Yu-Chi KY's Subsidiary Announces New Fund Lending to Fujian Hecheng Footwear Co., Ltd. Reaching Regulatory Threshold

1. Date of Event: 115/06/16

2. Information on the Recipient of Fund Lending: (1) Company Name: Hong Kong Jiahe Enterprise Co., Ltd. (2) Relationship with the Lending Company: Hong Kong Jiahe Enterprise Co., Ltd. is the 100% parent company of Fujian Hecheng Footwear Co., Ltd. (3) Lending Limit (in NT$ thousands): 1,118,338 (4) Previous Outstanding Balance (in NT$ thousands): 205,140 (5) Amount of New Lending (in NT$ thousands): 804,780 (6) Whether the Board Authorized the Chairman to Conduct Multiple or Revolving Lending to the Same Recipient: Yes (7) Outstanding Balance as of Event Date (in NT$ thousands): 1,009,920 (8) Reason for New Lending: Operational working capital.

3. Collateral Provided by the Borrowing Company: (1) Description: None (2) Value (in NT$ thousands): 0

4. Latest Financial Statement of the Borrowing Company: (1) Capital (in NT$ thousands): 8,920,522 (2) Accumulated Profits/Losses (in NT$ thousands): 7,427,817

5. Interest Calculation Method: Annual interest rate of 3.50%, collected quarterly.

6. Repayment Terms: (1) Conditions: None (2) Due Date: One year from the actual disbursement date.

7. Outstanding Lending Balance as of Event Date (in NT$ thousands): 1,009,920

8. Ratio of Outstanding Lending Balance to Net Equity of the Publicly Listed Company (Latest Financial Statement): 7.45%

9. Source of Lending Funds: The subsidiary’s own funds

10. Other Matters to be Disclosed: None

Keywords: Material Information