Hsin Lu Announces Subsidiary's Acquisition of Equity Securities in San-Chang Development

Release Date: August 8, 2026 Statement Date: August 7, 2026 Statement Time: 16:12 Company Code: 3703 Company Name: Hsin Lu Subject: Announcement by Subsidiary Da Lu Construction Co., Ltd. of Acquisition of Securities Applicable Clause: Clause 20 Factual Date: August 7, 2026

1. Name and Nature of the Subject Matter (if preferred shares, specify terms such as dividend rate): Ordinary shares of San-Chang Development Co., Ltd. (hereinafter "San-Chang Development").

2. Factual Date: August 7, 2026 ~ August 7, 2026

3. Board Approval Date: August 7, 2026

4. Other Approval Dates: Not applicable

5. Transaction Quantity, Unit Price, and Total Transaction Amount: Total Transaction Amount: Total investment not exceeding NT$609 million (hereinafter same). Unit Price: NT$1. Transaction Quantity: Up to 60,900 million shares.

6. Counterparty and Relationship with the Company (if the counterparty is a natural person and not a related party, name disclosure may be omitted): Counterparty: San-Chang Development Co., Ltd. Relationship with the Company: None.

7. If the counterparty is a related party, state the reason for selecting them, previous transferor, relationships among the previous transferor, the company, and the counterparty, transfer date, and amount: Not applicable.

8. If the owner of the subject matter was a related party of the company within the past five years, disclose the date, price, and relationship at the time of acquisition and disposal: Not applicable.

9. Matters related to the disposal of receivables (including types of collateral, and if receivables from related parties, disclose names and book amounts): Acquisition of equity; not applicable.

10. Gain (or loss) from disposal (not applicable for acquisition of securities) (if previously deferred, explain recognition): Acquisition of equity; not applicable.

11. Delivery or payment terms (including payment periods and amounts), contractual restrictions, and other important agreements: Payment Terms: Incremental capital increases based on San-Chang Development's actual funding needs.

12. Decision-making method for this transaction, reference basis for price determination, and decision-making unit: Decision Method and Price Basis: Subscription at par value. Decision Unit: Board approval.

13. Net asset value per share of the securities-issuing company: Not applicable.

14. Cumulative holdings of the securities involved in this transaction (including this transaction) as of now, including quantity, amount, ownership percentage, and any restrictions on rights (e.g., pledge status): Cumulative Quantity: Up to 60,900 million shares. Cumulative Amount: Up to NT$609 million. Ownership Percentage: 25%. Rights Restrictions: None.

15. Cumulative securities investments under Article 3 of the "Asset Acquisition and Disposal Rules for Publicly Issued Companies" (including this transaction) as a percentage of total assets and equity attributable to owners of the parent in the latest financial statements, and the amount of working capital in the latest financial statements: Securities investment as a percentage of total assets in latest financials: 26.65% Securities investment as a percentage of equity attributable to parent owners: 31.40% Working capital in latest financials: NT$-2,202,793 thousand

16. Broker and brokerage fees: None.

17. Specific purpose or use of the acquisition or disposal of securities: Expansion of real estate development business.

18. Dissenting directors' opinions on this transaction: None.

19. Is this transaction a related-party transaction? No.

20. Date of auditor approval or audit committee consent: Not applicable.

21. Did the accountant issue a non-reasonableness opinion on this transaction? Not applicable.

22. Name of accounting firm: Not applicable.

23. Name of accountant: Not applicable.

24. Accountant's license number: Not applicable.

25. Does this involve a change in business model? No.

26. Explanation of business model change: Not applicable.

27. Transaction history with the counterparty in the past year and expected in the next year: Not applicable.

28. Source of funds: Not applicable.

29. Previous material information disclosure date for the same event: Not applicable.

30. Other explanatory matters: San-Chang Development Co., Ltd. is currently in the process of registration and establishment.