Material Information

2023-03-13

On behalf of YFY Packaging (Yangzhou) Investment Co., Ltd., YFY Inc. announced the lending funds to its affiliates

1.Date of occurrence of the event:2023/03/13
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$9,818,156
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$7,453,502
(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$7,453,502
(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 (Fuzhou) Co., Ltd.
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$9,818,156
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$569,974
(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$569,974
(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 (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 (Nanjing) 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$9,818,156
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$438,441
(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$438,441
(8)reason for new loan:
To renew annual contract of the cash pooling business of the company.
D.
(1)Funding recipient name:
YFY Jupiter Trading (Shenzhen) Ltd., Kunshan YFY Jupiter Green Packing
Ltd.,YFY Jupiter Supply Chain Management Services (Shenzhen) Limited,
totaled 3 companies.
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$9,818,156
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$109,610
(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$109,610
(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$490,908
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$438,441
(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$438,441
(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$13,186,144
(2)Accept the cumulative gain or loss amount (thousand) loans to the
company's most recent financial statements:-NT$8,294,072
5.Method of calculation of interest:2.60%
6.For repayment, the condition and the date:2023/3/31~2024/3/30
7.The amount of monetary loans extended to others as of the date of
occurrence (thousand NTD):NT$27,737,501
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:49.76%
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 1,700 million.

Second loan arrangement is with Yuen Foong Yu Paper Enterprise (Fuzhou)
Co., Ltd.. The loan amount with the company may not exceed RMB 130
million.

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 (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 (Nanjing) 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 RMB 100 million respectively.

Fourth loan arrangement is with 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 RMB 25 million.

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

Furthermore, the total loan amount may not exceed RMB 2,000 million.

The aforementioned loan arrangements and limitations are
specifically for the participating members of the cash pool arrangement
of YFY Packaging (Yangzhou) Investment Co., Ltd.. Should YFY Packaging
(Yangzhou) Investment 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 YFY Packaging
(Yangzhou) Investment Co., Ltd. and be considered within its cash
pooling limitation amount.

Capital (thousand):
A.
Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd. :NT$9,973,949
B.
Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd. :NT$181,445
C.
(1)Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd.:NT$217,743
(2)Yuen Foong Yu Paper Enterprise (Dongguan) Co., Ltd.:NT$217,677
(3)Yuen Foong Yu Papers (Xiamen) Co., Ltd.:NT$229,353
(4)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd.:NT$284,211
(5)Yuen Foong Yu Paper Enterprise (Jiaxing) Co., Ltd.:NT$181,445
(6)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd.:NT$388,398
(7)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.:NT$254,029
(8)Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd.:NT$314,775
(9)Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd.:NT$288,714
(10)Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd.:NT$286,184
D.
(1)YFY Jupiter Trading (Shenzhen) Ltd. :NT$10,668
(2) Kunshan YFY Jupiter Green Packing Ltd. :NT$8,769
(3)YFY Jupiter Supply Chain Management Services (Shenzhen) Limited:
NT$21,922
E.
(1)Yuen Foong Yu Papers (Guangzhou) Co., Ltd.:NT$326,862

Accumulated profit/loss (thousand):
A.
YFY Packaging (Yangzhou) Investment Co., Ltd. :-NT$8,756,743
B.
Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd. :-NT$451,915
C.
(1)Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd.:NT$159,194
(2)Yuen Foong Yu Paper Enterprise (Dongguan) Co., Ltd.:NT$50,469
(3)Yuen Foong Yu Papers (Xiamen) Co., Ltd.:NT$12,443
(4)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd.:NT$74,763
(5)Yuen Foong Yu Paper Enterprise (Jiaxing) Co., Ltd.:-NT$97,115
(6)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd.:NT$19,712
(7)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.:-NT$10,821
(8)Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd.:NT$87,430
(9)Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd.:NT$122,286
(10)Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd.:NT$119,901
D.
(1)YFY Jupiter Trading (Shenzhen) Ltd. :NT$216,621
(2) Kunshan YFY Jupiter Green Packing Ltd. :NT$85,588
(3)YFY Jupiter Supply Chain Management Services (Shenzhen) Limited:
NT$34,107
E.
(1)Yuen Foong Yu Papers (Guangzhou) Co., Ltd. :NT$40,008