1. Date of occurrence of the event: 2013/11/11
2. Method of the present increase (decrease) in investment: To invest the newly created company (name pending) with USD34,000,000 out of USD100,000,000 of the original capital investment of FUPY through the off-shore company PPL.
3. Transaction volume, price per unit, and total monetary amount of the transaction:
Transaction volume & price per unit: N/A
Total monetary amount of the transaction: USD100,000,000
(a) FUPY (the original investment company): USD66,000,000
(b) The newly created company (with name pending): USD34,000,000
4. Company names of the invested mainland Chinese companies:
(a) FUPY
(b) The newly created company, name pending
5. Paid-in capital of said invested mainland Chinese companies:
(a) USD96,000,000
(b) Newly created
6. Amount of new capital increment currently planned by said invested mainland Chinese company:
(a) USD36,000,000
(b) USD68,000,000
7. Main business items of said invested mainland Chinese companies:
(a) MEG, DEG, TEG & EO
(b) ASU, C2 Tanks
8. Type of CPA opinion issued for the financial statement of said invested mainland Chinese company for the most recent fiscal year:
(a) No preserved opinion
(b) N/A (newly created)
9. Net worth of said invested mainland Chinese company on the financial statement for the most recent fiscal year:
(a) RMB173,200,367.54
(b) N/A (newly created)
10. Amount of profit/loss of said invested mainland Chinese company on the financial statement for the most recent fiscal year:
(a) -RMB3,263,632.46
(b) N/A (newly created)
11. Amount of actual investment to date in said invested mainland Chinese company:
(a) USD48,000,000
(b) 0
12. Counterpart to the trade and its relationship to the Company: Pacific Petrochemical (Holding) Limited Equity method investee
13. Where the counterpart to the transaction is an actual related party, a public announcement shall also be made of the reason for choosing the related party as trading counterpart and the identity of the previous owner (including its relationship with the company and the trading counterpart), price of transfer, and date of acquisition: Cash capital increase through said existing off-shore investment N/A
14. Where a person who owned the property within the past five years has been an actual related person of the company, a public announcement shall also include the dates and prices of acquisition and disposal by the related person and the person’s relationship to the company at those times: N/A
15. Anticipated profit or loss from the disposal: N/A
16. Terms of delivery or payment (including payment period and monetary amount): Cash
Restrictive covenants in the contract, and other important stipulations: N/A
17. The manner in which the current transaction was decided, the reference basis for the decision on price, and the decision-making department: Cash capital increase the BOD's resolution.
18. Broker: NIL
19. Concrete purpose or use of the acquisition or disposition: Long-term investment
20. Any objection to the present transaction from the board of directors?: NIL
21. Such transaction be identified as related party transaction?: Yes.
22. Date of BOD’s resolution: 2013/11/11
23. Date of Supervisors’ approval: 2013/11/11
24. Total amount of mainland China area investment (including the present investment) approved by the Investment Commission to date: USD269,886,000 (approx. NTD8,096,580,000 in equivalence)
25. Ratio of the total amount of investment (including the present investment) in the mainland China area approved by the Investment Commission to date to the paid-in capital on the financial statement for the most recent period: 91.41%
26. Ratio of the total amount of investment (including the present investment) in the mainland China area approved by the Investment Commission to date to the total assets on the financial statement for the most recent period: 34.61%
27. Ratio of the total amount of investment (including the present investment) in the mainland China area approved by the Investment Commission to date to the parent company’s equity on the financial statement for the most recent period: 50.6%
28. Total amount of actual investment in the mainland China area to date: USD135,886,000 (approx. NTD4,076,580,000 in equivalence)
29. Ratio of the total amount of actual investment in the mainland China area to date to the paid-in capital on the financial statement for the most recent period: 46.03%
30. Ratio of the total amount of actual investment in the mainland China area to date to the total assets on the financial statement for the most recent period: 17.43%
31. Ratio of the total amount of actual investment in the mainland China area to date to the parent company’s equity on the financial statement for the most recent period: 25.48%
32. Amount of recognized profits and losses on investment in the mainland China area for the most recent three fiscal years:
2011: NTD560,122,000
2012: - NTD608,358,000
2013(1st half): -NTD325,326,000
33. Amount of profit remitted back to Taiwan for the most recent three fiscal years:
2011: 0
2012: 0
2013 (1st half): 0
34. Has the CPA issued an opinion on the unreasonableness of the price of the current transaction?: NO
35. Any other matters that need to be specified: NIL