Administrative Fine Imposed on the Responsible Person of Leatec Fine Ceramics CO., LTD.

I. Date the fine was imposed: APRIL 22 nd, 2015
II. The party upon whom the penalty was imposed: Mr. Chen, the responsible person of QST International Corp.
III. Statutory basis of the penalty: Article 26-3, Securities and Exchange Act.
IV. Facts concerning the Violation: Directors of Leatec Fine Ceramics Co., Ltd. (OTC No. 6127) resigned on May 3rd 2013, leaving the Board with only four directors. The Company called a general shareholder meetings on June 19th 2013 and June 15th 2014 but failed to re-elect the directors until February 26th 2015. This fact was found to be in violation of Article 26-3 of the Securities and Exchange Act, which stipulates, “When the number of directors falls below five due to the dismissal of a director for any reason, the company shall hold a by-election for director at the next following shareholders meeting.”
V. Result of the disciplinary action: According to Subparagraph 2, Paragraph 1, Article 178 and Paragraph 1, Article 179 of Securities and Exchange Act, we imposed a fine of NT$ 240,000 on the responsible person of the company.

Contact Information: Ms. Chen, Hsiang-Yin, Section Chief, Corporate Finance Division, Securities and Futures Bureau
Contact Number: +886-2-2774-7120
Please submit your inquiries in the message through the following URL: http://fscmail.fsc.gov.tw/FSC-SPS/SPSB/SPSB01002.aspx