【King Yuan】Board of Directors Resolves to Conduct Cash Capital Increase for Issuance of Common Shares to Participate in Overseas Depositary Receipt Offering

1. Date of Board of Directors Resolution: 115/06/08 2. Source of Capital Increase Funds: Cash capital increase for the issuance of common shares to participate in the issuance of overseas depositary receipts. 3. Whether to adopt a shelf registration for the issuance of new shares (Yes, please specify the planned issuance period / No): No. 4. Total amount and number of shares to be issued in the entire plan (for capital increases from surplus or capital reserves, the number of shares issued does not include those allocated to employees): Issuance Amount: To be determined based on the number of shares issued and the actual issuance price per share. Number of Shares to be Issued: Tentatively set at 40,000 thousand to 50,000 thousand common shares to be issued through a cash capital increase, with the Chairman authorized to handle it within the aforementioned range. 5. For shelf registration of new shares, the amount and number of shares to be issued this time: Not applicable. 6. For shelf registration of new shares, the remaining amount and number of shares after this issuance: Not applicable. 7. Par Value Per Share: NT$10. 8. Issuance Price: The issuance price for this cash capital increase to participate in the overseas depositary receipt offering shall be determined in accordance with the "Self-Regulatory Rules for Underwriters' Guidance to Issuers in Raising and Issuing Securities" by the Securities Dealers Association of the Republic of China. It shall not be lower than 90% of the average share price, calculated by selecting one of the closing prices of the company's common shares on the Taiwan Stock Exchange Corporation on the pricing date, or the preceding one, three, or five business days, after deducting ex-rights (or ex-capital reduction) and ex-dividend adjustments. However, if there are changes in domestic relevant laws and regulations, the pricing method may be adjusted in accordance with legal requirements. Given the frequent and drastic short-term fluctuations in domestic stock prices, the actual issuance price within the aforementioned range shall be authorized to be jointly determined by the Chairman in consultation with the securities underwriter, in accordance with international practices and referencing the international capital market, domestic market, etc. 9. Number of Shares or Amount Allocated for Employee Subscription: In accordance with Article 267 of the Company Act, 10% of the total number of common shares to be issued shall be reserved for subscription by company employees. For any portion not subscribed by employees, the Chairman is authorized to solicit subscriptions from specific individuals at the actual issuance price, or to include them in the existing securities participating in the overseas depositary receipt offering as needed by the market. 10. Number of Shares for Public Sale: In addition to reserving 10% of the total number of common shares to be issued for subscription by company employees in accordance with Article 267 of the Company Act, the remaining 90% of the shares issued through this cash capital increase to participate in the overseas depositary receipt offering have been resolved by the shareholders' meeting on May 29, 115, in accordance with Article 28-1 of the Securities Transaction Act, whereby existing shareholders waive their pre-emptive subscription rights, and the entire amount will be offered to the public through the issuance of overseas depositary receipts. 11. Proportion of Subscription or Gratuitous Allocation for Existing Shareholders: Not applicable. 12. Handling of Fractional Shares and Unsubscribed Shares after Expiry: The Chairman is authorized to solicit subscriptions from specific individuals at the actual issuance price, or to include them in the existing securities participating in the overseas depositary receipt offering as needed by the market. 13. Rights and Obligations of New Shares Issued This Time: Same as the original issued common shares. 14. Use of Funds from This Capital Increase: Purchase of raw materials in foreign currency. 15. Reasonableness and Necessity of Fundraising After Cash Capital Reduction (Applicable if cash capital reduction was conducted in the fundraising year or the preceding year): Not applicable. 16. Other Matters to be Noted: (1) The issuance conditions for the common shares in this cash capital increase to participate in the overseas depositary receipt offering, and other matters related to this issuance, if subject to revision due to changes in laws and regulations, instructions from regulatory authorities, or changes in market conditions, including applications for postponement or cancellation to regulatory authorities, the Chairman or their designated representative shall be fully authorized to handle them, and the Chairman or designated representative shall represent the company in signing all contracts and documents related to the participation in the overseas depositary receipt offering. (2) Overseas Underwriters: Citigroup Global Markets Limited, Morgan Stanley Asia Limited. Keywords: Material Information