Shengmao Announces Board Resolution on Treasury Share Cancellation and Establishment of Capital Reduction Benchmark Date

1. Board resolution date: 115/06/18 2. Reason for capital reduction: According to Paragraph 4, Article 28-2 of the Securities and Exchange Act, the company must cancel its seventh batch of repurchased treasury shares as the transfer period has expired. 3. Amount of capital reduction: NT$13,490,000 4. Number of shares eliminated: 1,349,000 shares 5. Ratio of capital reduction: 0.93% 6. Capital after reduction: NT$1,432,866,690 7. Scheduled shareholders' meeting date: Not applicable 8. Expected number of listed common shares after reduction: Not applicable 9. Proportion of listed common shares to total issued common shares after reduction (listed common shares after reduction / total issued common shares after reduction): Not applicable 10. If the above two items result in less than 60 million listed common shares or less than 25%, explanation of measures for low equity liquidity: Not applicable 11. Capital reduction benchmark date: 115/06/18 12. Other matters to be stated: None