Shinkong Synthetic Fibers: Announcement of Acquisition of Right-to-Use Assets from Related Parties on Behalf of Subsidiary (Shinkong Engineering Co., Ltd.)

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Declaration

1.Name and nature of the underlying asset (e.g., land located at Sublot XX,
Lot XX, North District, Taichung City):
5F NO.136, Section 3, Ren Ai Road, Taipei City.
2.Date of occurrence of the event:2022/04/01
3.Transaction unit amount (e.g.XX square meters, equivalent to XX ping),
unit price, and total transaction price:
Lease period: 2022/04/01~2026/11/30
Lease area: 23.5 ping
Monthly rental per unit: NTD1,790.85/ping
Monthly rental: NTD42,085
Right-of-use asset value: approximately NTD2,319,372
4.Trading counterparty and its relationship with the Company (if the trading
counterparty is a natural person and furthermore is not a related party of
the Company, the name of the trading counterparty is not required to be
disclosed):
Transaction counterparty: Shinkong Synthetic Fibers Corporation
Relationship with the Company: Parent Company
5.Where the trading counterparty is a related party, announcement shall also
be made of the reason for choosing the related party as trading counterparty
and the identity of the previous owner, its relationship with the Company
and the trading counterparty, and the previous date and monetary amount of
transfer:
The rationale for transacting with a related party:
the location, transportation convenience, and floor
layout of the office building owned by the related party
fully complies with the Company's needs.
6.Where an owner of the underlying assets within the past five years has
been a related party of the Company, the announcement shall also include the
date and price of acquisition and disposal by the related party, and its
relationship with the Company at the time of the transaction:NA
7.Projected gain (or loss) through disposal (not applicable for
acquisition of assets; those with deferral should provide a table
explaining recognition):NA
8.Terms of delivery or payment (including payment period and
monetary amount), restrictive covenants in the contract,
and other important terms and conditions:
Payment terms: a rental of NTD42,085 is paid on monthly basis.
Any limitation or other important clauses stipulated
in the lease agreement: NA
9.The manner of deciding on this transaction (such as invitation to tender,
price comparison, or price negotiation), the reference basis for the
decision on price, and the decision-making unit:
The decision method of this transaction: price negotiation
between the two parties
Price-decision reference basis: based on the office
rental value within the same building
Decision-making unit: Board of Directors
10.Name of the professional appraisal firm or company and
its appraisal price:NA
11.Name of the professional appraiser:NA
12.Practice certificate number of the professional appraiser:NA
13.The appraisal report has a limited price, specific price,
or special price:NA
14.An appraisal report has not yet been obtained:NA
15.Reason for an appraisal report not being obtained:NA
16.Reason for any significant discrepancy with the appraisal reports
and opinion of the CPA:NA
17.Name of the CPA firm:NA
18.Name of the CPA:NA
19.Practice certificate number of the CPA:NA
20.Broker and broker's fee:NA
21.Concrete purpose or use of the acquisition or disposal:
 Based on actual business needs and cost considerations
22.Any dissenting opinions of directors to the present transaction:No
23.Whether the counterparty of the current transaction is a
related party: Yes
24.Date of the board of directors resolution:2022/04/01
25.Date of ratification by supervisors or approval by
the audit committee:2022/04/01
26.The transaction is to acquire a real property or right-of-use
asset from a related party:Yes
27.The price assessed in accordance with the Article 16 of the
Regulations Governing the Acquisition and Disposal of Assets
by Public Companies:NA
28.Where the above assessed price is lower than the transaction price,
the price assessed in accordance with the Article 17 of the same
regulations:NA
29.Any other matters that need to be specified: No
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