1.Date of occurrence of the event:2018/11/02

2.Cause of occurrence:
(1)THC received a fine notification (No:20-107-110002 and 20-107-110003) from Taichung Environment Protection Bureau on November 2, 2018 with a fine of NTD 20.2 million.
(2)On January 21, 2019, media reported regarding ”Green Citizens' Action Alliance” elected ”2018 Environment Great Damage Award”. THC was fined severely NTD 20 million due to exhaust emission with bypass tube.

3.Course and progression of handling of the matter:
THC operates and manages the Company based on the principles of decent operation, employee care and community contribution. While environmental protection regulations are increasingly strict nowadays, THC takes it as an unshirkable responsibility. In recent years, THC has invested tens of millions to purchase air pollution control equipment in order to comply with environmental protection regulations and standards.
This environmental protection fine was caused of some reasons such as personnel was unfamiliar with laws, lack of environmental protection knowledge, miss-operation led abnormalities, and didn't respond and solve immediately, but definitely not intended to exhaust emission with bypass tube as reported.

4.Anticipated possible loss:
The monetary amount of fine was NTD 20.2 million, and THC had filed a petition. The Company is operating as usual and will announce publicly if any update.

5.Amount of insurance indemnification that might be obtained:N/A

6.Status of remediation and future countermeasures:
THC has reviewed the problems deeply, taken improvements actively, set up related standard operating procedures and carried out certainly. Also, the Company will continuously optimize production process, promote cleaner production, implement pollution control and management, detect and audit regularly in order to comply with current regulations. Moreover, purchase advanced control equipment to enhance off-gas treatment ability, and make sure no more environmental issue in the future.

7.Any other matters that need to be specified:N/A