OREANDA-NEWS. August 31, 2012.
1. Financial report for the first half of 2012

Revenues NTD110,675 million, pretax income NTD 1,929 million, net income NTD 1,943 million and earnings per share (EPS) NTD 0.13.

2. Revamp of No. 2 Continuous Annealing Line (No. 2 CAL)

Since No. 2 CAL has been operated for 20 years since 1992, the revamping project was approved in the meeting for the need of developing high-grade and high-strength new steel products. It is estimated that the project will be able to reduce production cost, as well as decrease CO2 emission about 562.4 metric tons per year owing to the saving use of electric power after the project is finished. The project will commence in September 2012 and is scheduled for completion in April 2015, totaling 32 months.

3. Increase of investment in Formosa Ha Tinh Steel Corporation amounted USD 40 million

CSC invested USD 135 million to own 5% of the charter capital of Formosa Ha Tinh Steel Corporation in 2010. Since the investment project of Formosa Ha Tinh Steel has been revised, its total amount of investment has also been re-estimated to increase USD 2,117 million comparing with the original plan. In addition, Formosa Ha Tinh Steel’s self-own capital has been increased to be US\\$3,500 million for improving its financial structure. CSC revalued the project accordingly and still deemed it to be feasible. Therefore, the meeting resolved to increase US\\$40 million of investment to the project for enabling CSC to keep its 5% of holding ratio in Formosa Ha Tinh Steel’s capital.

4.Setup of a steel service center (or coil center) in Qingdao City, Shangdong Province, China

CSC will invest to set up a steel service center in Qingdao City, Shangdong Province, China, with Rechi Precision Co., Ltd. and China Steel Global Trading Corporation in order to explore the sales channels and establish a sales place in Northern China. The planned capital will be USD 20 million in which CSC invests US\\$12 million for holding 60% shares.