[Grand Ocean] Collection Status of Receivables from Shenzhen Damahua Investment Co., Ltd.

1. Date of occurrence: 2026/05/20 2. Company name: Grand Ocean Retail Group Limited 3. Relationship to the Company: The Company itself 4. Mutual shareholding ratio: Not applicable 5. Cause of occurrence: i. The balance of receivables from Shenzhen Damahua Investment Co., Ltd. is NT$ 281,410 thousand (RMB 61,000 thousand). ii. Regarding the progress of the Company's receivables of RMB 324 million from Quanzhou Fangsheng Group, Fangsheng Group repaid 10% of the total investment amount, or RMB 32.4 million, by April 28, 2017, and 40% of the total investment amount, or RMB 129.6 million, by November 13, 2017, in accordance with the contract. The remaining 50% of the total investment amount, or RMB 162 million, was pending collection. After Shenzhen Damahua Investment Co., Ltd. (hereinafter referred to as Damahua) agreed to take over this debt, it paid the initial debt transfer payment of 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, leaving a remaining balance of RMB 61 million. iii. The Company's Audit Committee and Board of Directors discussed Damahua's deferred repayment plan on July 8, 2022, and approved in principle an installment payment plan. The plan entails installment collections of RMB 20 million on June 30, 2022, RMB 16 million on December 31, 2022, RMB 16 million on March 31, 2023, and RMB 29 million on June 30, 2023. Among these, the RMB 20 million due on June 30, 2022, has already been collected. iv. Regarding the adequacy of collateral value and related debt preservation measures, to secure the debt, the Company previously obtained a 100% equity pledge of Quanzhou Feng'an Real Estate Development Co., Ltd. According to a report issued by Fujian Junheng Real Estate Appraisal Co., Ltd. on July 11, 2022, the appraised market value of the land owned by Feng'an (after deducting estimated relevant taxes and fees) is approximately RMB 260.31 million. Following an audit by KPMG CPAs, a full allowance for impairment loss totaling RMB 61 million had been provisioned by the second quarter of 2023. v. The debt owed by Damahua arose from taking over the Quanzhou Citong Road land project. Because the Quanzhou Citong Road project had stagnated for many years, significantly affecting the city's image and public interest, the Quanzhou Municipal Government held a meeting and agreed in principle that Quanzhou State-owned Investment Asset Management Co., Ltd. and Fujian 5th Construction Real Estate Development Co., Ltd. would cooperate to take over the development and construction of the project. They are coordinating the resumption of construction by cooperating with the existing project developers, promptly confirming their respective rights, obligations, and risk prevention measures, and drafting relevant cooperation agreements, with implementation by the Fengze District Government. Based on the above, Damahua intends to promptly negotiate with the Company regarding the subsequent project development taken over by the Quanzhou Municipal Government. Damahua plans to repay the Company's debt using the returns from the project development and will strive to initiate negotiations under the overarching premise of promptly confirming both parties' respective rights to the project distribution and maximizing the Company's interests. 6. Countermeasures: The Company will negotiate with Damahua on subsequent project development matters to repay the Company's debt. 7. Other matters that need to be specified: None