1907 YFY Paper Announces Subsidiary YFY Cayman Co., Ltd. Board Resolution on Cash Capital Increase

Announcement Date: August 13, 115 Statement Date: August 12, 115 Statement Time: 18:58:20 Company Code: 1907 Company Name: YFY Paper Subject: Announcement on behalf of subsidiary regarding board resolution of YFY Cayman Co., Ltd. to proceed with cash capital increase Applicable Clause: Item 11 Factual Date: August 12, 115

Details: 1. Board Resolution Date: 08/12/115 2. Source of Capital Increase Funds: Cash capital increase from parent company YFY Industrial Paper Co., Ltd. 3. Use of blanket issuance declaration for new shares (Yes, specify planned issuance period / No): No 4. Total Issuance Amount and Number of Shares (excluding employee allocations for surplus or reserve capital increases): USD 13,500,000 / 13,500,000 shares 5. Issuance amount and number of shares in this round under blanket declaration: Not applicable 6. Remaining amount and shares after this issuance under blanket declaration: Not applicable 7. Par value per share: USD 1 8. Issue price: USD 1 per share 9. Employee subscription shares or allocation amount: Not applicable 10. Public offering shares: Not applicable 11. Existing shareholder subscription or free allocation ratio: 100% 12. Handling of fractional shares and unclaimed shares: Not applicable 13. Rights and obligations of newly issued shares: Same as existing shares 14. Purpose of capital increase funds: Long-term investment 15. Rationality and necessity of fundraising after cash reduction (applicable if cash reduction was conducted in current or previous year): Not applicable 16. Other matters to be disclosed: Record date set as 08/14/115