Rights offering: new share issue price (notice)

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Keyang Electric Machinery / Rights Offering: New Share Issue Price (Notice) / (2026.07.24)

1. Classification: Issue price as of the new-share allotment record date 2. Issue price per share - Common shares: KRW 3,200 - Class shares: None 3. Other matters relevant to investment judgment This notice's per-share issue price is the first-stage issue price; the final issue price will be announced on September 1, 2026 according to the formula below. Under Article 5-18 (Determination of issue price for rights offerings) of the Regulation on Issuance and Disclosure of Securities, the discount rate for a shareholder-allotted rights offering is now freely determined; however, due to concerns about market disruption and existing practice, the price will be set with partial reference to Article 57 of the former Regulation on Issuance and Disclosure of Securities. (1) First-stage issue price: Using the third trading day before the new-share allotment record date as the base date, the lower of (a) the simple average of the one-month weighted-average price, one-week weighted-average price and base-date weighted-average price on the exchange, and (b) the base-date weighted-average price, is the reference price. The first-stage issue price is then set by the formula below, applying a 20% discount (rounded up to the nearest quotation unit; if below par value, set at par value). ▶ First-stage issue price = [Reference price x (1 - discount rate)] / [1 + (rights-offering ratio x discount rate)] (2) Second-stage issue price: Using the third trading day before the first day of the existing-shareholder subscription period as the base date, the lower of (a) the simple average of the one-week weighted-average price and the base-date weighted-average price, and (b) the base-date weighted-average price, is the reference price, with a 20% discount applied (rounded up to the nearest quotation unit; if below par value, set at par value). ▶ Second-stage issue price = Reference price x (1 - discount rate) (3) Final issue price: The lower of the first- and second-stage issue prices is the final issue price. However, under Article 165-6 of the Financial Investment Services and Capital Markets Act and Article 5-15-2 of the Regulation on Issuance and Disclosure of Securities, if that lower price is below the price obtained by applying a 40% discount to the weighted-average price from the third to the fifth trading day before the subscription date, that 40%-discount price becomes the final issue price (rounded up to the nearest quotation unit; if below par value, set at par value). (4) The final issue price will be determined on the third trading day before the first day of the existing-shareholder subscription period and disclosed on DART on September 1, 2026, and will also be posted on the company's website (http://www.keyang.com) in lieu of individual notice. ※ Related disclosures: 2026-06-26 Prospectus; 2026-06-25 Securities registration statement (equity securities); 2026-06-11 Securities registration statement (equity securities); 2026-06-11 Rights offering decision; 2026-05-13 Securities registration statement (equity securities)