(Progress of a Disclosed Item) Notice of an Appeal against Our Equity-Method Affiliate in China and a Decision on our Counterclaim (China Construction First: Electrical Facility Work) picture_as

News Release: Ferrotec Holdings Corporation (6890 TSE Standard)

January 17, 2023

(Progress of a Disclosed Item) Notice of an Appeal against Our Equity-Method Affiliate in China

and a Decision on our Counterclaim (China Construction First: Electrical Facility Work)

Ferrotec Holdings Corporation (Representative Director: He Xian Han; hereinafter "the Company") announces the progress of the disclosed item as follows, as China Construction First Group Construction & Development Co., Ltd. (hereinafter "China Construction First") appealed to the Zhejiang Higher People's Court because China Construction First was dissatisfied with the decision on the lawsuit on an electrical facility work mentioned in "(Progress of a Disclosed Item) Notice of a Lawsuit against Our Equity-Method Affiliate in China and a Decision on our Counterclaim (China Construction First)" dated January 10, 2023 (hereinafter "the lawsuit on an electrical facility work contract).

The disclosure on January 10, 2023 contained the contents regarding an electrical facility work contract out of two lawsuits (public works and electrical facility work) against China Construction First. However, we cannot clearly describe to which case a judgment was made, so we added the phrase "Electrical Facility Work" in this disclosure.

1. Overview of the other party in the lawsuit

	(1)	Name	China Construction First Group Construction & Development Co., Ltd.
	(China Construction First)
	(2)	Address	Building 17, Wangli Road West, Chaoyang District, Beijing, People's
	Republic of China
	(3)	Title and name of	Liao Ganglin, Legal representative
	representative
2. Overview of the equity-method affiliate of the Company as of September 30, 2022
	(1)	Name	Hangzhou Semiconductor Wafer Co., Ltd. (CCMC)
	(2)	Address	888 Dongken Road, Qiantang New District, Hangzhou, Zhejiang Province,
			People's Republic of China
	(3)	Title and name of	He Xian Han, Legal representative
		representative
	(4)	Contents of business	Manufacture of semiconductor wafers
	(5)	Capital	5,032 million yuan (approx. 95.7 billion yen)
	(6)	Our investment ratio	23.05%

*Exchange rate: 1 Chinese yuan = 19.01 yen

3. Progress

On January 7, 2023, China Construction First appealed to the Zhejiang Higher People's Court t because China Construction

First was dissatisfied with the decision on the lawsuit on an electrical facility work (date of service of the written appeal: January 12, 2023).

*As for the progress until a judgment, please refer to "(Progress of a Disclosed Item) Notice of a Lawsuit against Our Equity- Method Affiliate in China and a Decision on our Counterclaim (China Construction First)" dated January 10, 2023.

4. Future outlook

CCMC rationally estimated the obligation regarding this lawsuit in the previous term, and posted it in its financial statements. We will insist the legitimacy of CCMC's activities in this lawsuit.

The impact on the business performance of the Company for the current fiscal year and onwards through this matter is expected to be minor. However, we will promptly disclose relevant items as soon as they are confirmed.