Announcement of the indirect investment in Mainland China made by the Company

Statement:

1.Date of occurrence of the event:2019/03/22
2.Method of the present increase (decrease) in investment:
The 100%-owned subsidiary, Elite Electronic Material (Kunshan) Co., Ltd.
capitalizes its undistributed earnings of year 2017
3.Transaction volume, price per unit, and total monetary
amount of the transaction:USD10,000,000
4.Company name of the invested mainland Chinese company:
Elite Electronic Material (Kunshan) Co., Ltd.
5.Paid-in capital of said invested mainland Chinese company:
RMB 150,559 thousands
6.Amount of new capital increment currently planned
by said invested mainland Chinese company:Not applicable
7.Main business items of said invested mainland Chinese
company:Production and sales of Copper Clad Laminates and Prepreg
8.Type of CPA opinion issued for the financial statement
of said invested mainland Chinese company for the most
recent fiscal year:Unqualified opinion
9.Total equity of said invested mainland Chinese company on
the financial statement for the most recent fiscal year:
RMB 1,548,796 thousands
10.Amount of profit/loss of said invested mainland Chinese
company on the financial statement for the most recent
fiscal year:RMB 318,298 thousands
11.Amount of actual investment to date in said invested
mainland Chinese company:NTD 650,816 thousands
12.Counterparty to the transaction and its relationship
to the Company:Not applicable
13.Where the counterparty to the transaction is an actual
related party, public announcement shall also be made of
the reason for choosing the related party as the
counterparty and the identity of the previous owner
(including its relationship with the company and the
trading counterpart), the date of transfer, and the price:Not applicable
14.Where a person who owned the subject matter of the
transaction within the past five years has been an
actual related party of the company, public
announcement shall also be made of the dates and
prices of acquisition and disposal by the related
party and such party's relationship to the company
at those times:Not applicable
15.Gain (or loss) on disposal:Not applicable
16.Terms of delivery or payment (including payment period
and monetary amount), restrictive covenants in the
contract, and other important stipulations:Not applicable
17.The manner of deciding on this transaction, the reference
basis for the decision on price and the decision-making
department:Not applicable
18.Broker:Not applicable
19.Concrete purpose of the acquisition or disposal:
For the purpose of business operation requirement
20.Do the directors have any objection to the present transaction?:None
21.Is it a related party transaction?:Not applicable
22.Date of the board of directors’resolution:2019/03/22
23.Date of the recognition of the supervisors
or the board of independent directors’resolution:2019/03/22
24.Total amount of mainland China area investment
(including the present investment) approved by the
Investment Commission to date:NTD 2,912,638 thousands
25.Ratio of the total amount of investment (including
the present investment) in the mainland China area approved
by the Investment Commission to date to the paid-in capital
on the financial statement for the most recent period:91.1%
26.Ratio of the total amount of investment (including
the present investment) in the mainland China area
approved by the Investment Commission to date to the
total assets on the financial statement for the most
recent period:16.5%
27.Ratio of the total amount of investment (including
the present investment) in the mainland China area approved
by the Investment Commission to date to the shareholders’
equity on the financial statement for the most recent period:24.5%
28.Total amount of actual investment in the mainland China
area to date:NTD 1,399,946 thousands
29.Ratio of the total amount of actual investment in the
mainland China area to date to the paid-in capital on
the financial statement for the most recent period:43.8%
30.Ratio of the total amount of actual investment in the
mainland China area to date to the total assets on the
financial statement for the most recent period:7.9%
31.Ratio of the total amount of actual investment in the
mainland China area to date to the shareholders’ equity
on the financial statement for the most recent period:11.8%
32.Amount of recognized profits and losses on investment in
the mainland China area for the most recent three fiscal years:
Profits recognized in year 2016: NTD 2,753,603 thousands
Profits recognized in year 2017: NTD 3,161,774 thousands
Profits recognized in year 2018: NTD 2,290,946 thousands
33.Amount of profit remitted back to Taiwan for the most
recent three fiscal years:
Year 2016: NTD 1,758,757 thousands
Year 2017: NTD 2.819,181 thousands
Year 2018: NTD 0
34.Has the CPA issued an opinion on the unreasonableness of the price
of the current transaction?:Not applicable
35.Name of the CPA firm:Not applicable
36.Name of the certifying CPA:Not applicable
37.The practice certificate number of the CPA:Not applicable
38.Any other matters that need to be specified:None