Poteen Announces Fund Lending to Itself and Subsidiary in Accordance with Public Company Guidelines

1. Date of Fact: 115/07/20

2. Recipient of Fund Lending: (1) Company Name: Jingcheng Materials Co., Ltd. (2) Relationship with Lending Company: Direct investment by the Company or through a company holding 100% voting rights (3) Lending Limit (in thousand NT$): 959,707 (4) Previous Outstanding Balance (in thousand NT$): 328,572 (5) Amount of New Lending (in thousand NT$): 25,804 (6) Is this a board-authorized arrangement allowing the chairman to disburse funds in installments or on a revolving basis to the same recipient?: No (7) Outstanding Balance as of Fact Date (in thousand NT$): 354,376 (8) Reason for New Lending: Working capital requirements

3. Collateral Provided by Recipient: (1) Description: None (2) Value (in thousand NT$): 0

4. Latest Financial Statement of Recipient: (1) Capital (in thousand NT$): 780,000 (2) Accumulated Deficit (in thousand NT$): -333,361

5. Interest Calculation Method: 0% per annum

6. Repayment Terms: (1) Conditions: Full principal repayment upon maturity (2) Date: One year after disbursement

7. Total Outstanding Lending Balance as of Fact Date (in thousand NT$): 363,906

8. Ratio of Outstanding Lending to Net Equity of Public Company (based on latest financials): 21.37%

9. Source of Lending Funds: Subsidiary itself

10. Other Matters to be Disclosed: None