1. Date the punishment was imposed: September 5, 2017

2. Recipient of the punishment: Kuo, ○○, responsible person of the conduct by Tera Xtal Technology Co., Ltd. (public company, stock code 4969). 

3. Legal basis of the punishment: Subparagraph 2, Paragraph 3, Article 36; Subparagraph 4, Paragraph 1, Article 178; and Paragraph 1, Article 179 of the Securities and Exchange Act; and Subparagraph 2, Article 7 of the Securities and Exchange Act Enforcement Rules.

4. Facts of the violation and reasons: Fu Jing Zuan (Jiangsu) Opto-electronics Co., Ltd., the subsidiary of Tera Xtal Technology Co., Ltd., was sued on February 1, 2016 and has received the ruling in April 2017, by which the shareholders interests or the securities prices are materially impacted. However, Tera Xtal Technology Co., Ltd. did not make the announcement within two (2) days from the occurrence of such event. It is deemed as violating Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange Act; and Subparagraph 2, Article 7 of the Securities and Exchange Act Enforcement Rules.

5. The disciplinary action: The responsible person of the conduct by the Company is charged with the punishment of administrative fine of NTD 240,000 pursuant to Subparagraph 4, Paragraph 1, Article 178; and Article 179 of the Securities and Exchange Act.