Hsiang Yao Announces Asset Disposal Plan for Key Subsidiary Jing Yun Technology's Tainan Plant

1. Date of Event: 115/07/06

2. Name and Nature of the Asset: Land and buildings of Jing Yun Technology Co., Ltd., a subsidiary, located at the Tainan plant

3. Transaction Price: The transaction will be conducted via public bidding. The reserve price is tentatively set at NT$820,000,000. The final transaction price will be determined by the outcome of the public bidding process.

4. Counterparty: As the transaction will be conducted through public bidding, the counterparty has not yet been determined.

5. Relationship with the Company: Not yet determined due to undetermined counterparty.

6. Estimated Gain/Loss on Disposal: Based on the reserve price of NT$820,000,000, after deducting the book value of the asset (approximately NT$298,362,000) and estimated transaction costs, the estimated disposal gain is approximately NT$476,508,000. Actual gain/loss will depend on the final transaction price, actual costs, tax liabilities, and auditor review or audit results.

7. Appraisal Institutions: - Objective Real Estate Appraiser Joint Office - Zhan Qi Real Estate Appraiser Joint Office

8. Appraisal Values: - Objective Real Estate Appraiser Joint Office: NT$817,543,603 - Zhan Qi Real Estate Appraiser Joint Office: NT$825,134,663

9. Reason for Significant Difference from Transaction Amount and Auditor's Opinion: The reserve price of NT$820,000,000 is based on the appraisal values from the two institutions, considering the asset's current condition, regional market trends, public bidding method, and the company's funding needs. As there is no significant difference from the appraisal values, no special auditor opinion is required.

10. Amount of Business/Assets to be Disposed: Book value of the asset is approximately NT$298,362,000.

11. Proportion of Disposed Business/Assets to Net Property, Plant, Equipment and Investment Properties: Approximately 98.96%

12. Proportion of Disposed Business/Assets to Total Assets: Approximately 58.16%

13. Broker: Harmony International Commercial Real Estate Co., Ltd.

14. Brokerage Fee: 3% of the actual transaction price, plus sales tax.

15. Specific Purpose or Use of Disposal: To activate assets, reduce real estate holding costs, strengthen operating funds, repay loans, and improve the group's financial structure.

16. Decision-Making Process: The plan has been approved by the board of directors of Jing Yun Technology Co., Ltd. and will be implemented via public bidding, subject to shareholder approval as required by law. After shareholder approval, the public bidding process will proceed in accordance with relevant regulations.

17. Expected Impact on Company's Financial and Business Operations: If successfully completed, the transaction is expected to increase cash inflow for Jing Yun Technology, reduce debt and interest burden, and improve the group's financial structure. Actual financial impact will depend on final transaction price, actual costs, tax liabilities, and auditor review or audit results.

18. Other Matters to be Disclosed: (1) The plan has not yet been approved by the shareholders' meeting of Jing Yun Technology, and the public bidding process has not commenced. The counterparty and actual transaction price are not yet determined. (2) If the shareholders' meeting approves the plan and significant progress is made (e.g., bidding, awarding, contract signing), the company will make announcements and filings as required by law. (3) The subject of this announcement is a key subsidiary of the company. Whether it qualifies as a material event under Article 7, Paragraph 4 of the Enforcement Rules of the Securities and Exchange Act (material impact on shareholders' equity or securities price) will be determined based on actual circumstances.