Following Yang Ming's successful recapitalization campaign, in which Yang Ming raised NT$ 10.3 billion (US$ 343.4 million) in public and private offerings, as well as having reported 3rd quarter 2017 profits, the company will embark on plans to expand throughout Asia. These plans are consistent with Taiwan's New Southbound Policy, a proposal of the government of Taiwan to develop and strengthen its role and ties to the economies in Southeast Asia, South Asia and Australia.

In a December 12, 2017 press conference chaired by the Minister Ho Chen of the Ministry of Transportation and Communications, and co-attended by the Taiwan International Ports Corp. (TIPC), and Yang Ming, there was a consensus to develop Taiwan's role in the shipping and logistics industries in Southeast Asia. Starting with Southeast Asia, Yang Ming announced its recent partnership with TIPC to jointly invest in container depot projects in Surabaya, Indonesia. Operations are expected to commence in the first quarter of 2018.

Our customers can also look forward to the expansion of Yang Ming's footprint in the rest of the Asia-Pacific region, including the China market. The company, along with the Ministries and TIPC, recognize the potential growth in the Chinese e-commerce market and are prepared to dedicate resources to the region. Elsewhere, the establishment of Yang Ming's Mediterranean Regional Operating Center, which will be located in Greece, is underway and is expected to open on April 1, 2018.

Lastly, Yang Ming announced plans to upgrade its fleet capacity and efficiency, with the intention to replace vessels nearing off-hire and retirement with newer and more efficient vessels.

Thanks and best regards,

Yang Ming Marine Transport Corp.