[Pou Chen] Subsidiary Yue Yuen Industrial (Holdings) Limited Issues Profit Warning

1. Date of occurrence: 2026/04/21 2. Company: Yue Yuen Industrial (Holdings) Limited. 3. Relationship: Subsidiary (Pou Chen holds 51.36%). 4. Reason for warning: Yue Yuen expects its Q1 2026 net profit to decrease by approximately 50% to 55% compared to approx. US$75.8 million in Q1 2025. 5. Detailed factors: (A) Revenue decreased by 5.5% due to weak demand and conservative ordering by brands. Average selling prices rose slightly but were offset by tariff concessions. (B) Labor costs increased due to wage hikes and ramp-up at new factory sites. (C) Production efficiency decreased due to seasonal misalignment of holidays (Ramadan and Lunar New Year) leading to severe capacity bottlenecks. 6. Future measures: Continue monitoring global conditions and regional conflicts, and maintain 'rapid response' to balance demand and labor supply. 7. Important note: These are preliminary unaudited figures. Final results will be announced on May 13, 2026.