[Sun-Yih-KY] Announcement on behalf of a subsidiary regarding the improvement status of exceeding endorsement/guarantee limits

1. Date of occurrence: 2026/05/13
2. Company name: Hangzhou Huatong Home Furnishing Group Co., Ltd.
3. Relationship with the company (please enter this company or subsidiary): Subsidiary
4. Mutual shareholding ratio: A subsidiary in which the company indirectly holds 97%
5. Reason for occurrence:
(1) Handled in accordance with letter No. 1140361065 from the Financial Supervisory Commission dated 2025/10/28.
(2) The company's subsidiary, Hangzhou Huatong Home Furnishing Group Co., Ltd., provided an endorsement/guarantee to another subsidiary, Shayne (Macao Commercial Offshore) Limited, which exceeded its established limit, constituting a violation of its own endorsement/guarantee operating procedures.
6. Response measures:
Improvement plan: In future contract renewals with banks, close attention will be paid to exchange rate fluctuations and the possibility of a decrease in the company's net worth will be considered, and the endorsement/guarantee limit will be adjusted to avoid exceeding the limit.
7. Other explanatory matters (If the subject of the event or resolution is a public company or above, this material information also complies with the matters stipulated in Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act that have a significant impact on shareholders' equity or securities prices):
Until the improvement plan is fully implemented, the implementation status will be announced quarterly and reported to the board of directors for control on a quarterly basis, and the implementation status will be reported at the next shareholders' meeting.