On April 27, the Board of Directors of Coretronic Corporation (5371.TW) approved a plan to establish an investment holding company, “CoreIntelligence Holdings Corporation” (hereinafter referred to as “CoreIntelligence Holdings”), through a share exchange, in accordance with Article 29 of the Business Mergers and Acquisitions Act and other applicable regulations. The initiative aims to enhance the efficiency of the Group’s strategic planning and increase flexibility in the development of new businesses. Going forward, the Group will coordinate the development of its various businesses under a holding company structure.

Optimizing the Group Structure in Response to Business Diversification
With the development of new businesses and increasing diversification in recent years, each business unit has exhibited distinct development needs and strategic priorities in terms of industry characteristics, stage of development, capital requirements, and operating models.
To enhance the efficiency of the Group's strategic planning and the flexibility of new business development, the Company plans to introduce an investment holding structure to strengthen Group governance and establish a clearer and more flexible business management model.

Share Conversion to Establish Holding Company to Have No Impact on Shareholders’ Equity
This structural adjustment will be implemented through a share exchange, with the newly established CoreIntelligence Holdings serving as the parent company. Coretronic Corporation’s shareholders will receive shares in CoreIntelligence Holdings at a 1:1 exchange ratio, with no change to the number of shares held, shareholding percentage, or shareholders’ equity.
Upon completion of the share exchange, CoreIntelligence Holdings will become the listed entity, while Coretronic Corporation will become a wholly owned subsidiary of CoreIntelligence Holdings. The Company stated that this organizational restructuring is primarily intended to optimize corporate governance and strategic management. The Group’s existing core businesses and operations will continue as normal, and no material impact on overall operations or financial performance is expected.

Strengthening Governance Structure to Enhance Resource Utilization Efficiency
The Company stated that, through the investment holding structure, the Group will be able to 
establish a clearer organization framework and performance evaluation mechanisms. This will enhance transparency in the operational results and profitability contributions of each business unit, while also improving resource allocation efficiency and investment returns, thereby supporting the growth needs of businesses at different stages of development.

The Company emphasized that this organizational restructuring is intended to strengthen the Group’s long-term competitiveness and governance efficiency, while continuing to deliver long-term value for shareholders.