Taiwan.

• ALPS Biotech uses GM2AP, a protein specific to lung cancer, as a biomarker to develop an early lung cancer screening reagent, and collaborates with the Industrial Technology Research Institute (ITRI) to develop a lung cancer screening platform, aiming to enable earlier detection and earlier treatment of lung cancer.

AL801-DX Rapid Test System:

• Designed for early lung cancer screening to improve treatment success rates, the AL801-DX system has been tested with urine samples from nearly 600 lung cancer patients and 100 healthy controls.
• The system is protected by patent US20160109452A1, has completed third-party certification through SGS, and a letter of intent for collaborative development has been signed with Panion & BF Biotech.

Cancer Biomarker Development Targets:

Note: ELLA stands for enzyme-linked lectin assay.

Antrodia cinnamomea Health Products

Antrodia cinnamomea is an endemic fungus of Taiwan, rich in beneficial compounds including triterpenoids, superoxide dismutase and adenosine, with antioxidant, anti-inflammatory and immunity-enhancing properties. The Company has isolated Antrodia cinnamomea’s active ingredients and published papers on their anti-liver-cancer and cell-mediated immune activity. We produce log-cultivated fruiting-body extracts and have developed award-winning Antrodia cinnamomea drops that have passed the Ministry of Health and Welfare (MOHW) toxicity tests and GMP certification.

Quality Management - Strict Control in Line with PIC/S:

• GMP production and certification: Our botanical drug production facilities comply with GMP pharmaceutical standards. Our short-term goal is to maintain current GMP certification, with a medium-to-long-term goal of obtaining certification in more countries.
• Layered quality control: Layered quality control and safety checks are applied to both agency and in-house products, ensuring that product quality and production and transport processes fully comply with domestic and international regulations.

Award-Winning Products - Consumer Trust:

• Our Antrodia cinnamomea log-cultivated fruiting-body drops were named the only most-outstanding Antrodia cinnamomea product in Taiwan by the Taiwan National Treasure Antrodia cinnamomea Association for both 2023 and 2024, demonstrating excellence in product quality and innovation.
• The product is made from log-cultivated Antrodia cinnamomea in Taiwan, using proprietary extraction technology to fully capture its beneficial active ingredients. It is manufactured in an HACCP facility, has passed the MOHW 90-day toxicity test and GMP production standards, and contains no heavy metals, plasticizers, pesticide residues or pharmaceutical additives, ensuring consumer safety.

Social Inclusion

Social Participation - Tree Planting to Sequester Carbon and Save the Planet

Together with civil organizations, ALPS Biotech launched a drug-rehabilitation tree planting program for carbon sequestration: civil organizations provide land at rehabilitation villages, and ALPS Biotech supplies native camphor (Niu-Chang) tree seedlings. Approximately 2,000 camphor trees are expected to be planted across four rehabilitation villages nationwide, reducing atmospheric carbon dioxide and mitigating global warming.

Chairman Dr. Shui-Tien Chen: “Around 1,000 to 2,000 camphor trees can be planted at the four sites. Through photosynthesis, trees convert atmospheric carbon dioxide into fiber, gradually reducing CO2 in the atmosphere – that is how we can restore the planet’s climate to where it was 50 or 100 years ago.”

Industry Engagement - Peer Exchange:

• Taiwan National Treasure Antrodia cinnamomea Association: served as chairman of the 1st and 2nd terms and as director, hosting the annual Antrodia cinnamomea international symposium to promote industry development.
• Silk Association of the Republic of China: served as director to promote the development of the silk industry.
• Wang Kuang-Tsan Bioorganic Chemistry Cultural & Educational Foundation: served as director to promote fundamental research in bioorganic chemistry.

Customer Health and Safety:

• Strict quality control: Layered quality control and safety checks are applied to agency and in-house products, ensuring products and production and transport processes fully comply with domestic and international pharmaceutical quality and manufacturing standards.
• Responsible marketing: Antrodia cinnamomea log-cultivated fruiting-body drops follow domestic and international health-food information disclosure requirements, ensuring accurate product names, packaging, labels and inserts.
• Continuous improvement: We strive to obtain PIC/S certification in more countries, continuously monitor domestic and international pharmaceutical regulations, and update production and marketing strategies in line with market trends.

