Hsinchu, Taiwan, January 11, 2019 – Sino-American Products Inc.(SAS) today held a board meeting at which passed the board resolutions of an agreement amendment with OCI Company Ltd.(OCI) and an asset impairment for 2018.

SAS had a long-term supply agreement settled with OCI for silicon raw materials although drastic changes in the solar market have made the implementation of the agreement filled with difficulties. Two parties now reached a consensus to an amendment and the revised long-term agreement has been considered by both to be conducive for the future cooperation between SAS and OCI. Due to an NDA, the agreement is not for disclosure yet the revised version will be of positives and steady benefit to the long-term business development of SAS.

In addition, the board meeting today also approved the asset impairment for the year 2018. In accordance with No. 36 bulletin “asset impairment” of the international accounting standards, SAS evaluated by itself and recognized an asset impairment of approximately NT$2.26 billion in the fourth quarter 2018. The impairment charge does not relate to cash flow and thus there will be no significant impact on SAS’ working capital or cash flow. This board resolution will boost the cost performance for SAS and improve the overall business performance with substantial competitiveness enhancement in the future.