1301 Formosa Plastics Announces 2026 Q2 Consolidated Earnings

Announcement Date: July 10, 115 Statement Date: July 9, 115 Statement Time: 14:31:44 Company Code: 1301 Company Name: Formosa Plastics Purpose: Announcement of the company's 2026 Q2 self-consolidated earnings Applicable Clause: Clause 51 Event Date: July 9, 115

Details: 1. Event Date: 07/09/115 2. Company Name: Formosa Plastics Corporation 3. Relationship to Company (enter 'Company' or 'Subsidiary'): Company 4. Cross-shareholding Ratio: Not applicable 5. Reason for Event: Announcement of the company's 2026 Q2 self-consolidated earnings 6. Response Measures: None 7. Other Matters to be Disclosed (If the entity involved in the event or resolution is a publicly issued company or above, this major information simultaneously meets the criteria under Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act regarding matters significantly affecting shareholders' rights or securities prices):

I. Comparison of 2026 Q2 Self-Consolidated Earnings with Q1 2026: (1) Consolidated revenue for Q2 2026 was NT$47.2 billion, an increase of NT$5.2 billion (12.5%) from the previous quarter. Details are as follows: A. Price variance: +NT$12.75 billion The U.S.-Iran war erupted at the end of February, leading to the blockade of the Strait of Hormuz and disruption of crude oil and naphtha supplies from the Persian Gulf. This pushed up the Q2 2026 contract prices of Brent crude oil, ethylene, and propylene by 23.3%, 36.8%, and 37.8% respectively compared to Q1. As a result, the average selling prices of the company's major products increased by 27% to 64% compared to Q1. B. Volume variance: -NT$7.48 billion Due to the U.S.-Iran conflict, Middle Eastern crude oil and naphtha could not be exported through the Strait of Hormuz. CPC Corporation and Formosa Petrochemical reduced ethylene and propylene supplies, leading the company to lower production rates. Additionally, in June, as the Middle East situation eased and crude oil prices declined, customers adopted a wait-and-see approach, causing petrochemical demand to shrink. Consequently, the total sales volume of the company's major products in Q2 2026 decreased by 280,000 tons compared to Q1.

(2) Core operating profit for Q2 2026 was NT$2.8 billion, a reversal from the NT$1.3 billion loss in the previous quarter, representing a NT$4.1 billion improvement. Pre-tax consolidated profit was NT$10.8 billion, up NT$7.4 billion from the previous quarter. Earnings per share (EPS) before tax were NT$1.71. After-tax consolidated profit was NT$10.6 billion, up NT$7.3 billion from the previous quarter. EPS attributable to parent company shareholders was NT$1.67. Details are as follows: A. The U.S.-Iran conflict drove up petrochemical prices. Combined with the company's low-cost inventory from earlier periods, product margins significantly improved, enabling core operations to turn profitable in Q2. B. Equity-method investment gains amounted to NT$8.35 billion, up NT$3.3 billion from the previous quarter, primarily due to: i. Formosa Petrochemical: NT$5.91 billion (up NT$210 million) ii. Formosa Plastics USA: NT$1.88 billion (up NT$2 billion), mainly due to soaring petrochemical prices amid relatively smaller increases in U.S. natural gas and energy prices, widening product margins. iii. Formosa Olefins USA: NT$1.11 billion (up NT$910 million), primarily due to ethane feedstock price increases being smaller than ethylene product price increases, expanding margins. C. Cash dividend income in Q2 was NT$230 million. D. Foreign exchange gains in Q2 were NT$30 million, down NT$200 million from the NT$230 million gain in Q1.

II. Comparison of 2026 H1 Self-Consolidated Earnings with H1 2025: (1) Consolidated revenue for H1 2026 was NT$89.2 billion, down NT$3.3 billion (3.6%) from the same period last year. Details are as follows: A. Volume variance: -NT$11.49 billion H1 2026 was affected by the U.S.-Iran war, as well as pipeline construction by CPC, maintenance at the fourth cracker, and equipment failure at the new third cracker, leading to reduced ethylene and propylene supplies from CPC and Formosa Petrochemical. The company's operating rates were lowered, resulting in a total sales volume reduction of 391,000 tons for major products compared to the same period last year. B. Price variance: +NT$8.14 billion Due to the U.S.-Iran war, crude oil, ethylene, and propylene prices surged in H1 2026. The company raised product prices to reflect rising raw material costs, resulting in average selling prices of major products increasing by 6% to 19% compared to the same period last year.

(2) Core operating profit for H1 2026 was NT$1.5 billion, a reversal from the NT$2.5 billion loss in the same period last year, representing a NT$4 billion improvement. Pre-tax consolidated profit was NT$14.2 billion, up NT$20.9 billion from the same period last year. EPS before tax was NT$2.24. After-tax consolidated profit was NT$13.9 billion, up NT$20.4 billion from the same period last year. EPS attributable to parent company shareholders was NT$2.19. Details are as follows: A. In H1 of the previous year, conservative customer procurement due to U.S. reciprocal tariffs and new capacity coming online in the petrochemical industry suppressed market prices, resulting in operating losses. This year, the U.S.-Iran conflict drove up international crude oil and petrochemical prices, significantly improving margins, leading to a return to profitability in core operations. B. Equity-method investment gains totaled NT$13.39 billion, compared to a loss of NT$1.21 billion in the same period last year, representing a NT$14.6 billion improvement, primarily due to: i. Formosa Petrochemical: +NT$12.6 billion compared to the same period last year ii. Formosa Plastics USA: +NT$2.3 billion compared to the same period last year, mainly due to higher product selling prices and expanded margins C. Cash dividend income was NT$230 million, up NT$70 million from the same period last year. D. Foreign exchange gains in H1 2026 were NT$260 million, compared to foreign exchange losses of NT$1.71 billion in the same period last year, representing a NT$1.97 billion improvement.