Caring for the Underprivileged

ALPS Biotech spares no effort in supporting underprivileged groups. We provide spinocerebellar ataxia patients of the “Penguin Family” patient group with free access to our products, provide Antrodia cinnamomea drops free of charge to economically disadvantaged individuals with health needs, and plan to participate in educational charity initiatives to bring better educational resources and opportunities to children in remote areas.

ALPS Biotech Volunteer Team - Post-Disaster Reconstruction in Matai’an, Hualien:

• Formed a volunteer team immediately after the disaster and traveled to the front line to help local residents clean up and rebuild their homes.
• Chairman Dr. Shui-Tien Chen emphasized that corporate value lies in taking real action in the face of social hardship – continuing the “Caring for Life” mission and putting ESG into practice through social rescue and care for the vulnerable.
• We are committed to working with local governments and civil organizations to keep monitoring reconstruction needs and provide tangible assistance.

Employee Training and Development

According to the latest statistics, the Company actively promoted employee education and training between 2021 and 2025, covering onboarding training, on-the-job training, management competency training and GMP training, to enhance individual capabilities, teamwork and innovative thinking. As of the end of 2025, the Company had 19 employees on staff.

Digital Transformation - Gen AI Hands-On Training (2025):

In response to the Ministry of Economic Affairs’ digital transformation policy, ALPS Biotech sent employees to the Institute for Information Industry (III)’s “Enterprise Gen AI Tools” training program in November 2025, introducing generative AI into R&D communication, administration and brand promotion. The training covers brand marketing, high-impact business presentations and multimedia production, putting “education and training” into practice and sharpening the team’s digital capabilities.

Net-Zero Transition - Green Carbon-Reduction Talent Training:

To actively respond to the national net-zero emissions goal, the Company selected employees in 2025 to attend professional carbon-reduction courses hosted by the Commerce Development Research Institute (CDRI), including the “GHG Inventory - Key Skills Practical Class” and “Service Industry Carbon Footprint - Introduction and Application.” These courses build an in-house inventory team that precisely tracks the Company’s carbon emissions, laying the groundwork for the future carbon-neutrality roadmap and enhancing our competitive edge in green supply chains.

Environmental Protection

Greenhouse Gas Management

ALPS Biotech’s GHG management plan covers GHG inventorying, agrivoltaics, napier grass carbon sequestration and video conferencing. We also visited the plant factory at Tunghai University’s Smart Carbon-Neutral Park and joined the Net-Zero Carbon Technology and Service Alliance for industry-academia collaboration.

Carbon Inventory Summary:

Note: The electricity carbon emission factor for 2025 published by the Bureau of Energy, Ministry of Economic Affairs, is 0.467 kg CO2e/kWh.

Green Procurement

The Company begins its procurement control at the source with Niu-Chang log raw materials, ensuring the quality of Antrodia cinnamomea cultivation with no heavy-metal or pesticide contamination. Environmentally preferable products are prioritized, and we work with suppliers to build a green supply chain. Currently, most of ALPS Biotech’s procurement spending goes to local suppliers.

Waste Management

ALPS Biotech implements a waste-reduction strategy covering source reduction (optimizing laboratory processes and choosing low-toxicity, recyclable materials), sorting and recycling (training employees on proper sorting and recycling, with off-site treatment coordinated by the park), alternative technologies (adopting green processes with eco-friendly reagents and equipment) and continuous improvement (regular evaluation of waste-management performance). Our operations also comply with the biotechnology laboratory management standards of the National Biotechnology Research Park.

Laboratory Waste Management:

• Waste sorting: general waste, recyclables and hazardous waste must be stored separately, with storage areas kept clean to prevent environmental contamination.
• Hazardous waste management: clearly labeled and classified by compatibility; sharps, infectious waste and chemical waste liquid require special storage and handling and must never be mixed with general waste.
• Wastewater and waste liquid management: domestic wastewater must meet administrative agency standards before discharge into public sewers; laboratory wastewater must meet the park’s specific standards before discharge, and laboratory waste liquid must never be dumped directly.
• Other safety measures: no open flames in storage areas, with regular removal by certified agencies to maintain sound management.

