Sunrise Applied Materials Recognizes Inventory Write-Down Loss from Key Subsidiary Under Equity Method

1. Date of Event: June 22, 2026

2. Company Name: Sunrise Applied Materials Co., Ltd.

3. Relationship with Company (Please enter 'Company' or 'Subsidiary'): Company

4. Cross-shareholding Ratio: Not applicable

5. Reason for Occurrence: Macro System Inc., a significant subsidiary in which the Company holds a 36.70% stake, wrote down certain inventory with no further use or economic benefit during the second quarter of 2026 in accordance with IAS 2 'Inventories'. This resulted in an inventory write-down loss of approximately NT$692.27 million. Based on its ownership percentage and the equity method of accounting, the Company expects this to impact pre-tax net profit attributable to owners of the parent by approximately NT$254.06 million.

6. Response Measures: The Company will continue to supervise its investee companies to strengthen inventory management and improve operational efficiency. The recognition of this investment loss under the equity method does not involve any cash outflow and is not expected to have a significant impact on the Company’s operating funds. The actual recognized amount will be subject to the audited (or reviewed) financial statements.

7. Other Matters to be Disclosed: If the entity involved in the event or resolution is a publicly issued company or above, this material information also qualifies as a matter under Article 7, Paragraph 9, Item 9 of the Enforcement Rules of the Securities and Exchange Act that has a significant impact on shareholders’ equity or securities prices. No additional disclosures are required.

Keywords: Material Information