Tung Ho Steel Announces Board Approval of Additional Budget for Taoyuan Processing Center Expansion Project

1. Original announcement date: 109/12/22

2. Summary of original announcement: (1) The company's board of directors resolved on December 22, 109 (2020) to approve the self-land entrusted construction of the Taoyuan Processing Center expansion project, with a budget of NT$906 million. (2) The company's board of directors resolved on December 22, 111 (2022) to adjust the budget in response to the revised development plan of the 'Tung Ho Guanyin Industrial Park,' which requires additional factory buildings, increasing the total budget to NT$1.338 billion.

3. Reasons for changes and main content: (1) The new employee dormitory construction project will adopt the PPVC (Prefabricated Prefinished Volumetric Construction) method to mitigate construction labor shortages, ensure project timelines, and support carbon reduction policies. Simultaneously, in response to modern privacy needs, the spatial layout will be redesigned to increase single-room configurations, enhancing employee accommodation quality and fostering a more employee-friendly workplace. (2) The new employee dormitory construction project will require an additional budget of NT$85 million, raising the total project budget to NT$1.423 billion.

4. Impact on company's financials and operations after changes: The adjustment will have no significant impact on the company's financial condition or business operations.

5. Other matters to be disclosed: None.

Keywords: Material Information