Fumao Oils Announces Major Information Press Release

1. Date of Incident: 115/07/24

2. Company Name: Fumao Oils Co., Ltd.

3. Relationship to Company:本公司 (This Company)

4. Cross-shareholding Ratio: Not applicable

5. Reason for Occurrence: Statement regarding abnormal benzopyrene (BaP) detection in oil products manufactured by Zhonglian Oils Co., Ltd.

6. Response Measures: Press Release

I am Wu Xingcheng, Chairman of Fumao Oils.

I sincerely apologize to all consumers and the general public.

Food is fundamental to people's lives. We deeply understand that food safety is the most critical responsibility of any enterprise. We are profoundly sorry for the public concern and anxiety caused by the abnormal detection of benzopyrene (BaP) in oil products from Zhonglian Company. The case is currently under investigation by regulatory and judicial authorities. Our company will fully cooperate and expects all agencies to clarify the truth promptly based on scientific, objective, and professional principles. We will not shirk any responsibility that we must bear.

Starting from June 30, 115, we immediately initiated reporting procedures, along with product removal, recall, and refund operations. Following the directive issued by the Food and Drug Administration (FDA) on July 9, 115, we conducted a full preventive recall of all batches of soybean salad oil products sold by our company from April to June, 115.

Zhonglian Oils Co., Ltd. is an independently operated company. Its daily operations and quality management systems are executed by its management team in accordance with the law. Currently, Zhonglian Company has suspended operations. If operations resume following future approval by regulatory authorities, based on our supplier management policy, we will implement the following measures to prevent recurrence:

1. Require Zhonglian Company to immediately initiate a comprehensive improvement plan. Conduct a full review and assessment of raw material acceptance, quality management, process control, inspection systems, and supply chain management. Establish a stricter, more transparent, and traceable quality management system in accordance with the latest regulations and food safety management requirements.

2. For future soybean salad oil products supplied by Zhonglian Company, we will implement joint batch-by-batch sampling and tank sealing with the supplier, followed by submission to a third-party certified laboratory. The testing methods and data must be clearly stated in a report issued by the certified laboratory. Products will only be allowed to ship upon passing inspection.

3. Fumao’s in-house laboratory has begun establishing autonomous benzopyrene (BaP) testing capabilities. Once completed, this will allow for increased product testing frequency to ensure compliance with regulatory standards.

We reiterate our respect for judicial procedures and the final investigation results. According to regulations and the principle of non-disclosure during investigations, our company is currently not in a position to further comment on the details of the incident. We sincerely apologize and ask for your understanding.

We respectfully urge the public to base reporting and discussions on objective facts and scientific verification, avoiding linking unverified speculation to this incident, which could cause further public anxiety.

Once again, I offer my deepest apologies to the public.