Material Information

2022-03-14

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

1.Date of occurrence of the event:2022/03/14
2.Funding recipient name, relationship with lender, lending limit
(thousand NTD), starting outstanding balance (thousand NTD), new loan
(thousand NTD), is it part of a scheduled allocation or revolving limit for
the same recipient that the chairman is authorized by the board of directors
to allocate, outstanding balance (thousand NTD) up to the date of
occurrence, reason for new loan (thousand NTD):
A.
(1)Funding recipient name:Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd.
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$12,558,871
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$2,659,675
(6)is it part of a scheduled allocation or revolving limit for the same
recipient that the chairman is authorized by the board of directors
to allocate:No
(7)outstanding balance (thousand NTD) up to the date of occurrence:
NT$2,659,675
(8)reason for new loan:
To renew annual contract of the cash pooling business of the company.
B.
(1)Funding recipient name:Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd.
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$12,558,871
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$664,919
(6)is it part of a scheduled allocation or revolving limit for the same
recipient that the chairman is authorized by the board of directors
to allocate:No
(7)outstanding balance (thousand NTD) up to the date of occurrence:
NT$664,919
(8)reason for new loan:
To renew annual contract of the cash pooling business of the company.
C.
(1)Funding recipient name:
Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd., Yuen Foong Yu
Paper Enterprise (Dongguan) Co., Ltd., Yuen Foong Yu Papers (Xiamen)
Co., Ltd., Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd., Yuen
Foong Yu Paper Enterprise (Shanghai) Co., Ltd., Yuen Foong Yu Paper
Enterprise (Jiaxing) Co., Ltd., Yuen Foong Yu Paper Enterprise
(Kunshan) Co., Ltd., Yuen Foong Yu Paper Enterprise (Suzhou) Co.,
Ltd., Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd., Yuen Foong
Yu Paper Enterprise (Qingdao) Co., Ltd., totaled 10 companies.
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$12,558,871
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$443,279
(6)is it part of a scheduled allocation or revolving limit for the same
recipient that the chairman is authorized by the board of directors
to allocate:No
(7)outstanding balance (thousand NTD) up to the date of occurrence:
NT$443,279
(8)reason for new loan:
To renew annual contract of the cash pooling business of the company.
D.
(1)Funding recipient name:
Guangdong Ding Feng Co., Ltd., Shenzhen Jinglun Paper Co., Ltd., YFY
Jupiter Trading (Shenzhen) Ltd., Kunshan YFY Jupiter Green Packing
Ltd.,YFY Jupiter Supply Chain Management Services (Shenzhen) Limited,
totaled 5 companies.
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$12,558,871
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$110,820
(6)is it part of a scheduled allocation or revolving limit for the same
recipient that the chairman is authorized by the board of directors
to allocate:No
(7)outstanding balance (thousand NTD) up to the date of occurrence:
NT$110,820
(8)reason for new loan:
To renew annual contract of the cash pooling business of the company.
E.
(1)Funding recipient name:Yuen Foong Yu Papers (Guangzhou) Co., Ltd.
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$627,944
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$443,279
(6)is it part of a scheduled allocation or revolving limit for the same
recipient that the chairman is authorized by the board of directors
to allocate:No
(7)outstanding balance (thousand NTD) up to the date of occurrence:
NT$443,279
(8)reason for new loan:
To renew annual contract of the cash pooling business of the company.
3.For collaterals provided by the loan recipient, the content and the value
(thousand NTD):No
4.For the latest financial reports of the loan recipient, the capital
(thousand NTD) and the cumulative gains/losses(thousand NTD):
(1)Capital accept loans to the company's most recent financial statements
(thousand):NT$13,689,181
(2)Accept the cumulative gain or loss amount (thousand) loans to the
company's most recent financial statements:-NT$2,225,681
5.Method of calculation of interest:3.25%~3.5%
6.For repayment, the condition and the date:2022/3/31~2023/3/30
7.The amount of monetary loans extended to others as of the date of
occurrence (thousand NTD):NT$26,082,936
8.The total amount of monetary loans extended to others as a percentage of
the public company’s net worth on the latest financial statements as of the
date of occurrence:53.89%
9.Sources of funds for the company 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 YFY Packaging (Yangzhou) Investment
Co., Ltd. has expired which requires to be renewed.

