Material Information

2021-03-19

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

1.Date of occurrence of the event:2021/03/19
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:YFY Packaging (Yangzhou) Investment Co., Ltd.
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$2,325,355
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$1,162,678
(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$1,162,678
(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 (Zhongshan) Co., Ltd. and other
wholly-owned subsidiaries, totaled 13 companies
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$2,325,355
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$437,007
(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$437,007
(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 Blue Economy Natural Resources (Yangzhou) 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$2,325,355
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$116,266
(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$116,266
(8)reason for new loan:
To renew annual contract of the cash pooling business of the company.
D.
(1)Funding recipient name:
Yuen Foong Yu Papers (Guangzhou) Co., Ltd. and other non-wholly-owned
subsidiaries, totaled 2 companies.
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$116,268
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$116,266
(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$116,266
(8)reason for new loan:
To renew annual contract of the cash pooling business of the company.
E.
(1)Funding recipient name:
Shanghai Yuen Foong Yu International Trading Co., Ltd.
(2)relationship with lender:Affiliates
(3)lending limit (thousand NTD):NT$2,325,355
(4)starting outstanding balance (thousand NTD):NT$0
(5)new loan (thousand NTD):NT$2,841
(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$2,841
(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$9,206,521
(2)Accept the cumulative gain or loss amount (thousand) loans to the
company's most recent financial statements:NT$1,278,427
5.Method of calculation of interest:3.25%~3.5%
6.For repayment, the condition and the date:2021/3/31~2022/3/30
7.The amount of monetary loans extended to others as of the date of
occurrence (thousand NTD):NT$24,485,393
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:54.43%
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 Yuen Foong Yu Paper MFG (Yangzhou) Co.,
Ltd. has expired and it requires to be renewed.

First loan arrangement is with YFY Packaging (YangZhou) Investment Co.,
Ltd.. The loan amount with the company may not exceed 100% of the prior
year net worth of Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd.

Second 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.

Third 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 Packing Ltd.. 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.

Fourth loan arrangement is with 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..

Fifth 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 650 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.YFY Packaging (Yangzhou) Investment Co., Ltd. :NT$2,478,238
B. wholly-owned subsidiaries, totaled 13 companies
(1)Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd. :NT$217,031
(2)Yuen Foong Yu Paper Enterprise (Dongguan) Co., Ltd. :NT$216,965
(3)Yuen Foong Yu Paper Enterprise (Xiamen) Co., Ltd. : NT$228,602
(4)Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd. : NT$180,851
(5)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd. :NT$387,127
(6)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.:NT$253,197
(7)Yuen Foong Yu Paper Enterprises (Jiaxing) Co., Ltd. :NT$180,851
(8)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd. :NT$283,281
(9)Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd. :NT$287,769
(10)Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd. :NT$285,247
(11)Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd. :NT$313,744
(12)Yuen Foong Yu (Kunshan) Designing and Printing Co., Ltd.:NT$108,378
(13)Guangdong Ding Feng Co., Ltd. :NT$2,833,908
C.Yuen Foong Yu Blue Economy Natural Resources (Yangzhou) 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.
(1)Yuen Foong Yu Blue Economy Natural Resources(Yangzhou)Co., Ltd.:
NT$216,497
(2)Shenzhen Jinglun Paper Co., Ltd. : NT$13,984
(3)YFY Jupiter Trading (Shenzhen) Ltd. :NT$3,959
(4) Kunshan YFY Jupiter Green Packing Ltd. :NT$8,740
(5)YFY Jupiter Supply Chain Management Services (Shenzhen) Limited:NT$0
D. Yuen Foong Yu Papers (Guangzhou) Co., Ltd. and other non-wholly-owned
subsidiaries, totaled 2 companies.
(1)Yuen Foong Yu Papers (Guangzhou) Co., Ltd. :NT$325,793
(2)Jiangyin Yuen Foong Yu Paper Mfg. Co., Ltd. :NT$377,989
E. Shanghai Yuen Foong Yu International Trading Co., Ltd.:NT$4,370

Accumulated profit/loss (thousand):
A.YFY Packaging (Yangzhou) Investment Co., Ltd. :-NT$2,374,449
B.
(1)Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd. :NT$817,949
(2)Yuen Foong Yu Paper Enterprise (Dongguan) Co., Ltd. :NT$288,765
(3)Yuen Foong Yu Paper Enterprise (Xiamen) Co., Ltd. : -NT$356,221
(4)Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd. : -NT$340,703
(5)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd. :NT$197,343
(6)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.: NT$14,898
(7)Yuen Foong Yu Paper Enterprises (Jiaxing) Co., Ltd. :-NT$57,226
(8)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd. :NT$137,264
(9)Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd. :NT$549,300
(10)Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd. :NT$736,657
(11)Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd. :NT$153,105
(12)Yuen Foong Yu (Kunshan) Designing and Printing Co., Ltd. :
-NT$585,340
(13)Guangdong Ding Feng Co., Ltd. :NT$1,687,457
C.
(1)Yuen Foong Yu Blue Economy Natural Resources(Yangzhou)Co., Ltd.:
-NT$117,057
(2) Shenzhen Jinglun Paper Co., Ltd. : NT$129,537
(3)YFY Jupiter Trading (Shenzhen) Ltd. :NT$288,088
(4) Kunshan YFY Jupiter Green Packing Ltd. :NT$107,181
(5)YFY Jupiter Supply Chain Management Services (Shenzhen) Limited:
NT$39,422
D.
(1)Yuen Foong Yu Papers (Guangzhou) Co., Ltd. :NT$183,792
(2)Jiangyin Yuen Foong Yu Paper Mfg. Co., Ltd. :-NT$214,828
E. Shanghai Yuen Foong Yu International Trading Co., Ltd.:-NT$6,507