Material Information

2020-03-20

On behalf of Yuen Foong Yu Paper Mfg. (Yangzhou) Co., Ltd., YFY Inc. issues this announcement concerning its lending to affiliates

1.Date of occurrence of the event:2020/03/20
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 (Zhongshan) Co., Ltd. and other
wholly-owned subsidiaries, totaled 18 companies
(2)relationship to the Company: Affiliates
(3)short-term loan facility with the limit of funds (thousand):
NT$3,022,168
(4)with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand): NT$431,736
(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$431,736
(8)The new loan funds with reason: To renew annual contract of the
cash pooling business of the company
B
(1)company:Yuen Foong Yu Blue Economy Natural Resources (Yangzhou) Co.,
Ltd., Shenzhen Jinglun Paper Co., Ltd., YFY Jupiter Trading (Shenzhen)
Ltd., Kunshan YFY Jupiter Green Packaing Ltd., Yuen Foong Yu Papers
(Guangzhou) Co., Ltd. and other non-wholly-owned subsidiaries, totaled
6 companies.
(2)relationship to the Company: Affiliates
(3)short-term loan facility with the limit of funds (thousand):
NT$151,108
(4) with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand): NT$151,108
(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$151,108
(8)The new loan funds with reason: To renew annual contract of the cash
pooling business of the company.
C
(1)company:Shanghai Yuen Foong Yu International Trading Co., Ltd.
(2)relationship to the Company:Affiliates
(3)short-term loan facility with the limit of funds (thousand):NT$3,022,168
(4)with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand): NT$3,048
(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$3,048
(8)The new loan funds with reason: To renew 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$15,182,856
(2)Accept the cumulative gain or loss amount (thousand) loans to the
company's most recent financial statements: -NT$2,660,625
5.Method of calculation of interest:annual interest rate of 3.25~3.50%
6.Terms/conditions and date for repayment:Repayment fund from business
operations and investment income during 2020/3/31~2021/3/30
7.The Company’s total amount of monetary loans extended
as of the date of occurrence of the event:NT$30,332,853thousands
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:78.90%
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 initial cash pool arrangement of Yuen Foong Yu Paper MFG
(Yangzhou) Co., Ltd. has expired and it requires to be renewed.

First loan arrangement is with any of the wholly-owned subsidiaries
directly or indirectly held by YFY Inc.. The loan amount with these
companies may not exceed RMB 100 milliorn respectively. Furthermore,
the total loan amount may not exceed 200% of the prior year net worth
of Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd.

Second loan arrangement is with Yuen Foong Yu Blue Economy Natural
Resources (Yangzhou) Co., Ltd., Shenzhen Jinglun Paper Co., Ltd., YFY
Jupiter Trading (Shenzhen) Ltd., Kunshan YFY Jupiter Green Packaing Ltd.,
Yuen Foong Yu Papers (Guangzhou) Co., Ltd. and 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 Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd. Furthermore,
the total loan amount with any of the non-wholly owned subsidiaries
directly or indirectly held by YFY Inc. may not exceed 40% of the
prior year net worth of Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd..

Third loan arrangement is with Shanghai Yuen Foong Yu International
Trading Co., Ltd.. The loan amount made by Yuen Foong Yu Paper MFG
(Yangzhou) Co., Ltd. with Shanghai Yuen Foong Yu International
Trading Co., Ltd. may not exceed RMB 706 thousand.

The aforementioned loan arrangements and limitations are specifically
for the participating members of the initial cash pool arrangement of
Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd. Should Yuen Foong Yu
Paper MFG (Yangzhou) Co., Ltd. be involved in any other non-cash
pooling lending activities, it shall be guided according to the
”Procedure for Lending of Funds with Other Parties”. In addition,
the lending shall be managed with the cash pooling of Yuen Foong
Yu Paper MFG (Yangzhou) Co., Ltd. and be considered within its cash
pooling limitation amount.

