【Mei Shi】The Company Disposes of 100% Ownership of its Japanese Subsidiary Lotus Japan Holdings Co., Ltd.

1. Name and Nature of the Subject Matter (for preferred shares, the agreed terms of issuance such as dividend rate should also be specified):
100% owned Japanese subsidiary of the Company, Lotus Japan Holdings Co., Ltd.
2. Date of Occurrence: 115/5/11~115/5/11 (May 11, 2026)
3. Date of Board of Directors' Approval: May 11, 2026 (Minguo calendar)
4. Other Approval Dates: Not applicable
5. Transaction Quantity, Unit Price, and Total Transaction Amount:
US$18,000,000
6. Counterparty to the Transaction and its Relationship with the Company (if the counterparty is a natural person and not a related party of the company, disclosure of their name may be omitted):
Lotus International Pte. Ltd. is a 100% owned subsidiary of the Company.
7. If the counterparty is a related party, the reason for selecting the related party as the transaction counterparty, the previous owner, the relationship between the previous owner and the company and the counterparty, the previous transfer date, and transfer amount should also be announced:
Not applicable
8. If the ownership of the transaction subject has been a related party of the company within the last five years, the acquisition and disposal dates, prices, and relationship with the company at the time of transaction of the related party should also be announced:
Not applicable
9. Matters related to the disposal of claims (including types of collateral attached to the claims, if the disposed claims belong to related party claims, the name of the related party and the book value of the disposed related party claims should also be announced):
Not applicable
10. Disposal Gain (or Loss) (not applicable for acquisition of marketable securities) (for deferred items, a table should be provided to explain recognition):
0
11. Delivery or Payment Terms (including payment period and amount), Contract Restrictions, and Other Important Agreements:
Executed according to contract terms
12. Method of Decision for This Transaction, Reference Basis for Price Determination, and Decision-making Unit:
The transaction price refers to the fairness opinion issued by the accountant and is executed after approval by the Company's Board of Directors.
13. Net Asset Value per Share of the Securities Target Company Acquired or Disposed:
Not applicable
14. As of now, the cumulative quantity, amount, shareholding ratio, and restricted rights (such as pledge status) of this transaction's securities (including this transaction):
Mei Shi Chemical Pharmaceutical Co., Ltd.:
Cumulative shareholding: Not applicable
Cumulative amount: US$0
Ownership ratio: 0%
Restricted rights: None
Lotus International Pte. Ltd.:
Cumulative shareholding: Not applicable
Cumulative amount: US$18,000,000
Ownership ratio: 100%
Restricted rights: None
15. As of now, the proportion of marketable securities investments (including this transaction) listed in Article 3 of the "Regulations Governing the Acquisition and Disposal of Assets by Public Companies" to the total assets and equity attributable to owners of the parent company in the most recent financial report, and the amount of working capital in the most recent financial report (Note 2):
Proportion to total assets: 48.66%
Proportion to equity attributable to owners of the parent company: 103.75%
Working capital amount: NT$ 6,168,243,683
16. Broker and Brokerage Fees:
Not applicable
17. Specific Purpose or Use of Acquisition or Disposal:
Adjustment of group investment structure
18. Opinions of Directors Expressing Dissent on This Transaction: None
19. This transaction is a related party transaction: Yes
20. Date of Supervisor's Approval or Audit Committee's Consent: May 8, 2026 (Minguo calendar)
21. Did the accountant issue an unfair opinion on this transaction: No
22. Name of Accounting Firm:
Yang Zhi United Accounting Firm
23. Name of Accountant:
Accountant Hu Xiang-Ning
24. Accountant's License Number:
Zhong Shi Hui Zheng Zi No. 0191
25. Does it involve changes in operating model: No
26. Explanation of changes in operating model: Not applicable
27. Transaction status with the counterparty in the past year and expected in the next year: Not applicable
28. Source of Funds: Not applicable
29. Date of previous major announcement regarding the same event: Not applicable
30. Other Explanations:
1. The transaction amount is calculated based on the Bank of Taiwan's posted exchange rate of 1 USD to NT$ 31.48 on May 6, 2026.
2. The Company will increase capital in Lotus International Pte. Ltd. by contributing assets in kind to subscribe for its issued common shares.