E One Moli Corporation Running at Full Capacity to Take Over Global Clients; International Credit Rating Agencies Assess Minimal Impact on TCC; Insurance Claim Process Initiated.

TCC’s battery brand Molicel experienced a fire at its Molie Quantum Energy Xiaogang plant in Kaohsiung in the early morning of July 14^th. The main fire sources have been extinguished, and firefighters are continuing cooling operations and monitoring the site. As Molie Quantum Energy Xiaogang plant plays a critical role in the global supply chain for high-end battery cells—serving top-tier international clients in sectors such as supercars, electric vertical take-off and landing (eVTOL) aircraft, aerospace technology, and AI server data center BBUs—Molicel swiftly activated its emergency response mechanism to minimize losses and ensure operational stability, in order to prevent potential disruption to numerous global brands. Molicel stated that it will immediately reallocate production capacity across the three existing production lines at E One Moli Corporation to support the shipment of high-end products originally handled by Molie Quantum Energy Corporation, and will do its utmost to meet the essential needs of its global customers. At the same time, the two major global credit rating agencies, S&P Global Ratings and Fitch Ratings, have officially issued reports assessing that the incident has only a minimal impact on TCC’s overall credit rating. Molie Quantum Energy Corporation also emphasized that the company will continue to cooperate fully with the city government's investigation and will ensure that employees' salaries remain unaffected during the plant’s shutdown period.

Minimize losses and ensure operational stability.

First, following urgent outreach by the Molicel sales team, global clients of Molie Quantum Energy Corporation have expressed strong understanding and support. Molie Quantum Energy Corporation had already received more orders for the third and fourth quarters than in the first half of the year. These clients fully recognize the uniqueness and irreplaceability of our high-end batteries—many of which are exclusively supplied by Molicel—making alternative sources difficult to find. Most clients have clearly expressed their willingness to stand with us through this challenging period, and this trust is of utmost importance to us.

Molie Quantum Energy Corporation works primarily with international supply chain partners. In this critical moment, these strong global partners have demonstrated tremendous support and a strong willingness to collaborate. They not only expressed their full support but also proactively inquired about our needs regarding raw materials and critical components. They have shown willingness to adjust delivery schedules flexibly in order to minimize the impact of the fire on our production as much as possible. This unwavering support gives us great confidence in the recovery efforts ahead.

Furthermore, to address product supply, Molicel is actively reorganizing its production schedule. Prior to the fire, due to the time-consuming international certification processes required for high-end products—such as those used in aviation, BBU (Battery Backup Units), and supercars—Molie Quantum Energy Corporation, which primarily serves high-end clients, had only reached 25% capacity utilization in the first half of the year. However, E One Moli Corporation has three production lines, not all of which are currently operating at full capacity. This means we have flexible production capacity available to provide support. We are making every effort to reallocate production capacity at E One Moli Corporation to ensure that a portion of the high-end products originally produced at the Molie Quantum Energy Corporation can be transitioned to E One Moli Corporation for continued manufacturing. In other words, following internal adjustments, Molicel will strive—starting in August—to meet the “basic needs” of both Molie Quantum Energy Corporation and E One Moli Corporation customers for third and fourth quarter orders. However, it will not be possible to fulfill customers’ maximum demand, and the sales team is actively seeking clients’ understanding on this matter. We will continue to closely monitor the supply chain to ensure the stable supply of critical raw materials and components.

International credit rating agencies have assessed the impact as minimal, and the insurance claims process has already been initiated.

Regarding the recent fire incident, two of the world’s three major credit rating agencies—S&P Global Ratings and Fitch Ratings—stated in their public reports and press releases on July 15^th and 16^th, 2025, respectively, that they do not expect the incident to impact the overall credit rating of TCC. S&P Global Ratings affirmed TCC long-term issuer credit rating at “twA+” and short-term issuer credit rating at “twA-1,” with a rating outlook of “Stable.” S&P Global Ratings noted that its base-case scenario does not factor in potential losses from the fire incident at Molie Quantum Energy Xiaogang plant on July 14^th, 2025. However, the agency stated in its report that the incident is expected to have a limited short-term impact on the credit rating, partly because the company’s insurance coverage is likely to absorb a portion of the losses. Molie Quantum Energy Corporation has initiated the insurance claims process; however, details regarding the extent of the losses and the compensation amount will depend on assessments conducted by an independent third-party organization. S&P Global Ratings also noted that TCC’s credit rating reflects its position as the largest cement producer in Taiwan, Portugal, and Turkey; its solid market presence in key southern provinces of mainland China; and its diversified business portfolio beyond cement, along with the expanded operational footprint of its cement-related operations. S&P Global Ratings also mentioned that TCC’s credit rating reflects its strong financial flexibility, supported by its holdings of high-value land and investment properties. In addition, Fitch Ratings' report also stated that the fire is not expected to affect TCC’s credit rating, noting that TCC’s current rating stands at “BBB- with a Stable outlook”. The independent assessments by the two major international credit rating agencies further confirm that the company possesses sufficient risk resilience.

We are fully cooperating with the city government's investigation, and employees' salaries will remain unaffected.

The Kaohsiung City Government has established a special task force in response to the fire, launching an investigation into the cause of the incident, internal management practices, and fire prevention mechanisms at similar facilities. The findings will be submitted to the central government as a reference for potential regulatory amendments. Molie Quantum Energy Corporation will fully cooperate with the city government’s special task force, providing all necessary information to help clarify the facts of the incident and to learn from it for future improvements. Molie Quantum Energy Corporation firmly believes that this thorough investigation by the public sector will help elevate safety standards across the entire new energy industry. At the same time, following the extinguishing of the fire, the Environmental Protection Bureau promptly initiated air quality monitoring. Preliminary results showed no toxic gas leakage or contamination by hazardous substances at the site. The concentration of suspended particulates has gradually decreased with the suppression of the fire, and air quality readings indicate stable conditions. In this challenging time, our employees remain Molie Quantum Energy Corporation’s most valuable asset. In the material information announcement issued by TCC in the early morning of July 15^th, it was stated that Molie Quantum Energy Corporation would suspend operations. The company has notified all employees to rest at home until July 20^th. Some team members are working in shifts to remain on-site and support ongoing investigations and inspections conducted by various government agencies. Molie Quantum Energy Corporation has also launched a series of employee care initiatives to ensure the rights and well-being of all affected staff. Salaries will remain unaffected to safeguard their financial stability during this period.