Announcement of Supreme Administrative Court judgment on administrative action brought by THSRC regarding its violation of Labor Standards Act

1.Parties to the legal matter: 
   Appellant and Appellee: THSRC
   Appellee and Appellant: Taipei City Government
2.Name of the court or punishing agency of the legal matter: Supreme Administrative Court
3.Reference/Case number of relevant documents of the legal matter: Year 2021 Shang-Zi-No.150
4.Date of occurrence of the event: 2023/01/31
5.Details of occurrence (including the matter under dispute):
  (1)The Taipei City Government on March 3, 2015 imposed a fine totaling NTD 300,000 on the Company (i.e. THSRC) 
      after a labor inspection conducted on December 23, 2014, by which it has determined that the Company has not
      paid the overtime pay and not given holiday in accordance with the Labor Standards Act.
  (2)After being firstly dismissed by the appeals committee of the Ministry of Labor, the Company filed an application
      with the Taipei High Administrative Court seeking revocation of such administrative ruling.
      After being rejected by the said Court,the Company appealed again to the Supreme Administrative Court.
      After determining that some further clarification on the facts and evidence may be needed, the Supreme Administrative 
      Court remanded the case to the Taipei High Administrative Court for retrial.
  (3)After a retrial, the Taipei High Administrative Court rendered a judgment on December 23, 2020 and stated in the main 
      text of the judgment as below: The petition decision and the original disposition concerning the Plaintiff’s penalty 
      of NT$150,000 for violating Article 24 of the Labor Standards Act were revoked. 
      It is confirmed that the announcement of the name of the Plaintiff and the name of the person in charge in accordance 
      with Article 24 of the Labor Standards Act as per the original disposition is illegal.
      Plaintiff's remaining complaints were dismissed. The Plaintiff shall bear one-half of the litigation expenses of the 
      first instance trial and the appeal before remand, and the other shall be borne by the Defendant.
  (4)The Company and Taipei City Government filed appeals on their respective losing parts within the statutory period.
6.Handling procedure:
   The Supreme Administrative Court rendered its judgement and stated in the main text of the judgment as below:
   Both appeals were dismissed. The costs of the appeal proceedings shall be borne by the two parties respectively.
7.Impact on the Company’s finance and business and projected amount: 
   The Company has set aside liability reserve for the unpaid overtime pay at issue.
   This case has no material adverse effect on the Company’s financial position. 
8.Countermeasures and improvement status: 
   Since this case has been finalized, the Company respects the outcome of the judgement, and will deal with it as
   soon as possible after careful deliberation on the contents of the judgement.
9.Any other matters that need to be specified (the information disclosure also meets the requirements of Article 7, 
   subparagraph 2 of the Securities and Exchange Act Enforcement Rules, which brings forth a significant
   impact on shareholders rights or the price of the securities on public companies.): Nil.