Announcing the Board of Directors Resolution on the Acquisition of Land Use Rights on Behalf of the Vietnamese Subsidiary Not Yet Incorporated.

 Announcing the Board of Directors Resolution
on the Acquisition of Land Use Rights on Behalf of
the Vietnamese Subsidiary Not Yet Incorporated.

1.Name and nature of the underlying asset (e.g., land located at Sublot XX,
Lot XX, North District, Taichung City):Land use rights of
the Phu My Specialized Industrial Park (PM3SIP) located
in Ba Ria- Vung Tau province, Vietnam.
2.Date of occurrence of the event:2021/11/10
3.Transaction unit amount (e.g.XX square meters, equivalent to XX ping),
unit price, and total transaction price:Transaction units:
100,037.83 square meters, equivalent to 30,261.44 ping.
Unit price:USD150/m2
Transaction price: About USD 15,006 thousand(excl. 10% VAT),
equivalent to NTD 420,159 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):Trading counterparty: THANH BINH PHU MY
JOINT STOCK COMPANY, a non-related party to the 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:N/A
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):N/A
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: as detailed in the contract
Restrictive covenants in the contract and other important
terms and conditions:
1.The land use rights shall terminate by the end of year 2077.
2.The transaction price will be settled by Shingkong Synthetic
Fiber Corp. on behalf of its Vietnamese subsidiary that is not yet
incorporated. This amount shall convert to be part of the Vietnamese
subsidiary��s share capital once incorporated.
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:
Transaction decision was based on price negotiation.
Price reference basis used: Company valuation by
professional appraiser and market price.
Decision-making unit: Board of directors.
10.Name of the professional appraisal firm or company and
its appraisal price:
Professional appraisal company: Savills Vietnam Co., Ltd.
Appraisal price: Between USD 15.2million and USD 16.8 million
(excl. VAT 10%), equivalent to NTD 452,600 thousand and
NTD 470,400 thousand
11.Name of the professional appraiser:Troy Griffiths
12.Practice certificate number of the professional appraiser:
No. VIII13.1038 by the Ministry of Finance, Vietnam.
13.The appraisal report has a limited price, specific price,
or special price:No
14.An appraisal report has not yet been obtained:No
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:N/A
18.Name of the CPA:N/A
19.Practice certificate number of the CPA:N/A
20.Broker and broker's fee:N/A
21.Concrete purpose or use of the acquisition or disposal:
The land will be used for manufacturing for the
Company��s Vietnamese subsidiary.
22.Any dissenting opinions of directors to the present transaction:
None.
23.Whether the counterparty of the current transaction is a
related party: No.
24.Date of the board of directors resolution:2021/11/10
25.Date of ratification by supervisors or approval by
the audit committee:2021/11/10
26.The transaction is to acquire a real property or right-of-use
asset from a related party:No.
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:None.