REG - Hon Hai Prec.Ind.Co - Subsidiary disposal land use rights and building

Hon Hai Precision Industry CoAnnouncement

17/06/2022 12:30

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RNS Number : 3187P  Hon Hai Precision Industry Co Ld  17 June 2022

Subject: Subsidiary, FuDing Precision Components (ShenZhen) Co., Ltd. disposal
of land use rights and building

Contents:

1.Name and nature of the underlying asset (e.g., land located at Sublot XX,
Lot XX, North District, Taichung City):Land use rights and building at
District C, Baoyuan Technology Area, Guanlan Sub-district

2.Date of occurrence of the event:2022/06/17

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

Transaction unit amount:

land 76,231 square meters, equivalent to 23,060 ping

building 165,934 square meters, equivalent to 50,207 ping

unit price:RMB 5,235/square meters

total transaction price:RMB 868,680,000 (tax included)

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): ShenZhen FerTile Plan international Logistics 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:

Choosing the related party as trading counterpart:asset activation.

The identity of the previous owner:Shenzhen Planning He Natural Resources

Bureau Longhua Administration

Relationship with the company:None

Relationship with the trading counterpart:None

The date of acquisition:2007/06/30

Price of transfer:RMB 71,379,917

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):about RMB 70,714,000

8.Terms of delivery or payment (including payment period and monetary amount),
restrictive covenants in the contract, and other important terms and
conditions:According to the contract

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:

Negotiated;market price;the Board of Directors

10.Name of the professional appraisal firm or company and its appraisal price:

Linfen Xinyu Asset Appraisal Co., Ltd.:RMB 836,000,000

Ningbo Shanhai Real Estate Appraisal Co., Ltd.:RMB 868,000,000

11.Name of the professional appraiser:

Linfen Xinyu Asset Appraisal Co., Ltd.:JIA Yu-Hong

Ningbo Shanhai Real Estate Appraisal Co., Ltd.:CHEN Shan-Shan

12.Practice certificate number of the professional appraiser:

JIA Yu-Hong/14210036

CHEN Shan-Shan/30140005

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:asset activation

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:2022/06/17

25.Date of ratification by supervisors or approval by the audit committee:NA

26.The transaction is to acquire a real property or right-of-use asset from a
related party:NA

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:

In this case, the assets are deemed to be disposed of, as they meet the
accounting requirements for finance leases, but the actual land use rights and
ownership of the houses remain with the Company.

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