Resolutions by Tatung Board on Dec. 21, 2017

(A). Issuance of 500 million shares of common stocks, tentatively set at

$14 per share for capital increase

(B). Enhancement of Tatung's core businesses in solar systems and smart

solutions

(C). Investing NT$300M dollars into GET private placement

(D). Disposals of non-core and non-performing subsidiaries

(A) Tatung Board resolved that it will issue 500 million shares of common stocks, with face value of NT$10, tentatively set at $14 per share. The capital increase will be used to reduce bank loans, improve financial ratios, and enhance working capital and long-term competitiveness.

The new shares issued will have same rights and obligations as the old shares. The Board will resume to set exact issuance price, total amount and related issuance matters for the capital increase program after the approval of government authorities.

The capital increase will substantially improve financial ratios in the short term ; improve corporate competitiveness in the longer term. To cope with the government policies in green energy, smart energy, smart city, etc. Tatung can expect to create better profitability and bring in steady cash flows. This will provide better protection for shareholders' value and interest.

(B)Tatung Board also resolved to invest around NT$2.3 billion dollars for around 40 MW solar farm in Chi-Gu, Tainan. After approvals by Tainan local government, Taiwan Power Co. Energy Bureau, Tatung will entrust its 100% owned subsidiary Tung-Yang Co. to execute installations.

Tatung spent several years in investing into solar systems and IoT smart solutions. These are consistent with the new 5+2 policies in new businesses and industrial transformation. Tatung hopes to devote its technology and experiences in fulfilling energy transformation, energy saving and carbon reduction, improving energy efficiency in Taiwan.

Tatung has established track records in the above mentioned areas, such as solar systems at 75MW installed base, mostly in roof-top solar systems ; Tatung will focus on big scale ground solar farms and pond solar systems in the future.

The solar farms combined with micro grid systems can gradually achieve distributed power grid. Tatung's vast experiences in substations will be a great plus in its big scale solar farms.

(C)Tatung Board also resolved that it will invest NT$300 million dollars in GET's private placement. This will allow GET to invest into diamond wire cutting to reduce costs. We need high efficiency, light weight, cost competitive solar wafers and modules to enhance IRR of Tatung's solar systems as well as its investment income from GET. This will enhance overall competitiveness of Tatung Group in the solar industry.

All the above need inputs of long term fund. Through capital increase, after reducing bank loans to improve its financial ratios and cut down interest payments, the company can move forward into solar systems and smart solutions to generate steady cash flows and profits. The success in Taiwan can pave way for international markets.

(D)Tatung Board also resolved that it will actively dispose non-core, non-performing subsidies such as Tatung Vietnam, TGSI, and Tatung InfoComm by expediting its closing and sale of the property to cash out.

Tatung Board is committed to improve financial ratios, enhance management for its investment portfolios and work on asset development. All the actions will build up foundation for management sustainability, create shareholders' value.