1.Date of occurrence of the event:2018/07/12
2.Company name:Danen Technology Corporation
3.Relationship to the Company (please enter ”head office” or
  ”subsidiaries”):head office
4.Reciprocal shareholding ratios:Not applicable
5.Name of the reporting media:Economic Daily News and other media
6.Content of the report:Illegal disposal of cutting fluid waste
7.Cause of occurrence:Danen Technology's explanation for the ”Storage of
harmful sludge in vacant space of Wu-Chi Taichung”
The company is a manufacturing company of the green energy industry. Since
the company was founded, it has always adhered to the environmental policy
”compliance with laws and regulations plus continuous improvement” and
indeed implemented.
However, the second squadron / third division of the Seventh Special Police
Corps held a press conference this afternoon. It is alleged that the case of
dumping harmful sludge in the space of Wu-Chi Taichung is caused by the
Company and unscrupulous offenders to damage the environment.
The following statements of the Company:
I. The business wastes generated by the Company in the manufacturing process
are entrusted to certified removal by the waste disposal supplier according
to the law, including clearance and disposal, and reported to the local
environmental protection bureau in detail, all relevant written records of
clearance/shipping and proper disposal certificates can be proved.
II. In addition to paying the disposal fee to the supplier that has a
certificated license, if the supplier can recycle the cutting fluid from the
Company's sludge waste, it will be paid and cutting fluid reused in
production by the Company. It can reduce waste, and the remaining sludge
will be handled by certified waste disposal supplier. After the recycle
processing is completed, the waste disposal supplier, then entrusts the
final processing step to certificated vender according to the prescribed
procedures. By recycling the cutting fluid and then reusing it into
production, the industry can greatly reduce air pollution, carbon emission
when the treatment of sludge  incineration, and the burden on the land will
be minimized when it is finally buried.
III. Due the filtration technology for the recycling of the Company's sludge
waste during 2010 to 2012 is not yet mature, so the Company work together
with filtration technology supplier and waste disposal vender for waste
recycling. Protecting the business secrets of the filtration technology
supplier, and make sure the waste disposal vender will follow the
responsibility of waste disposal regulation. Under legal requirements, the
filtration technology supplier will be stationed in the certificated waste
disposal factory site, the sludge is filtered under the supervision of
certified management, and the cutting fluid obtained and purchased, then put
into production by the Company, and the filtered sludge be treated by final
waste disposal supplier according to law, thus it can achieve waste control
and reduction, as well as reducing air pollution and carbon emission, and
also reducing the burden of land to gain multiple benefits.
IV. Owing to the removal and disposal on each batch of waste by the company,
the payment to waste disposal supplier was confirmed, and the Company traced
and confirmed the waste disposal by receiving the certificate from disposal
supplier. But due to the other valuables in the filtered sludge, the waste
disposal supplier, not only accept the Company’s payment and provide the
disposal certificate but also sold the waste sludge to 3rd party without
informing the Company, thus the Company misunderstood that the waste has
been disposed according to the certificate records In this part, the Company
has appointed a lawyer to study the case, in addition to actively defending
the Company's innocence position, the Company will also claim for damage
suffered by the case, and also look into the responsibility which the
supplier should assume.
V. The case has no significant impact on the company's financial condition
and shareholders' equity, it is hereby declared.
8.Countermeasures:The Company has appointed a lawyer to study the case, in
addition to actively defending the company's innocence position, the company
will also claim for damage suffered from relevant suppliers.
9.Any other matters that need to be specified:None