Material Information

2018-03-21

On behalf of Yuen Foong Yu Paper Mfg. (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:
A
(1)company :Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd.
and other wholly-owned subsidiaries, totaled 21 companies
(2)relationship to the Company: Affiliates
(3)short-term loan facility with the limit of funds (thousand):
NT$5,778,434
(4)with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand): NT$694,500
(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$694,500
(8)The new loan funds with reason: To renew annual contract of the
cash pooling business of the company
B
(1)company:Yuen Foong Yu Papers (Guangzhou) Co., Ltd. and other
non-wholly-owned subsidiaries, totaled 3 companies.
(2)relationship to the Company: Affiliates
(3)short-term loan facility with the limit of funds (thousand):
NT$288,922
(4) with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand): NT$288,922
(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$288,922
(8)The new loan funds with reason: To renew annual contract of the cash
pooling business of the company.
C
(1)company:Shanghai Yuen Foong Yu International Trading Co., Ltd.
(2)relationship to the Company:Affiliates
(3)short-term loan facility with the limit of funds (thousand):NT$5,778,434
(4)with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand): NT$2,408
(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$2,408
(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$15,695,234
(2)Accept the cumulative gain or loss amount (thousand) loans to the
company's most recent financial statements: -NT$2,939,747
5.Method of calculation of interest:annual interest rate of 3.50%
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:
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 any of the wholly-owned subsidiaries
directly or indirectly held by YFY Inc.. The loan amount with these
companies may not exceed RMB 150 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.

Second loan arrangement is with 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 may not
exceed 40% of the prior year net worth of Yuen Foong Yu Paper MFG (Yangzhou)
Co., Ltd.

Third loan arrangement is with Shanghai Yuen Foong Yu International Trading
Co., Ltd.. The loan amount with Shanghai Yuen Foong Yu International
Trading Co., Ltd. may not exceed RMB 520 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. wholly-owned subsidiaries, totaliy 21 companies
(1)Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd. :NT$229,940
(2)Yuen Foong Yu Paper Enterprise (Dongguan) Co., Ltd. :NT$229,870
(3)Yuen Foong Yu Paper Enterprise (Xiamen) Co., Ltd. :NT$242,200
(4)Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd. :NT$191,608
(5)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd. :NT$410,153
(6)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.:NT$268,258
(7)Yuen Foong Yu Paper Enterprises (Jiaxing) Co., Ltd. :NT$191,608
(8)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd. :NT$300,130
(9)Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd. :NT$304,886
(10)Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd. :NT$302,214
(11)YFY Packaging (YangZhou) Investment Co., Ltd. :NT$2,039,071
(12)Yuen Foong Yu Family Care (Kunshan) Co., Ltd. :NT$1,050,510
(13)Yuen Foong Yu Family Paper (Beijing) Co., Ltd. :NT$1,159,477
(14)YUEN FOONG YU INVESTMENT CO.,LTD:NT$3,459,027
(15)YFY Family Paper (Yangzhou) CO.,LTD. :NT$858,833
(16)Yuen Foong Yu Blue Economy Natural Resources(Yangzhou)Co., Ltd.:
NT$229,375
(17)YFY Jupiter Trading (Shenzhen) Ltd. :NT$4,087
(18) Kunshan YFY Jupiter Green Packaing Ltd. :NT$9,196
(19) Yuen Foong Yu (Kunshan) Designing and Printing Co., Ltd. :NT$114,824
(20) Shenzhen Jinglun Paper Co., Ltd. : NT$14,816
(21) Guangdong Ding Feng Co., Ltd. :NT$3,002,472
B. non-wholly-owned subsidiaries, totaliy 3 companies
(1)Yuen Foong Yu Papers (Guangzhou) Co., Ltd. :NT$345,171
(2)Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd. :NT$332,406
(3)Jiangyin Yuen Foong Yu Paper Mfg. Co., Ltd. :NT$400,472
C. Shanghai Yuen Foong Yu International Trading Co., Ltd.:NT$4,630

Accumulated profit/loss (thousand):
(1)Yuen Foong Yu Paper Enterprise (Zhongshan) Co., Ltd. :NT$591,612
(2)Yuen Foong Yu Paper Enterprise (Dongguan) Co., Ltd. :NT$144,442
(3)Yuen Foong Yu Paper Enterprise (Xiamen) Co., Ltd. :-NT$351,973
(4)Yuen Foong Yu Paper Enterprise (Fuzhou) Co., Ltd. :-NT$315,849
(5)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd. :NT$80,067
(6)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.:-NT$105,638
(7)Yuen Foong Yu Paper Enterprises (Jiaxing) Co., Ltd. :-NT$39,762
(8)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd. :-NT$89,535
(9)Yuen Foong Yu Paper Enterprise (Tianjin) Co., Ltd. :NT$383,920
(10)Yuen Foong Yu Paper Enterprise (Qingdao) Co., Ltd. :NT$544,451
(11)YFY Packaging (YangZhou) Investment Co., Ltd. :-NT$1,262,763
(12)Yuen Foong Yu Family Care (Kunshan) Co., Ltd. :-NT$585,996
(13)Yuen Foong Yu Family Paper (Beijing) Co., Ltd. :-NT$664,914
(14)YUEN FOONG YU INVESTMENT CO.,LTD:-NT$1,860,241
(15)YFY Family Paper (Yangzhou) CO.,LTD. :NT$182,056
(16)Yuen Foong Yu Blue Economy Natural Resources(Yangzhou)Co., Ltd.:
-NT$104,893
(17)YFY Jupiter Trading (Shenzhen) Ltd. :NT$94,884
(18) Kunshan YFY Jupiter Green Packaing Ltd. :NT$88,256
(19) Yuen Foong Yu (Kunshan) Designing and Printing Co., Ltd. :-NT$578,653
(20) Shenzhen Jinglun Paper Co., Ltd. : NT$72,682
(21) Guangdong Ding Feng Co., Ltd. :NT$2,100,349
B. non-wholly-owned subsidiaries, totaliy 3 companies
(1)Yuen Foong Yu Papers (Guangzhou) Co., Ltd. :NT$225,879
(2)Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd. :-NT$31,998
(3)Jiangyin Yuen Foong Yu Paper Mfg. Co., Ltd. :-NT1,449,736
C. Shanghai Yuen Foong Yu International Trading Co., Ltd.:-NT$6,394