Press Release for the 2026 FENC General Shareholders’ Meeting

Far Eastern New Century Corporation (Stock code: 1402, hereinafter referred to as “FENC” or “the Company”) held its 2026 Annual General Shareholders’ Meeting at 9:00 AM on May 29.

Accelerated Earnings: Building on a steady foundation in 2025, the Company delivered a 33% increase in 1Q26 profits, with continued strength in 2Q26

Facing external environmental challenges, FENC maintained a steady operating strategy. In 2025, consolidated revenue reached NT$254.1 billion (US$8.1 billion), and net income attributable to shareholders of the Company reached NT$7.83 billion (US$251.1 million), with earnings per share (EPS) of NT$1.55 (US¢4.97). The shareholders’ meeting approved a cash dividend of NT$ 1.25 per share (US¢4.01), representing a cash dividend yield of 5.0% (based on the May 28th closing price). In the first quarter of 2026, consolidated revenue was NT$61.3 billion (US$2.0 billion), and net income reached NT$3.09 billion (US$99.1 million), representing a 33% growth. The Company expects its operating performance to remain strong in the second quarter.

Production Business: Advancing sustainable industry transformation through the strategic enhancement of our core competitiveness

1.    Vertical Integration: Building a highly resilient, end-to-end supply chain 

FENC has long cultivated its presence in the polyester industry, building a vertically integrated platform across food packaging, green materials, industrial materials, and functional textiles. With this integrated value chain, the Company provides customers with one-stop solutions while ensuring stable and reliable supply. FENC operates production bases across Taiwan, China, Japan, the United States, Vietnam, and Malaysia. Through regional specialization and a global sales model, the Company continues to capture synergies from its diversified international footprint.

To further strengthen its leadership in green materials, FENC continues to expand its global green polyester footprint. The new Vietnam plant was completed in 2025, while the Malaysia plant is expected to commence production in the second half of 2026 and will be deeply integrated with the Company’s local bottle operations to expand sustainable circular economy opportunities. Capitalizing on Southeast Asia’s economic and trade advantages, FENC is also deepening its vertically integrated operations in Vietnam, building the site into its largest integrated overseas production base. Multiple expansion projects continue to advance, further reinforcing the Company’s market leadership. 

In addition, FENC continues to implement capacity upgrade projects, with capital expenditures exceeding NT$10 billion (US$0.3 billion), covering overseas new plant construction, existing production line expansions, and equipment replacement and upgrades to further enhance operating efficiency and competitive advantages.

2.    Operational Resilience: Solid Financial Fundamentals and a Premier Global Customer Base 

Amid global market uncertainties, FENC continues to demonstrate strong operational resilience, supported by a solid financial structure and diversified product applications. In 1Q26, shareholders’ equity represented 47.5% of total assets, up approximately 6 percentage points from 2022, while current assets accounted for 24.6% of total assets, marking steady growth for three consecutive years and further strengthening the Company’s overall asset structure.

FENC’s product applications span diverse markets, including food packaging, household products, functional apparel, footwear materials, and automotive materials, addressing a broad range of global industry needs. With a customer base centered on leading international brands across industries and long-standing partnerships, the Company is well positioned to mitigate single-market volatility and enhance overall operating competitiveness.

3.    Innovation Engine: Driving transformative growth through AI and green technology R&D 

FENC continues to advance smart manufacturing and digital transformation. In 2025, the Company further established the Intelligent Transformation Center to integrate digital resources and accelerate the development of a smart operating model. Through technology-enabled production models, FENC is enhancing manufacturing efficiency and operational flexibility. The Company has also deepened its AI applications and developed its self-built AI management platform, demonstrating strong in-house R&D capabilities.

Leveraging low-carbon technologies, green materials, and circular economy solutions, FENC continues to develop globally competitive sustainable materials, including pioneering CO₂-based non-isocyanate polyurethane technology, as well as footwear midsoles and elastic fibers made from recycled PET bottles. These innovations have been adopted by international brands and recognized with major domestic and international awards. For the 2026 World Cup, 12 national teams qualifying for the final tournament will wear jerseys made with FENC’s advanced fabrics, underscoring the Company’s global competitiveness in green technology and innovation.

Asset Revitalization: Accelerating property development and diversified investments to generate consistent, reliable returns

FENC holds approximately 560,000 pings of land in Taiwan, with more than one-third classified as investment properties. At Taipei Far Eastern Telecom Park (Tpark), presales of the premium residential project “Eco Park A+” have commenced, with total saleable area exceeding 15,000 pings, supporting future profitability. The project is expected to generate substantial residential sales revenue. Driven by growing demand for business expansion in Taiwan, industrial land values have risen significantly. FENC owns sizeable prime industrial land holdings in Guanyin, Taoyuan and Hukou, Hsinchu, offering solid future appreciation potential. FENC’s major investees, including Asia Cement, Far EasTone Telecommunications, and Far Eastern Department Stores, maintain solid operating fundamentals. The market value of these investments exceeds their book value by approximately NT$76 billion (US$2.4 billion), providing the Company with stable dividend income and cash flow.

Global ESG Recognition

FENC’s sustainability performance continues to receive broad recognition. The Company has been named to the CDP Climate Change A List for two consecutive years, remained a constituent of the Dow Jones Best-in-Class Emerging Markets Index, and is included in the MSCI Selection Indexes and FTSE4Good Emerging Index. In sustainable finance, FENC has received multiple prestigious awards from FinanceAsia, Treasury Today, and The Asset. The Company also participated in the Brandon Hall Group™ HCM Excellence Awards® for the first time in 2025 and received two Gold awards and one Silver award. In 2026, FENC ranked in the top 5% of the Corporate Governance Evaluation, won First Prize in the Low-Carbon Operations category at the Global Views Monthly ESG Corporate Sustainability Awards, and was once again recognized by the Ministry of Economic Affairs’ Best AI Awards for its strong AI R&D capabilities.

FENC continues to strengthen vertical integration and its global footprint, while advancing AI, smart manufacturing, and green technology to drive circular economy development and the low-carbon transition. Combined with land resource revitalization and a diversified investment portfolio, these efforts reinforce operational resilience and support stable, diversified growth.