Hon Hai Precision Industry : Announcement on investment in Tsinghua Unigroup Ltd. in Mainland China

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Provided by: HON HAI PRECISION IND. CO., LTD.
SEQ_NO	1	Date of announcement	2022/07/14	Time of announcement	19:31:32
Subject	Announcement on investment in Tsinghua Unigroup Ltd. in Mainland China
Date of events	2022/07/11	To which item it meets	paragraph 20
Statement	1.Date of occurrence of the event:2022/07/11 2.Method of the current increase (decrease) in investment: Through the reinvestment of Foxconn Industrial Internet Co., Ltd., an investment in Mainland China, Xingwei (Guangzhou) Industrial Investment Partnership (Limited Partnership)(referred to as "Xingwei Fund") (holding 99.99%)investsRMB 5.38 billion in Shengyue (Guangzhou) Industrial Investment Partnership (Limited Partnership) (referred to as "Shengyue Guangzhou") (holding 48.91%). Beijing Zhiguangxin Holding Co., Ltd. (referred to as "Zhiguangxin") (holding 20.04%) invested by Shengyue Guangzhou, obtained 100% stakes of Tsinghua Unigroup Ltd. (referred to as " Tsinghua Unigroup") through judicial reorganization. 3.Amount, unit price, and total monetary amount of the transaction: Total transaction amount: RMB 5.38 billion 4.Company name of the mainland Chinese investee: Tsinghua Unigroup Ltd. 5.Paid-in capital of aforementioned mainland Chinese investee: RMB 6.7 billion 6.Amount of capital increase currently planned for the aforementioned mainland Chinese investee:RMB 0 7.Main businesses of the aforementioned mainland Chinese investee: Tsinghua Unigroup is a leading digital technology company in mainlandChina. Its business scopes include integrated circuit design, routers, switches, and servers, etc. 8.Type of CPA opinion in the latest annual financial statements of the aforementioned mainland Chinese investee: Unqualified opinion in 2019 and no audit has been conducted since then 9.Total equity of the aforementioned mainland Chinese investee in the latest annual financial statements: The audited number for 2019 is RMB 79.01 billion 10.Amount of profit/loss of the aforementioned mainland Chinese investee in the latest annual financial statements: The audited number for 2019 is RMB 820 million 11.Amount of actual investment in the aforementioned mainland Chinese investee, up to the present moment: 0 12.Trading counterparty and its relationship with the Company: Not applicable.Acquisition of equity through judicial reorganization 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:NA 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:None 17.The manner in which the current transaction was decided, the reference basis for the decision on price, and the decision-making unit: Transaction determination: Beijing Zhiguangxin Holding Co., Ltd.,an investment platform established by the consortium, decided to invest in Tsinghua Unigroup Ltd. The investment committee, assigned by the fund managers, of Xingwei (Guangzhou) Industrial Investment Partnership (Limited Partnership), according to the fund decision procedure, decidedthat Xingwei (Guangzhou) Industrial Investment Partnership (Limited Partnership)to invest in Shengyue (Guangzhou) and Shengyue (Guangzhou) to invest in Zhiguangxin, and ultimately invests in Tsinghua Unigroup. Reference of transaction price determination: Investment analysis by Beijing Wise Road Capital Co.,Ltd, the fund manager of Xingwei (Guangzhou) Industrial Investment Partnership (Limited Partnership) Decision Making Unit: Beijing Zhiguangxin Holding Co., Ltd. and Beijing Wise Road Capital Co.,Ltd, the fund manager of Xingwei (Guangzhou) Industrial Investment Partnership (Limited Partnership) 18.Broker:None 19.Concrete purpose of the acquisition or disposal: Financial investment 20.Any dissenting opinions of directors to the present transaction:NA 21.Whether the counterparty of the current transaction is a related party:No 22.Date of the board of directors resolution:NA 23.Date of ratification by supervisors or approval by the Audit Committee:NA 24.Total amount of investment in mainland China (including the current investment) approved by the Investment Commission, up to the present moment: USD 13,082,596,838.19 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:280.75% 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:11.60% 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:28.08% 28.Total amount of actual investment in mainland China, up to the present moment:USD 10,931,409,446.69 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:234.59% 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:9.69% 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:23.46% 32.Amount of recognized profit (loss) on investment in mainland China for the last three years: 2019: NT$ 105,832,857,000; 2020: NT$ 119,283,719,000; 2021: NT$ 157,233,126,000 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