| Statement |
1.Date of occurrence of the event:2022/10/14
2.Method of the current increase (decrease) in investment:
The Company’s investments in China will be changed due to consolidation plan of its subsidiaries.
FENC’s investment in China is via its overseas holding companies of Far Eastern Polychem Industries
Limited, Pet Far Eastern (Holding) Limited and Far Eastern New Century (China) Investment Co., Ltd.
(which is invested by Far Eastern Polytex (Holding) Limited)
3.Amount, unit price, and total monetary amount of the transaction:
Transaction volume: N/A
Price per unit: N/A
Total purchase price: No capital injection is required and the Company will adjust its corresponding
holding percentage of its subsidiaries in China due to the consolidation plan.
(1) Far Eastern Industries (Shanghai) Ltd.(FEIS): USD 86,168,166 increased
(2) Oriental Petrochemical (Shanghai) Corp.(OPSC): USD 86,168,166 decreased
4.Company name of the mainland Chinese investee: (1) FEIS (surviving company) (2) OPSC (dissolved company)
5.Paid-in capital of aforementioned mainland Chinese investee: (1) RMB 1,880,399,350.04 (2) RMB 1,793,589,517.00
6.Amount of capital increase currently planned for the aforementioned mainland Chinese investee:
(1) USD 143,255,472 (2) N/A
7.Main businesses of the aforementioned mainland Chinese investee:
(1) Production and sales of polyester products (2) Production and sales of PTA
8.Type of CPA opinion in the latest annual financial statements of the aforementioned
mainland Chinese investee: (1) Unqualified Opinion (2) Unqualified Opinion
9.Total equity of the aforementioned mainland Chinese investee in the latest annual financial statements:
(1) RMB 1,927,855,675.46 (2) RMB 753,433,027.99
10.Amount of profit/loss of the aforementioned mainland Chinese investee in the latest annual financial statements:
(1) RMB 7,418,272.60 (2) RMB (278,807,845.52)
11.Amount of actual investment in the aforementioned mainland Chinese investee, up to the present moment:
(1) USD 155,490,000 (2) USD 142,554,569
12.Trading counterparty and its relationship with the Company: Trading counterpart :
(1) FEIS (2) OPSC Relationship with the company : (1) Subsidiary (2) Subsidiary
13.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:
(1) The investments in China will be consolidated in order to achieve agile management,
reduce costs and increase synergy.
(2) NIL
14.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:NIL
15.Profit (or loss) upon disposal:N/A
16.Terms of delivery or payment (including payment period and monetary amount), restrictive
covenants in the contract, and other important terms and conditions:
(1) NIL (2) The record date for consolidation is planned on Dec. 31, 2022. (3) NIL
17.The manner in which the current transaction was decided, the reference basis for
the decision on price, and the decision-making unit:
(1) The merger
(2) The “reasonableness opinion” for the share exchange ratio of the consolidation issued by the CPA
(3) BOD
18.Broker:N/A
19.Concrete purpose of the acquisition or disposal: The investments in China will be consolidated
in order to achieve agile management, reduce costs and increase synergy.
20.Any dissenting opinions of directors to the present transaction:NIL
21.Whether the counterparty of the current transaction is a related party:Yes
22.Date of the board of directors resolution:2022/10/14
23.Date of ratification by supervisors or approval by the Audit Committee:2022/10/14
24.Total amount of investment in mainland China (including the current investment) approved by
the Investment Commission, up to the present moment: USD 798,926,093
25.Ratio of the total amount of investment in mainland China (including the current investment)
approved by the Investment Commission, up to the present moment, to the paid-in capital on the
latest financial statements: 47.53%
26.Ratio of the total amount of investment in mainland China (including the current investment)
approved by the Investment Commission, up to the present moment, to the total assets
on the latest financial statements: 7.63%
27.Ratio of the total amount of investment in mainland China (including the current investment)
approved by the Investment Commission, up to the present moment, to equity attributable to
owners of the parent on the latest financial statements: 12.35%
28.Total amount of actual investment in mainland China, up to the present moment: USD 791,549,413
29.Ratio of the total amount of actual investment in mainland China, up to the present moment,
to the paid-in capital on the latest financial statements: 47.09%
30.Ratio of the total amount of actual investment in mainland China, up to the present moment,
to the total assets on the latest financial statements: 7.56%
31.Ratio of the total amount of actual investment in mainland China, up to the present moment,
to equity attributable to owners of the parent on the latest financial statements: 12.23%
32.Amount of recognized profit (loss) on investment in mainland China for the last three years:
2019: NTD 1,137,393,000
2020: NTD (1,061,788,000)
2021: NTD 228,946,000
33.Amount of profit remitted back to Taiwan for the last three years:
2019: NTD 0
2020: NTD 0
2021: NTD 0
34.Whether the CPA issued an unreasonable opinion regarding the current transaction:No
35.Name of the CPA firm: Shanghai Xin-wo Certified Public Accountants Co., Ltd.
36.Name of the CPA: Ni Wei
37.Practice certificate number of the CPA:14000000201801300243
38.Any other matters that need to be specified:
(1) FENC will increase its investment in FEIS of USD 86,168,166 indirectly, which will be
via FENC’s holding companies, FEPI of USD 57,344,818, PETH of USD 15,685,601 and FECI
(Far Eastern Polytex (Holding) Limited’s subsidiary) of USD 13,137,747.
(2) No capital injection is needed regarding the consolidation between OPSC and FEIS.
(3) The record date for consolidation is planned on Dec. 31, 2022.
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