Material Information

2018-08-13

YFY announces on behalf of subsidiary, Jiangyin Yuen Foong Yu Paper MFG. Co., Ltd., to dispose the subsidiary's land and the buildings thereon

1.Name and nature of the subject matter (e.g.land located at
Sublot XX, Lot XX, North District, Taichung City):
The land located at No.258, Tongjiang South Rd., and Jiangfeng Village,
Jiangyin City, Jiangsu Province, and the buildings attached thereto.
2.Date of the occurrence of the event:2018/08/13
3.Transaction volume (e.g.XX square meters, equivalent to XX p'ing),
unit price, total transaction price:
The land are 198,404.92 square meters and 4,571.44 square meters respectively
and the building area 29,673.14 square meters. The total compensated amount
is about RMB 369,829 thousands.
4.Counterparty to the trade and its relationship with the company (if
the trading counterpart is a natural person and is not an actual
related
party of the Company, the name of the trading counterpart is not
required to be disclosed):
The Jiangyin Municipal Bureau of Land and Resources and the Chengjiang
Street Office of Jiangyin People's Government. Neither is a related party
to the company.
5.Where the counterpart to the trade is an actual related party, a
public announcement shall also include the reason for choosing the
related party as trading counterpart and the identity of the
previous owner (including its relationship with the company and
the trading counterpart), price of transfer and the date of
acquisition:Not applicable.
6.Where a person who owned the property within the past five years has
been an actual related person of the company, a public announcement
shall also include the dates and prices of acquisition and disposal
by the related person and the person’s relationship to the company
at those times:Not applicable.
7.Anticipated loss or profit from the disposal (not applicable in cases
of acquisition of assets) (where originally deferred, the status or
recognition shall be stated and explained):
After deducting necessary costs and the book values of the assets, the
estimated disposal gain for Jiangyin Yuen Foong Yu Paper MFG. Co., Ltd.
will be around RMB 310,354 @thousands.
8.Terms of delivery or payment (including payment period and monetary
amount), restrictive covenants in the contract,
and other important stipulations:
YFY's board authorizes the subsidiary, Jiangyin Yuen Foong Yu Paper MFG.
Co., Ltd., to negotiate and to sign the relevant agreement with the Jiangyin
Government. The total @compensated amount is expected to be paid in three
installments according to the schedule of submission ownership certificates
and the relocation of existing equipment, etc.
9.The manner of deciding on this transaction (such as tender invitation
, price comparison, or price negotiation), the reference basis for the
decision on price and the decision-making department:
In accordance with the relevant rules of the Jiangyin Government concerning
land and other assets expropriation.
10.Name of the professional appraisal institution and its appraisal
amount:Not applicable.
11.Reason for any significant discrepancy with the transaction amount,
and opinion of the certifying CPA:Not applicable.
12.Is the appraisal report price a limited price or specific price?:
Not applicable.
13.Has an appraisal report not yet been obtained?:Not applicable.
14.Reason for an appraisal report not been obtained:
The counterparties are the local government.
15.Broker and broker's fee:None.
16.Concrete purpose or use of the acquisition or disposal:
Cooperation with the Jiangyin Government for city development and change
of zoning plan.
17.Do the directors have any objection to the present transaction?:None.
18.Any other matters that need to be specified:None.