Chih-Shih-Teh Corp. Announces New Loans from Subsidiary, Exceeding NT$10 Million and 2% of Net Worth

1. Date of occurrence: 115/05/12 2. Recipient of funds: (1) Company name: Chuan Neng Carbon Harmony (Beijing) Environmental Technology Co., Ltd. (2) Relationship with the company lending funds: A subsidiary of Chuan Yuan (China) Machinery Co., Ltd. with a 60% shareholding. (3) Limit of funds lent (thousands of NT$): 199,311 (4) Balance of original loans (thousands of NT$): 46,300 (5) Amount of new loans (thousands of NT$): 46,300 (6) Is this a loan authorized by the board of directors for installment disbursement or revolving use to the same borrower? Yes (7) Balance of loans outstanding as of the date of occurrence (thousands of NT$): 92,600 (8) Reason for new loans: Short-term financing for subsidiary's operational turnover. 3. Collateral provided by the company receiving the loan: (1) Content: None (2) Value (thousands of NT$): 0 4. Most recent financial statements of the company receiving the loan: (1) Capital (thousands of NT$): 46,290 (2) Accumulated profit/loss (thousands of NT$): -50,121 5. Interest calculation method: As per contract. 6. Repayment terms: (1) Conditions: Can be repaid early or in installments. (2) Date: To be repaid in full upon maturity or repaid in advance. 7. Balance of loans outstanding as of the date of occurrence (thousands of NT$): 231,500 8. Ratio of outstanding loans to net worth as of the date of occurrence, based on the company's most recent financial statements: 15.36 9. Source of funds lent by the company: Subsidiary's own funds. 10. Other matters to be described: The total loan amount is RMB 10 million, converted at an exchange rate of RMB to NT$ 4.63. Keyword: Material Information