Cosmic Electric's Subsidiary COSMO ELECTRONICS (HK) COMPANY LIMITED Announces Settlement of Debt Claim Case via Court Mediation

1. Parties to the Legal Case: (1) Petitioner: COSMO ELECTRONICS (HK) COMPANY LIMITED (2) Respondent: Kiwi-Smart Cooperation, LTD (British Virgin Islands-based Kiwi-Smart Intelligent Co., Ltd.)

2. Name of the Court or Administrative Authority Handling the Case: Banqiao Summary Division, New Taipei District Court, Taiwan

3. Case Number of the Relevant Legal Document: Case No. 115-Ban-Si-Jian-Tiao-1357

4. Date of Incident: June 23, 115 (2026)

5. Background of the Incident (Including Subject of Dispute): Mediation concerning the return of advance payment for goods.

6. Handling Process: The parties reached a court-mediated settlement, under which the respondent agreed to pay the petitioner a total of USD 8,883,000. Additionally, the respondent agreed to pay interest on any outstanding balance at an annual rate of 5%, accruing from June 26, 115 (2026) until the date of full repayment.

7. Impact on the Company's Financial Condition and Business Operations, and Estimated Financial Impact: The case does not currently have a material impact on the company's financial condition or business operations.

8. Response Measures and Improvement Status: The company will comply with and execute the terms agreed upon in the mediation.

9. Other Matters to be Disclosed: Although the entity involved is a publicly listed company, this matter does not constitute a significant event affecting shareholders' rights or securities prices as defined under Article 7, Paragraph 2, Item 2 of the Enforcement Rules of the Securities and Exchange Act. No additional disclosures are required.