4414 Ru Hsing: Statement on Taipei District Court Ruling Regarding Refund Claim from Cambodian Land Transaction

Release Date: 1150721 Statement Date: 1150720 Statement Time: 203430 Company Code: 4414 Company Name: Ru Hsing Subject: Clarification Regarding the Civil Ruling by the Taiwan Taipei District Court on the Refund Claim by Mekong Resort Development Construction Co., Ltd. (the prior buyer of the Cambodian land asset) in response to investor inquiries Applicable Clause: Clause 2 Event Date: 1150720

Explanation:

1. Parties to the Legal Case: Plaintiff: Mekong Resort Development Construction Co., Ltd. Defendant: Ru Hsing Co., Ltd.

2. Court or Authority Handling the Case: Taipei District Court

3. Case Number: Case No. 113-Chong-Su-35

4. Event Date: 115/07/20

5. Background of the Incident (including subject of litigation): The Company previously entered into a land purchase and sale contract in Cambodia with the plaintiff, who paid the first installment of USD 1 million. Subsequently, a dispute arose between the parties regarding contract termination and subsequent liability for compensation. The plaintiff therefore filed a lawsuit against the Company seeking refund of the purchase price and damages. In the first-instance ruling, the court ordered the Company to pay the plaintiff USD 3,544,476.64, plus interest accrued up to the date of payment.

6. Handling Process: The Company is currently consulting with legal counsel, with the principle of maximizing shareholder interests guiding its response. The Company has previously recognized a provision of USD 1.5 million in its financial statements for potential refund and settlement costs related to this case.

7. Impact on the Company's Financial Condition and Operations, and Estimated Impact Amount: The Company had already recognized a provision of USD 1.5 million for this litigation. Therefore, this ruling does not have a material impact on the Company's financial condition or operations.

8. Response Measures and Improvement Status: The Company is currently consulting with legal counsel, with the principle of maximizing shareholder interests guiding its response.

9. Other Matters to be Disclosed: This material information is being disclosed in response to inquiries from investors today.