Material Information

2018-08-09

On behalf of YFY Packaging (YangZhou) Investment Co., Ltd., YFY Inc. issues this announcement concerning its lending to an affiliates

1.Date of occurrence of the event:2018/08/09
2.Name of the company who receive the monetary loans, its
relationship to the Company who extend the loans, ceiling
amount on the monetary loans extended, amount of loans
originally extended, amount of the current additional loans,
whether or not the board of directors authorize the chairperson
to give loans for the borrowing counterparty; total extended
amount of loans and the reason for loans as of the date of
occurrence of the event:
A.
(1)company :Yuen Foong Yu Paper Enterprise (Tianjin ) Co., Ltd. and
other wholly-owned subsidiaries, totaled 2 companies
(2)relationship to the Company:Affiliates
(3)short-term loan facility with the limit of funds (thousand):
NT$1,429,368
(4)with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand):NT$673,476
(6)whether the chairman of the Board of Directors authorized the loan
with the object of the same sub-sub-prime or funds set aside to
spend the loan cycle with: No
(7)The fact occur until the balance of loans to date only
(thousand) :NT$673,476
(8)The new loan funds with reason: To sign annual contract of the cash
pooling members of the company.
B.
(1)company :Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd. and other
wholly-owned subsidiaries, totaled 5 companies
(2)relationship to the Company:Affiliates
(3)short-term loan facility with the limit of funds (thousand):
NT$1,429,368
(4)with the balance of the original loan funds (thousand):NT$755,892
(5)The amount of new loans to associated (thousand):NT$673,476
(6)whether the chairman of the Board of Directors authorized the loan
with the object of the same sub-sub-prime or funds set aside to
spend the loan cycle with: No
(7)The fact occur until the balance of loans to date only
(thousand) :NT$1,429,368
(8)The new loan funds with reason:To sign annual contract of the cash
pooling members of the company.
C.
(1)company :Yuen Foong Yu Papers (Nanjing) Co., Ltd.
(2)relationship to the Company:Affiliates
(3)short-term loan facility with the limit of funds (thousand):
NT$71,468
(4)with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand):NT$71,468
(6)whether the chairman of the Board of Directors authorized the loan
with the object of the same sub-sub-prime or funds set aside to
spend the loan cycle with: No
(7)The fact occur until the balance of loans to date only
(thousand) :NT$71,468
(8)The new loan funds with reason:To sign annual contract of the
cash pooling business of the company.
3.Content and value of collaterals provided by the loan recipient, if any:No
4.Capital and Accumulated profit/loss of the loan recipient
according to its latest financial report:
(1)Capital accept loans to the company's most recent financial statements
(thousand):NT$9,124,938
(2)Accept the cumulative gain or loss amount (thousand) loans to the
company's most recent financial statements:-NT$3,600,224
5.Method of calculation of interest: Annual interest rate of3.50%
6.Terms/conditions and date for repayment: Repayment fund from business
operations and investment income during 2018/08/10~2019/3/30.
7.The Company’s total amount of monetary loans extended
as of the date of occurrence of the event: NT$39,720,961 thousands
8.The ratio of the total amount of monetary loans extended
to the Company’s net worth on its most recent financial
statements as of the date of occurrence of the event:110.92%
9.Sources of funds to extend monetary loans to others:Subsidiary itself
10.Any other matters that need to be specified:
The reason for this declaration of new loan and loan limitation is that the
new cash pool arrangement of YFY Packaging (YangZhou) Investment Co., Ltd .
has been signed.

First and Second loan arrangements are with any of the wholly-owned
subsidiaries directly or indirectly held by YFY Inc. The loan amount with
these companies may not exceed RMB150 million respectively. Furthermore,
the total loan amount may not exceed 200% of the prior year net worth of
YFY Packaging (YangZhou) Investment Co. Ltd..

Third loan arrangement is with any of the non-wholly owned subsidiaries
directly or indirectly held by YFY Inc. The loan amount with these companies
may not exceed 10% of the prior year net worth of YFY Packaging (YangZhou)
Investment Co., Ltd. Furthermore, the total loan amount may not exceed 40%
of the prior year net worth of YFY Packaging (YangZhou) Investment Co., Ltd..

The aforementioned loan arrangement and limitation is specifically for the
participating members of the initial cash pool arrangement of YFY Packaging
(YangZhou) Investment Co., Ltd.Should the company have any non-cash pooling
lending activities, it shall be guided according to the ”Procedure for
Lending Funds to Other Parties”. Furthermore, the lending shall be managed
alone with the cash pooling and be considered within its cash pooling
limitation amount.

Capital (thousand):
A. wholly-owned subsidiaries, totaliy 2 companies
(1) Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd. :NT$295,656
(2) Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd.: NT$293,065
B. wholly-owned subsidiaries, 5 companies in total
(1)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd. : NT$397,737
(2)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.: NT$260,137
(3)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd. :NT$291,045
(4)Yuen Foong Yu Paper Enterprises (Jiaxing) Co., Ltd. :NT$185,808
(5)Yuen FoongYu Paper MFG(Yangzhou) Co., Ltd.:NT$7,079,146
C. non-wholly-owned subsidiaries
(1)Yuen Foong Yu Papers (Nanjing) Co.,Ltd:NT$322,344

Accumulated profit/loss (thousand):
A. wholly-owned subsidiaries, totaliy 2 companies
(1) Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd. :NT$393,570
(2) Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd.: NT$544,573
B. wholly-owned subsidiaries, 5 companies in total
(1)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd. : NT$99,890
(2)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.:-NT$101,201
(3)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd. :-NT$63,661
(4)Yuen Foong Yu Paper Enterprises (Jiaxing) Co., Ltd. :-NT$36,678
(5)Yuen FoongYu Paper MFG(Yangzhou) Co., Ltd.:-NT$4,426,700
C. non-wholly-owned subsidiaries
(1)Yuen Foong Yu Papers (Nanjing) Co.,Ltd:-NT$10,017