News

 Oriental Petrochemical (Taiwan) (“OPTC”),
FENC’s subsidiary, announced the changes in accounting
estimates from fiscal year 2018

1.Date of the board of directors resolution:2018/04/27 
2.The nature of the change: 
   In accordance with Article 6 of “Regulations Governing the Preparation 
   of Financial Reports by Securities Issuers”, OPTC, FENC’s subsidiary, 
   planned to change the accounting estimates for the useful life of major
   machinery equipment. The CPA conducted the reasonableness of analysis
   , and a reviewed opinion was issued. 
3.Reason for the change: 
   Take the actual operation status into consideration, the useful life of 
   major machinery equipment of T10 has been revised from 20 to 25 years 
   since 1 January 2018. 
4.The prior periods affected by retrospective application of the new 
   accounting policy:N/A 
5.The line items affected and the actual effect for the immediately
   preceding financial year: 
   The changes in accounting estimates are expected to decrease 2018 
   depreciation expense by NT$ 207.049 million
6.The actual effect on the opening balance of retained earnings for the
   immediately preceding financial year:NIL 
7.The reasonableness and necessity for the change in accounting policy or 
   accounting estimate after the beginning of the financial year: 
   The appointed construction consultancy has assessed the current maintenance
   status regarding T10 major machinery equipment and no major concern on 
   operation was raised. Thus, in order to better reflect the Company’s
   current operation, OPTC planned to extend the useful life of T10 major 
   machinery equipment. 
8.If retrospective application is impracticable, specify the reasons, how 
   and from when the accounting policy change be applied:N/A 
9.If retrospective application is impracticable, CPA provides the opinion 
   about the impact of the audit opinion for the financial year preceding the
   accounting change:N/A 
10.About the reasonableness of the item 2 to 9, the itemized analysis and
     reviewed opinion from CPA:
     According to the assessment, the T10 production line is currently in good 
     operating conditions, such as the product quality and production efficiency,
     and there is no need for major machinery replacement. Therefore, 
     OPTC planned to extend the useful life of T10 production line in order to 
     reflect the current status. 
11.Objection or reservation opinion from the independent directors:N/A 
12.Countermeasures:NIL 
13.Any other matters that need to be specified: 
     The aforesaid proposal was approved by the Board of Directors and resolved
     by Supervisors on 27 April 2018. It will be reported to the upcoming 
     shareholders' meeting in accordance with the regulations.