Resolves conduct capital reduction

Subject:The Board of Directors of the company resolves to conduct capital reduction

Date of events:2018/05/11

Contents:

1.Date of the board of directors resolution:2018/05/11

2.Reason for the capital reduction:

Reason for the capital reduction: In order to adjust the capital structure and increase the return on equity, it is proposed to reduce capital and refund cash to shareholders.

3.Amount of the capital reduction:NTD34,657,476,530

4.Cancelled shares:3,465,747,653 shares

5.Capital reduction ratio:20%

6.Share capital after the capital reduction:NTD138,629,906,090

7.Scheduled date of the shareholders' meeting:2018/06/22

8.Estimate listed common shares after the capital reduction:

13,862,990,609 shares

9.The estimate ratio of listed shares to the company's issued

common shares, after the capital reduction:100%

10.Any other matters that need to be specified:

(1)Based on the total number of shares issued, approximately 200 shares (ie about 800 shares will be re-issued for each stock) will be reduced per 1,000 share.

(2)The new shares with cash replenishment were issued without entities, their rights and obligations were the same as those of the original shares. After the approval of this capital reduction from the shareholders' meeting and the authorities, the Board of Directors will set schedule and timeline for the record date of the capital reduction and that of exchange of shares. Before the record date, any changes to the capital reduction ration and the amount returned per share caused by adjustment in regulations or request from the authorities, or in response to any other factors, will be brought up at the shareholders' meeting in order to authorize the Chairman of the Board to deal with the issue.