Acquisition right-of-use assets of building

Hon Hai Precision Industry Co Ld

03 May 2023

 

Subject: Subsidiary,Triple Win Technology (ShenZhen) Co., Ltd. acquisition right-of-use assets

of factory building

Contents:

1.Name and nature of the underlying asset (e.g., land located at Sublot XX, Lot XX, North District, Taichung City):

(1) Triple Win Technology (Shenzhen) Co., Ltd. leases the plant building at No. 2, 2nd Donghuan Road, Longhua District, Shenzhen City from Foxconn Technology Group Co., Ltd., and obtains the right to use real estate。

(2) Triple Win Technology (Shenzhen) Co., Ltd. leases the plant building at No. 1 Ruixin Road, Shizhong Village, Shishan Town, Nanhai District, Foshan City from Rayprus Technology (Foshan) Co., Ltd., and obtained the right to use real estate。

2.Date of occurrence of the event:2023/05/03

3.Transaction unit amount (e.g.XX square meters, equivalent to XX ping), unit price, and total transaction price:

Foxconn Technology Group Co., Ltd

Transaction unit amount:79,757㎡（24,126 Ping）

price per unit:RMB 20-25/㎡

total contract rent:RMB 47,099,710

transaction amount of right-of-use assets:RMB 44,492,692

Rayprus Technology (Foshan) Co., Ltd

Transaction unit amount:18,000㎡（5,445 Ping）

price per unit:RMB 20/㎡

total contract rent:RMB 11,520,000

transaction amount of right-of-use assets:RMB 10,814,775

total amount of right-of-use asset transactions:RMB 55,307,467 (about NTD 244,597,271)

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):

Foxconn Technology Group Co., Ltd; affiliate

Rayprus Technology (Foshan) Co., Ltd; affiliate

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: Group resource integration; NA

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:

Foxconn Technology Group Co., Ltd

(1)Rental period:2023/05/03-2025/12/31,total rent:RMB 25,479,040

(2)Rental period:2023/10/01-2025/12/31,total rent:RMB 6,335,550

(3)Rental period:2024/01/01-2025/12/31,total rent:RMB 15,285,120

Rayprus Technology (Foshan) Co., Ltd

Rental period:2023/05/03-2025/12/31,total rent:RMB 11,520,000

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:

negotiation; market price; Board of director

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: None

21.Concrete purpose or use of the acquisition or disposal: operational needs

22.Any dissenting opinions of directors to the present transaction: None

23.Whether the counterparty of the current transaction is a related party: yes

24.Date of the board of directors resolution:2023/05/03

25.Date of ratification by supervisors or approval by the audit committee:2023/05/03

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: None

 

END