Walsin Lihwa : Announcement for Walsin (China) Investment Co.,Ltd acquire the equity of Changshu Walsin Specialty Steel Co., Ltd and Changzhou China Steel Precision Materials Co., Ltd

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Provided by: WALSIN LIHWA CORPORATION
SEQ_NO	4	Date of announcement	2022/08/05	Time of announcement	14:59:33
Subject	Announcement for Walsin (China) Investment Co.,Ltd acquire the equity of Changshu Walsin Specialty Steel Co., Ltd and Changzhou China Steel Precision Materials Co., Ltd
Date of events	2022/08/05	To which item it meets	paragraph 20
Statement	1.Date of occurrence of the event:2022/08/05 2.Method of the current increase (decrease) in investment: (1)Walsin (China) Investment Co.,Ltd. acquires 100% equity of Changshu Walsin Specialty Steel Co., Ltd. from Walsin Specialty Steel Corp. of which the Company owns 100% equity indirectly. (2)Walsin (China) Investment Co.,Ltd. acquires 30% equity of Changzhou China Steel Precision Materials Co., Ltd. from Concord Industries Limited which is a 100% subsidiary of the Company. 3.Amount, unit price, and total monetary amount of the transaction: Amount and unit price:NA Total monetary amount: Changshu Walsin Specialty Steel Co., Ltd.:The transaction price will be the book value of Changshu Walsin Specialty Steel Co., Ltd. held by Walsin Specialty Steel Corp. on the transaction date(2022/6/30 book value is RMB 223,909 thousand, and the actual price will be based on the book value on the transaction date). Changzhou China Steel Precision Materials Co., Ltd.:The transaction price will be the book value of Changzhou China Steel Precision Materials Co., Ltd. held by Concord Industries Limited on the transaction date(2022/6/30 book value is RMB 108,874 thousand, and the actual price will be based on the book value on the transaction date). 4.Company name of the mainland Chinese investee: Changshu Walsin Specialty Steel Co., Ltd. Changzhou China Steel Precision Materials Co., Ltd. 5.Paid-in capital of aforementioned mainland Chinese investee: Changshu Walsin Specialty Steel Co., Ltd.:USD 97,000 thousand Changzhou China Steel Precision Materials Co., Ltd.:USD 43,600 thousand 6.Amount of capital increase currently planned for the aforementioned mainland Chinese investee:None 7.Main businesses of the aforementioned mainland Chinese investee: Changshu Walsin Specialty Steel Co., Ltd.: Manufacture and sale of specialized steel tubes Changzhou China Steel Precision Materials Co., Ltd.: Melting and forging of nonferrous metallic materials and composites as well as new types of alloys 8.Type of CPA opinion in the latest annual financial statements of the aforementioned mainland Chinese investee:unqualified opinion 9.Total equity of the aforementioned mainland Chinese investee in the latest annual financial statements: Changshu Walsin Specialty Steel Co., Ltd.: RMB 161,345 thousand Changzhou China Steel Precision Materials Co., Ltd.: RMB 337,058 thousand 10.Amount of profit/loss of the aforementioned mainland Chinese investee in the latest annual financial statements: Changshu Walsin Specialty Steel Co., Ltd.: RMB 9,128 thousand Changzhou China Steel Precision Materials Co., Ltd.: RMB 35,411 thousand 11.Amount of actual investment in the aforementioned mainland Chinese investee, up to the present moment: Changshu Walsin Specialty Steel Co., Ltd.: USD 97,000 thousand Changzhou China Steel Precision Materials Co., Ltd.: USD 13,080 thousand 12.Trading counterparty and its relationship with the Company: Walsin (China) Investment Co.,Ltd.,Walsin Specialty Steel Corp.and Concord Industries Limited are all the Company's 100% subsidiaries. 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.Reason:Group investment structure adjustment 2.Previous owner, previous date and monetary amount of transfer: Changshu Walsin Specialty Steel Co., Ltd.: Acquired by capital increase in cash, not applicable. Changzhou China Steel Precision Materials Co., Ltd.: (1)Identity of the previous owner:Walsin Singapore PTE. Ltd. (2)Relationship:The Company's 100% subsidiary (3)Previous date:2013/12/23 (4)Monetary amount of transfer:RMB 74,213 thousand 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:NA 15.Profit (or loss) upon disposal:NA 16.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important terms and conditions:In accordance with the share transfer agreement. 17.The manner in which the current transaction was decided, the reference basis for the decision on price, and the decision-making unit: The manner in which the current transaction was decided, the reference basis for the decision on price: The transaction price will be the book value of Changshu Walsin Specialty Steel Co., Ltd. held by Walsin Specialty Steel Corp. and Changzhou China Steel Precision Materials Co., Ltd. held by Concord Industries Limited on the transaction date, and the price reasonable opinion is issued by CPA Wu, Meng-Ta of Crowe (TW) CPAs. decision-making unit：Board of Directors 18.Broker:None 19.Concrete purpose of the acquisition or disposal: Group investment structure adjustment 20.Any dissenting opinions of directors to the present transaction:No 21.Whether the counterparty of the current transaction is a related party:Yes 22.Date of the board of directors resolution:2022/08/05 23.Date of ratification by supervisors or approval by the Audit Committee:2022/07/29 24.Total amount of investment in mainland China (including the current investment) approved by the Investment Commission, up to the present moment: USD 676,871 thousand 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:59.06% 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:12.31% 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:19.14% 28.Total amount of actual investment in mainland China, up to the present moment:USD 790,573 thousand 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:68.98% 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:14.37% 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:22.35% 32.Amount of recognized profit (loss) on investment in mainland China for the last three years: 2021:NTD -20,735 thousand 2020:NTD 1,980,368 thousand 2019:NTD 401,202 thousand 33.Amount of profit remitted back to Taiwan for the last three years: 2021:NTD 0 2020:NTD 0 2019:NTD 0 34.Whether the CPA issued an unreasonable opinion regarding the current transaction:No 35.Name of the CPA firm:Crowe (TW) CPAs 36.Name of the CPA:Wu, Meng-Ta 37.Practice certificate number of the CPA: Taiwan Finance Certificate (6) No. 3622 38.Any other matters that need to be specified:None