Agricultural Carbon Sequestration

Agricultural Carbon Sequestration and Carbon Sink Planning

• Camphor tree program: New afforestation, sustainable reforestation (trees over 50 years old) and enhanced forest management. This year, approximately 7 hectares with 10,000 trees are planned (equivalent to the carbon emissions of 60,000 kWh of electricity); next year, approximately 21 hectares with 30,000 trees (equivalent to 180,000 kWh).
• Napier grass carbon-sequestration program: Soil improvement (“yellow carbon”), carbon accumulation of 15-19 tons per hectare per year, and underground burial (carbon sink).

Napier Grass Planting Bases in Hualien and Taitung:

• Hualien demonstration site: Asia’s first “Organic Agriculture Research Center” is located in Hualien, where ALPS Biotech operates a napier grass demonstration field.
• Taitung 4-hectare base: planting ALPS Grass AG-8 seedlings.
• Hualien 19-hectare base: large-scale planting of ALPS Grass AG-8 completed.

Whole-Plant Utilization of Napier Grass

Napier grass can be converted into bio-based feedstocks: grass juice (antioxidants, anti-cancer compounds, green juice powder), lignin (polyphenols, antimicrobial polymers), hemicellulose (arabinose, xylose, furfural, food-extraction solvents) and cellulose (glucose, fructose, bio-plastic HMF, biofuel), achieving circularity, sustainability and reuse. Following nature’s design (NbS - Natural-based Solution), ALPS Biotech pursues a negative-carbon program through plant carbon sequestration, planting our improved ALPS Grass (AG-8) variety to reduce atmospheric carbon.

Bio-Based Material Product Development

ALPS Biotech develops a range of bio-based materials, including HMF (5-hydroxymethylfurfural) and AL-BM002 (an HMF derivative and solvent-free, non-toxic bio-adhesive). HMF is a bio-based platform chemical converted from fructose or biomass feedstocks, and can be transformed through catalytic reactions into numerous high-value chemicals.

ALPS HMF Process Development:

• Isomerase conversion rate of 58% and dehydration conversion rate of 75%, with patents pending.
• Kilogram-scale laboratory output achieved, with bottled HMF samples of over 98% purity available.
• Batch and continuous processes are planned: the continuous process significantly reduces energy and water consumption, uses inexpensive recyclable reagents and solvents that are easy to recover, and requires no heavy-metal catalysts.
• Products under development include solvent-free non-toxic adhesive, biodegradable PEF feedstock, self-healing polymer materials, and biofuel (planned).

Global Market Context:

• More than 300 million tons of plastic are produced globally every year, yet only 9% is recycled, creating urgent demand for sustainable alternatives; as a high-potential bio-based chemical feedstock, HMF is in clear global undersupply.
• Traditional HMF processes achieve only 50-60% conversion and are difficult to scale. High-value application markets include bio-plastics (PEF, which can replace PET with better gas-barrier properties), food additives, pharmaceutical precursors and sustainable materials.

ALPS AL-BM002 Bio-Adhesive:

• An HMF derivative and solvent-free, non-toxic bio-adhesive available in industrial, medical and electronic grades. Industrial-grade bottled product of 98% purity is currently available, and tensile tests across different material interfaces have been completed.

Bio-Gel - Partnership with the National Defense Medical University:

In September 2025, the National Defense Medical University (NDMU) and ALPS Biotech launched a strategic industry-academia collaboration to develop a next-generation liquid dressing for combat-wound and surgical applications, balancing sustainable healthcare with corporate social responsibility. By incorporating NDMU’s deep understanding of clinical and battlefield needs, the collaboration represents an important technological upgrade for wound care in the military medical system.

ALPS Biotech has also launched its first all-in-one invisible protective gel, extending bio-based material technology into healthcare applications.