Lipon Announces Additional Endorsement Guarantees for Subsidiaries

1. Date of Event: 115/07/03

2. Details of Endorsed Guarantees:

(1) Company Name: Yide Petrochemical Co., Ltd. (2) Relationship to Guarantee Provider: Subsidiary of the Company (3) Guarantee Limit (in thousand NTD): 1,521,322 (4) Previous Guarantee Balance (in thousand NTD): 893,760 (5) Amount of New Guarantee (in thousand NTD): 478,800 (6) Guarantee Balance as of Event Date (in thousand NTD): 1,372,560 (7) Actual Drawdown by Guaranteed Company (in thousand NTD): 0 (8) Reason for New Guarantee: The parent company provides endorsement guarantee to meet the subsidiary’s bank financing requirements.

(1) Company Name: Yidun Petrochemical International Co., Ltd. (2) Relationship to Guarantee Guarantee Provider: Grand-subsidiary of the Company (3) Guarantee Limit (in thousand NTD): 1,521,322 (4) Previous Guarantee Balance (in thousand NTD): 510,720 (5) Amount of New Guarantee (in thousand NTD): 478,800 (6) Guarantee Balance as of Event Date (in thousand NTD): 989,520 (7) Actual Drawdown by Guaranteed Company (in thousand NTD): 170,453 (8) Reason for New Guarantee: The parent company provides endorsement guarantee to meet the grand-subsidiary’s bank financing requirements.

3. Collateral Provided by Guaranteed Companies:

(1) Description: None (2) Value (in thousand NTD): 0

4. Latest Financial Statements of Guaranteed Companies:

(1) Capital (in thousand NTD): 70,229 (2) Accumulated Profits/Losses (in thousand NTD): 40,830

5. Conditions for Release of Guarantee Liability:

(1) Condition: Expiry of credit limit and full repayment of debt (2) Date: Upon expiry and full repayment

6. Total Endorsement Guarantee Limit (in thousand NTD): 3,042,644

7. Total Guarantee Balance as of Event Date (in thousand NTD): 1,532,160

8. Ratio of Guarantee Balance to the Public Company’s Latest Net Equity: 20.14%

9. Combined Ratio of Guarantee, Long-term Investment, and Fund Lending to Net Equity: 38.58%

10. Other Disclosures:

(1) The actual amount of the new endorsement guarantee is USD 15 million, shared between Yide Petrochemical Co., Ltd. and Yidun Petrochemical International Co., Ltd., and is substantively a single guarantee. (2) The declared amounts are calculated using an exchange rate of 31.92 NTD per USD. (3) Yide Petrochemical Co., Ltd.: Latest financial statements show capital of 70,200 thousand NTD and accumulated profits/losses of 24,009 thousand NTD. (4) Yidun Petrochemical International Co., Ltd.: Latest financial statements show capital of 29 thousand NTD and accumulated profits/losses of 16,821 thousand NTD.