5907 Taiyo-KY: Update on Receivables Collection from Shenzhen Dama Hua Investment Co., Ltd.

Release Date: June 19, 2026 Statement Date: June 18, 2026 Statement Time: 15:25:06 Company Code: 5907 Company Name: Taiyo-KY Subject: Status of Receivables Collection from Shenzhen Dama Hua Investment Co., Ltd. Applicable Clause: Clause 51 Event Date: June 18, 2026

Details: 1. Event Date: June 18, 2026 2. Company Name: Taiyo Commercial Group Holding Co., Ltd. 3. Relationship with Company (enter '本公司' or 'subsidiary'):本公司 (Parent Company) 4. Cross-shareholding Ratio: Not applicable

5. Background: a) Outstanding receivables balance from Shenzhen Dama Hua Investment Co., Ltd. amounts to NT$280,547 thousand (RMB 61,000 thousand). b) Regarding receivables from Quanzhou Fengsheng Group totaling RMB 324 million: Fengsheng Group repaid 10% (RMB 32.4 million) by April 28, 2017, and 40% (RMB 129.6 million) by November 13, 2017, as per contractual obligations. The remaining 50% (RMB 162 million) was outstanding. Shenzhen Dama Hua Investment Co., Ltd. (hereinafter 'Dama Hua') agreed to assume this receivable and has made the following payments: RMB 30 million on February 9, 2021; RMB 25.5 million on December 30, 2021; RMB 25.5 million on March 11, 2022; and RMB 20 million on June 30, 2022. The remaining balance is RMB 61 million. c) On July 8, 2022, the Company's Audit Committee and Board of Directors discussed Dama Hua's delayed repayment proposal and approved in principle a phased payment plan: RMB 20 million paid on June 30, 2022; RMB 16 million due by December 31, 2022; RMB 16 million by March 31, 2023; and RMB 29 million by June 30, 2023. The June 30, 2022 payment has been received. d) Regarding adequacy of collateral value and creditor protection measures: To secure the receivable, the Company previously obtained 100% equity pledge of Quanzhou Feng'an Real Estate Development Co., Ltd. Fujian Junheng Real Estate Appraisal Co., Ltd. issued a report on July 11, 2022, estimating the market value of the land (net of estimated taxes and fees) at approximately RMB 260.31 million. According to KPMG audit verification, a full provision for impairment of RMB 61 million has been recognized by Q2 2023. e) The receivable from Dama Hua originated from the takeover of the Quanzhou Citong Road land project. The project had been stalled for many years, significantly affecting the city's image and public interests. The Quanzhou Municipal Government has held meetings and agreed in principle for Quanzhou State-owned Assets Investment Management Co., Ltd. and Fujian Wujian Real Estate Development Co., Ltd. to jointly take over the project's development through cooperation with existing developers. The respective rights, obligations, and risk control measures are to be confirmed promptly, with cooperation agreements drafted accordingly, and implemented by Fengze District Government. Project resumption is currently being coordinated. Based on this, Dama Hua intends to negotiate with the Company to repay the receivable from future project development proceeds, aiming to confirm each party's share of benefits under the premise of maximizing the Company's interests.

6. Response Measures: The Company will negotiate with Dama Hua regarding future project development for the repayment of receivables.

7. Other Matters to be Disclosed: None