Hua Nan Financial Holdings Announces Subsidiary Hua Nan Commercial Bank Fined NT$8 Million by Financial Supervisory Commission

1. Date of Incident: June 25, 2026

2. Reporting Entity: Hua Nan Commercial Bank (subsidiary of Hua Nan Financial Holdings)

3. Reason for Incident (Event Description): According to a press release issued by the Financial Supervisory Commission (FSC) on June 25, 2026, Hua Nan Commercial Bank failed to adequately establish and effectively implement its internal control system, thereby violating Article 45-1, Paragraph 1 of the Banking Act, as well as Paragraph 1 of Article 3, Paragraph 1 and Paragraph 3 of Article 8 of the 'Implementation Rules for Internal Control and Audit Systems of Financial Holding Companies and Banks' in effect at the time.

4. Handling Process: The bank will implement improvement measures in accordance with the regulatory authority's requirements.

5. Sanction Imposed: A fine of NT$8 million.

6. Whether a monetary penalty was imposed: Yes

7. Amount of Penalty (NTD): NT$8,000,000

8. Estimated Potential Loss or Impact: NT$8 million.

9. Amount Potentially Covered by Insurance (NTD): Not applicable

10. Improvement Status and Future Response Measures: The company will carry out necessary improvements as directed by the regulatory authority.

11. Has a major information announcement already been made regarding the same event: No

12. Other Matters to be Disclosed: None.