1312 Kuo Chiao Announces Subsidiary Funding to Quanzhou Guo Heng and Jin Ya Investments

Disclosure Date: 1150812 Statement Date: 1150811 Statement Time: 171048 Company Code: 1312 Company Name: Kuo Chiao Subject: Announcement on behalf of subsidiary BVI Hailu Limited Investment Company pursuant to Article 22, Paragraph 1, Clause 3 of the Handling Principles for Loans and Guarantees by Publicly Issued Companies Applicable Clause: Clause 23 Factual Date: 1150811 Explanation: 1. Factual Date: 115/08/11 2. Recipient of Funds: (1) Company Name: Quanzhou Guo Heng Chemical Co., Ltd. (2) Relationship with Lending Company: Both are 100% directly invested subsidiaries of the same parent company (3) Loan Limit (in thousand NT$): 12,466,587 (4) Previous Loan Balance (in thousand NT$): 0 (5) Amount of New Loan (in thousand NT$): 1,429,200 (6) Is this a loan authorized by the board for the chairman to disburse in installments or on a revolving basis to the same recipient: Yes (7) Loan Balance as of Factual Date (in thousand NT$): 1,429,200 (8) Reason for New Loan: Working capital requirements

(1) Company Name: BVI Jin Ya Investment Co., Ltd. (2) Relationship with Lending Company: Both are 100% directly invested subsidiaries of the same parent company (3) Loan Limit (in thousand NT$): 12,466,587 (4) Previous Loan Balance (in thousand NT$): 258,080 (5) Amount of New Loan (in thousand NT$): 0 (6) Is this a loan authorized by the board for the chairman to disburse in installments or on a revolving basis to the same recipient: Yes (7) Loan Balance as of Factual Date (in thousand NT$): 258,080 (8) Reason for New Loan: Not applicable

3. Collateral Provided by Recipient Company: (1) Description: Promissory Note (2) Value (in thousand NT$): 1,429,200

4. Latest Financial Statements of Recipient Company: (1) Capital (in thousand NT$): 12,062,448 (2) Accumulated Profit/Loss (in thousand NT$): -5,255,783

5. Interest Calculation Method: Quarterly interest payment

6. Repayment Terms: (1) Conditions: Repayment from working capital (2) Date: Full repayment within one year from first disbursement

7. Total Loan Balance as of Factual Date (in thousand NT$): 1,687,280

8. Ratio of Total Loan Balance to Net Assets of the Publicly Issued Company (based on latest financial statements): 5.75%

9. Source of Funds Lent: The subsidiary itself

10. Other Matters to be Disclosed: 1. New loan amount: CNY 300 million; reference exchange rate: 4.764 (NT$/CNY) 2. Reference exchange rates as of latest financial statement date (115.7.31): CNY 4.764; USD 32.26 (NT$/USD)