1. Date the fine was imposed: September 9, 2019

2. Recipient of the fine: LuxNet Corporation

3. Legal basis of the fine: Article 36-1, Paragraph 1(7) of Article 178 and Paragraph 1 of Article 179 of the Securities and Exchange Act

4. Facts of the violation and reasons:

The resolution of the board of LuxNet Corporation approved on August 9, 2017 to transfer an account receivable of US$600,000 from Toptrans (Suzhou) Corporation Limited to a loan entry. However, the loan has not been fully recovered. The loan was considered short-term in nature but the repayment has been overdue for more than 1 year, and, therefore, should be held violating Article 3 and 14 of the Regulations Governing Loaning of Funds Making of Endorsements/Guarantees by Public Companies.

5. Resulting fine: Sentenced to the fine, NT$240,000, in accordance with Article 36-1, Paragraph 1(7) of Article 178 and Paragraph 1 of Article 179 of the Securities and Exchange Act and Article 3 and 14 of the Regulations Governing Loaning of Funds Making of Endorsements/Guarantees by Public Companies.