CTS Announces Subsidiary Huatong Computer (Chongqing) Co., Ltd. to Purchase Machinery Equipment

1. Name and nature of the subject matter (e.g., land located at Section XX, Subsection XX, North District, Taichung City): A batch of machinery equipment

2. Date of occurrence of facts: 115/7/9 ~ 115/8/19

3. Date of board approval: Not applicable

4. Other approval dates: Approval level: Chairman August 19, 115 (Minguo calendar)

5. Quantity of transaction units (e.g., XX square meters, equivalent to XX ping), unit price, and total transaction amount: Quantity: One batch; Total transaction amount: Approximately NT$306,441 thousand

6. Counterparty and its relationship with the company (if the counterparty is an individual and not a related party of the company, name disclosure may be omitted): Pelican Cove Investment Ltd.; Relationship with the company: Related enterprise

7. If the counterparty is a related party, the reason for selecting the related party as the transaction counterparty, the previous transferee, the relationship between the previous transferee and the company and the counterparty, the transfer date, and the transfer amount shall be disclosed: Not applicable

8. If the owner of the transaction subject was a related party of the company within the past five years, the date of acquisition and disposal by the related party, price, and the relationship with the company at the time of transaction shall be disclosed: Not applicable

9. Estimated gain (or loss) on disposal (not applicable for asset acquisition) (if deferred, the recognition status shall be listed): Not applicable

10. Delivery or payment terms (including payment period and amount), contractual restriction clauses, and other important agreed matters: Payment according to order terms. Contractual restriction clauses: None. Other important agreed matters: None

11. Decision method of this transaction (e.g., bidding, price comparison, or price negotiation), reference basis for price determination, and decision-making unit: Transaction decision method: Price negotiation Reference basis for price determination: Market conditions Decision-making unit: Approved and decided according to the company's procurement management regulations

12. Name of professional appraiser firm or company and appraisal amount: Not applicable

13. Name of professional appraiser: Not applicable

14. Professional appraiser's practice certificate number: Not applicable

15. Whether the appraisal report is for a limited price, specific price, or special price: No or not applicable

16. Whether the appraisal report has not yet been obtained: No or not applicable

17. Reason for not yet obtaining the appraisal report: Not applicable

18. If there is a significant difference in the appraisal result, the reason for the difference and the accountant's opinion: Not applicable

19. Name of accounting firm: Not applicable

20. Name of accountant: Not applicable

21. Accountant's practice certificate number: Not applicable

22. Broker and brokerage fees: None

23. Specific purpose or use of the acquisition or disposal: For production use

24. Opinion of directors who expressed dissent on this transaction: Not applicable

25. This transaction is a related-party transaction: Yes

26. Date of supervisor's approval or audit committee's consent: Not applicable (Announcement on behalf of subsidiary)

27. This transaction involves acquiring real estate or its right-of-use assets from a related party: No

28. Price evaluated according to Article 16 of the 'Asset Acquisition and Disposal Handling Standards for Publicly Issued Companies': Not applicable

29. Price evaluated according to Article 17 of the same standards if the price evaluated under the previous item is lower than the transaction price: Not applicable

30. Previous date of material information disclosure regarding the same event: Not applicable

31. Other explanatory matters: None