Material Information (1718 CMFC)

SEQ_NO

 2

Date of announcement

 2022/07/11

Time of announcement

 18:11:44

Subject

 Announcement of the BOD comfirm the company

to merge with Shiang-Fong Co, Ltd.

Date of events

  2022/07/11

To which item it meets

paragraph 11

Statement

 1.Type of merger and acquisition (e.g.merger, spin-off, acquisition,

or share transfer):merger

2.Date of occurrence of the event:2022/07/11

3.Names of companies participating in the merger and acquisition (e.g., name

of the other company participating in the merger, newly established company

in a spin-off, acquired company, or company whose shares are transferred):

China Man-Made Fiber Corporation (hereafter referred

as “The Company”) will be the surviving company.

4.Trading counterparty (e.g., name of the other company participating in the

merger, company spinning off, or trading counterparty to the acquisition or

share transfer):Shiang-Fong Co, Ltd. will subsequently

 be dissolved.

5.Whether the counterparty of the current transaction is a related party:

Yes.

6.Relationship between the trading counterparty and the Company (investee

company in which the Company has re-invested and has shareholding of XX%),

explanation of the reasons for the decision to acquire from or transfer

shares to an affiliated enterprise or related party, and whether it will

affect shareholders’ equity:The Company owns 100%

shareholding Subsidiary-Shiang-Fong Co, Ltd.

In order to facilitate merger and acquisition

by a business for purposes of reorganization and

optimal operation efficiency, according to Article

19 of the Business Mergers and Acquisitions Law.

Hence, there will be no significant impact on

shareholder's equity.

7.Purpose of the merger and acquisition:To simplified

organization structure, to save the operating costs,

and to improve the operating efficiency.

8.Anticipated benefits of the merger and acquisition:

It is expected that the benefits will be reduced

operating costs and improved operating efficiency.

9.Effect of the merger and acquisition on net worth per share and earnings

per share:Because this merger is an organizational

reorganization within the group, it has no impact

on the company's net value per share and earnings

per share.

10.Follow-up procedures for mergers and acquisitions, including

the time and method of payment of the consideration for mergers

and acquisitions, etc.:The Company intends to pay

NTD 563,010,787 in cash to all shareholders in date

of merger of Shiang-Fong Co, Ltd. The payment

consideration is based on Shiang-Fong Co, Ltd.'s

tentative balance sheet on July 1,2021.

11.Types of consideration for mergers and acquisitions

and sources of funds:

(1) Types of consideration for the merger: Cash.

(2) Sources of funds: Enterprise owned capital.

12.Share exchange ratio and calculation assumptions:

NA, the consideration is in cash.

13.Whether the CPA, lawyer or securities underwriter issued

an unreasonable

opinion regarding the transaction:No.

14.Name of accounting, law or securities firm:NA.

15.Name of CPA or lawyer:NA.

16.Practice certificate number of the CPA:NA.

17.The content of the independent expert opinion on the reasonableness

of the share exchange ratio, cash or other assets allotted to

shareholders  in this merger and acquisition:NA.

18.Estimated date of completion:Tentative effective date of merger

is 2022/7/18.

19.Matters related to the assumption of corporate rights

and obligations of the dissolving company (or spin-off)

by the existing or newly-established

company:Effectively on the scheduled date of record

for the merger, the Company will assume all recognized

assets and liabilities of Shiang-Fong Co, Ltd.

and all of its rights and obligations in effect

on the scheduled date of record for the merger.

20.Basic information of companies participating in the merger:

(1)China Man-Made Fiber Corporation produces and sales

man-made fiber and petrochemical products.

(2)Shiang-Fong Co, Ltd. engages mainly in land

development.

21.Matters related to the spin-off (including estimated value

of the business and assets planned to be transferred to the

existing company or new

company.The total number of shares to be acquired by the spun-off company

or its shareholders, and their respective types and no.Matters related to

the reduction, if any, in capital of the spun-off company)(note: not

applicable for announcements unrelated to spin-offs):

NA.

22.Conditions and restrictions for future transfer of shares

resulting from the merger and acquisition:None.

23.The plan after the merger and acquisition is completed:

Because this merger is an organizational

reorganization within the group,

it has no impact on the shareholder's equity.

24.Other important terms and conditions:None.

25.Other major matters related to the mergers and acquisitions:

None.

26.Any objections from directors to the transaction:

No.

27.Information on interested directors involved in the mergers

and acquisitions:NA.

28.Whether the transaction involved in change of business model:No.

29.Details on change of business model:NA.

30.Details on transactions with the counterparty for the past year

and the expected coming year:None.

31.Source of funds:Own funds.

32.Any other matters that need to be specified:None.