Taisun Enterprise Fined NT$6 Million Over Carcinogen-Contaminated Oil from Supplier

Release Date: July 8, 2026 Statement Date: July 7, 2026 Statement Time: 19:14:06 Company Code: 1218 Company Name: Taisun Enterprise Co., Ltd.

Subject: Clarification on Media Reports Regarding NT$6 Million Fine Imposed by Changhua County Health Bureau

Fact Date: July 7, 2026

Details: 1. Fact Date: July 7, 2026 2. Company Name: Taisun Enterprise Co., Ltd. 3. Relationship with Company: Parent Company 4. Cross-shareholding Ratio: Not applicable 5. Media Outlets: UDN.com, China Times, and other media 6. Report Content: The Changhua County Health Bureau has imposed a fine of NT$6 million on our company for violation of the Food Safety and Sanitation Act. Additionally, Chung Lian Oils & Fats Co., Ltd. has been fined NT$165.2 million by the Ministry of Health and Welfare.

7. Background: On June 30, Taisun received notification from Chung Lian Oils & Fats, its oil product contract manufacturer, that the batch of salad oil raw material (Lot No. 0409315) supplied to Taisun, Fusou, and Fumao had tested positive for benzo(a)pyrene (BaP) above Taiwan's regulatory limits during third-party testing. In response, Taisun immediately initiated a preventive recall of 10 related products and voluntarily reported the incident to the competent authority. To protect consumer rights, the company also expanded its refund program to all consumers who purchased the affected products between April and June. However, during an investigation, the authority determined that Taisun had attended a quality assurance coordination meeting hosted by Chung Lian Oils on June 15, at which time it should have been aware that the oil tank (Batch 315) produced on April 4 might be contaminated. As such, the authority concluded that Taisun failed to take timely legal action despite known safety risks, resulting in the NT$6 million fine under the Food Safety and Sanitation Act. Chung Lian Oils & Fats Co., Ltd. is a company in which Taisun holds a 33.33% equity stake. Due to the benzo(a)pyrene超标 incident, it has been fined NT$165.2 million by the Ministry of Health and Welfare. If this penalty is finalized, Taisun will recognize an investment loss in accordance with IFRS (International Financial Reporting Standards).

8. Response Measures: Taisun has not yet received official documentation from Changhua County Government. Upon receipt, the company will comply with legal requirements to issue a public announcement and implement appropriate measures.

9. Other Disclosures: None.