Note for Report Download: Report on Subsequent Events

Report on Subsequent Events (SER)

Materiality Issues and Risk Management Mechanism of TCC Group Holdings

On July 14, 2025, a fire occurred at the Xiaogang plant of Molie Quantum Energy Corporation (MQE), a subsidiary of TCC Group Holdings' Battery Energy Business. This incident has led to a profound review of our transformation process, which began in 2018 with a focus on carbon reduction, green initiatives, and internationalization, and it is clear that "safety" is the fundamental cornerstone of sustainable development. The year 2024 marked the first year of TCC's internationalization, with its official English name changed to TCC Group Holdings. In 2025, the group further established nine major business groups: Cement and Environmental Protection (Europe-Africa, Asia), Cement and Energy Storage (Europe-Africa), Charging and Storage (Europe, Asia), Battery Energy, Asset Management, Energy for Social Transformation, and Investment Businesses. Our operations and project sites have expanded from Taiwan and Mainland China to 14 key markets, including Türkiye, Europe, West Africa, the United States, and Australia. As a substantial industrial holding company, TCC operates across a diverse range of industries, with varying markets, regulations, and supervisory mechanisms in each region. The recently updated internal control system provides subsidiaries with the flexibility to make adjustments based on their actual operational nature. While the internal control systems of these subsidiaries are being progressively improved, there is still room for enhancement. Furthermore, TCC is optimizing and deepening the rebalancing of its risk management system. We are developing ways to provide appropriate supervision, management, and effective authorization for subsidiaries in different markets and industries, allowing them to maintain operational flexibility while ensuring the implementation of the group's sustainable development and risk management. We are humbly reviewing and learning, while actively constructing a governance structure that aligns with an international industrial holding model.

Given that TCC conducts a materiality analysis for its sustainability report every two years, the assessment of material topics for 2023-2024 was completed in November 2023. The assessment for 2025-2026 was originally scheduled for November 2025. Simultaneously, TCC is following the International Sustainability Standards Board (ISSB) Sustainability and Climate Disclosure Standards (IFRS S1, S2) as outlined in the Financial Supervisory Commission's "Roadmap for Taiwan's Alignment with IFRS Sustainability Disclosure Standards." We are conducting industry risk identification for the 11 industries we are involved in, including construction materials, green energy, and resource recycling. A total of 18 potential risks have been identified across four major aspects: operational, environmental, social, and governance. Risk data collection is expected to be completed by the end of 2025 to serve as a basis for event review and subsequent reinforcement actions. This risk list has already addressed fire risk and was presented to the Board of Directors in August 2025.