1.    Date the punishment was imposed: Jan. 25, 2017
2.    Recipient of the punishment: Responsible person Chang, XX of Kuen Chang Uppertech Co., Ltd. (hereinafter KC Uppertech, TPEx Stock Code 6265)
3.    Legal basis of the punishment: paragraph 1, Article 14-2, of the Securities and Exchange Act.
4.    Facts of the violation and reasons: The board of directors of KC Uppertech nominated an independent director in 2016. The board has reviewed the qualification thereof. The proposed appointment was resolved in the shareholder’s general meeting afterwards. The independent director, however, acted as a director of KC Uppertech in the two years before the appointment.  This was in violation of subparagraph 2, paragraph 1, Article 3 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies. Pursuant to paragraph 3, Article 14-2 of the Securities and Exchange Act, therefore, the person should not act as an independent director.  The total number of independent directors for KC Uppertech, as a result, was less than two, which constituted a violation of paragraph 1, Article 14-2 of the Securities and Exchange Act.
5.    The disciplinary action: Pursuant to subparagraph 2, paragraph 1, Article 178 and paragraph 1, Article 179 of the Securities and Exchange Act, an administrative fine of NTD240,000 was imposed on the responsible person of the Company.