YungShin Global Holding Adjusts Investment Structure

On March 27, 2015, YungShin Global Holding Corporation (TWSE: 3705, YungShin Global Holding) held a significant press conference on behalf of its subsidiary, Yung Shin Pharm. Ind. Co., Ltd., at the Taiwan Stock Exchange. The conference was convened to announce the board resolution made by Yung Shin Pharm. Ind. Co., Ltd., on the same day regarding a spin-off plan. The company plans to transfer its overseas long-term equity investments and related operations to the newly established YungShin Formosa Investment Holding Corporation, with a tentative effective date set for June 1, 2015. This spin-off is part of an internal investment restructuring within the YungShin Group and will have no impact on the financials or net worth of YungShin Global Holding.

In an effort to better integrate global resources, adapt to industry development trends, and focus on specialized operational rights, YungShin Global Holding has proposed this investment structure adjustment plan to improve competitiveness and operational performance. According to the board resolution made on March 27, 2015, Yung Shin Pharm. Ind. Co., Ltd. will spin off its 100% equity stake in YSP International Company Limited and the associated business value of over NT$1.8 billion to the newly established YungShin Formosa Investment Holding Corporation. YungShin Formosa Investment Holding Corporation will issue new shares to YungShin Global Holding as consideration for the transaction. The spin-off is tentatively set to take effect on June 1, 2015.

From the effective date, all assets, liabilities, and rights and obligations of Yung Shin Pharm. Ind. Co., Ltd. as of the spin-off date will be transferred to and assumed by YungShin Formosa Investment Holding Corporation. Both the spun-off company, Yung Shin Pharm. Ind. Co., Ltd., and the receiving company, YungShin Formosa Investment Holding Corporation, are 100% subsidiaries of YungShin Global Holding, and the rights and interests of YungShin Global Holding’s shareholders will remain unaffected.