3717 Lianjia Holding Announces Revision of 114 Cash Increase and Convertible Bond Fund Utilization Plan

Announcement Date: July 3, 115 Statement Date: July 2, 115 Statement Time: 19:40:58 Company Code: 3717 Company Name: Lianjia Holding Subject: Announcement of the Revision to the Fund Utilization Plan for the 114 Cash Issuance of New Shares and the First Domestic Secured Convertible Corporate Bonds Applicable Clause: Clause 16 Factual Date: July 2, 115 Explanation: 1. Board Resolution Date for Change: 115/07/02 2. Original Plan Effective Date: 114/12/18 3. Supplementary Issuance Date: Not applicable 4. Reasons for Change: a. On November 13, 114, the Board of Directors resolved to conduct a cash increase issuance of new shares and issue the first domestic secured convertible corporate bonds. The original plan required a total funding of 1,400,000 thousand New Taiwan Dollars, all to be used for capital investment into subsidiary Lianjia Optoelectronics Co., Ltd. to repay its bank loans. b. The first domestic secured convertible corporate bonds issued by the Company have a face value of 100 thousand per bond, with a total issuance amount of 700,000 thousand, a coupon rate of 0%, and a term of 3 years. The public offering was conducted via competitive auction, with each bond issued at 105.57% of face value, resulting in a total actual fundraising amount of 738,998 thousand. The issuance was completed in the first quarter of 115, with 700,000 thousand used for capital investment into Lianjia Optoelectronics to repay its bank loans, and the remaining 38,998 thousand used to strengthen the Company's working capital. c. The 114 cash increase issuance of new shares was canceled due to severe capital market fluctuations during the fundraising period, changes in the fundraising environment, and to protect shareholders' interests. On June 12, 115, the Chairman, authorized by the Board of Directors' resolution on November 13, 114, represented the Company in withdrawing the cash increase issuance application. The Financial Supervisory Commission approved the withdrawal on June 23, 115 (FSC Ins. No. 1150347329), and the Board of Directors approved the plan amendment on July 2, 115. 5. Previous and Revised Fund Utilization Plan: Unit: Thousand New Taiwan Dollars Project Original Amount Change Amount Revised Amount Investment in Subsidiary 1,400,000 (700,000) 700,000 Working Capital 38,998 - 38,998 Total 1,438,998 (700,000) 738,998 6. Expected Execution Progress: The revised plan was completed in Q1 of 115 7. Expected Completion Date: The revised plan was completed in Q1 of 115 8. Expected Benefits: The total fundraising amount of 738,998 thousand was completed on January 20, 115. Of this, 700,000 thousand was used for capital investment into subsidiary Lianjia Optoelectronics Co., Ltd. to repay its bank loans, and the remaining 38,998 thousand was used to strengthen the Company's working capital, all executed in Q1 of 115. This capital investment into Lianjia Optoelectronics for loan repayment is expected to reduce interest expenses and improve debt repayment capacity. Based on the interest rate of the loans Lianjia Optoelectronics intends to repay, the estimated interest savings for 115 are approximately 15,443 thousand, with annual savings of approximately 18,740 thousand thereafter. 9. Differences from Original Expected Benefits: The revised fund usage remains investment into Lianjia Optoelectronics Co., Ltd. for bank loan repayment, so there is no significant difference in expected benefits. However, due to the reduced funding amount, the interest savings are proportionally lower, but the benefits of strengthening financial structure, improving debt repayment capacity, and reducing financial burden remain. 10. Impact on Shareholders' Equity: The revision avoids excessive capital expansion, protecting shareholders' equity. Future capital increases will be evaluated based on operational funding needs, and thus are not expected to have a significant adverse impact on shareholders' equity. 11. Summary of Original Lead Underwriter's Evaluation: Lianjia Optoelectronics Investment Holding Co., Ltd.'s 114 cash increase and issuance of the first domestic secured convertible bonds—while the convertible bonds successfully raised funds in Q1 of 115, the cash increase was canceled due to severe market fluctuations, changes in fundraising conditions, and to protect shareholders' interests. Given the insufficient time to extend the approved fundraising period, the cancellation and plan revision were deemed necessary and reasonable. The revised fund usage remains the same, so there is no significant difference in expected benefits, and the evaluation concludes no negative impact on shareholders' equity. 12. Other Matters: To be submitted for ratification at the next shareholders' meeting.