Capital (thousand):
A. wholly-owned subsidiaries, totaliy 18 companies
(1)Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd. :NT$214,413
(2)Yuen Foong Yu Paper Enterprise (Dongguan) Co., Ltd. :NT$214,348
(3)Yuen Foong Yu Paper Enterprise (Xiamen) Co., Ltd. :NT$225,845
(4)Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd. :NT$178,670
(5)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd. :NT$382,457
(6)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.:NT$250,143
(7)Yuen Foong Yu Paper Enterprises (Jiaxing) Co., Ltd. :NT$178,670
(8)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd. :NT$279,864
(9)Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd. :NT$284,298
(10)Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd. :NT$281,807
(11)Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd. :NT$309,960
(12)YFY Packaging (YangZhou) Investment Co., Ltd. :NT$2,448,348
(13)Yuen Foong Yu Family Care (Kunshan) Co., Ltd. :NT$979,574
(14)Yuen Foong Yu Family Paper (Beijing) Co., Ltd. :NT$1,081,183
(15)YUEN FOONG YU INVESTMENT CO.,LTD:NT$3,225,455
(16)YFY Family Paper (Yangzhou) CO.,LTD. :NT$800,840
(17)Yuen Foong Yu (Kunshan) Designing and Printing Co., Ltd.:NT$107,070
(18)Guangdong Ding Feng Co., Ltd. :NT$2,799,729
B. Yuen Foong Yu Blue Economy Natural Resources (Yangzhou) Co., Ltd.,
Shenzhen Jinglun Paper Co., Ltd., YFY Jupiter Trading (Shenzhen)
Ltd., Kunshan YFY Jupiter Green Packaing Ltd., Yuen Foong Yu Papers
(Guangzhou) Co., Ltd. and other non-wholly-owned subsidiaries,
totaled 6 companies.
(1)Yuen Foong Yu Blue Economy Natural Resources (Yangzhou) Co., Ltd. :
NT$213,886
(2)Shenzhen Jinglun Paper Co., Ltd. :NT$13,816
(3)YFY Jupiter Trading (Shenzhen) Ltd. :NT$4,235
(4)Kunshan YFY Jupiter Green Packaing Ltd.:NT$8,635
(5)Yuen Foong Yu Papers(Guangzhou) Co., Ltd.:NT$321,863
(6)Jiangyin Yuen Foong Yu Paper Mfg. Co., Ltd.:NT$373,430
C. Shanghai Yuen Foong Yu International Trading Co., Ltd.:NT$4,317

Accumulated profit/loss (thousand):
(1)Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd. :NT$732,854
(2)Yuen Foong Yu Paper Enterprise (Dongguan) Co., Ltd. :NT$235,097
(3)Yuen Foong Yu Paper Enterprise (Xiamen) Co., Ltd. :-NT$334,755
(4)Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd. :-NT$314,960
(5)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd. :NT$165,260
(6)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.:-NT$19,799
(7)Yuen Foong Yu Paper Enterprises (Jiaxing) Co., Ltd. :-NT$48,428
(8)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd. :NT$63,077
(9)Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd. :NT$484,749
(10)Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd. :NT$673,914
(11)Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd. :NT$101,583
(12)YFY Packaging (YangZhou) Investment Co., Ltd. :-NT$2,200,307
(13)Yuen Foong Yu Family Care (Kunshan) Co., Ltd. :-NT$567,681
(14)Yuen Foong Yu Family Paper (Beijing) Co., Ltd. :-NT$639,448
(15)YUEN FOONG YU INVESTMENT CO.,LTD:-NT$1,820,500
(16)YFY Family Paper (Yangzhou) CO.,LTD. :NT$302,819
(17)Yuen Foong Yu (Kunshan) Designing and Printing Co., Ltd.:
-NT$565,311
(18)Guangdong Ding Feng Co., Ltd. :NT$1,953,488
B. Yuen Foong Yu Blue Economy Natural Resources (Yangzhou) Co., Ltd.,
Shenzhen Jinglun Paper Co., Ltd., YFY Jupiter Trading (Shenzhen)
Ltd., Kunshan YFY Jupiter Green Packaing Ltd., Yuen Foong Yu Papers
(Guangzhou) Co., Ltd. and other non-wholly-owned subsidiaries,
totaled 6 companies.
(1)Yuen Foong Yu Blue Economy Natural Resources (Yangzhou) Co., Ltd. :
-NT$119,837
(2)Shenzhen Jinglun Paper Co., Ltd. :NT$103,893
(3)YFY Jupiter Trading (Shenzhen) Ltd. :NT$307,219
(4)Kunshan YFY Jupiter Green Packaing Ltd.:NT$127,534
(5)Yuen Foong Yu Papers(Guangzhou) Co., Ltd.:NT$168,066
(6)Jiangyin Yuen Foong Yu Paper Mfg. Co., Ltd.:-NT$1,442,857
C. Shanghai Yuen Foong Yu International Trading Co., Ltd.:-NT$6,295