Zhao Hui Announces Environmental Penalty from Changhua County Government for Violation of Air Pollution Control Act

1. Date of Incident: 115/08/14 2. Party Involved: The Company 3. Cause of Incident (Event Description): The company's plastic product electroplating and chrome plating process used a total of 49.76 metric tons of acid solution in 114, with a factory registration area of 32,585.18 square meters. The combined horsepower and electric heating capacity of production equipment reached 4,682.75 kilowatts, classifying it as a fixed pollution source under the second batch of processes announced by the Environmental Department requiring application for installation, modification, and operational permits—specifically, metal product processing. However, the company commenced operations without obtaining the required fixed pollution source operating permit, thus violating Article 24 of the Air Pollution Control Act. 4. Handling Process: The company will implement all required improvement measures as directed by the competent authority, continuously strengthen the operation, maintenance, and management of air pollution control equipment, and follow relevant regulations to apply for resumption of operations to ensure compliance with environmental laws. 5. Penalty Details: On August 14, the company received the ruling, imposing a fine of NT$960,000. The chrome plating process must cease operations immediately upon receipt of the notice and must obtain proof documents, including the fixed pollution source operating permit, by November 10, 115, and submit them to the Changhua County Government Environmental Protection Bureau for inspection to comply with legal requirements. 6. Was a fine imposed: Yes 7. Fine amount (NTD): NT$960,000 8. Estimated potential losses or impacts: Fine of NT$960,000; no other significant impacts. 9. Amount eligible for insurance claim (NTD): Not applicable 10. Improvement status and future response measures: The company will implement all required improvement measures as directed by the competent authority, continuously strengthen the operation, maintenance, and management of air pollution control equipment, and follow relevant regulations to apply for resumption of operations to ensure compliance with environmental laws. 11. Has the company previously disclosed material information regarding the same incident: No 12. Other matters to be disclosed: The suspension of the company's electroplating and chrome plating process currently has no significant impact on the company, as existing inventory is sufficient to meet customer demand.