【Lien Fa】Announcement of Cash Reduction and Stock Exchange Plan

1. Board Resolution Date: NA 2. Reduction Basis Date: 115/06/11 3. Cash Reduction and Stock Exchange Plan: The company aims to adjust its capital structure and enhance shareholder returns by reducing cash and returning share capital to shareholders. This plan was approved at the shareholders' meeting on May 12, 2026, and has received approval from the Taiwan Stock Exchange and the Ministry of Economic Affairs. Details of the related operations for this cash reduction and stock exchange are as follows: I. Details of the securities to be exchanged, the number of shares, the par value per share, and the total amount: (a) Name of the securities to be exchanged: Common shares of Lien Fa Fiber Co., Ltd. (b) Total number of shares to be exchanged: Including all shares issued in previous years, totaling 358,628,907 common shares, with a par value of NT$10 per share, amounting to NT$3,586,289,070. (c) Total number and amount of shares to be reduced: This time, 89,657,227 issued shares will be canceled, reducing the capital by NT$896,572,270. (d) Reduction ratio: According to Article 168 of the Company Act, the reduction ratio is 25%, meaning that for every 1,000 original common shares, 250 shares will be reduced, resulting in 750 shares being exchanged. (e) Amount of cash to be returned per share: NT$2.5 per share will be returned in cash, rounded down to the nearest dollar. (f) Total number and amount of shares after reduction: After the reduction, 268,971,680 shares will be issued, with a par value of NT$10 per share, and the total paid-in capital will be NT$2,689,716,800. (g) For this cash reduction and stock exchange, new shares will be issued based on the shareholding records of each shareholder as of the 'Cash Reduction and Stock Exchange Basis Date'. For every 1,000 shares, 250 shares will be reduced (resulting in 750 new shares being exchanged). Shareholders can apply for the consolidation of fractional shares that are less than one share with the company's share agent before the stop-transfer date. If the consolidated shares are still less than one share or if the consolidation is not completed within the specified period, the shareholders will be paid in cash based on the par value of the shares, rounded down to the nearest dollar. The fractional shares will be authorized to the chairman to be purchased by a specific person at par value. Due to the company's shares being issued without physical certificates and in accordance with the operations of the central depository and clearing system, the cash for fractional shares that are less than one share will be used as fees for non-physical registration or for offsetting the fees for the central depository transfer. (h) The new shares issued in this cash reduction and stock exchange will be proposed to be issued without physical certificates, with the same rights and obligations as the original shares. II. Schedule for the reduction and exchange of shares: (a) Last trading day for reduced shares: July 22, 2026. (b) Period during which trading of reduced shares is suspended: July 23, 2026, to July 31, 2026. (c) Last transfer day for reduced shares: July 24, 2026. (d) Period during which transfer of reduced shares is suspended: July 27, 2026, to July 31, 2026. (e) Basis date for the reduction and exchange of shares: July 31, 2026. (f) Date of new share exchange and listing (i.e., the last day of listing for old shares): August 3, 2026. (g) Date of cash reduction and share capital return payment: August 13, 2026. (h) From the date of new share listing, old shares cannot be used as the subject of trading and settlement. III. Procedures and formalities for the exchange of new shares: (a) The company's share agent will print and send the notice of reduction and exchange to each shareholder, who will use it to handle the exchange of new shares. (b) Shares already deposited in the securities depository account will be uniformly exchanged by the Taiwan Depository & Clearing Corporation on the new share listing day. Shareholders do not need to take any action to exchange the new shares. (c) Transfer procedures: Shareholders who hold the company's shares but have not completed the transfer procedures are requested to visit the company's share agent 'Fubon Securities Share Agent Department' in person before 16:00 on July 24, 2026 (Friday) to complete the transfer procedures. For those who apply by mail, the postmark date on July 24, 2026 (the last transfer day) will be considered as the deadline. For those who participate in the centralized transfer procedures through the Taiwan Depository & Clearing Corporation, the company's share agent will handle the transfer procedures based on the submitted data. (d) Location for share exchange: The company's share agent 'Fubon Comprehensive Securities Share Agent Department', Address: 11F, No. 17, Xuchang St., Zhongzheng Dist., Taipei City, Phone: 02-2361-1300. (e) For those who apply for the exchange of new shares by mail, please send it to the company's share agent Fubon Comprehensive Securities Share Agent Department by registered mail. (Address: 11F, No. 17, Xuchang St., Zhongzheng Dist., Taipei City.) IV. This operation plan will be implemented after being reviewed by the Taiwan Stock Exchange. To comply with the actual operation schedule of the competent authority, the board of directors is authorized by the shareholders' meeting to modify the scheduled operation schedule as needed. V. Other matters not specified herein will be handled in accordance with the Company Act and other relevant laws and regulations. 4. Share exchange basis date: 115/07/31 5. Start date of transfer suspension: 115/07/27 6. End date of transfer suspension: 115/07/31 7. Rights and obligations of new shares after reduction: Same as the originally issued common shares. 8. Expected listing date of new shares: 115/08/03 9. Expected number of listed common shares after the reduction of new shares: 268,971,680 shares. 10. Expected ratio of listed common shares after the reduction of new shares to issued common shares (Number of listed common shares after reduction / Number of issued common shares after reduction): 100% 11. If the number of listed common shares after reduction in the above two items is less than 60 million shares and less than 25%, please explain the measures to address the low liquidity of shareholdings: Not applicable. 12. Other matters to be specified: The company's shareholders' meeting on May 12, 2026, authorized the chairman to determine the reduction basis date and the basis date for the reduction and exchange of shares and other related matters. Keyword: Major Information