Cathay Financial Holdings Announces Subsidiary Cathay Life's Acquisition of Ordinary Shares in Bao Shan Water Corporation

Announcement Date: June 27, 115 Statement Date: June 26, 115 Statement Time: 17:04:36 Company Code: 2882 Company Name: Cathay Financial Holdings Subject: Announcement on Behalf of Subsidiary Cathay Life Insurance Regarding the Acquisition of Ordinary Shares in Bao Shan Water Corporation Applicable Clause: Clause 20 Factual Date: June 26, 115

Details: 1. Name and Nature of the Subject Asset (For preferred shares, specify issuance terms such as dividend rate): Bao Shan Water Corporation Ordinary Shares

2. Factual Date: June 26, 115 ~ June 26, 115

3. Board Approval Date: Not applicable

4. Other Approval Dates: Approval Level: Approved by General Manager June 26, 115 (Minguo Year)

5. Number of Units, Unit Price, and Total Transaction Amount: (1) Transaction Quantity: 63,000,000 shares (2) Unit Price: Approximately NT$10.00 per share (3) Total Transaction Amount: Approximately NT$630,000,000

6. Counterparty and Relationship with the Company (If the counterparty is a natural person and not a related party, name disclosure may be omitted): (1) Bao Shan Water Corporation (2) Relationship with Company: None

7. If the counterparty is a related party, state the reason for selecting them, the previous transferor, the relationship between the previous transferor and the company and counterparty, transfer date, and transfer amount: Not applicable

8. If the asset’s owner within the past five years was a related party of the company, state the related party’s acquisition and disposal date, price, and relationship with the company at the time: Not applicable

9. Matters related to the disposal of receivables (including types of collateral attached to disposed receivables; if receivables from related parties are disposed, state the related party’s name and book value): Not applicable

10. Gain (or loss) from disposal (not applicable for acquisition of securities; if deferred, list and explain recognition): Not applicable

11. Delivery or Payment Terms (including payment period and amount), contractual restrictions, and other important agreements: (1) Full cash payment (2) Conducted according to contract terms

12. Decision-making method for this transaction, reference basis for price determination, and decision-making unit: Based on internal evaluation report and approval authority of the company

13. Net asset value per share of the securities-issuing company acquired or disposed: NT$9.96

14. Cumulative holdings of the securities involved in this transaction (including this transaction) to date, in terms of quantity, amount, ownership percentage, and any restrictions on rights (e.g., pledge status): (1) 63,000,000 shares (2) NT$630,000,000 (3) Ownership ratio: 25.0% (4) None

15. Cumulative securities investments under Article 3 of the 'Regulations on Acquisition or Disposition of Assets by Publicly Issued Companies' (including this transaction) as a percentage of total assets and equity attributable to owners of the parent company in the company’s latest financial statements, and the amount of working capital in the latest financial statements: (1) Percentage of total assets: 74.25% (2) Percentage of shareholders’ equity: 778.86% (3) Working capital in latest financial report: NT$14.82 billion

16. Broker and brokerage fees: Not applicable

17. Specific purpose or use of the acquisition or disposal of securities: For life insurance fund deployment in accordance with insurance laws

18. Dissenting opinions from directors regarding this transaction: None

19. Whether this transaction is a related-party transaction: No

20. Date of auditor’s acknowledgment or audit committee approval: Not applicable

21. Whether the accountant issued a non-reasonable opinion: Not applicable

22. Name of accounting firm: Not applicable

23. Name of accountant: Not applicable

24. Accountant’s license number: Not applicable

25. Whether it involves a change in business model: No

26. Explanation of business model change: Not applicable

27. Transaction history with the counterparty in the past year and expected in the next year: Not applicable

28. Source of funds: Available funds from insurance operations

29. Previous date of material information release on the same event: Not applicable

30. Other explanatory matters: None