Material Information

2018-12-12

The Board of YFY approved its subsidiary, Arizon RFID Technology (Yangzhou) Co., Ltd., to apply for public listing in Mainland China

1.Applicant:Arizon RFID Technology (Yangzhou) Co., Ltd. (”Arizon”)
2.Relationship to the applicant and shareholding ratios thereof:
95% indirectly held by YFYas of today(such shareholding will become 86.51%
after the newly approved capital increase 【see another announcement of the
same date】)
3.Date of application for listing:First quarter of 2019 (tentative)
4.Name of securities market or exchange applying to:
Stock exchange in Mainland China
5.Any other matters that need to be specified:
The Board of YFY approved proposed public listing application in Mainland
China of YFY subsidiary Arizon.
(1.) Purpose of public offering:
To utilize Mainland China capital market for fundraising to further expand
Arizon's market share, recruit and retain local talents, and enhance
Arizon’s competitiveness.
(2.) Influences to YFY's finance and business operations:
YFY will retain controlling interest over Arizon after its proposed public
listing. Public listing in Mainland China will allow Arizon to tap the
capital market to strengthen the company's capital structure and fund its
future growth.
With injection of new capital, Arizon expects to expand and improve its
current manufacturing capabilities, strengthen its global sales network,
and invest in R&D to further strengthen its market leadership.
YFY shareholders will benefit from expected continued growth of Arizon.
(3.) Method of share diversification:
The new shares to be issued at listing are approximately 25% of Arizon's
total capital at the time of issuance. Company will ask shareholders to
authorize the Board or its representatives to make necessary adjustments
to finalized issuance volumes and prices according to the local regulations,
required capitals and market conditions at Special Shareholder’s Meeting.
(4.)Influences to the continuity of YFY's public listing:
Arizon’s proposed listing will not affect YFY's existing public listing
status in Taiwan.
Uncertainties remains with regards to timing, location, issuance terms,
volume, prices, etc. of Arizon's initial public offering. A Special
Shareholders' Meeting will be convened to authorize the Board or
representatives to make proper adjustments accordingly.