Darfon Announces Capital Loan to 100% Directly Held Subsidiary Grofa Action Sports GmbH

1. Date of occurrence of the event: 2026/05/06 2. Company receiving the capital loan: (1) Company name: Grofa Action Sports GmbH (2) Relationship with the company providing the capital loan: Grofa Action Sports GmbH is a 100% directly held subsidiary of the Company. (3) Limit of capital loan (NTD thousands): 1,016,643 (4) Original outstanding capital loan balance (NTD thousands): 189,150 (5) New capital loan amount (NTD thousands): 252,200 (6) Is this a capital loan where the board of directors authorizes the chairman to disburse funds in installments or on a revolving basis to the same borrower: Yes (7) Outstanding capital loan balance as of the date of occurrence of the event (NTD thousands): 441,350 (8) Reason for the new capital loan: Working capital requirements. 3. Collateral provided by the company receiving the capital loan: (1) Content: None (2) Value (NTD thousands): 0 4. Most recent financial statements of the company receiving the capital loan: (1) Capital (NTD thousands): 20,821 (2) Accumulated profit/loss (NTD thousands): 333,594 5. Interest calculation method: Annual interest rate of 4.7%. Adjusted semi-annually based on market rates after the initial disbursement. 6. Repayment terms: (1) Conditions: Principal and interest settled together. Full repayment of principal and interest at maturity (partial early repayment of principal is allowed). (2) Date: One year from the first fund utilization date. 7. Total outstanding capital loan balance as of the date of occurrence of the event (NTD thousands): 2,866,785 8. Ratio of outstanding capital loan balance to net worth of public company's most recent financial statements as of the date of occurrence of the event: 28.20% 9. Source of the company's capital loans to others: Other 10. Other matters that need to be specified: The source of the company's capital loans to others is the company's own funds. Keywords: Material Information