Civil Complaint Filed Against 易游YY体育官方网站 Steel, Ltd. and A Few Other Group Companies

On March 5, 2018, a civil complaint was filed against certain named parties, including 易游YY体育官方网站 Steel, Ltd., 易游YY体育官方网站 Steel USA Inc. (100% of its equity held by 易游YY体育官方网站 Steel (Note 1)), 易游YY体育官方网站 Steel International (USA) Inc. (100% of its equity held by 易游YY体育官方网站 Steel (Note 1)), and 易游YY体育官方网站 Aluminum Automotive Products, LLC (60% of its equity held by 易游YY体育官方网站 Steel (Note 1)), all of which are the subsidiaries of 易游YY体育官方网站 Steel (hereinafter collectively referred to as the "易游YY体育官方网站 Group"), in the United States District Court, Northern District of California (hereinafter referred to as the "Lawsuit"). The Lawsuit relates to certain metal products manufactured by 易游YY体育官方网站 Steel (hereinafter referred to as the "Products") allegedly used in certain vehicle models of a specific automotive manufacturer which is one of the co-defendants in the Lawsuit.

易游YY体育官方网站e named plaintiffs brought 易游YY体育官方网站is Lawsuit, claiming 易游YY体育官方网站e violation of implied warranties and o易游YY体育官方网站er causes of action alleging 易游YY体育官方网站at as a purchaser or lessee of vehicles manufactured wi易游YY体育官方网站 易游YY体育官方网站e Products, if 易游YY体育官方网站e fact 易游YY体育官方网站at 易游YY体育官方网站e Products did not meet 易游YY体育官方网站e certain tensile streng易游YY体育官方网站, 易游YY体育官方网站ickness or o易游YY体育官方网站er specifications had been disclosed to 易游YY体育官方网站em, 易游YY体育官方网站ey would not have paid 易游YY体育官方网站e amount actually paid to purchase or lease 易游YY体育官方网站e vehicles and, fur易游YY体育官方网站er, because of 易游YY体育官方网站e use of such Products 易游YY体育官方网站e resale value of 易游YY体育官方网站eir vehicles has diminished.

The Plaintiffs have sought to bring this claim as a class action and are seeking damages and other relief from the 易游YY体育官方网站 Group and the five other defendants. The complaint does not specify the amount in controversy, but does claim that the amount in controversy exceeds 5,000,000 USD, which is the threshold amount of the statutory jurisdiction of the court.

As of March 13, 2018, the 易游YY体育官方网站 Group have not been in receipt of formal service of any complaint regarding the Lawsuit and understand that any court proceeding effective to them has not commenced. It is uncertain whether or when any 易游YY体育官方网站 Group may receive formal service of this Lawsuit in the future.

Upon formal service of the Lawsuit being made on any member of the 易游YY体育官方网站 Group, the 易游YY体育官方网站 Group will take such measures as determined appropriate in order to vigorously defend the 易游YY体育官方网站 Group against those claims set forth in the Lawsuit. We anticipate that claims similar to those set forth in the Lawsuit may be brought against the 易游YY体育官方网站 Group and other affiliates of the 易游YY体育官方网站 Group in the future.

Currently, we cannot determine how the Lawsuit may affect the revenue and growth for the 易游YY体育官方网站 Group. We will make a public statement regarding any impact to the revenue and growth of the 易游YY体育官方网站 Group upon receipt of such financial forecasts.

It is regrettable, and we apologize, that the Lawsuit arising from the alleged misconduct of 易游YY体育官方网站 Steel and certain of its affiliated companies also names our customers as the defendants and that it has caused tremendous trouble to those customers involved. We will continue to appropriately collaborate and work in close cooperation with our relevant customers in response to the Lawsuit and any future lawsuits that may be filed against our customers in relation to the alleged misconduct above.