First loan arrangement is with Yuen Foong Yu Paper MFG (Yangzhou) Co.,
Ltd.. The loan amount with the company may not exceed RMB 600 milliorn.

Second loan arrangement is with Yuen Foong Yu Paper Enterprise
(Nanjing) Co., Ltd.. The loan amount with the company may not exceed
RMB 150 milliorn.

Third loan arrangement is with Yuen Foong Yu Paper Enterprise
(Zhongshan) Co., Ltd., Yuen Foong Yu Paper Enterprise (Dongguan) Co.,
Ltd., Yuen Foong Yu Papers (Xiamen) Co., Ltd., Yuen Foong Yu Paper
Enterprise (Fuzhou) Co., Ltd., Yuen Foong Yu Paper Enterprise
(Shanghai) Co., Ltd., Yuen Foong Yu Paper Enterprise (Jiaxing) Co.,
Ltd., Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd., Yuen Foong
Yu Paper Enterprise (Suzhou) Co., Ltd., Yuen Foong Yu Paper Enterprise
(Tianjin) Co., Ltd., Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd.
The loan amount with these companies may not exceed over RMB 100
million dollars respectively.

Fourth loan arrangement is with Guangdong Ding Feng Co., Ltd.,
Shenzhen Jinglun Paper Co., Ltd., YFY Jupiter Trading (Shenzhen)
Ltd., Kunshan YFY Jupiter Green Packing Ltd.,YFY Jupiter Supply
Chain Management Services (Shenzhen) Limited. The loan amount with
these companies may not exceed over RMB 25 million dollars.

Fifth loan arrangement is with Yuen Foong Yu Papers (Guangzhou) Co.,
Ltd.. The loan amount with these companies may not exceed over
RMB 100 million dollars.

Furthermore, the total loan amount may not exceed over RMB1000million
dollars.

Capital (thousand):
A.Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd. :NT$7,553,748
B.Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd. :NT$318,248
C.
(1)Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd.:NT$220,146
(2)Yuen Foong Yu Paper Enterprise (Dongguan) Co., Ltd.:NT$220,079
(3)Yuen Foong Yu Papers (Xiamen) Co., Ltd.:NT$231,884
(4)Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd.:NT$183,447
(5)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd.:NT$287,347
(6)Yuen Foong Yu Paper Enterprise (Jiaxing) Co., Ltd.:NT$183,447
(7)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd.:NT$392,683
(8)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.:NT$256,832
(9)Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd.:NT$291,899
(10)Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd.:NT$289,342
D.
(1)Guangdong Ding Feng Co., Ltd. :NT$2,874,586
(2) Shenzhen Jinglun Paper Co., Ltd. :NT$14,185
(3)YFY Jupiter Trading (Shenzhen) Ltd. :NT$9,809
(4) Kunshan YFY Jupiter Green Packing Ltd. :NT$8,866
(5)YFY Jupiter Supply Chain Management Services (Shenzhen) Limited:
NT$22,164
E.Yuen Foong Yu Papers (Guangzhou) Co., Ltd. :NT$330,469

Accumulated profit/loss (thousand):
A.YFY Packaging (Yangzhou) Investment Co., Ltd. :-NT$7,412,324
B.Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd. :NT$223,453
C.
(1)Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd.:NT$884,001
(2)Yuen Foong Yu Paper Enterprise (Dongguan) Co., Ltd.:NT$317,392
(3)Yuen Foong Yu Papers (Xiamen) Co., Ltd.:NT$117,261
(4)Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd.:-NT$395,680
(5)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd.:NT$183,043
(6)Yuen Foong Yu Paper Enterprise (Jiaxing) Co., Ltd.:-NT$66,651
(7)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd.:NT$226,658
(8)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.:NT$12,350
(9)Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd.:NT$597,119
(10)Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd.:NT$795,057
D.
(1)Guangdong Ding Feng Co., Ltd. :NT$1,632,628
(2) Shenzhen Jinglun Paper Co., Ltd. :NT$120,062
(3)YFY Jupiter Trading (Shenzhen) Ltd. :NT$230,730
(4) Kunshan YFY Jupiter Green Packing Ltd. :NT$54,284
(5)YFY Jupiter Supply Chain Management Services (Shenzhen) Limited:
NT$51,342
E.Yuen Foong Yu Papers (Guangzhou) Co., Ltd. :NT$203,594