I.    Date of penalty: April 8, 2026
II.    Party subject to penalty: XX Bao, person responsible of Leader Electronics Inc.
III.    Legal basis for the punishment: Article 36-1, Subparagraph 11, Paragraph 1, Article 178, and Article 179 of the Securities and Exchange Act and Paragraph 1, Article 7 of the Regulations Governing the Acquisition and Disposal of Assets by Public Companies.
IV.    Facts and reasons for the violation: Leader Electronics continuously disposed of its equity from September 2023 to October 2024. However, it failed to comply with Subparagraph 3, Article 6 of the Procedures for the Acquisition or Disposal of Assets established by the Company, i.e., entering into the S&P contract, filling out the investment acquisition (disposal) application, signing off based on the approval level up to the Chairman, and reporting to the upcoming board meeting regarding acquisition or disposal operations for long-term (short-term) investments under the internal control system circular, actions which were found to be in violation of Paragraph 1, Article 7 of the Regulations Governing the Acquisition and Disposal of Assets by Public Companies.
V.    Punishment results: According to Subparagraph 11, Paragraph 1, Article 178 and Article 179 of the Securities and Exchange Act, a fine of NT$240,000 is imposed on the person responsible for the abovementioned conduct of Leader Electronics. 
Contact Unit:    Division Chief Yang, Securities Issuance Division, Securities and Futures Bureau
Tel.: (02)2774-7473
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