Formosa Petrochemical Announces Reaching Loss Limit in Derivative Financial Product Transactions

1. Type of contract: Swaps 2. Date of occurrence: May 5, 2026 (Minguo Year 115/5/5) 3. Contract amount: US$21,550,000 4. Amount of margin or premium paid: None 5. Total or individual contract loss limit as stipulated in the handling procedures: Individual energy derivative product contract losses are limited to US$5 million, and total contract losses are limited to US$18 million. 6. Reason for engaging in derivative product transactions: For hedging purposes. 7. Hedged item: Crude oil 8. Amount of hedged item position: US$21,550,000 9. Profit and loss status of hedged item: Realized loss of US$6,699,000 10. Loss amount based on fair value assessment (including realized and unrealized): Individual contract realized loss of US$6,699,000 11. Reason for loss and impact on the company: The company engages in energy derivative products purely for hedging purposes. This transaction was to hedge against risks from the Middle East situation. Due to recent severe fluctuations in crude oil prices, the realized loss for a single futures contract reached its limit. As it is a hedging transaction, it has no significant impact on the company. 12. Contract period: April 1, 2026 to April 30, 2026 (Minguo Year 115/4/1~115/4/30) 13. Restrictions: None 14. Other important agreed matters: None 15. Other explanations: None Keywords: Material Information