Hsiang Yao Announces Content of Material Information Press Conference

1. Date of Event: 115/07/06

2. Company Name: Hsiang Yao Enterprise Co., Ltd.

3. Relationship to Company (enter '本公司' or 'Subsidiary'):本公司

4. Cross-shareholding Ratio: Not applicable

5. Reason for Occurrence: Today's board meeting of the Company approved that its key subsidiary, Chin Yun Technology Co., Ltd., intends to dispose of its factory, land, and buildings located in Sinjhuang District, Tainan City, through a public auction. The reserve price for this auction is tentatively set at NT$820 million. The process will proceed according to public auction procedures, and subsequent announcements, filings, and decision-making procedures will be carried out in accordance with relevant laws and regulations based on actual bidding and transaction terms.

Chin Yun Technology's past main sources of revenue included panel-related recycling, pickling, and related labor income. In recent years, due to changes in industrial structure, capacity adjustments by some major manufacturers, and shifts in market demand, its business scale has significantly declined compared to the past, and the uncertainty of returning to previous operational levels in the short term remains high. Considering asset utilization efficiency, group capital allocation, and overall operational transformation, Chin Yun Technology has, after careful evaluation, decided to revitalize its real estate assets through public auction.

The public auction method is adopted primarily to ensure openness, fairness, and transparency in the transaction process and to secure favorable transaction terms for the Company and all shareholders. Auction conditions, timelines, and operational details will be advanced according to board authorization and actual implementation. If a transaction is subsequently concluded or any legally required disclosures arise, the Company will promptly file announcements in accordance with the Securities and Exchange Act, the Rules for Acquisition or Disposition of Assets by Publicly Issued Companies, and other relevant material information regulations.

6. Response Measures: The Company held a material information press conference at the Taiwan Stock Exchange at 4:00 PM on July 6, 115.

7. Other Matters to be Disclosed (If the entity involved in the event or resolution is a publicly issued company or above, this material information simultaneously qualifies as a matter under Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act that significantly affects shareholder rights or securities prices):

Regarding potential financial impacts of this transaction, as the process is currently at the stage of initiating the public auction and no actual transaction has been completed, the final transaction price, gain or loss on disposal, and impact on financial statements will depend on the actual winning bid price, related costs and expenses, tax liabilities, and accounting treatment. Therefore, the Company currently refrains from prematurely recognizing or estimating the disposal gain. Once transaction terms are finalized, the Company will proceed in accordance with accounting standards and relevant regulations.

If this transaction is successfully completed, it is expected to help the group revitalize idle or low-efficiency assets, improve capital structure, reduce financial burden, and strengthen resource allocation for future operational transformation. The preliminary plan for the use of proceeds will focus on repaying related loans, improving financial structure, funding working capital, and supporting the group’s future business development. The actual use will be determined based on the Company’s funding needs, board resolutions, and relevant legal requirements.

The Company also emphasizes that this plan is based on asset revitalization and operational transformation and does not indicate a cessation of operations or withdrawal from related markets. Hsiang Yao Enterprise and its group companies will continue to promote stable operations of existing businesses and carefully evaluate future profitable investment, collaboration, and transformation opportunities.

Going forward, the Company will continue to uphold the principles of prudent management, information transparency, and shareholder rights protection, carefully advancing subsequent procedures for this matter within the framework of legal compliance and corporate governance. Any significant changes in progress will be promptly announced in accordance with regulations.