On June 9th, Goertek Inc. (hereinafter referred to as "the Company" or "Goertek") convened the seventh meeting of the seventh session of its Board of Directors, during which the "Proposal on Capital Increase in Goertek Optics Technology Co., Ltd. and Related-Party Transaction" (hereinafter referred to as "the Proposal") was thoroughly reviewed and subsequently approved. This particular related-party transaction has undergone scrutiny by a special meeting of the Company's independent directors and has garnered approval from a majority of all independent directors.

As outlined in the Proposal, Goertek Inc., in collaboration with Ningbo Sunny Optics Aolai Technology Co., Ltd. (hereinafter referred to as "Ningbo Aolai"), intends to augment the capital of Goertek Optics Technology Co., Ltd. (hereinafter referred to as "Goertek Optics") through cash contributions. Both entities plan to invest 500 million yuan each to subscribe for 109,757,032 yuan worth of newly issued registered capital in Goertek Optics (totaling 219,514,064 yuan in newly increased registered capital). All other shareholders of Goertek Optics have relinquished their pre-emptive rights to participate in this capital increase. Upon completion of this capital injection, the registered capital of Goertek Optics will surge to 1,929,528,622 yuan, and the Company's ownership stake in Goertek Optics will elevate to 39.6676%.

Currently, Mr. Jiang Bin, the Chairman of the Company, possesses a 4.1435% stake in Goertek Optics and concurrently serves as a director of Goertek Optics and the Chairman of Goertek Group. Similarly, Mr. Jiang Long, the Vice Chairman and President of the Company, also holds a 4.1435% stake in Goertek Optics and functions as a director of Goertek Optics and the Vice Chairman of Goertek Group. Furthermore, Mr. Duan Huilu, a director of the Company, is also a director of Goertek Group. The aforementioned three directors refrained from voting on this Proposal.

As the principal shareholder of Goertek Optics, the Company's capital infusion into Goertek Optics this time around is poised to enhance Goertek Optics' financial health, empowering it to proactively capitalize on emerging opportunities within the precision optics industry amidst the AI era. This move will further solidify its expansion into areas such as micro-nano optical components, XR optical lenses and modules, projection light engines, and automotive optics, among others. It will continuously reinforce its core competitiveness in the precision optics domain and generate greater value for the Company and all its shareholders through the sustained and robust growth of Goertek Optics' business endeavors.

Following the completion of this capital increase, the Company's ownership percentage in Goertek Optics will ascend to 39.6676%, and it will maintain its position as the largest shareholder of Goertek Optics.