Material Information

2022-03-30

On behalf of YFY Packaging (Yangzhou) Investment Co., Ltd., YFY announced the Board’s resolution on the capital increase of YFY Paper MFG (Yangzhou) Co., Ltd.

1.Date of occurrence of the event:2022/03/30
2.Method of the current increase (decrease) in investment:
The company obtained shares of Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd.
through capital increase for cash
3.Amount, unit price, and total monetary amount of the transaction:
Volume：80,000,000 shares；Unit price：USD 1；Total amount：USD 80,000,000
4.Company name of the mainland Chinese investee:
Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd.
5.Paid-in capital of aforementioned mainland Chinese investee:
USD 244,694,899.74
6.Amount of capital increase currently planned for the aforementioned
mainland Chinese investee:Not applicable
7.Main businesses of the aforementioned mainland Chinese investee:
Paper and paperboard manufacturing and selling
8.Type of CPA opinion in the latest annual financial statements of the
aforementioned mainland Chinese investee:Unqualified opinion
9.Total equity of the aforementioned mainland Chinese investee in the latest
annual financial statements:CNY 31,904,343.56
10.Amount of profit/loss of the aforementioned mainland Chinese investee in
the latest annual financial statements:CNY -234,150,935.72
11.Amount of actual investment in the aforementioned mainland Chinese
investee, up to the present moment:USD 324,694,899.74
12.Trading counterparty and its relationship with the Company:
Yuen Foong Yu Paper MFG (Yangzhou) Co.,Ltd./Parent subsidiary
13.Where the trading counterparty is a related party, announcement shall
also be made of the reason for choosing the related party as trading
counterparty and the identity of the previous owner, its relationship with
the Company and the trading counterparty, and the previous date and monetary
amount of transfer:Not applicable
14.Where an owner of the underlying assets within the past five years has
been a related party of the Company, the announcement shall also include the
date and price of acquisition and disposal by the related party, and its
relationship with the Company at the time of the transaction:Not applicable
15.Profit (or loss) upon disposal:Not applicable
16.Terms of delivery or payment (including payment period and monetary
amount), restrictive covenants in the contract, and other important terms
and conditions:None
17.The manner in which the current transaction was decided, the reference
basis for the decision on price, and the decision-making unit:
The Board of YFY Packaging (Yangzhou) Investment Co., Ltd.
18.Broker:None
19.Concrete purpose of the acquisition or disposal:
Strengthen the financial structure of subsidiary.
20.Any dissenting opinions of directors to the present transaction:None
21.Whether the counterparty of the current transaction is a related party:Yes
22.Date of the board of directors resolution:2022/03/30
23.Date of ratification by supervisors or approval by
the Audit Committee:2022/03/30
24.Total amount of investment in mainland China (including the current
investment) approved by the Investment Commission, up to the present moment:
NTD 19,196,753 thousand dollars
25.Ratio of the total amount of investment in mainland China (including the
current investment) approved by the Investment Commission, up to the present
moment, to the paid-in capital on the latest financial statements:115.62%
26.Ratio of the total amount of investment in mainland China (including the
current investment) approved by the Investment Commission, up to the present
moment, to the total assets on the latest financial statements:26.13%
27.Ratio of the total amount of investment in mainland China (including the
current investment) approved by the Investment Commission, up to the present
moment, to equity attributable to owners of the parent on the latest
financial statements: 37.49%
28.Total amount of actual investment in mainland China, up to the present
moment:NTD 20,700,941 thousand dollars
29.Ratio of the total amount of actual investment in mainland China, up to
the present moment, to the paid-in capital on the latest financial
statements:124.68%
30.Ratio of the total amount of actual investment in mainland China, up to
the present moment, to the total assets on the latest
financial statements:28.18%
31.Ratio of the total amount of actual investment in mainland China, up to
the present moment, to equity attributable to owners of the parent on the
latest financial statements:40.43%
32.Amount of recognized profit (loss) on investment in mainland China for
the last three years:
Y2019：NTD -35,386 thousand dollars
Y2020：NTD 1,509,380 thousand dollars
Y2021：NTD -34,617 thousand dollars
33.Amount of profit remitted back to Taiwan for the last
three years:
Y2019：None
Y2020：None
Y2021：None
34.Whether the CPA issued an unreasonable opinion regarding the current
transaction:No
35.Name of the CPA firm:Not applicable
36.Name of the CPA:Not applicable
37.Practice certificate number of the CPA:Not applicable
38.Any other matters that need to be specified:None