Material Information

2018-03-21

On behalf of YFY Family Paper (Yangzhou) Co., Ltd., YFY Inc. issues this lending notice in accordance to Article 22, Paragraph 3 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies.

1.Date of occurrence of the event:2018/03/21
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:
(1)company :Yuen FoongYu Paper MFG (Yangzhou) Co.,Ltd.
(2)relationship to the Company:Affiliates
(3)short-term loan facility with the limit of funds (thousand):
NT$2,037,561
(4)with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand):NT$1,018,781
(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$1,018,781
(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$7,300,135
(2)Accept the cumulative gain or loss amount (thousand) loans to the
company's most recent financial statements:-NT$4,138,947
5.Method of calculation of interest: Annual interest rate of3.25%
6.Terms/conditions and date for repayment: Repayment fund from business
operations and investment income during 2018/3/31~2019/3/30.
7.The Company’s total amount of monetary loans extended
as of the date of occurrence of the event: NT$40,915,215thousands
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:123.12%
9.Sources of funds to extend monetary loans to others:Subsidiary itself
10.Any other matters that need to be specified:
Should the company have any non-cash pooling lending activities with Yuen
Foong Yu Paper MFG (Yangzhou) Co., Ltd or other companies, it shall be
guided according to the ”Procedure for Lending of Funds with Other
Parties”. Furthermore, 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.