2438 Xiang Yao: Subsidiary to Publicly Auction Tainan Factory Assets to Enhance Asset Efficiency and Financial Health

Release Date: July 7, 115 Statement Date: July 6, 115 Statement Time: 16:27:12 Company Code: 2438 Company Name: Xiang Yao Subject: Announcement of Content from Major Information Press Conference Applicable Clause: Clause 51 Factual Date: July 6, 115

Explanation: 1. Factual Date: 7/6/115 2. Company Name: Xiang Yao Industrial Co., Ltd. 3. Relationship with Company (Please enter '本公司' or 'Subsidiary'):本公司 4. Cross-shareholding Ratio: Not applicable 5. Reason for Occurrence: Today's board meeting of the Company approved that its key subsidiary, Jin Yun Technology Co., Ltd., will dispose of its factory, land, and buildings located in Xinying District, Tainan City, through a public auction. The reserve price for this auction is tentatively set at NT$820 million. The process will proceed according to public auction procedures, and subsequent announcements, filings, and decision-making procedures will be carried out in accordance with relevant laws and regulations based on actual bidding and transaction terms.

Jin Yun Technology's past main sources of revenue included panel-related recycling, pickling, and related labor income. In recent years, due to changes in industrial structure, capacity adjustments by some major manufacturers, and shifts in market demand, the scale of its original business has significantly declined compared to the past, and the uncertainty of recovering to previous operational scale in the short term is high. Considering asset utilization efficiency, group capital allocation, and overall operational transformation, Jin Yun Technology, after careful evaluation, plans to revitalize related real estate assets through public auction.

The public auction method is adopted primarily to ensure openness, fairness, and transparency in the transaction process and to secure more favorable transaction terms for the Company and all shareholders. Related auction conditions, timelines, and operational details will be advanced according to board authorization and actual implementation. If a transaction is subsequently concluded or any legally required announcements arise, the Company will make timely announcements and filings within the prescribed period in accordance with the Securities and Exchange Act, the Rules for Acquisition or Disposition of Assets by Publicly Issued Companies, and other relevant material information regulations.

6. Response Measures: The Company held a major information press conference at the Taiwan Stock Exchange at 4:00 PM on July 6, 115.

7. Other Matters to be Stated (If the subject of the event or resolution is a publicly issued company or above, this material information also qualifies as a matter under Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act that significantly affects shareholder rights or securities prices):

Regarding potential financial impacts of this case, as it is currently still in the initial stage of launching the public auction process and the actual transaction has not yet been completed, the final transaction price, disposal gains or losses, and impact on financial statements will depend on the actual winning bid price, related costs, tax liabilities, and accounting treatment results. Therefore, it is inappropriate for the Company to prematurely recognize or estimate the final disposal profit at this stage. The Company will handle the matter in accordance with accounting standards and relevant regulations once the transaction terms are finalized.

If this case is successfully completed, it is expected to help the group revitalize idle or low-efficiency assets, improve capital structure, reduce financial burden, and strengthen resource allocation for future operational transformation. The preliminary plan for the use of disposal proceeds will primarily focus on repaying related loans, improving financial structure, funding operating capital, and supporting the group's future business development. The actual use will be determined based on the Company's funding needs, board resolutions, and relevant laws and regulations.

The Company also emphasizes that this case is a plan based on asset revitalization and operational transformation and does not indicate that the Company is ceasing operations or exiting related markets. Xiang Yao Industrial and its group companies will continue to promote stable operations of existing businesses and carefully evaluate future profitable investment, cooperation, and transformation opportunities.

Going forward, the Company will continue to prudently advance the subsequent procedures of this case under the principles of sound management, information transparency, and protection of shareholder rights, while complying with legal and corporate governance requirements. If there are significant changes in related progress, the Company will promptly make external announcements in accordance with regulations.