China Development Financial : CDF, on behalf of KGI Securities, announced the Board of Directors’ resolution on capital reduction by returning the CDF Common Stocks to the Parent Company

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Provided by: CHINA DEVELOPMENT FINANCIAL HOLDING CORP.
SEQ_NO	3	Date of announcement	2022/01/21	Time of announcement	18:32:03
Subject	CDF, on behalf of KGI Securities, announced the Board of Directors�� resolution on capital reduction by returning the CDF Common Stocks to the Parent Company
Date of events	2022/01/21	To which item it meets	paragraph 20
Statement	1.Name and nature of the underlying assets (if preferred shares, the terms and conditions of issuance shall also be indicated, e.g., dividend yield, etc.): China Development Financial Holding Corporation Common Stocks. 2.Date of occurrence of the event:2022/01/21 3.Amount, unit price, and total monetary amount of the transaction: (1) Amount: Common Stock 340,713,669 shares (2) Unit price: Common Stock NT$18.75 per share (3) Total monetary amount: NT$ 6,388,381,293 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): (1) Trading counterparty: China Development Financial Holding Corp. (2) Relationship with the Company: The Parent Company 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: (1) After the merger of China Development Financial Holding Corp. with China Life, the Company��s shareholding in China Life 425,892,087 shares of common stocks converted into China Development Financial Holding Corp. common stocks 340,713,669 shares and preferred stocks 310,901,223 shares. The base date of the merge is 2021/12/30. (2) For the development strategy and capital allocation planning of China Development Financial Holding Corp. and improving the capital efficiency, the Company is planning of reducing capital by returning China Development Financial Holding Corp. common stocks 340,713,669 shares and preferred stocks 310,901,223 shares, which are converted from the shares of China Life due to the merge. 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:N/A 7.Matters related to the current disposal of creditors' rights (including types of collaterals of the disposed creditor��s rights; if creditor's rights over a related party, announcement shall be made of the name of the related party and the book amount of the creditor's rights, currently being disposed of, over such related party):N/A 8.Profit or loss from the disposal (not applicable in cases of acquisition of securities) (those with deferral should provide a table explaining recognition):N/A 9.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important terms and conditions: Capital reduction by returning the China Development Financial Holding Corp. Common Stocks to the Parent Company 10.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: (1) The manner of deciding on this transaction: Capital reduction by returning the China Development Financial Holding Corp. Common Stocks to the Parent Company (2) The reference basis for the decision on price : using the closing prices of China Development Financial Holding Corp. Common Stocks on 2022/1/20 (the valuation day) (3) The decision-making unit : Board of directors 11.Net worth per share of the Company's underlying securities acquired or disposed of:14.81 12.Cumulative no.of shares held (including the current transaction), their monetary amount, shareholding percentage, and status of any restriction of rights (e.g., pledges), as of the present moment: (1) Cumulative no. of shares held:0 units (2) Monetary amount : NT$ 0 (3) Shareholding percentage: 0 % (4) Status of any restriction of rights : None 13.Current ratio of securities investment (including the current trade, as listed in article 3 of Regulations Governing the Acquisition and Disposal of Assets by Public Companies) to the total assets and equity attributable to owners of the parent as shown in the most recent financial statement and working capital as shown in the most recent financial statement as of the present: (1)To the total assets: 29.16% (2) To the equity : 36.17% (3) Working capital as shown in the most recent financial statement : NA 14.Broker and broker's fee:None 15.Concrete purpose or use of the acquisition or disposal: Capital reduction by returning the China Development Financial Holding Corp. Common Stocks to the Parent Company 16.Any dissenting opinions of directors to the present transaction:No 17.Whether the counterparty of the current transaction is a related party:Yes 18.Date of the board of directors resolution:2022/01/21 19.Date of ratification by supervisors or approval by the Audit Committee:2022/01/21 20.Whether the CPA issued an unreasonable opinion regarding the current transaction:N/A 21.Name of the CPA firm:FORTUNE & CO., CPAs 22.Name of the CPA:Kevin Tsai 23.Practice certificate number of the CPA: Taipei Certified Public Accountant Association Certificate No.2622 24.Whether the transaction involved in change of business model:No 25.Details on change of business model:NA 26.Details on transactions with the counterparty for the past year and the expected coming year:N/A 27.Source of funds:Capital reduction by transferring the China Development Financial Holding Corporation Common Stocks 28.Any other matters that need to be specified:None