【Yulon】Subsidiary Hsin Hsin Co., Ltd. Announces Board Resolution on Surplus Capitalization and New Share Issuance

1. Board resolution date: 115/06/10 2. Source of capital increase: Surplus capitalization 3. Whether a blanket application for new share issuance is adopted (yes, specify the planned issuance period / no): No 4. Total issuance amount and number of shares (for surplus or reserve capitalization, excluding employee allocation): NT$1,828,473,800, issuing 182,847,380 ordinary shares 5. Issuance amount and number of shares under blanket application: Not applicable 6. Remaining amount and share balance after this issuance under blanket application: Not applicable 7. Par value per share: NT$10 8. Issuance price: Not applicable 9. Employee subscription shares or allocation amount: Not applicable 10. Public offering shares: Not applicable 11. Existing shareholder subscription or free allocation ratio: Entirely allocated to the sole corporate shareholder: Yulon Enterprise Co., Ltd. 12. Handling of fractional shares and unclaimed shares after deadline: Fractional shares less than one unit shall be handled in accordance with Article 240 of the Company Act 13. Rights and obligations of the newly issued shares: Same as existing shares 14. Purpose of the capital increase: Strengthening financial structure 15. Rationality and necessity of fundraising after cash reduction (applicable if cash reduction was conducted in the current or previous year): Not applicable 16. Other matters to be disclosed: None