Nanchioh Investment Holdings: Statement Regarding Media Reports

1. Date of Event: 115/07/07

2. Company Name: Nanchioh Investment Holdings Co., Ltd.

3. Relationship to Company (Enter '本公司' or 'Subsidiary'):本公司 (Parent Company)

4. Cross-shareholding Ratio: Not applicable

5. Media Source: Online media reports and press release from Taipei City Health Bureau

6. Report Content: (1) As reported: The Minister of Health and Welfare announced strict penalties today, stating that Nanchioh, despite being aware of the issue from the outset, failed to directly report to health authorities and will be fined NT$3 million. (2) According to the press release issued today by the Taipei City Health Bureau, regarding the 'Zhonglian Soybean Salad Oil' carcinogen超标 case, the Bureau found that Nanchioh Oils & Fats Co., Ltd. detected benzo(a)pyrene超标 in its self-inspection of 'Soybean Oil (Raw Material: S/B)' and notified upstream supplier Fu Shou Industrial Co., Ltd. of the raw material anomaly on June 10, but did not report to the health bureau as required by Article 7, Paragraph 5 of the Food Safety and Sanitation Management Act. The Bureau has therefore imposed a NT$3 million fine under Article 47 of the same Act.

7. Background: In accordance with its food monitoring program, Nanchioh Oils & Fats conducts self-inspections, and oil suppliers provide quality reports. Nanchioh also performs incoming raw material inspections before acceptance. Nanchioh's laboratory tested first-grade soybean oil supplied by Fu Shou Industrial Co., Ltd. and detected benzo(a)pyrene超标. However, the tested sample was a retained sample, while the rest of the first-grade soybean oil had already been transferred into storage tanks. Therefore, Nanchioh conducted inspections on the oil in the tanks and two finished products, all of which complied with standards. Due to doubts about the retained sample's results, Nanchioh also sent samples to Taiwan Inspection and Certification Corporation for testing, which confirmed benzo(a)pyrene超标. However, since the oil in the tanks and the two finished products tested compliant, Nanchioh concluded that this batch of raw material was not contaminated and therefore no legal reporting obligation applied.

8. Response Measures: (1) As of now, the Company has not yet received the official penalty notice from the Taipei City Health Bureau. Upon receipt, it will consult with legal counsel and pursue administrative remedies as permitted by law. (2) The Company is not the subject of the administrative penalty. Nanchioh Oils & Fats Co., Ltd. is a subsidiary in which the Company holds an equity investment.

9. Other Matters to be Clarified: All edible oil products manufactured by Nanchioh Oils & Fats comply with national food safety and sanitation regulations, and their quality and safety are assured.