1702 Nanchio: Statement on Media Reports Regarding Taipei City Health Bureau Penalty

Release Date: July 8, 2026 Statement Date: July 7, 2026 Statement Time: 21:44:16 Company Code: 1702 Company Name: Nanchio Subject: Announcement Regarding Clarification of Media Reports Applicable Clause: Clause 51 Fact Date: July 7, 2026

1. Fact Date: 07/07/2026 2. Company Name: Nanchio Investment Holding Co., Ltd. 3. Relationship with Company (Please specify '本公司' or 'Subsidiary'):本公司 (Parent Company) 4. Cross-shareholding Ratio: Not applicable 5. Media Name: Online media reports and press release from Taipei City Health Bureau 6. Report Content: (1) The report stated: 'The Minister of Health and Welfare imposed strict penalties this afternoon... and named Nanchio, which was aware of the issue from the beginning but failed to directly report to health authorities as required by law, will be fined NT$3 million.' (2) According to the press release issued today by the Taipei City Health Bureau, regarding the case of carcinogen超标 in Zhonglian's 'Soybean Salad Oil,' the Bureau found that Nanchio Oils & Fats Co., Ltd. detected benzopyrene exceeding standards in its self-inspection of 'Soybean Oil (Raw Material: S/B)' supplied by Fushou Industrial Co., Ltd. Although Nanchio notified Fushou on June 10 about the raw material anomaly, it failed to report to the health authority as required under Article 7, Paragraph 5 of the Food Safety and Sanitation Management Act. Therefore, under Article 47 of the same Act, the Bureau has imposed a fine of NT$3 million.

7. Background: Under its food monitoring program, Nanchio Oils & Fats conducts self-inspections. Oil suppliers provide quality reports, and Nanchio also performs incoming raw material inspections before acceptance. Nanchio's laboratory tested first-grade soybean oil supplied by Fushou Industrial Co., Ltd., and benzopyrene was detected above the standard in the retained sample. However, since the tested sample was a retained sample, the rest of the first-grade soybean oil had already been poured into storage tanks. Nanchio therefore tested the oil in the tanks and two finished products, all of which met regulatory standards. Due to doubts about the retained sample result, Nanchio also sent samples to Taiwan Inspection and Certification Corporation for testing, which confirmed benzopyrene levels exceeded the standard. However, since the oil in the tanks and the two finished products tested compliant, Nanchio concluded that the batch of raw material was not contaminated and therefore no legal reporting obligation applied.

8. Response Measures: (1) As of now, the company has not yet received the official penalty notice from the Taipei City Health Bureau. Upon receipt, it will consult with legal counsel and pursue administrative remedies as permitted by law. (2) The company (Nanchio Investment Holding) is not the subject of the administrative penalty. Nanchio Oils & Fats Co., Ltd. is a subsidiary in which Nanchio Investment Holding has invested.

9. Other Matters to be Clarified: All edible oil products manufactured by Nanchio Oils & Fats comply with national food safety and sanitation regulations, and their quality and safety are assured.