Champion Announces Intercompany Loans in Accordance with Article 22, Paragraph 1, Clause 3 of the Regulations for Handling Loans and Guarantees by Publicly Issued Companies

1. Factual Date: 115/08/14

2. Information on Entities Receiving Loans:

(1) Company Name: Hsin Yi Ceramics (China) Co., Ltd. (2) Relationship: Subsidiary directly and indirectly 100% owned by the company (3) Loan Limit (in thousand NTD): 1,052,493 (4) Previous Loan Balance (in thousand NTD): 431,010 (5) Amount of New Loan This Time (in thousand NTD): 311,285 (6) Whether the board authorized the chairman to disburse loans in installments or allow revolving use to the same borrower: Yes (7) Loan Balance as of Factual Date (in thousand NTD): 742,295 (8) Reason for New Loan: For working capital.

(1) Company Name: Champion Hsin Ye Co., Ltd. (2) Relationship: Subsidiary directly and indirectly 100% owned by the company (3) Loan Limit (in thousand NTD): 1,052,493 (4) Previous Loan Balance (in thousand NTD): 50,000 (5) Amount of New Loan This Time (in thousand NTD): 50,000 (6) Whether the board authorized the chairman to disburse loans in installments or allow revolving use to the same borrower: Yes (7) Loan Balance as of Factual Date (in thousand NTD): 100,000 (8) Reason for New Loan: For working capital.

3. Collateral Provided by Loan Recipients:

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

4. Latest Financial Statements of Loan Recipients:

(1) Capital (in thousand NTD): 2,148,869 (2) Accumulated Deficit (in thousand NTD): -2,563,799

5. Interest Calculation Method: As stipulated in the contract.

6. Repayment Terms:

(1) Conditions: As stipulated in the contract. (2) Date: As stipulated in the contract.

7. Total Loan Balance as of Factual Date (in thousand NTD): 1,294,238

8. Ratio of Loan Balance to Net Equity of the Publicly Issued Company (Latest Financial Statements): 24.59

9. Source of Funds for Loans to Others: Parent company

10. Other Disclosures:

(1) Exchange rates used: CNY1:NTD4.789, USD1:NTD32.31 (2) The loan amount to Hsin Yi Ceramics (China) Co., Ltd. this time includes CNY30,000 thousand (refinancing) and CNY35,000 thousand (new loan). (3) The net equity figure is based on the financial statements reviewed by auditors as of 115.6.30.