Chao Hui Fined and Ordered to Halt Chrome Plating Operations for Violating Air Pollution Control Regulations

Release Date: August 15, 115 Statement Date: August 14, 115 Statement Time: 10:35:16 Company Code: 1339 Company Name: Chao Hui Subject: On August 14, 115, the company received a ruling from the Changhua County Government Environmental Protection Bureau, imposing a fine for violation of Article 24, Paragraph 2 of the Air Pollution Control Act. (Supplementary Explanation) Applicable Clause: Item 26 Date of Incident: August 14, 115 Explanation: 1. Date of Incident: 8/14/115 2. Party Involved: The Company 3. Cause of Incident (Event Description): The company's plastic product chrome plating process reported a total acid usage of 49.76 metric tons in year 114. Its factory registration building area is 32,585.18 square meters, and the combined horsepower and electric heating capacity of production equipment totals 4,682.75 kilowatts. This falls under the second batch of fixed pollution sources requiring application for installation, modification, and operation permits as announced by the Ministry of Environment — specifically, the metal products processing procedure. However, the company commenced operations without obtaining the required fixed pollution source operation permit, thus violating Article 24 of the Air Pollution Control Act. 4. Handling Process: The company will implement all improvement measures as required by the competent authority, continuously strengthen the operation, maintenance, and management of air pollution control equipment, and proceed with restart procedures according to relevant regulations to ensure full compliance with environmental protection laws. 5. Disposition: Ruling received on August 14, imposing a fine of NT$960,000. Chrome plating operations are suspended effective upon receipt of notice. The company must obtain the fixed pollution source operation permit and related documentation by November 10, 115, and apply to the Changhua County Government Environmental Protection Bureau for inspection to comply with legal requirements. 6. Was a Fine Imposed: Yes 7. Fine Amount (NTD): NT$960,000 8. Estimated Loss or Impact: Fine of NT$960,000; no other significant impacts. 9. Potential Insurance Payout Amount (NTD): Not applicable 10. Improvement Status and Future Measures: The company will complete all improvement measures as required by the competent authority, continue to strengthen the operation, maintenance, and management of air pollution control equipment, and proceed with restart procedures according to regulations to ensure compliance with environmental laws. 11. Has a Major Announcement Already Been Issued on the Same Event: No 12. Other Matters to Note: The suspension of the company’s chrome plating operations currently has no significant impact on the company, as existing inventory levels are sufficient to meet customer demands.