NAN CHIAO Announces Subsidiary Nanchiao Oils & Fats Co., Ltd. Fined NT$3 Million by Taipei City Government Health Bureau

1. Date of Incident: 115/07/08 2. Entity Involved: Subsidiary Reporting: Nanchiao Oils & Fats Co., Ltd. 3. Reason for Incident (Event Description): Nanchiao Oils & Fats Co., Ltd. received a penalty notice from the Taipei City Government Health Bureau for violating Paragraph 5, Article 7 of the Food Safety and Sanitation Management Act, imposing a fine of NT$3 million. 4. Handling Process: The fine will be paid within the period specified in the penalty notice. 5. Penalty Details: A fine of NT$3,000,000. 6. Whether a Monetary Penalty Was Imposed: Yes 7. Amount of Penalty (NT$): 3,000,000 8. Estimated Potential Loss or Impact: NT$3,000,000 9. Amount Potentially Covered by Insurance (NT$): None 10. Improvement Status and Future Response Measures: The company will pay the fine within the prescribed period and intends to file administrative relief against the Taipei City Government Health Bureau in accordance with the law. 11. Has a Material Event Regarding the Same Incident Been Previously Disclosed: The company issued a material information announcement on 115/07/07 regarding this incident. 12. Other Matters to Be Disclosed: None