1218 Taishan Announces NT$787 Million Net Loss in First Half of 2026 and Board Approval to Bid for 100% Stake in JKO Pay

Release Date: August 14, 2027 Statement Date: August 13, 2027 Statement Time: 18:33:12 Company Code: 1218 Company Name: Taishan Enterprise Co., Ltd. Subject: Announcement of Content from Major Information Press Conference Applicable Clause: Clause 51 Factual Date: August 13, 2027

Explanation:

1. Factual Date: 08/13/2027 2. Company Name: Taishan Enterprise Co., Ltd. 3. Relationship with Company (Please enter '本公司' or 'Subsidiary'):本公司 (Parent Company) 4. Cross-shareholding Ratio: Not applicable

5. Reason for Occurrence: The board of directors today passed two major resolutions: the approval of the financial report for the first half of 2026 (115) and the proposal to participate in the auction bid for equity in JKO Payment Co., Ltd. Details are as follows:

I. Recognition of Losses in 1H 2026 Financial Report, Post-tax Net Loss of NT$787 Million

Due to the oil safety incident, investment losses in Zhonglian Oils, and impairment of prepayment to JKO Fintech, Taishan reported a post-tax net loss of NT$787 million in the first half of 2026, reversing from a net profit of NT$322 million in the same period last year. Key impacts include:

(1) Oil Safety Incident-Related Losses: Approximately NT$400 Million Provisions have been made for product returns, inventory destruction, and estimated compensation, resulting in a pre-tax impact of approximately NT$400 million.

(2) Equity-Method Loss from Investment in Zhonglian Oils: Approximately NT$200 Million Taishan currently holds a 33.33% stake in Zhonglian Oils Co., Ltd. and recognized an investment loss of approximately NT$200 million under the equity method for 1H 2026.

(3) Impairment of Prepayment to JKO Fintech: NT$520 Million Taishan originally paid NT$3.6 billion to JKO Fintech Co., Ltd. as an investment. Due to disputes over the investment transaction, the company filed a lawsuit on August 30, 2023 (112), seeking the return of NT$3.5958 billion. On May 13, 2025 (114), the Taipei District Court ruled in favor of Taishan in the first instance, allowing provisional enforcement.

Taishan has since applied for provisional enforcement and seized relevant assets of JKO Fintech, including 50 million shares (100% equity) of JKO Payment Co., Ltd. held by JKO Fintech.

The recoverable amount of this prepayment was assessed by considering multiple factors, including the value of seized assets, progress in legal enforcement, and expected recovery outcomes—not solely based on the value of a single seized asset.

The valuation of JKO Payment’s equity was conducted by independent experts using the market approach, which is influenced by capital market conditions, comparable company stock prices, and other market parameters. Due to recent market volatility, the estimated recoverable amount has decreased compared to the previous period, leading the company to recognize an impairment loss of NT$520 million in accordance with accounting standards.

Taishan emphasizes that the final recoverable amount will depend on the overall value of enforced assets, progress in judicial proceedings, and ultimate recovery results. The company will continue to reassess and adjust the carrying amount in each reporting period based on updated evidence and accounting standards if market conditions, asset values, or legal proceedings change.

II. Board Approves Bidding for 100% Equity in JKO Payment; Proposal to be Voted at Extraordinary Shareholders’ Meeting

Regarding the investment recovery case against JKO Fintech, Taishan has legally applied for provisional enforcement and seized 50 million shares (100% equity) of JKO Payment. According to court procedures, these shares will be auctioned at a later date. The board today approved Taishan’s participation in the auction and authorized the Chairman to bid on behalf of the company at the Civil Enforcement Office of Taipei District Court, within a maximum amount not exceeding the original investment principal of NT$3.5958 billion and no more than NT$20 million below the highest bid price.

This resolution has been approved by the board. An extraordinary shareholders’ meeting will be convened to seek shareholder approval for the bidding authorization. Taishan stated that its participation in the auction is aimed at protecting corporate assets and the interests of all shareholders. The company will proceed in accordance with judicial procedures, shareholder resolutions, and relevant laws, and will promptly disclose any major developments.

6. Countermeasures: None

7. Other Matters to be Disclosed (If the subject of the event or resolution is a publicly issued company or above, this major information also qualifies as a matter under Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act that significantly affects shareholder rights or securities prices): None