1.Date the fine was imposed: July 11, 2019

2.Recipient of the fine: PACIFIC ELECTRIC WIRE & CABLE CO., LTD.

3.Legal basis of the fine: Article 36-1, Paragraph 1(11) of Article 178 and Article 179 of the Securities and Exchange Act, and Article 13 and Paragraph 1 of Article 17 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies.

4.Facts of the violation and reasons: The balances of endorsements/guarantees made by the subsidiary of PACIFIC ELECTRIC WIRE & CABLE CO., LTD., Tai He Investment Co., Ltd., for PACIFIC TECHNOLOGY CO., LTD. and You Ji Investment Co., Ltd. until December 31, 2017 have been NT$142,918 thousand and NT$89,280 thousand, which exceeded the limit of endorsement/guarantee set by the Company. Accordingly, the Company should be held violating Article 13 and Paragraph 1 of Article 17 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies. We have asked PACIFIC ELECTRIC WIRE & CABLE CO., LTD. to urge its subsidiary to correct the misconduct within the specific time limit referred to in our letters under Jin-Guan-Zheng-Shen-Zi No. 1070326309 dated July 13, 2018, Jin-Guan-Zheng-Shen-Zi No. 1070332500 dated August 23, 2018, and Jin-Guan-Zheng-Shen-Zi No. 1080300589 dated January 9, 2019. However, the subsidiary has not yet complied with the requirement so far.

5.Resulting fine: Sentenced to the fine, NT$240,000, in accordance with Paragraph 1(11) of Article 178 and Article 179 of the Securities and Exchange Act.