【Zhending-KY】Announcement of Board of Directors' Approval for Capital Increase to Subsidiary, Zhending Communications Co., Ltd.

1. Name and nature of the target object (if preferred stock, specify agreed issuance conditions, such as dividend rate, etc.): Zhending Communications Co., Ltd.
2. Date of occurrence: 115/5/12~115/5/12
3. Date of Board of Directors' approval: May 12, 115th year of the Republic of China
4. Other approval dates: Not applicable
5. Transaction volume, price per unit, and total transaction amount:
Volume: 300,000,000 shares
Price per share: NT$10
Total transaction amount: NT$3 billion
6. Transaction counterparty and relationship with the company (if the counterparty is an individual and not a related party of the company, their name may be omitted):
Subsidiary
7. If the transaction counterparty is a related party, the reason for selecting the related party as the transaction object, the previous owner, the relationship between the previous owner, the company, and the transaction counterparty, the date of previous transfer, and the transfer amount shall also be announced:
Not applicable
8. If the owner of the transaction target has been a related party of the company within the last five years, the acquisition and disposal dates, price, and the relationship with the company at the time of transaction shall also be announced:
Not applicable
9. Matters related to the disposal of claims in this transaction (including the type of collateral attached to the disposed claims, and if the disposed claims are claims against related parties, the name of the related party and the book amount of the disposed claims against the related party shall also be announced):
Not applicable
10. Profit (or loss) from disposal (not applicable for acquisition of securities) (deferred items should be listed and explained):
Not applicable
11. Delivery or payment terms (including payment period and amount), contract restrictions, and other important agreed matters:
Can be increased in one lump sum or in installments within the amount range.
12. Decision-making method for this transaction, reference basis for price determination, and decision-making unit:
Board of Directors resolution
13. Net asset value per share of the company for which securities are acquired or disposed of:
Not applicable
14. Cumulative quantity, amount, shareholding ratio, and restrictions on rights (such as pledge) of securities held up to now (including this transaction):
Quantity: 515,918,453 shares
Amount: NT$5,159,184,530
Shareholding ratio: 100%
Restrictions on rights: None
15. Up to now, the proportion of investment in securities listed in Article 3 of the "Regulations Governing the Acquisition or Disposal of Assets by Public Companies" (including this transaction) to the total assets and the equity attributable to owners of the parent in the company's latest financial report, and the amount of working capital in the latest financial report (Note 2):
(1) Proportion of total assets: 1.73%
(2) Proportion of owner's equity: 4.10%
(3) Amount of working capital: NT$49,002,661 thousand
16. Broker and brokerage fees:
Not applicable
17. Specific purpose or use of acquisition or disposal:
Long-term investment
18. Opinions of dissenting directors for this transaction:
None
19. Is this transaction a related party transaction?:
Yes
20. Date of approval by supervisor or Audit Committee:
May 12, 115th year of the Republic of China
21. Did the accountant issue an opinion of unreasonableness for this transaction?:
Not applicable
22. Name of accounting firm:
Not applicable
23. Name of accountant:
Not applicable
24. Accountant's practice certificate number:
Not applicable
25. Does it involve a change in the business model?:
No
26. Explanation of business model change:
Not applicable
27. Transaction details with the counterparty in the past year and expected in the future year:
Not applicable
28. Source of funds:
Internal funds
29. Date of previous announcement of material information for the same event: Not applicable
30. Other matters to be disclosed:
None