Weikeng Industrial : The Company ratified the acquisition of the right-of-use assets from the related party 100% owned subsidiary Weikeng International Co., Ltd.

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Provided by: Weikeng Industrial Co., Ltd.
SEQ_NO	1	Date of announcement	2022/04/20	Time of announcement	18:49:22
Subject	The Company ratified the acquisition of the right-of-use assets from the related party 100% owned subsidiary Weikeng International Co., Ltd.
Date of events	2019/01/01	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):17/F&19/F, Ever Gain Centre, No. 28 On Muk Street, Shatin, New Territories, Hong Kong(HK Shatin) 2.Date of occurrence of the event: 2019/01/01 3.Transaction unit amount (e.g.XX square meters, equivalent to XX ping), unit price, and total transaction price: Contract Term:2019/1/1~/2021/10/31. (1) Gross Area:27,481 square feet (772.22 Ping) (2) HK $10.5/square feet/ month. (3)Total rent: HK$9,807 thousand (NT$36,818 thousand) (4) Value of right-of-use assets:NT$35,248 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):Weikeng International Company Limited: 100% owned subsidiary of Company. 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: In order to serve customers in the Greater China region, Weikeng Group plans to set up logistics service based in Hong Kong and Shenzhen Free Trade Zone, where zero tax rates are applied to imported goods. The Hong Kong-registered subsidiary will first lease the building from the original lessor and then sub-lease the Company. The lessor of the original lease agreement: Genright Investment Limited The previous owner, its relationship with the Company and the trading counterparty:None 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:Not applicable 7.Projected gain (or loss) through disposal (not applicable for acquisition of assets; those with deferral should provide a table explaining recognition):Not applicable 8.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important terms and conditions: Contract Term:2019/1/1~2021/10/31. (1) HK $10.5/square feet/ month. (2)Total rent: HK$9,807 thousand (NT$36,818 thousand), pay per month 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 decision method of this transaction: Weikeng group makes overall planning for leasing, and the Company compares the related parties with the original rent price per unit stipulated in the original lease contract to sub-lease which was approved by the chairman of the board. 10.Name of the professional appraisal firm or company and its appraisal price:Not applicable 11.Name of the professional appraiser:Not applicable 12.Practice certificate number of the professional appraiser:Not applicable 13.The appraisal report has a limited price, specific price, or special price:Not applicable 14.An appraisal report has not yet been obtained:Not applicable 15.Reason for an appraisal report not being obtained:Not applicable 16.Reason for any significant discrepancy with the appraisal reports and opinion of the CPA:Not applicable 17.Name of the CPA firm:Not applicable 18.Name of the CPA:Not applicable 19.Practice certificate number of the CPA:Not applicable 20.Broker and broker's fee:Not applicable 21.Concrete purpose or use of the acquisition or disposal: In order to disperse the logistics risk, control the cash outflow of import business tax and emphasize the logistics efficiency of the delivered goods, etc. 22.Any dissenting opinions of directors to the present transaction:No 23.Whether the counterparty of the current transaction is a related party:Yes 24.Date of the board of directors resolution:Ratified on 2022/4/20 25.Date of ratification by supervisors or approval by the audit committee:2022/04/20 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:Not applicable 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:Not applicable 29.Any other matters that need to be specified: Regardless of the amount of related party transactions, the announcement is made after submitting to the board of directors for ratification.