Rights offering (paid-in capital increase) decision (subsidiary)

What happened

HD Construction Equipment / Rights Offering Decision (Material Management Matter of Subsidiary) / (2026.08.31) Rights Offering Decision (Material Management Matter of Subsidiary)

Rights Offering Decision (Material Management Matter of Subsidiary) Report of a material management matter of the subsidiary HD Construction Equipment India Private Ltd.

1. Type and number of new shares Common shares: 11,760,118 Preferred/other class shares: -

2. Par value per share (KRW): 1,445

3. Total shares issued before the capital increase Common shares: 31,184,636 Preferred/other class shares: -

4. Purpose of fundraising Facility funds (KRW): 87,718,079,230 Business acquisition funds: - Working capital: - Debt repayment funds: - Funds to acquire securities of other companies: - Other funds: -

5. Method of capital increase: Third-party allotment

[In case of third-party allotment]

6. New share issue price Common shares (KRW): 7,459 Preferred/other class shares: -

7. Discount or premium rate to the reference price (%): -

8. Articles of incorporation basis for the third-party allotment: Articles of Incorporation, Articles 6 and 7

9. Payment date: 2026-09-03

10. Dividend record start date for new shares: 2026-09-14

11. Expected date of delivery of new share certificates: 2026-10-30

12. Matters relating to in-kind contribution - Whether there is an in-kind contribution: No - Whether any in-kind contributed assets include shares of an unlisted company: No - Value of shares to be contributed in kind In-kind contribution value (KRW): - As a percentage of the Company's total assets in the most recent fiscal year (%): - - Number of shares to be contributed: -

13. Board resolution date (decision date): 2026-08-28 - Attendance of outside directors: Present (persons): - / Absent (persons): - - Attendance of the auditor (audit committee member who is not an outside director): -

14. Whether subject to filing of a securities registration statement: No

15. Reason for exemption from filing: Not subject to filing of a securities registration statement, as it is a third-party allotment capital increase by an overseas unlisted company.

16. Whether subject to reporting to the Fair Trade Commission: No

17. Other important matters relevant to investment decisions 1. This disclosure concerns the capital increase decision of HD Construction Equipment India Private Ltd., an overseas subsidiary wholly owned (100%) by the Company. 2. The "1. Type and number of new shares" above may change depending on the exchange rate, etc. at the time the capital increase is completed. 3. The "par value per share (KRW)" in item 2 above is the Indian Rupee (INR) par value of INR 100 converted into Korean won at the first-quoted matching exchange rate (KRW 14.45/INR) as of the board resolution date (2026.08.28). 4. Of the "purpose of fundraising" in item 4 above, "facility funds" is INR 6,070,455,310, converted into Korean won at the first-quoted matching exchange rate (KRW 14.45/INR) as of the board resolution date (2026.08.28). 5. The "new share issue price" in item 6 above is INR 516.19, converted into Korean won at the first-quoted matching exchange rate (KRW 14.45/INR) as of the board resolution date (2026.08.28). 6. The "payment date" in item 9 above is the scheduled date for payment of the subscription price. 7. The "board resolution date (decision date)" in item 13 above is the board resolution date of HD Construction Equipment India Private Ltd. 8. This matter is subject to a special resolution of the general meeting of shareholders of HD Construction Equipment India Private Ltd., and the general meeting of shareholders is scheduled to be convened on 2026.9.1 to proceed with the process. 9. The "Matters Relating to the Subsidiary" below is based on the Company's (formerly HD Hyundai Construction Equipment's) consolidated financial statements as of the end of 2025. 10. The above schedule and details may change depending on how matters proceed in the future.

* Related disclosures: -

[Basis, Purpose, etc. of the Third-Party Allotment] Articles of incorporation provision forming the basis for the third-party allotment / Purpose of the third-party allotment capital increase: Articles of Incorporation, Articles 6 and 7 / Establishment of an industrial vehicle production base and R&D center

[Selection Background, Transaction History, Allotment Details, etc. by Third-Party Allottee] Third-party allottee: HD Hyundai XiteSolution Co., Ltd. Relationship with the Company or its largest shareholder: Largest shareholder of the largest shareholder Selection background: Considering management objectives and the investor's intent Transaction history and plans within 6 months before and after the capital increase decision: Before the capital increase: product sales etc. of approximately KRW 55.4 billion; after the capital increase: transactions expected to continue similarly to the preceding 6 months Number of shares allotted: 11,760,118 Remarks: -

[Specific Purpose of Use of Funds Raised via Third-Party Allotment, Facility Funds] (Unit: KRW thousand) Details / Investment period / Investment amount Industrial vehicle production base: 2026-2030 / 47,846,225 R&D center establishment: 2027-2030 / 39,871,854

[Matters Relating to the Subsidiary] Subsidiary name: HD Construction Equipment India Private Ltd. English name: HD Construction Equipment India Private Ltd. Representative: Sim Seong-woo Main business: Manufacture and sale of construction machinery and equipment Whether a major subsidiary: Not applicable Total assets of the subsidiary (KRW): 266,598,309,206 Total consolidated assets of the parent company (KRW): 3,602,695,391,352 As a percentage of the parent company's total consolidated assets (%): 7.40