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
2022/03/08
To which item it meets
paragraph 20
Statement
1.Type of contract:Swap contract for Aluminum & Nickel
2.Date of occurrence of the event:2022/03/08
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$42,240 thousand (NT$1,183,776 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$13.3 billion
Stainless Steel: NT$12.3 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$12,434 thousand
(NT$348,463 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 February 28, 2022 is around 132,000MT.
The company already hedged 54,000MT.
The inventory of Stainless Steel as of February 28, 2022 is around 69,000MT.
The company already hedged 13,000MT.
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TA CHEN Stainless Pipe Co. Ltd. published this content on 08 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2022 08:10:01 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.