Yungtay Engineering Co., Ltd. announced independent director expressed reservations about the resolution regarding the 2019 proposal to distribute earnings through cash dividends of TWD 2.2 per share. The original proposal recommended a cash dividend of TWD 2.4 per share. This amount was revised downward to TWD 2.1 per share by the management team and then upward to TWD 2.2 per share in said meeting based on a motion by a shareholder with holdings of 1% or more. However, the board of directors should actively assess each proposal to ensure stable operations based on a full consideration of all factors instead of passively going along with proposals. The board should further clearly express its stance to fulfill its responsibility and give shareholders a clear understanding of its position. It seems therefore more appropriate to adopt another resolution upon discussion in the upcoming board meeting on May 7. This does not necessarily involve a downward revision of the original proposal. The motion regarding dividend distribution moved by a shareholder with holdings in excess of 1% is based on the same facts as this proposal. Given the above, since it is estimated that cash flows shall be adequate and in light of the balanced dividend policy, the company supports the discussion over TWD 2.1 per share as the dividend by the Board of Directors. The proposal on the assignment of 2019 earnings was not approved during the current Board of Directors meeting. The actual value to be distributed will be discussed and decided later by the Board of Directors. Despite the fact that the original proposal to distribute cash dividends of TWD 2.4 per share passed the cash flow stress test, it failed to be approved by the board of directors. The same applies to the follow-up adjustment to TWD 2.1. The upward revision to TWD 2.2 by the board in line with the proposal of the small shareholder can mainly be attributed to a desire to prevent large discrepancies between the different proposals. This led to significant difficulties in the shareholders meeting procedures. It has also been determined upon review that there is a mere difference of TWD 0.1 between the proposals and that both suggested amounts fall within the dividend distribution bracket of this Company over the last decade. Given the above, since it is estimated that cash flows shall be adequate and in light of the balanced dividend policy, the company supports the discussion of TWD 2.2 per share as the dividend by the Board of Directors.