Zheng Lon Group's Vietnamese Subsidiary to Receive USD 50 Million Capital Increase

1. Name and Nature of Target Asset: Cheng Loong Binh Duong Paper Co., Ltd.
2. Date of Event Occurrence: May 12, 2026
3. Date of Board Approval: May 12, 2026
4. Other Approval Dates: Not applicable
5. Transaction Quantity, Unit Price, and Total Transaction Amount:
Total Transaction Amount: USD 50,000,000
6. Transaction Counterparty and Relationship with the Company:
Cheng Loong Binh Duong Paper Co., Ltd.; 100% owned subsidiary
7. Reason for selecting the related party as counterparty, previous owner, relationship between previous owner, company, and counterparty, date and amount of previous transfer: Not applicable
8. Acquisition and disposal dates, prices, and relationship with the company at the time of the transaction for owners who were related parties within the last five years: Not applicable
9. Matters related to the disposal of debt: Not applicable
10. Profit (or Loss) from Transaction: Not applicable
11. Payment or Delivery Terms, contract restrictions, and other important agreements:
Remitted in installments based on capital needs.
12. Method of Decision for this Transaction, Reference Basis for Price Determination, and Decision-Making Unit:
Resolution by the Board of Directors of Cheng Loong Vietnam Paper Investment Co., Ltd.
13. Net Asset Value Per Share of the Company for Acquired or Disposed Securities: Not applicable
14. Cumulative quantity, amount, shareholding ratio, and restrictions on rights (e.g., pledge status) of securities held in this transaction (including this transaction):
Amount: USD 420,003 thousand
Shareholding Ratio: 100%
Restrictions on Rights: None
15. Proportion of investments in securities (including this transaction) to total assets and equity attributable to the parent company in the latest financial statements, and the operating capital amount in the latest financial statements:
Proportion to total assets in the company's latest individual financial statements for Q4 2025: 13.24%
Proportion to equity attributable to the parent company in the company's latest consolidated financial statements for Q1 2026: 25.19%
Operating capital amount in the company's latest individual financial statements for Q4 2025: NT$6,057,314 thousand
16. Broker and Brokerage Fee: Not applicable
17. Specific Purpose or Use of Acquisition or Disposal:
Supplement subsidiary's operating funds and strengthen financial structure.
18. Opinions of Dissenting Directors on this Transaction: None
19. Is this Transaction a Related Party Transaction: Yes
20. Date of Supervisor Approval or Audit Committee Consent:
May 12, 2026
21. Accountant's Opinion on the Non-Reasonableness of this Transaction: No
22. Name of Accounting Firm: Not applicable
23. Accountant's Name: Not applicable
24. Accountant's Practice Certificate Number: Not applicable
25. Does it involve a change in operating model: No
26. Explanation of Operating Model Change: Not applicable
27. Transaction Details with the Counterparty in the Past Year and Expected in the Coming Year: Not applicable
28. Source of Funds: Not applicable
29. Date of Previous Announcement of Material Information on the Same Event: Not applicable
30. Other Noteworthy Matters: None