Shinkong Synthetic Fibers : Announcing the land disposal with related party Shinkong Engineering Co., Ltd., on behalf of the subsidiary Hsingshing Investment Co., Ltd.

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Provided by: SHINKONG SYNTHETIC FIBERS CORPORATION
SEQ_NO	2	Date of announcement	2022/03/24	Time of announcement	18:19:19
Subject	Announcing the land disposal with related party Shinkong Engineering Co., Ltd., on behalf of the subsidiary Hsingshing Investment Co., Ltd.
Date of events	2022/03/24	To which item it meets	paragraph 20
Statement	1.Name and nature of the underlying asset (e.g., land located at Sublot XX, Lot XX, North District, Taichung City): Plot 1: land located at No. 1614, Guangdong Lot, No. 242,304-1,307,310, Guangxi Lot, No. 392 ,Guangfeng Lot,No. 1137, Deyu Lot and No. 112-1, Yanping Lot, Pingzhen District, Taoyuan City. Plot 2: land located at No. 3-7, 3-26, 3-804, 37-203 Shitou Lot, No. 190-228 Xingnan Sublot, Xingnan Lot, No. 54-28 Sanzuowu Sublot, Sanzuowu Lot, No. 1055, 1061-2, Zihli Lot,No. 1196-1 Fuxing Lot, and No. 2572-1, 2572-81 Zhongfu Lot, Zhongli District, Taoyuan City. 2.Date of occurrence of the event:2022/03/24 3.Transaction unit amount (e.g.XX square meters, equivalent to XX ping), unit price, and total transaction price: Plot 1 at Pingzhen District, Taoyuan City: Total area: 411.4 square meters, equivalent to 124.44 Ping. Unit price: NTD 129.4 thousand per Ping. Total transaction amount: approximately NTD 16,104 thousand Plot 2 at Zhongli District, Taoyuan City: Total area: 492.8 square meters, equivalent to 149.09 Ping. Unit price: NTD 251.8 thousand per Ping Total transaction amount: approximately NTD 37,551 thousand Total transaction area including Plot1 and Plot2:273.53 Ping Total transaction amount including Plot1 and Plot2: NTD 53,655 thousand 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):Shinkong Engineering Co., Ltd. (SEC) is a sister company of Hsingshing Investment Co., Ltd (HSIC), in which Shinkong Synthetic Fibers Corp.(SSFC) holds 100% equity. 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: Reason for choosing the related party as trading counterparty: SEC plans to develop the land plots currently and part of land owned by HSIC. Previous owners prior to this transaction: JIAN Lian-Zhe, FENG Qiao-Ling, and Kuan-Pin Company . The relationship of previous owners with the Company and the trading counterparty: None. The previous date and monetary amount of transfer: (1) 2020/10/20, NTD1,841 thousand (2)2020/10/5, NTD21,272 thousand (3)2021/4/21, NTD10,035 thousand 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.Projected gain (or loss) through disposal (not applicable for acquisition of assets; those with deferral should provide a table explaining recognition):Estimated gain on disposal: NTD 20,506 thousand and the final amount is subject to the CPA's review. 8.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important terms and conditions: Terms of delivery or payment: in accordance with the land sales contract signed by both trading parties. Any restrictive covenants in the contract, and other important terms and conditions: None. 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: The transaction decision was made based on price negotiation. Reference basis used: market price and the appraisal price for nearby plots. Decision-making unit: board of directors. 10.Name of the professional appraisal firm or company and its appraisal price: Appraisal firm: Zhan-Mao Real Estate Appraisers Firm Appraisal price: Plot 1 at Pingzhen District, Taoyuan City: NTD 16,103,739 Plot 2 at Zhongli District, Taoyuan City: NTD 37,550,887 11.Name of the professional appraiser:YANG Zhe-Hao 12.Practice certificate number of the professional appraiser: No. (109) BG000287 13.The appraisal report has a limited price, specific price, or special price:N/A 14.An appraisal report has not yet been obtained:N/A 15.Reason for an appraisal report not being obtained:N/A 16.Reason for any significant discrepancy with the appraisal reports and opinion of the CPA:N/A 17.Name of the CPA firm:Shangher Accounting Firm 18.Name of the CPA:HUANG Sheng-Ping 19.Practice certificate number of the CPA:FSC Cert No. 6756 20.Broker and broker's fee:None 21.Concrete purpose or use of the acquisition or disposal: land development for the SSFC group. 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:2022/03/24 25.Date of ratification by supervisors or approval by the audit committee:2022/03/24 26.The transaction is to acquire a real property or right-of-use asset from a related party: Yes 27.The price assessed in accordance with the Article 16 of the Regulations Governing the Acquisition and Disposal of Assets by Public Companies:N/A 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:N/A 29.Any other matters that need to be specified:N/A