2371 Tatung Announces Subsidiary's Acquisition of Real Estate Usage Rights from Related Party

Release Date: July 22, 115 Statement Date: July 21, 115 Statement Time: 17:43:03 Company Code: 2371 Company Name: Tatung Subject: Announcement by subsidiary Tatung Electric Machinery Co., Ltd. regarding acquisition of real estate usage rights from a related party Applicable Clause: Clause 20 Factual Date: July 21, 115

1. Name and nature of the subject property (e.g., land located at XX Section, XX Minor Section, North District, Taichung City): Leased factory premises (including land and buildings) at No. 106, Minsheng Road, Dayuan District, Taoyuan City

2. Factual Date: July 21, 115 ~ July 21, 115

3. Board Approval Date: July 21, 115

4. Other Approval Dates: Not applicable

5. Quantity of units (e.g., XX square meters, equivalent to XX ping), unit price, and total transaction amount: Lease Area: 331.50 ping Rental Amount: NT$121,992 per month (exclusive of tax) from August 1, 115 to December 31, 115 NT$236,786 per month (exclusive of tax) from January 1, 116 to December 31, 116 Total Transaction Amount: The calculated value of the real estate usage right asset is NT$3,379,073

6. Counterparty and its relationship with the company (if the counterparty is an individual and not a related party of the company, name disclosure may be omitted): Counterparty: Tatung Development Co., Ltd. Relationship with the company: Both Tatung Electric Machinery Co., Ltd. and Tatung Development Co., Ltd. are subsidiaries of Tatung Company

7. If the counterparty is a related party, state the reason for selecting the related party as the transaction party, the previous transferor, the relationship between the previous transferor and the company and the counterparty, the previous transfer date, and the transfer amount: Reason for selecting related party: Operational necessity Previous transferor: Not applicable Relationship between previous transferor and company/counterparty: Not applicable Previous transfer date and amount: Not applicable

8. If the ownership of the subject asset was held by a related party of the company within the past five years, state the acquisition and disposal dates, prices, and the relationship with the company at the time: Not applicable

9. Expected gain (or loss) on disposal (not applicable for asset acquisition) (if deferred, provide a table showing recognition): Not applicable

10. Delivery or payment terms (including payment periods and amounts), contractual restrictions, and other important agreements: Payment Terms: Monthly payment of NT$121,992 (exclusive of tax) Lease Period: August 1, 115 – December 31, 115 Payment Terms: Monthly payment of NT$236,786 (exclusive of tax) Lease Period: January 1, 116 – December 31, 116 Contractual Restrictions: None Other Important Agreements: Right of first refusal upon lease expiration

11. Method of transaction determination (e.g., bidding, price comparison, negotiation), reference basis for price determination, and decision-making unit: Transaction Determination Method: Price negotiated based on mutually agreed usage area and conditions Decision-Making Unit: Board of Directors of Tatung Electric Machinery Co., Ltd.

12. Name of professional appraiser firm or company and appraisal amount: Not applicable

13. Name of professional appraiser: Not applicable

14. License number of professional appraiser: Not applicable

15. Whether the appraisal report is for a limited price, specific price, or special price: No or Not applicable

16. Whether the appraisal report has not yet been obtained: No or Not applicable

17. Reason for not yet obtaining the appraisal report: Not applicable

18. If there is a significant difference in appraisal results, state the reason and auditor's opinion: Not applicable

19. Name of accounting firm: Not applicable

20. Name of accountant: Not applicable

21. License number of accountant: Not applicable

22. Broker and brokerage fees: Not applicable

23. Specific purpose or use of the acquisition or disposal: Operational necessity

24. Opinion of any director who objected to the transaction: Not applicable

25. Whether this transaction is a related-party transaction: Yes

26. Date of supervisor approval or audit committee consent: Supervisor approval date of Tatung Electric Machinery Co., Ltd. July 21, 115

27. Whether the transaction involves acquiring real estate or its usage rights from a related party: Yes

28. Evaluation amount under Article 16 of the 'Asset Acquisition and Disposal Handling Standards for Publicly Issued Companies': Not applicable

29. Evaluation amount under Article 17 of the same standards, if the amount under the previous item is lower than the transaction price: Not applicable

30. Previous date of material information disclosure regarding the same event: Not applicable

31. Other explanatory matters: None