Kuantian Steel Announces Intercompany Loans to Subsidiaries Exceeding Threshold under Taiwan's Disclosure Rules

1. Date of Event: 115/08/13

2. Recipient Companies of Funds:

(1) Company Name: Kuantian Investment & Development Co., Ltd. (2) Relationship: Subsidiary of the Company (3) Loan Limit (in thousand NT$): 646,792 (4) Previous Loan Balance (in thousand NT$): 29,000 (5) Amount of New Loan (in thousand NT$): 29,000 (6) Authorized by Board for Chairman to Make Multiple or Revolving Loans to Same Recipient: Yes (7) Loan Balance as of Event Date (in thousand NT$): 58,000 (8) Reason for New Loan: Working capital needs and short-term financing

(1) Company Name: Jiayuan Investment & Development Co., Ltd. (2) Relationship: Subsidiary of the Company (3) Loan Limit (in thousand NT$): 646,792 (4) Previous Loan Balance (in thousand NT$): 86,500 (5) Amount of New Loan (in thousand NT$): 29,000 (6) Authorized by Board for Chairman to Make Multiple or Revolving Loans to Same Recipient: Yes (7) Loan Balance as of Event Date (in thousand NT$): 115,500 (8) Reason for New Loan: Working capital needs and short-term financing

(1) Company Name: Xiadu Investment Co., Ltd. (2) Relationship: Subsidiary of the Company (3) Loan Limit (in thousand NT$): 646,792 (4) Previous Loan Balance (in thousand NT$): 10,000 (5) Amount of New Loan (in thousand NT$): 10,000 (6) Authorized by Board for Chairman to Make Multiple or Revolving Loans to Same Recipient: Yes (7) Loan Balance as of Event Date (in thousand NT$): 20,000 (8) Reason for New Loan: Working capital needs and short-term financing

(1) Company Name: Meiyou Industrial Co., Ltd. (2) Relationship: Subsidiary of the Company (3) Loan Limit (in thousand NT$): 646,792 (4) Previous Loan Balance (in thousand NT$): 90,000 (5) Amount of New Loan (in thousand NT$): 30,000 (6) Authorized by Board for Chairman to Make Multiple or Revolving Loans to Same Recipient: Yes (7) Loan Balance as of Event Date (in thousand NT$): 120,000 (8) Reason for New Loan: Working capital needs and short-term financing

3. Collateral Provided by Recipient Companies:

(1) Description: None (2) Value (in thousand NT$): 0

4. Latest Financial Statements of Recipient Companies:

(1) Capital (in thousand NT$): 1,258,504 (2) Accumulated Profit/Loss (in thousand NT$): 88,017

5. Interest Calculation Method:

Based on the highest short-term borrowing rate the company obtains from financial institutions during the loan period

6. Repayment Terms:

(1) Conditions: None (2) Date: Due within one year from the date of loan disbursement

7. Total Loan Balance as of Event Date (in thousand NT$): 313,500

8. Ratio of Total Loan Balance to Net Assets in the Company's Latest Financial Statements: 4.85%

9. Source of Loaned Funds:

Financial institutions, others

10. Other Disclosures:

Capital and accumulated profit/loss (in thousand NT$) of each recipient company:

1. Kuantian Investment: Capital 810,804; Accumulated Profit/Loss 126,384. 2. Jiayuan Investment: Capital 131,000; Accumulated Profit/Loss -75,695. 3. Xiadu Investment: Capital 50,000; Accumulated Profit/Loss 530. 4. Meiyou Industrial: Capital 266,700; Accumulated Profit/Loss 36,798.