Subsidiary Announces Acquisition of Right-of-Use Asset from Related Party

Date of Announcement: July 18, 115 Date of Statement: July 17, 115 Time of Statement: 15:41:08 Company Code: 5288 Company Name: Fong Shiang-KY Subject: Announcement on behalf of subsidiary Fong Shiang Metal Industrial Co., Ltd. regarding acquisition of right-of-use asset from a related party Applicable Clause: Clause 20 Date of Event: July 17, 115 Details: 1. Name and nature of the subject asset (e.g., land located at Section XX, Subsection XX, North District, Taichung City): Entire building at No. 10, Lane 315, Xingshu Road, Xinzhuang District, New Taipei City 2. Date of Event: July 17, 115 ~ July 17, 115 3. Board Approval Date: July 17, 115 (Minguo Calendar) 4. Other Approval Dates: Not applicable 5. Quantity of transaction units (e.g., XX square meters, equivalent to XX ping), unit price, and total transaction amount: 1. Leased area: 330.34 ping 2. Unit price: Approximately TWD 484 per ping (exclusive of tax) 3. Total rent: TWD 160,000 per month (exclusive of tax) Total right-of-use asset value: TWD 3,763,834 (exclusive of tax) 6. Counterparty and its relationship with the company (if the counterparty is an individual and not a related party of the company, name disclosure may be omitted): Counterparty: Shen Yuan Metal Co., Ltd. Relationship with the company: Related party 7. If the counterparty is a related party, state the reason for selection, previous transferor, relationship among the previous transferor, the company, and the counterparty, transfer date, and transfer amount: Reason for selecting related party: Business development needs and to achieve headquarters management synergy Previous transferor: Not applicable Relationship among previous transferor, company, and counterparty: Not applicable Transfer date and amount: Not applicable 8. If the asset’s owner was a related party of the company within the past five years, disclose the acquisition and disposal dates, price, and relationship at the time: Not applicable 9. Expected gain (or loss) on disposal (not applicable for asset acquisition) (if deferred, provide recognition schedule): Not applicable 10. Delivery or payment terms (payment periods and amounts), contractual restrictions, and other important provisions: Monthly rent payment of TWD 160,000 (exclusive of tax) Lease period: January 16, 115 to January 15, 117 (2 years) 11. Method of transaction decision (e.g., bidding, comparison, negotiation), basis for price determination, and decision-making unit: Method and pricing basis: Negotiated based on rental market rates in the surrounding area Decision-making unit: Board of Directors 12. Name of professional appraisal firm or company and appraisal amount: Not applicable 13. Name of professional appraiser: Not applicable 14. License number of professional appraiser: Not applicable 15. Whether the appraisal report is for a limited, specific, or special price: No or not applicable 16. Whether an appraisal report has not yet been obtained: No or not applicable 17. Reason for not obtaining appraisal report: Not applicable 18. Reasons for significant discrepancies in appraisal results and auditor's opinion: Not applicable 19. Name of auditor firm: Not applicable 20. Name of auditor: Not applicable 21. License number of auditor: Not applicable 22. Broker and brokerage fees: Not applicable 23. Specific purpose or use of acquisition or disposal: To be used as office premises for the company’s operations 24. Dissenting director's opinion on the transaction: None 25. Whether this transaction is a related-party transaction: Yes 26. Date of supervisor's approval or audit committee's consent: July 17, 115 (Minguo Calendar) 27. Whether the transaction involves acquiring real estate or its right-of-use asset from a related party: Yes 28. Evaluation amount under Article 16 of the 'Asset Acquisition and Disposal Rules for Publicly Issued Companies': Not applicable 29. Evaluation amount under Article 17 if the amount under the previous item is lower than the transaction price: Not applicable 30. Previous date of material information disclosure on the same event: Not applicable 31. Other explanatory matters: None