Ta Chen Stainless Pipe : Representing the subsidiary TCI to announce Applicable to reaching the ceiling on losses for individual contracts of derivative transactions.
Representing the subsidiary TCI
to announce Applicable to reaching the ceiling on losses
for individual contracts of derivative transactions.
Date of events
2022/02/10
To which item it meets
paragraph 20
Statement
1.Type of contract:Swap contract for Aluminum & Nickel
2.Date of occurrence of the event:2022/02/10
3.Contract price:
The contract amount which reached the ceiling on losses set forth in the
procedures for individual contract of derivative transactions is
US$11,047 thousand (NT$307,383 thousand)
4.Monetary amount of margin or royalties paid:None.
5.Ceiling on losses for aggregate or individual contracts set forth in the
Procedures:20% of contract amount.
6.Reason for derivative transaction:Hedge Purpose.
7.Item(s) being hedged:Aluminum and Stainless Steel
8.Monetary amount of the hedged item(s):
Aluminum: NT$13.4 billion
Stainless Steel: NT$11.9 billion
9.Profit (loss) of the hedged item(s):
The company has same position for Aluminum and Stainless Steel Inventory,
it will also reflect the price increase to offset the MTM loss.
10.The losses (including realized and unrealized losses) assessed using fair
value:
The unrealized loss reached the ceiling on losses set forth in the procedure
for individual contracts of derivative transactions is US$3,090 thousand
(NT$85,979 thousand).
11.Reason for occurrence of the losses and the impact to the Company:
The unrealized loss from the market price of Aluminum and Nickel increased,
but the company will also reflect the price increase from inventory to
offset the MTM loss.
12.Contract period:None.
13.Restrictive covenants:None.
14.Other important terms and conditions:None.
15.Any other matters that need to be specified:
The inventory of Aluminum as of January 31, 2022 is around 133,000MT.
The company already hedged 49,000MT.
The inventory of Stainless Steel as of January 31, 2022 is around 67,000MT.
The company already hedged 17,000MT.
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TA CHEN Stainless Pipe Co. Ltd. published this content on 10 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2022 10:00:01 UTC.
TA CHEN STAINLESS PIPE CO., LTD. is a Taiwan-based company principally engaged in the manufacture, processing and sales of stainless steel products. The Company's main products include stainless steel pipes, stainless steel welded pipe fittings, stainless steel coils, stainless steel cutting and processing products, steel belts, pipe joints, flange, valves and fasteners. In addition, The Company is also engaged in the manufacture and sales of screws and nuts. The Company's mainly distributes its products to the overseas markets.
Ta Chen Stainless Pipe : Representing the subsidiary TCI to announce Applicable to reaching the ceiling on losses for individual contracts of derivative transactions.
TA CHEN STAINLESS PIPE CO., LTD. 
