1.Date of the Punishment Was Imposed: May 20, 2019

2.Recipient of the Punishment: Responsible person of the conduct of Favite Inc., Chen, ○○.

3.Legal Basis of the Punishment: Article 36-1 of the Securities and Exchange Act, Subparagraph 7, Paragraph 1, Article 178 and Paragraph 1, Article 19 of the Securities and Exchange Act at the time when the conduct occurred, Subparagraph 3, Article 19, Subparagraph 1, Paragraph 1, Article 20, and Paragraph 1, Article 21 of the Regulations Governing the Acquisition and Disposal of Assets by Public Companies (hereinafter referred to as the “Regulations”) at the time when the conduct was made.

4.Facts of the Violation and Reasons: Favite Inc. failed to specify the evaluations or evaluation results in the Memorandum Book of Derivatives of August 2017. The derivatives transactions and gain/loss were monitored by the President without, however, the authorization by the Board of Directors. The transaction of SWAP derivatives on February 5, 2017 was approved by the Chairman, and the transaction risk was monitored and controlled by the President (served by the Chairman). It is deemed a violation against Subparagraph 3, Article 19, Subparagraph 1, Paragraph 1, Article 20, and Paragraph 1, Article 21 of the Regulations. 

5.Disciplinary Action: Pursuant to Subparagraph 7, Paragraph 1, Article 178, and Paragraph 1, Article 179 of the Securities and Exchange Act, an administrative fine of NTD 240,000 is imposed on the Responsible Person of the conduct of the Company.