Fumao Oils Announces Fine Imposed by Taichung City Government

Announcement Date: August 6, 115 Statement Date: August 5, 115 Statement Time: 17:01:42 Company Code: 1225 Company Name: Fumao Oils Subject: Announcement of Administrative Penalty Imposed by Taichung City Government Applicable Clause: Clause 26 Event Date: August 5, 115

Details: 1. Event Date: August 5, 115 2. Entity Involved: The Company 3. Cause of Event (Event Description): Benzopyrene (BaP) was detected in the 'degummed oil' produced by Zhonglian Oils Co., Ltd., the Company's contract manufacturer, which failed to meet the quality standards stipulated in the contract between the Company and Taiwan Sugar Corporation. Taiwan Sugar Corporation notified the Company of this matter on May 18, 115. The Taichung City Government determined that the Company had delayed reporting the incident and imposed a fine of NT$3 million under Article 7, Paragraph 5 of the Food Safety and Sanitation Management Act. 4. Handling Process: The Company will implement improvement measures as directed by the competent authority. 5. Penalty Imposed: A fine of NT$3,000,000. 6. Whether a Penalty Was Imposed: Yes 7. Amount of Fine (NT$): 3,000,000 8. Estimated Potential Loss or Impact: NT$3,000,000 9. Amount Potentially Covered by Insurance (NT$): None 10. Improvement Status and Future Response Measures: The Company will carry out improvement measures as instructed by the competent authority. Business operations remain normal. 11. Has a Major Information Announcement Been Previously Issued Regarding the Same Incident: No 12. Other Matters to Be Disclosed: None