Yu-Chi KY's Subsidiary Announces New Fund Lending to Fujian Hecheng Footwear Co., Ltd. Reaching Regulatory Threshold

1. Date of Event: 115/06/16

2. Information on the Recipient of Fund Lending:
(1) Company Name: Hong Kong Jiahe Enterprise Co., Ltd.
(2) Relationship with the Lending Company: Hong Kong Jiahe Enterprise Co., Ltd. is the 100% parent company of Fujian Hecheng Footwear Co., Ltd.
(3) Lending Limit (in NT$ thousands): 1,118,338
(4) Previous Outstanding Balance (in NT$ thousands): 205,140
(5) Amount of New Lending (in NT$ thousands): 804,780
(6) Whether the Board Authorized the Chairman to Conduct Multiple or Revolving Lending to the Same Recipient: Yes
(7) Outstanding Balance as of Event Date (in NT$ thousands): 1,009,920
(8) Reason for New Lending: Operational working capital.

3. Collateral Provided by the Borrowing Company:
(1) Description: None
(2) Value (in NT$ thousands): 0

4. Latest Financial Statement of the Borrowing Company:
(1) Capital (in NT$ thousands): 8,920,522
(2) Accumulated Profits/Losses (in NT$ thousands): 7,427,817

5. Interest Calculation Method: Annual interest rate of 3.50%, collected quarterly.

6. Repayment Terms:
(1) Conditions: None
(2) Due Date: One year from the actual disbursement date.

7. Outstanding Lending Balance as of Event Date (in NT$ thousands): 1,009,920

8. Ratio of Outstanding Lending Balance to Net Equity of the Publicly Listed Company (Latest Financial Statement): 7.45%

9. Source of Lending Funds: The subsidiary’s own funds

10. Other Matters to be Disclosed: None

Keywords: Material Information