9938 Ba Fa | Subsidiary Announces Land Acquisition in Indonesia

Disclosure Date: 1150813 Statement Date: 1150812 Statement Time: 182110 Company Code: 9938 Company Name: Ba Fa Subject: (Supplementary Disclosure) Announcement on the Board Resolution of Subsidiary PT Baihong Indonesia to Acquire Land (Land Use Rights) Compliance Clause: Clause 20 Event Date: 1150811

Details: 1. Name and nature of the subject property (e.g., land located in Section XX, Subsection XX, North District, Taichung City): Land (Land Use Rights) (located in Batang Industrial City, Central Java, Indonesia)

2. Event Date: 115/8/11 ~ 115/8/11

3. Board Approval Date: August 11, 115 (2026)

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: Approximate area of 224,400 square meters; estimated unit price of approximately IDR 1,925,000 per square meter; total transaction amount (maximum limit) of approximately IDR 431,970,000,000,000 (excluding tax)

6. Counterparty and its relationship with the company (if the counterparty is an individual and not a related party, name disclosure may be omitted): To be announced upon finalization

7. If the counterparty is a related party, disclose the reason for selection, previous owner, relationship among previous owner, company, and counterparty, transfer date, and amount: Not applicable

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

9. Estimated gain (or loss) on disposal (not applicable for asset acquisition) (if deferred, list recognition details): Not applicable

10. Delivery or payment terms (including payment schedule and amounts), contractual restrictions, and other important agreements: Payment Terms: Payment according to land lease contract Contractual Restrictions and Other Important Terms: None

11. Transaction decision method (e.g., bidding, price comparison, or negotiation), reference basis for price determination, and decision-making unit: Transaction Decision Method and Price Reference Basis: Based on valuation report and negotiation Decision-Making Unit: Authorized by the Board to be finalized by the Chairman

12. Name of professional valuation firm or company and its valuation amount: Valuation Firm: KJPP ASNO MINANDA, USEP PRAWIRA DAN REKAN Valuation Amount: Approximately IDR 1,926,000 to 2,215,000 per square meter

13. Name of professional valuer: Adrianus Andries

14. Valuer’s license number: P-1.20.00583

15. Whether the valuation report specifies a limited, specific, or special price: No or not applicable

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

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

18. Reasons for significant differences in valuation results and auditor’s opinion: Not applicable

19. Auditor firm name: Not applicable

20. Auditor name: Not applicable

21. Auditor license number: Not applicable

22. Broker and brokerage fees: None

23. Specific purpose or use of the acquisition or disposal: To meet operational planning needs, for construction of new factories, offices, and dormitories

24. Dissenting director’s opinion on this transaction: None

25. Whether this transaction is a related-party transaction: No

26. Date of supervisor approval or audit committee consent: August 11, 115 (2026)

27. Whether this transaction involves acquiring real estate or its right-of-use asset from a related party: No

28. Valuation price under Article 16 of the “Asset Acquisition and Disposal Rules for Publicly Issued Companies”: Not applicable

29. Valuation price under Article 17 of the same rules if the prior valuation is lower than the transaction price: Not applicable

30. Previous material information announcement date for the same event: August 11, 115 (2026)

31. Other Disclosures: 1. The Board authorizes Mr. Cheng Hsin-Lung, Chairman of PT Baihong Indonesia, to proceed with the acquisition of land (land use rights), confirm transaction terms, and sign all related contracts and documents, within a total amount not exceeding approximately IDR 431,970,000,000,000 (excluding tax). A report will be submitted at the next Board meeting after the transaction. 2. The land acquisition and subsequent capital expenditures under this case shall comply with the following financial ratios on a quarterly basis (based on Ba Fa Enterprise Company’s consolidated financial statements): (1) Net Financial Leverage Ratio: not exceeding 170%. (2) Interest Coverage Ratio (excluding real estate disposal and/or valuation gains/losses of Baihong Properties and Vietnam Baihong, and convertible bond valuation gains/losses): not less than 3. If the ratios are expected or already exceeded, all capital expenditures under this case must be halted immediately. The overall future capital expenditure plan and benefit analysis of the Ba Fa Enterprise Group must be resubmitted to the Board for discussion and approval before any further investment proceeds.