Date of announcement 2017/02/16
Time of announcement 19:07:51

Date of events 2017/02/16
To which item it meets paragraph 20
Statement
1.Date of occurrence of the event: 2017/02/16
2.Method of the present increase (decrease) in investment: KGI Bank will invest JiangSu Suyin KGI Consumer Finance Co.,Ltd. (the name to be confirmed) launched by Bank of
JIANGSU in Mainland China.
3.Transaction volume, price per unit, and total monetary amount of the transaction: RMB 200.4 million.
4.Company name of the invested mainland Chinese company:JiangSu Suyin KGI Consumer Finance Co., Ltd (the name to be confirmed).
5.Paid-in capital of said invested mainland Chinese company: The company is newly established with registered capital of RMB 600 million.
6.Amount of new capital increment currently planned by said invested mainland Chinese company: Not applicable. The company is newly established with registered capital of RMB 600 million.
7.Main business items of said invested mainland Chinese company: Issuing consumer personal loans.
8.Type of CPA opinion issued for the financial statement of said invested mainland Chinese company for the most recent fiscal year: N/A
9.Net worth of said invested mainland Chinese company on the financial statement for the most recent fiscal year: N/A
10.Amount of profit/loss of said invested mainland Chinese company on the financial statement for the most recent fiscal year: N/A
11.Amount of actual investment to date in said invested mainland Chinese company: 0
12.Counterparty to the transaction and its relationship to the Company: KGI Bank is launching JiangSu
Suyin KGI Consumer Finance Co.,Ltd. with Bank of JIANGSU.and Heilan Home Co.. All co-sponsors are not KGI Bank's related parties.
13.Where the counterparty to the transaction is an actual related party, public announcement shall also be made of the reason for choosing the related party as the counterparty and the identity of the previous owner (including its relationship with the company and the trading counterpart), the date of transfer, and the price: None.
14.Where a person who owned the subject matter of the transaction within the past five years has been an actual related party of the company, public announcement shall also be made of the dates and prices of acquisition and disposal by the related party and such party's relationship to the company at those times: None.
15.Gain (or loss) on disposal: N/A
16.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important stipulations: Paid in accordance with the transaction schedule, and promised not to transfer its holdings within 5 years after the establishment of the company ( except with the requirements of the administration)
17.The manner of deciding on this transaction, the reference basis for the decision on price and the decision-making department:The newly established company/Board meeting.
18.Broker:None.
19.Concrete purpose of the acquisition or disposal: Leverage this investment as a key to entry the new consumer finance market in Mainland China. Also, we will develop the innovated consumer banking business models in China in order to bring in all the synergies together.
20.Do the directors have any objection to the present transaction?: None.
21.Total amount of mainland China area investment (including the present investment) approved by the Investment Commission to date: USD 30 million，equivalent to NTD 968 million
(including the present investment：about NTD 1,890 million).
22.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: 2.10% (including the present investment：4.10%).
23.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:0.19% (including the present investment：0.37%).
24.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 shareholders’ equity on the financial statement for the most recent period: 1.63%(including the present investment：3.19%)
25.Total amount of actual investment in the mainland China area to date: NTD 968 million.
26.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: 2.10%.
27.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: 0.19%.
28.Ratio of the total amount of actual investment in the mainland China area to date to the shareholders’ equity on the financial statement for the most recent period: 1.63%.
29.Amount of recognized profits and losses on investment in the mainland China area for the most recent three fiscal years: 2014：N/A, 2015：NTD -247 million, 2016：NTD -234 million.
30.Amount of profit remitted back to Taiwan for the most recent three fiscal years:0
31.Has the CPA issued an opinion on the unreasonableness of the price of the current transaction?:N/A
32.Any other matters that need to be specified: The case has yet to be CDF and the cross-strait authorities approved the follow-up after the relevant procedures.