1. Date the fine was imposed: November 17, 2016.
2. Recipient of the fine: Mr. Lin, the responsible party of Lotus Pharmaceutical Co., LTD.
3. Legal basis of the fine: Article 36-1, of the Securities and Exchange Act, and Article 31 of Regulations Governing the Acquisition and Disposal of Assets by Public Companies.
4. Facts of the violation and reasons: The Board of Directors of Lotus Pharmaceutical Co., LTD. passed a resolution on January 16, 2014 to acquire 95% of the shareholding of Alvogen Asia Ltd., from Alvogen Lux Holdings S.a.r.l at a cost of USD 8,265,000. Later, the parties agreed to buy back the ownership of the shares and covenanted upon the reimbursement schedule of the share subscription fees and other related matters, but did not modify the public announcement within two (2) days commencing immediately from the date of occurrence of the event. This fact is found in violation of Article 31 of Regulations Governing the Acquisition and Disposal of Assets by Public Companies.
5. Resulting fine: According to Subparagraph 7, Paragraph 1, Article 178 and Article 179 of the Securities and Exchange Act, we impose a fine of NT$ 240,000 on the responsible party of the company.