Announcement of obtaining PRC Investment

Hon Hai Precision Industry Co Ld
14 May 2024
 

Subject: Announcement of obtaining PRC Investment

Contents:

1.Date of occurrence of the event:2024/05/14

2.Method of the current increase (decrease) in investment:

(1)Through the investment project in a third-party region, the Hong Kong subsidiary, China Galaxy Enterprises Limited, will capitalize HongFuJin Precision Electronics (ChengDu) Co., Ltd with its own funds

(2)Through the mainland China investment project, FuTaiHua Industrial (ShenZhen) Limited will capitalize HongFuJin Precision Electronics (ChengDu) Co., Ltd with its own funds.

3.Amount, unit price, and total monetary amount of the transaction: China Galaxy Enterprises Limited USD27,000,000 FuTaiHua Industrial (ShenZhen) Limited RMB1,100,000,000

4.Company name of the mainland Chinese investee: HongFuJin Precision Electronics (ChengDu) Co., Ltd

5.Paid-in capital of aforementioned mainland Chinese investee:

USD 950,000,000

6.Amount of capital increase currently planned for the aforementioned mainland Chinese investee: USD 181,850,000

7.Main businesses of the aforementioned mainland Chinese investee: The manufacturing and sale of mobile terminal devices.

8.Type of CPA opinion in the latest annual financial statements of the aforementioned mainland Chinese investee: Na

9.Total equity of the aforementioned mainland Chinese investee in the latest annual financial statements: RMB 20,920,961,321

10.Amount of profit/loss of the aforementioned mainland Chinese investee in the latest annual financial statements: RMB 1,187,450,588

11.Amount of actual investment in the aforementioned mainland Chinese investee, up to the present moment:

(1)China Galaxy Enterprises Limited USD 500,000,000

(2)Foxconn Technology Group Co., Ltd. USD300,000,000

(3)FuTaiHua Industrial (ShenZhen) Limited USD150,000,000

12.Trading counterparty and its relationship with the Company: Cash investment is not applied; Parent and subsidiary companies

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: Cash investment is not applied

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: Not applicable.

15.Profit (or loss) upon disposal: Not applicable.

16.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important terms and conditions: After obtaining the necessary approvals from the relevant regulatory authorities, the capital increase of the Hong Kong subsidiary, China Galaxy Enterprises Limited, through investment projects in third-party regions, can proceed.

17.The manner in which the current transaction was decided, the reference basis for the decision on price, and the decision-making unit: Board of Directors

18.Broker: None

19.Concrete purpose of the acquisition or disposal: Long-term investment

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

21.Whether the counterparty of the current transaction is a related party: YES

22.Date of the board of directors resolution:2024/05/14

23.Date of ratification by supervisors or approval by the Audit Committee:2024/05/14

24.Total amount of investment in mainland China (including the current investment) approved by the Investment Commission, up to the present moment: USD 12,843,797,474.26

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:300.25%

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:12.15%

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:27.95%

28.Total amount of actual investment in mainland China, up to the present moment: USD10,963,036,206.01

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:256.29%

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:10.37%

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:23.85

32.Amount of recognized profit (loss) on investment in mainland China for the last three years:

2021: NTD 157,233,126,000

2022: NTD 173,959,823,000 

2023: NTD 177,728,405,000 

33.Amount of profit remitted back to Taiwan for the last three years: None

34.Whether the CPA issued an unreasonable opinion regarding the current transaction: Na

35.Name of the CPA firm: Na

36.Name of the CPA: Na

37.Practice certificate number of the CPA: Na

38.Any other matters that need to be specified: None

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