Mengli Announces Board Approval for Cash Capital Increase through Issuance of Common Shares

1. Board Resolution Date: 115/06/16
2. Source of Capital Increase: Cash issuance of common shares
3. Whether the issuance of new shares is under a blanket registration (if yes, specify the planned issuance period; if no): No
4. Total Issuance Amount and Number of Shares (excluding employee allocation for surplus or reserve capitalization): The company plans to issue up to 8,500 thousand common shares, with a total par value not exceeding NT$1,000,000 thousand.
5. Amount and number of shares issued in this round under a blanket registration: Not applicable.
6. Remaining amount and share balance after this issuance under a blanket registration: Not applicable.
7. Par Value per Share: NT$10.
8. Issue Price: The actual issue price will be authorized to the Chairman, upon regulatory approval, to be jointly determined with the lead underwriter based on market conditions and relevant regulations.
9. Number of Shares or Allocation Amount for Employee Subscription: In accordance with Article 267 of the Company Act, 10%–15% of the total new shares issued shall be reserved for subscription by company employees.
10. Publicly Offered Shares: Pursuant to Article 28-1 of the Securities and Exchange Act, 10% of the total new shares issued shall be offered publicly.
11. Subscription or Free Allocation Ratio for Existing Shareholders: The remaining 75%–80% of the total new shares shall be allocated to existing shareholders in proportion to their holdings as recorded in the shareholder register on the subscription benchmark date.
12. Handling of Fractional Shares and Unsubscribed Shares: Fractional shares less than one share arising from existing shareholders’ subscriptions may be consolidated into whole shares by shareholders at the company’s share transfer agent within five days from the share transfer suspension date. Any unsubscribed fractional shares, or shares abandoned by existing shareholders or employees, shall be authorized to the Chairman to allocate to specific investors at the issue price.
13. Rights and Obligations of the Newly Issued Shares: Identical to those of the already issued shares.
14. Use of Proceeds from the Capital Increase: Repayment of bank loans and augmentation of working capital.
15. Rationality and Necessity of Raising Capital After Cash Reduction (applicable if cash reduction was conducted in the current or prior year): Not applicable.
16. Other Matters to be Disclosed:
(1) Any necessary amendments to key elements of this plan—including issue price, funding sources, project items, fund utilization plan and progress, expected benefits, and other issuance-related matters—due to market conditions or regulatory requirements, shall be fully authorized to the Chairman for handling.
(2) After the filing of this cash capital increase with the competent authority becomes effective, matters such as the subscription benchmark date, capital increase benchmark date, and other unresolved issues shall be authorized to the Chairman to handle in accordance with actual circumstances and relevant laws and regulations.