Chiao Hsin Announces Capital Reduction Share Exchange Benchmark Date and Related Procedures

1. Board Resolution Date: N/A

2. Capital Reduction Effective Date: July 7, 2026 (ROC 115)

3. Capital Reduction and Share Exchange Plan:

I. This capital reduction is based on the resolution passed at the company’s annual general meeting held on May 20, 2026 (ROC 115), and has been officially declared effective by the Taiwan Stock Exchange Corporation under document No. 1150011772 dated July 7, 2026.

II. In accordance with the company’s articles of incorporation and the 'Procedures for Issuance of Securities by Listed Companies' issued by the Taiwan Stock Exchange Corporation, this plan is established to facilitate the 2026 cash capital reduction and issuance of new shares.

III. Details of the full issuance of securities:

(1) Name of Security: Chiao Hsin Industrial Co., Ltd., Common Stock.

(2) Original Capital and Number of Shares: The original paid-in capital was NT$2,256,081,400, with a par value of NT$10 per share, totaling 225,608,140 issued shares.

(3) Capital and Shares to be Cancelled: The company will reduce its paid-in capital by NT$564,020,350, cancelling 56,402,035 issued shares. The capital reduction ratio is 25%, conducted via cash reduction.

(4) Capital and Shares After Reduction: The paid-in capital after reduction will be NT$1,692,061,050, with a par value of NT$10 per share, and 169,206,105 shares issued.

(5) Capital Reduction Ratio: The reduction ratio is 25%. Based on the shareholder register as of the capital reduction benchmark date, each shareholder will have 250 shares deducted for every 1,000 shares held (i.e., exchanging 1,000 shares for 750 new shares). Fractional shares less than one share will be paid in cash at par value, rounded down to the nearest dollar, and the corresponding shares may be subscribed at par value by specific individuals designated by the Chairman.

IV. All newly issued securities will be in dematerialized form. The new shares will be registered and delivered through book-entry transfers via the Taiwan Central Depository and Clearing Corporation.

V. Tentative Schedule for Capital Reduction and Share Exchange:

(1) Last Trading Day for Old Shares: August 26, 2026 (ROC 115)

(2) Suspension Period for Old Share Trading: August 27 to September 4, 2026 (ROC 115)

(3) Final Share Transfer Date for Old Shares: August 28, 2026 (ROC 115)

(4) Share Transfer Suspension Period: August 31 to September 4, 2026 (ROC 115)

(5) Capital Reduction Share Exchange Benchmark Date: September 4, 2026 (ROC 115)

(6) New Share Listing Date and Delisting Date for Old Shares: September 7, 2026 (ROC 115)

(7) From the new share listing date onward, old shares will no longer be valid for trading or settlement. The rights and obligations of the newly issued dematerialized shares are identical to those of the old shares.

VI. Share Exchange Procedures and Required Actions:

(1) The company has adopted dematerialized securities issuance and will not issue physical share certificates. Shareholders who have not yet opened a Central Securities Depository (CSD) account with a securities firm are urged to do so promptly. Shareholders should use the capital reduction notice issued by the company’s share agent to complete the exchange process.

(2) Exchange of Registered Old Shares: Shareholders who held old shares and completed the transfer registration before the transfer suspension date (those who have not should complete it promptly) must bring their old share certificates and seals to the Mega Securities Corporation, Share Agency Division, by August 28, 2026 (inclusive), to complete the exchange procedure.

(3) Exchange of Unregistered Old Shares: Shareholders who held old shares but failed to complete transfer registration and exchange before the suspension date must, after the new share issuance date (September 7, 2026), present their old share certificates, share transfer notification, purchase report or transaction tax slip, share retrieval number list, photocopy of both sides of their ID card, and seal to the Mega Securities Corporation, Share Agency Division, to complete the exchange.

(4) Shares already deposited in the securities depository account will be automatically converted into dematerialized new shares by the Taiwan Central Depository and Clearing Corporation on the new share listing date. No additional procedures are required.

(5) Company Share Agent: Mega Securities Corporation, Share Agency Division (Address: 1F, No. 95, Sec. 2, Zhongxiao E. Rd., Taipei City 100; Tel: 02-33930898)

VII. Matters not covered in this plan shall be handled in accordance with the Company Act and other relevant regulations.

VIII. Other Matters to be Disclosed:

(1) The company’s capital reduction and share exchange plan will be implemented after being reviewed and approved by the Taiwan Stock Exchange.

(2) If regulatory authorities require amendments or revisions to this plan in the future, the Chairman is authorized to make full decisions accordingly.

4. Share Exchange Benchmark Date: September 4, 2026 (ROC 115)

5. Start Date of Transfer Suspension: August 31, 2026 (ROC 115)

6. End Date of Transfer Suspension: September 4, 2026 (ROC 115)

7. Rights and Obligations of New Shares After Reduction: The rights and obligations of the newly issued dematerialized shares are identical to those of the old shares.

8. Tentative Listing Date for New Shares: September 7, 2026 (ROC 115)

9. Expected Number of Listed Ordinary Shares After Capital Reduction: 169,206,105 shares

10. Percentage of Listed Ordinary Shares to Total Issued Ordinary Shares After Reduction (Listed Shares / Total Issued Shares): 100%

11. If the number of listed ordinary shares after reduction is less than 60 million shares and less than 25%, explain measures for low liquidity: Not applicable

12. Other Matters to be Disclosed: This plan will be implemented after being filed and approved by the Taiwan Stock Exchange.