REG - Hon Hai Prec.Ind.Co - Announcement of obtaining PRC Investment

Hon Hai Precision Industry CoAnnouncement

14/05/2024 11:00

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RNS Number : 3689O  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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