Material Information

2018-12-12

YFY reduce indirect shareholdings in subsidiary, Arizon RFID Technology (Yangzhou) Co., Ltd., over 10%

1.Name of the key subsidiary or a subsidiary deemed as a TWSE listed company
under Article 7, paragraph 3:
Arizon RFID Technology (Yangzhou) Co., Ltd. (”Arizon”)
2.Cause of occurrence:Reduce indirect shareholdings in subsidiary
3.Method of reducing the percentage of its direct or indirect shareholding
in its key subsidiary or a subsidiary deemed as a TWSE listed company under
Article 7, paragraph 3:
(1)Date: 2017/08/01
Reason: The Board of Arizon approved to bring in external investors
Method: Capital increase by cash
Reduced shares: 5%
Volume: Not applicable(Arizon is a limited company)
Unit Price: Not applicable(Arizon is a limited company)
Total Amount: 3,487,400 USD
(2)Date: 2018/12/12
Reason: The Board of YFY approved to allow Arizon to bring in additional
external investors to Arizon.
Method: Capital increase by cash
Reduced shares: 8.49%
Volume: Not applicable(Arizon is a limited company)
Unit Price: Not applicable(Arizon is a limited company)
Total Amount: 48,654,000 RMB
4.Method of losing control over its key subsidiary or a subsidiary deemed as
a TWSE listed company under Article 7, paragraph 3:Not applicable
5.Counterparty to the transaction:
(1)2017/08/01 Yun Sheng International Capital Limited
(2)2018/12/12 Granadilla Limited, DCT Co., Ltd., Fulagai Consulting(Shanghai)
Co., Ltd., Yangzhou Fenghow Consulting Co., Ltd.
6.Relationship with the counterparty of the transaction:None
7.Gain (or loss):Not applicable
8.Total shareholding percentage decreased after current transaction:
Accumulated reduced shareholdings :13.49%
9.Current shareholding percentage after the current transaction:86.51%
10.Name of the independent expert and its opinion on the fairness of the
price in every transaction:Integration Asset Management Limited.
Integration Asset Management Limited deemed Arizon's capital increases by
cash raised 3,487,400 USD and 48,654,000 RMB respectively, and the
transaction prices were reasonable and fair.
11.Name of the independent expert and its opinion on the influence over the
shareholders' equity of the listed company:
Integration Asset Management Limited.
The dilution and diversification of shares has no disadvantages to the
shareholders equity of the company.
12.Whether the Listed company remains listing or not:No
13.Meeting date of the audit committee:2018/12/12
14.Resolution of the audit committee’s meeting:Approved
15.Meeting date of the board of directors:2018/12/12
16.Resolution of board of directors’ meeting:Approved
17.Any other matters that need to be specified:None