Announcement of the Board of Directors’ Resolution Approving the Acquisition of Assets from the Spin-off of Business Operations

For the purpose of integrating resources, enhancing operational performance, and improving competitiveness, the Company and EAGLE EYES TRAFFIC INDUSTRIAL CO., LTD. (hereinafter referred to as “EAGLE EYES”) resolved the spin-off plan, respectively, at the meetings of their Boards of Directors convened on January 9, 2026. Pursuant to the plan, EAGLE EYES will spin off and transfer to the Company the relevant businesses and operations of its Export Sales Department, Materials Department, Molding Section 1 of Production Department I, Production Department II, Quality Assurance Department, and Research & Technology Department, as well as the businesses related to the foregoing departments under the Administration Department (including assets, liabilities, and operations). The Company will pay cash as consideration and will assume in aggregate the businesses and operations of the aforesaid departments of EAGLE EYES, including but not limited to EAGLE EYES’s existing customers; fixed assets related to production other than real estate, leasehold improvements, molds, and the fixed assets related to Molding Section 2 and Hardening Section; and employees of the relevant departments agreed to be transferred upon mutual consultation between both parties. Upon completion of the spin-off, EAGLE EYES’s automotive lighting–related business will be integrated into the Company. With strengthened and integrated organizational structure, the Company will continue to focus on the AM and aftermarket automotive lighting sectors, with the aim of improving efficiency and competitiveness, and will continue to expand its product portfolio and revenue scale.
As the spin-off consideration will be paid entirely in cash, the Company’s paid-in capital will remain unchanged after and will the spin-off, continue to be NT$644,305,730. This spin-off will be entirely for cash consideration. The value of the business to be spun off is preliminarily determined based on the book value in EAGLE EYES’s self-prepared financial statements as of September 30, 2025, and by taking into consideration factors such as depreciation, capital expenditure plans, estimated changes in the value of relevant accounts up to the spin-off reference date, and fair value, as well as the reasonableness opinion issued by an independent expert. The spin-off consideration is tentatively set at NT$200,000,000.
The Company and EAGLE EYES plan to convene extraordinary shareholders’meetings, respectively, on March 5, 2026 to deliberate on this spin-off proposal, and the spin-off will be confirmed upon approval by the extraordinary shareholders’ meetings of both parties. If any adjustment to the assets and liabilitiesto be transferred in the spin-off is necessary, the Chairpersons of both parties maybe authorized by their respective Boards of Directors to negotiate and make suchadjustments. In addition, as this spin-off constitutes a restructuring under commoncontrol, in accordance with the applicable financial accounting standards, the Company will recognize the transferred business and operations at their book value as recorded by EAGLE EYES. The difference between the spin-off consideration and the book value will be offset against capital surplus or retained earnings. The consideration for this spin-off will be funded with the Company’s own funds.
The spin-off reference date is tentatively set as July 1, 2026. Should there be any need to adjust the reference date due to the implementation of relevant statutory procedures or practical requirements, the Chairpersons of both parties are authorized to negotiate and make such adjustments.