Fuhwa New Announces Board Resolution to Implement Share Buyback

1. Date of Board Resolution: May 12, 115 (2026) 2. Purpose of Share Buyback: To transfer shares to employees. 3. Type of Shares to Buy Back: Common stock. 4. Maximum Total Amount for Share Buyback (TWD): 3,648,257,333 5. Scheduled Buyback Period: May 13, 115 (2026) ~ July 12, 115 (2026) 6. Scheduled Number of Shares to Buy Back: 5,000,000 7. Buyback Price Range (TWD): 12.00 ~ 16.00. If the company's stock price falls below the lower limit of the range, the buyback will continue. 8. Method of Buyback: Through the centralized securities trading market. 9. Percentage of Company's Outstanding Shares to be Bought Back: 1.04% 10. Accumulated Shares Held at the Time of Declaration: 0 11. History of Company Share Buybacks in the Past Five Years: No buybacks. 12. Status of Declared Buybacks Not Yet Completed: Initial declaration. 13. Minutes of the Board Resolution for Share Buyback: Agenda Item Six: Proposal for the company's first share buyback in 115 (2026) for transfer to employees, for discussion and resolution. Explanation: 1. To incentivize employees and enhance their loyalty, in accordance with Article 28-2, Paragraph 1, Item 1 of the Securities Transaction Act and the 'Regulations Governing Companies Listed on Stock Exchanges Buying Back Their Own Shares' issued by the FSC, the company will repurchase its shares from the centralized securities trading market. Related matters are explained as follows: (1) Purpose of Share Buyback: Transfer of shares to employees. (2) Type of Shares to Buy Back: Common stock of the company. (3) Maximum Total Amount for Share Buyback: NT$80,000,000 (does not exceed the limit of NT$3,648,257,333 set by Article 8 of the 'Regulations Governing Companies Listed on Stock Exchanges Buying Back Their Own Shares'). (4) Scheduled Buyback Period and Quantity: From May 13, 115 (2026) to July 12, 115 (2026); scheduled to repurchase 5,000,000 shares. (5) Buyback Price Range: The estimated buyback price per share is NT$12 to NT$16. However, if the company's stock price falls below the lower limit of the specified buyback price range, the buyback will continue. (6) Method of Buyback: Through the centralized securities trading market. 2. Please refer to Attachment 8 for the company's Employee Share Transfer Plan. 3. First Financial Securities has been commissioned to provide an evaluation opinion on the reasonableness of the company's share buyback price. Please refer to Attachment 9. 4. The total number of shares planned for repurchase represents only 1.04% of the company's outstanding shares, and the maximum amount required for the buyback represents only 0.59% of the company's Q4 114 (2025) consolidated financial report's current assets, with a statement that it will not affect the company's financial condition or capital maintenance. Upon approval of this proposal, the company will file a board statement in accordance with the law. Please refer to Attachment 10. 5. After approval, this proposal will be reported to the competent authority. The Chairman is authorized to handle any matters related to necessary amendments due to legal updates or requests from the competent authority. 6. This proposal was reviewed and approved by the 3rd Term, 10th Audit Committee meeting on May 12, 115 (2026), and is submitted for the Board of Directors' resolution in accordance with the law. Resolution: The proposal was unanimously approved by all attending directors as originally proposed. 14. 'Regulations Governing Companies Listed on Stock Exchanges Buying Back Their Own Shares' Article 10 Provisions for Transfer: (Purpose) Article 1: To incentivize and enhance employee loyalty, in accordance with Article 28-2, Paragraph 1, Item 1 of the Securities Transaction Act and the 'Regulations Governing Companies Listed on Stock Exchanges Buying Back Their Own Shares' issued by the Financial Supervisory Commission, etc., this company establishes its Employee Share Transfer Plan. The company's share buyback for transfer to employees shall be handled in accordance with this Plan, in addition to relevant laws and regulations. (Type of Shares Transferred, Rights Content, and Restrictions) Article 2: The shares to be transferred to employees in this instance are common stock, and their rights and obligations shall be the same as other outstanding common shares, except as otherwise provided by relevant laws and regulations or this Plan. (Transfer Period) Article 3: The repurchased shares may be transferred to employees, either once or in installments, within five years from the date of repurchase, in accordance with this Plan. (Eligibility of Transferees) Article 4: Employees of the company and its domestic and foreign subsidiaries who have completed at least three months of service as of the grant date, or who have made special contributions to the company as approved by the Board of Directors, are eligible to subscribe for shares according to the subscription amount specified in Article 5. The definition of 'subsidiary' shall be in accordance with the FSC's letter No. Jin Guan Zheng Fa Zi Di 1070121068, dated December 27, 107 (2018). (Employee Subscription Quota) Article 5: The number of shares an employee may subscribe to shall be determined based on standards such as employee rank, years of service, performance review, and special contributions to the company. Specifics are as follows: I. The list of employees eligible for subscription, considering the total number of repurchased shares held by the company on the grant date and the maximum number of shares per employee, will determine the employee subscription standards. The actual specific eligibility and subscription quantity shall be resolved by the Board of Directors. For subscribers who are management personnel, it shall be submitted to the Compensation Committee for review and then to the Board of Directors for resolution; for subscribers who are not management personnel, it shall be submitted to the Audit Committee for review and then to the Board of Directors for resolution. II. Employees who voluntarily resign, are notified of redundancy, or are dismissed during the period from the grant date to the payment deadline will forfeit their subscription eligibility. Employees who fail to make payment by the subscription payment deadline will be deemed to have waived their rights. Any unsubscribed shares may be offered to other employees in subsequent subscription exercises, subject to review by the Audit Committee or Compensation Committee and approval by the Board of Directors based on the subscriber's status. Article 6: (Operational Procedures for Transferring Repurchased Shares to Employees) I. Announce, declare, and repurchase company shares within the execution period, in accordance with the Board of Directors' resolution. II. The Board of Directors shall establish and announce the employee grant date, subscription quota standards, payment period, rights content, and restrictions, etc., in accordance with this Plan. III. Tally the actual subscribed and paid shares, and proceed with the registration of stock transfer. (Agreed Transfer Price Per Share) Article 7: The shares repurchased for transfer to employees shall be transferred at the average actual repurchase price. However, if...