Chiao Fu Machinery Implements Work Reduction Due to U.S. Tariffs and Exchange Rate Impact

Release Date: 115/07/17 Statement Date: 115/07/16 Statement Time: 14:36:47 Company Code: 1540 Company Name: Chiao Fu Subject: Notification to Taichung City Labor Bureau on Reduced Working Hours Duration: One quarter Applicable Clause: Clause 51 Factual Date: 115/07/16

Details: 1. Factual Date: 115/07/16 2. Company Name: Chiao Fu Machinery Industrial Co., Ltd. 3. Relationship with Company (enter '本公司' or 'subsidiary'):本公司 4. Cross-shareholding Ratio: Not applicable 5. Reason for Occurrence: Order intake has declined due to U.S. tariffs and exchange rate fluctuations. The company will implement reduced shifts of 2 days per week (8 days per month) from 115/07/17 to 115/09/30. A total of 82 employees are affected by this reduction. 6. Response Measures: - Encourage employees to use special leave on reduced workdays. - Implement flexible working arrangements for existing orders to minimize operational impact. - Initiate electronic notification system for order intake and quotations, with dedicated staff working flexibly. - The measure is scheduled for three months, with flexible adjustments based on economic recovery. 7. Other Matters to be Disclosed: None