YL — AGM Information 2020

Jul 23, 2020

Meeting Notice for

Annual General Shareholders’Meeting

• I. The 2020 Annual General Shareholders’ Meeting will be held at No. 3, Sec. 3, Chung Hsing Road, Xindian District, New Taipei City (the Dome Theater) at 9:00am on Friday, June 18, 2020. The reception will begin at 8:30am on the meeting date at the same address referred to above with the agenda planned as follows:

  • (I) Reporting Items:

    1. The 2019 Business Report and Prospect.

    2. The 2019 Audit Committee’ Report.

    3. The 2019 distribution of employees’ and directors’ remuneration.

    4. The Status of Endorsement and Guarantee.

    5. The accumulated losses in 2019 exceeded 50% of the paid-in capital.

  • (II) Acknowledgements:

    1. Acknowledge the 2019 Financial Statements.

    2. Acknowledge the 2019 deficit compensation.

  • (III) Discussions:

    1. Proposal to discuss the reduction of capital to make up for losses.

    2. Amendments to the Company’s “Articles of Incorporation.”

    3. Amendments to the Company’s “Rules of Procedure for Shareholders Meetings”

(IV) Extemporary Motions

• II. In order to improve the finance structure and increase net asset value per Share, it is proposed to reduce NT$5,729,199,090 and eliminate 572,919,909 shares of common stock. It is estimated that the number of per thousand shares will be reduced by approximately 364.2 shares, and the capital reduction ratio will be approximately 36.42%.

• III. The stock transfer is ceased from April 20, 2020 to June 18, 2020 in accordance with Article 165 of the Company Law.

• IV. The shareholder voting right could be exercised through the Internet from May 19, 2020 to June 15, 2020. Please login the “Shareholder e-voting” website of Taiwan Depository & Clearing Corporation to vote by following the instruction (www.stockvote.com.tw).

• V. The Stock Office of Yulon Motor Co., Ltd is the statistics and verification agency for the proxy of the annual shareholder’s meeting.

• VI. If the agenda of the current shareholders’ meeting include matters specified in Article 172 of the Company Act, besides listing them in the convening notice, please visit the website of the Market Observation Post System (http://mops.twse.com.tw)-click “ElectronicBook/Annual Report and Shareholders' Meeting-Related Materials(Including depository receipts/various proposal reference materials of the shareholders' meeting)” for the information.

• VII. In addition to the announcement, a written notice is delivered along with the Meeting Notice and proxy to each shareholder.

Sincerely yours,

YULON Motor Co., Ltd. Board of Directors