Taishin Financial Holding Announces Regulatory Penalty Imposed on Subsidiary Taishin Securities

1. Date of Incident: July 21, 115 (2026)

2. Reporting Entity: Taishin Securities Co., Ltd. (on behalf of subsidiary)

3. Reason for Incident (Event Description): After the merger between Taishin Securities and Yuan Ta Securities on April 6, 115 (2026), abnormalities occurred in the electronic trading system. An investigation by the Taiwan Stock Exchange revealed that the company failed to properly implement its internal control system. As a result, the Financial Supervisory Commission (FSC) imposed penalties under Article 66(1) and (5), Article 178-1(1)(4) of the Securities and Exchange Act, and Article 2(2) of the Rules Governing Securities Firms.

4. Handling Process: Taishin Securities has already implemented relevant corrective measures and will continue to comply with regulatory directives for further improvements.

5. Penalty Details: The company has been issued a warning and fined NT$3.6 million.

6. Was a monetary penalty imposed?: Yes

7. Amount of Fine (NT$): 3,600,000

8. Estimated Loss or Impact: NT$3.6 million in direct financial loss. Additionally, due to the warning, the company will face business restrictions for the next three months, including: - Prohibition from applying for new business lines or expanding existing services - Prohibition from establishing new branches - Prohibition from applying for investments in related enterprises - Prohibition from applying for cash capital increases or issuing corporate bonds - Prohibition from serving as an ETF liquidity provider - Prohibition from issuing index investment securities (ETNs)

9. Potential Insurance Payout (NT$): None

10. Improvement Status and Future Response Measures: Taishin Securities has already implemented corrective actions and will continue to review and improve operations as directed by the regulatory authority.

11. Has a prior material announcement been made regarding the same event?: No

12. Other Matters to be Disclosed: None