Sanfa Real Estate: Announcement of Board of Directors' Resolution to Establish a US Subsidiary (Company Name Undetermined)

1. Name and nature of the subject matter (for preferred shares, the agreed terms of issue, such as dividend rate, should also be specified): Common shares of the US subsidiary to be established by the company (company name undetermined).
2. Date of occurrence: 115/5/12~115/5/12 (May 12, 2026)
3. Date of approval by the Board of Directors: May 12, 2026
4. Other approval dates: Not applicable
5. Transaction quantity, price per unit, and total transaction amount:
Investment in 1 US subsidiary.
Investment amount limit is US$3,000,000.
6. Counterparty to the transaction and its relationship with the company (if the counterparty is a natural person and not a related party of the company, their name may be omitted): The US subsidiary to be established by the company (company name undetermined).
7. If the counterparty is a related party, the reason for selecting the related party as the transaction counterparty, the previous owner, the relationship between the previous owner and the company and the counterparty, and the date and amount of the previous transfer shall be announced: Not applicable.
8. If the owner of the transaction target has been a related party of the company within the past five years, the date of acquisition and disposal by the related party, the price, and the relationship with the company at the time of the transaction shall be announced: Not applicable.
9. Matters related to the disposal of claims (including the type of collateral attached to the disposed claims, and if the disposed claims are against a related party, the name of the related party and the book value of the claims against that related party in this disposal shall be announced): Not applicable.
10. Disposal profit (or loss) (not applicable to the acquisition of marketable securities) (for deferred items, a table should be provided to explain the recognition status): Not applicable.
11. Delivery or payment terms (including payment period and amount), contract restrictions, and other important agreements:
Within the investment amount limit of US$3,000,000, capital will be increased according to operational needs.
12. Decision-making method for this transaction, reference basis for price determination, and decision-making unit: The Board of Directors authorizes the chairman to handle all related matters.
13. Net asset value per share of the marketable securities target company: Not applicable.
14. As of now, the cumulative number, amount, shareholding ratio, and restrictions on rights (such as pledge status) of this transaction's securities (including this transaction):
Investment amount limit: US$3,000,000.
15. As of now, the investment in marketable securities (including this transaction) listed in Article 3 of the "Regulations Governing the Acquisition and Disposal of Assets by Public Companies" as a percentage of the company's total assets and equity attributable to owners of the parent in the most recent financial report, and the amount of working capital in the most recent financial report (Note 2):
Percentage of parent company's total assets: 0.55%
Percentage of equity attributable to owners of the parent: 1.35%
(US dollar conversion based on 1:32)
16. Broker and brokerage fees: Not applicable.
17. Specific purpose or use of acquisition or disposal:
To meet the needs of operational business development and strategic planning, serving as a platform for overseas real estate investment and development, and strengthening investment opportunities.
18. Opinions of dissenting directors on this transaction: None.
19. This transaction is a related party transaction: Yes.
20. Date of approval by supervisors or audit committee: May 12, 2026.
21. Is this transaction accompanied by an unreasonable opinion from an accountant: Not applicable.
22. Name of accounting firm: Not applicable.
23. Name of accountant: Not applicable.
24. Accountant's license number: Not applicable.
25. Does it involve a change in operating model: No.
26. Explanation of change in operating model: Not applicable.
27. Transaction status with the counterparty in the past year and expected next year: Not applicable.
28. Source of funds: Own funds.
29. Date of previous significant announcement regarding the same event: Not applicable.
30. Other matters to be specified:
The company's Board of Directors has approved the establishment of one US subsidiary, with an investment amount not exceeding US$3 million. Subsequent matters related to the investment and establishment of the subsidiary will be handled by the chairman, who is fully authorized by the Board of Directors. Matters related to the establishment of the subsidiary will be announced as soon as they are determined in accordance with the law.