Material Information

2018-03-21

On behalf of YFY Packaging (YangZhou) Investment 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 5 companies.
(2)relationship to the Company:Affiliates
(3)short-term loan facility with the limit of funds (thousand):
NT$1,473,988
(4)with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand):NT$1,473,988
(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$1,473,988
(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$73,699
(4)with the balance of the original loan funds (thousand):NT$0
(5)The amount of new loans to associated (thousand):NT$73,699
(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$73,699
(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$8,802,690
(2)Accept the cumulative gain or loss amount (thousand) loans to the
company's most recent financial statements:-NT$4,325,813
5.Method of calculation of interest: Annual interest rate of3.50%
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$40,915,215 thousands
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 YFY Packaging (YangZhou) Investment
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 200% of the prior year net worth of YFY
Packaging (YangZhou) Investment Co., Ltd. Furthermore, the total loan
amount may not exceed 200% of the prior year net worth of YFY Packaging
(YangZhou) Investment 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 YFY Packaging
(YangZhou) Investment Co., Ltd. Furthermore, the total loan amount may
not exceed 40% of the prior year net worth of YFY Packaging (YangZhou)
Investment Co., Ltd..

The aforementioned loan arrangement and limitation is specifically for
the participating members of the initial 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. wholly-owned subsidiaries, totaliy 5 companies
(1)Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd.:NT$7,300,135
(2)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd.: NT$410,153
(3)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.: NT$268,258
(4)Yuen Foong Yu Paper Enterprises (Jiaxing) Co., Ltd.: NT$191,608
(5)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd.: NT$300,130
B. non-wholly-owned subsidiaries
(1)Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd. :NT$332,406

Accumulated profit/loss (thousand):
A. wholly-owned subsidiaries, totaliy 5 companies
(1)Yuen Foong Yu Paper MFG (Yangzhou) Co., Ltd. :-NT$4,138,947
(2)Yuen Foong Yu Paper Enterprise (Kunshan) Co., Ltd. :NT$80,067
(3)Yuen Foong Yu Paper Enterprise (Suzhou) Co., Ltd.: -NT$105,638
(4)Yuen Foong Yu Paper Enterprises (Jiaxing) Co., Ltd. : -NT$39,762
(5)Yuen Foong Yu Paper Enterprise (Shanghai) Co., Ltd.:-NT$89,535
B. non-wholly-owned subsidiaries
(1)Yuen Foong Yu Paper Enterprise (Nanjing) Co., Ltd. :-NT$31,998