Wei Chuan Foods : Disclosure of the important content and progress of lawsuits related to the Company’s oil products

 Disclosure of the important content and progress
of lawsuits related to the Company's oil products

1.Date of occurrence of the event:2022/07/08
2.Company name:Wei Chuan Foods Corporation
3.Relationship to the Company (please enter "head office" or
  "subsidiaries"):Head office
4.Reciprocal shareholding ratios:Not applicable
5.Cause of occurrence:
The Company discloses the important content and progress of lawsuits
related to its oil products in accordance with the requirement stipulated
in the official letter issued by Taiwan Stock Exchange on February 21, 2017
that companies shall issue major announcements within 15 days after the
end of each quarter.
6.Countermeasures:
(1) The Taiwan Taipei District Prosecutors Office initiated a public
prosecution against the Company over the involvement of some pure and
blended oils sold by the Company. The Intellectual Property Court ruled on
April 27, 2017 that the Company was not guilty. However, the Intellectual
Property Court ruled that NT$32 million in proceeds must be confiscated due
to issues regarding the labeling of blended oils. The Company considered it
to be unconstitutional, and thus has filed a request for constitutional
interpretation to the Justice of the Judicial Yuan.
(2) Due to the involvement of the oil products manufactured by Ting Hsin
Oil & Fat Industrial Co., Ltd. for the Company using problematic oils from
Chang Chi Foodstuff Factory Co., Ltd. and the oil products procured from
Chang Guann Co., Ltd., Cheng-I Food Co., Ltd., and Ting Hsin Oil & Fat
Industrial Co., Ltd., the Company's products were pulled from the shelves
and the Company was forced to offer refunds and compensations to consumers,
thus causing huge losses to the Company. In order to protect the Company's
rights and interests, the Company has hired a lawyer to file lawsuits against
the companies above, their upstream manufacturers, and related personnel to
the court for damages. Chang Guann Co., Ltd., Yeh Wen-Hsiang, and Tai
Chi-Chuan event of compensation, now the case is sub judice at Taiwan High
Court Kaohsiung Branch Court. Regarding the Company's claim for damages from
Ting Hsin Oil & Fat Industrial Co., Ltd., Cheng I Food Co., Ltd., and their
upstream companies and relevant personnel, currently reviewed by the Taiwan
Taipei District Court. After years of defense and offense, the court mediated
this case directly, put forth a Proposal for Appropriate Solutions, and
requested the Board of Directors to discuss it. The Board of Directors
prudently evaluated the court's Proposal for Appropriate Solutions and the
legal opinion rendered by the retained attorneys and a third-party neutral
attorney. Under the impartial presidency of the judge and with the
participation of the Securities and Futures Investors Protection Center
throughout the process, a successful mediation was reached on 2022/5/13
with an amount of NT$123,200,000, of which Ting Hsin Oil & Fat Industrial
Co., Ltd. should pay NT$111,500,000, Cheng I Food Co., Ltd. NT$10,500,000,
and Yuh Fa Enterprise Co., Ltd. NT$1,200,000. The other defendants who did
not participate in the mediation are still under trial in the Taipei District
Court in Taiwan.
7.Any other matters that need to be specified:Not applicable