On behalf of subsidiary Shinkong Comm. Co. Ltd. to announce its disposition of right-of-use assets to related party, ShinKong Life Ins. Co. Ltd.(partial rent reduction)

 On behalf of subsidiary Shinkong Comm. Co. Ltd. to
announce its disposition of right-of-use assets to related
party, ShinKong Life Ins. Co. Ltd.(partial rent reduction)

1.Name and nature of the underlying asset (e.g., land located at Sublot XX,
Lot XX, North District, Taichung City):
FIC Building
Rooftop at 9F., No. 296, 298 and 300, Yangguang St., Neihu Dist.,
Taipei City 114718, Taiwan (R.O.C.)
Shin Kong Toufen Building
Rooftop at No.1192, Zhonghua Rd., Toufen City,
Miaoli County 351030, Taiwan (R.O.C.)
Xihu Technology Building
Rooftop at 10F., No.57, Ln. 10, Jihu Rd., Neihu Dist.,
Taipei City 114066, Taiwan (R.O.C.)
Lihu Jasper Building
Rooftop at No.462, Sec. 5, Chenggong Rd., Neihu Dist.,
Taipei City 114050, Taiwan (R.O.C.)
2.Date of occurrence of the event:2024/03/29
3.Transaction unit amount (e.g.XX square meters, equivalent to XX ping),
unit price, and total transaction price:
FIC Building
Before rent reduction on 2020/04/14
Lease period: 2020/05/01-2025/04/30
(calculated based on the actual contract date)
Number of units traded: Total of about 2 pings
Price per unit: Monthly rent is approximately NT$39,753 per ping (before tax)
Price per month: NT$79,505 per month (before tax)
Total rent: NT$4,770,360
Amount of right-of-use assets: NT$4,643,496
After rent reduction- Starting from 2024/04/01, telecommunication companies
cancel lease and reduce partial rent
Lease period: 2020/05/01-2025/04/30
Price per unit after rent reduction: 3 telecommunication companies sublease
server rooms in 3 locations, totaling about 2 pings
Price per unit: Monthly rent is approximately NT$31,767 per ping
Price per month: NT$63,533 per month
Total rent: NT$4,562,664
Amount of right-of-use assets: NT$4,441,379
Shin Kong Toufen Building
Before rent reduction on 2022/06/30
Lease period: 2022/08/01-2027/07/31
Number of units traded: Total of about 11 pings
Price per unit: Monthly rent is approximately NT$5,061 per ping (before tax)
Price per month: NT$55,667 per month (before tax)
Total rent: NT$3,340,000
Amount of right-of-use assets: NT$3,251,226
After rent reduction- Starting from 2024/05/01, telecommunication companies
cancel lease and reduce partial rent
Lease period: 2022/08/01-2027/07/31
Price per unit after rent reduction: 3 telecommunication companies sublease
server rooms in 3 locations, totaling about 11 pings
Price per unit: Monthly rent is approximately NT$3,300 per ping
Price per month: NT$36,295 per month
Total rent: NT$2,584,514
Amount of right-of-use assets: NT$2,496,964
Xihu Technology Building
Before rent reduction on 2020/06/12
Lease period: 2020/08/01-2025/07/31
(calculated based on the actual contract date)
Number of units traded: Total of about 2 pings
Price per unit: Monthly rent is approximately NT$39,753 per ping (before tax)
Price per month: NT$79,505 per month (before tax)
Total rent: NT$4,770,330
Amount of right-of-use assets: NT$4,643,510
After rent reduction- Starting from 2024/06/01, telecommunication companies
cancel lease and reduce partial rent
Lease period: 2020/08/01-2025/07/31
Price per unit after rent reduction: 3 telecommunication companies sublease
server rooms in 3 locations, totaling about 2 pings
Price per unit: Monthly rent is approximately NT$31,767 per ping
Price per month: NT$63,533 per month
Total rent: NT$4,546,692
Amount of right-of-use assets: NT$4,425,845
Lihu Jasper Building
Before rent reduction on 2019/11/29
Lease period: 2019/12/01-2024/12/31
(calculated based on the actual contract date)
Number of units traded: Total of about 2 pings
Price per unit: Monthly rent is approximately NT$47,738 per ping (before tax)
Price per month: NT$95,476 per month (before tax)
Total rent: NT$5,728,560
Amount of right-of-use assets: NT$5,576,311
After rent reduction- Starting from 2024/06/01, telecommunication companies
cancel lease and reduce partial rent
Lease period: 2019/12/01-2024/12/31
Price per unit after rent reduction: 3 telecommunication companies sublease
server rooms in 3 locations, totaling about 2 pings
Price per unit: Monthly rent is approximately NT$31,767 per ping
Price per month: NT$63,533 per month
Total rent: NT$5,504,971
Amount of right-of-use assets: NT$5,358,654
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):
Shin Kong Life Insurance Co., Ltd.
Relationship with the Company: Related party
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:
Considering the location of the related party's premise,
it meets the reqiurement of telecom operator,
and the area is suitable for setting up server room.
The identity of the previous owner: N/A
Previous owner's relationship with the Company and the trading
counterparty: N/A
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):
Gain on disposal for FIC Building: NT$4,232
Gain on disposal for Shin Kong Toufen Building: NT$6,669
Gain on disposal for Xihu Technology Building: NT$4,462
Gain on disposal for Lihu Jasper Building: NT$5,154
8.Terms of delivery or payment (including payment period and
monetary amount), restrictive covenants in the contract,
and other important terms and conditions:
FIC Building- Before rent reduction
Lease period: 2020/05/01-2025/04/30
(calculated based on the actual contract date)
The rent of NT$79,505 shall be paid monthly
After rent reduction: Starting from 2024/04/01, telecommunication companies
cancel lease and reduce partial rent
Lease period: 2020/05/01-2025/04/30
The rent of NT$63,533 shall be paid monthly
Shin Kong Toufen Building- Before rent reduction
Lease period: 2022/08/01-2027/07/31
(calculated based on the actual contract date)
The rent of NT$55,667 shall be paid monthly
After rent reduction: Starting from 2024/05/01, telecommunication companies
cancel lease and reduce partial rent
Lease period: 2022/08/01-2027/07/31
The rent of NT$36,295 shall be paid monthly
Xihu Technology Building- Before rent reduction
Lease period: 2020/08/01-2025/07/31
(calculated based on the actual contract date)
The rent of NT$79,505 shall be paid monthly
After rent reduction: Starting from 2024/06/01, telecommunication companies
cancel lease and reduce partial rent
Lease period: 2020/08/01-2025/07/31
The rent of NT$63,533 shall be paid monthly
Lihu Jasper Building- Before rent reduction
Lease period: 2019/12/01-2024/12/31
(calculated based on the actual contract date)
The rent of NT$95,476 shall be paid monthly
After rent reduction: Starting from 2024/06/01, telecommunication companies
cancel lease and reduce partial rent
Lease period: 2019/12/01-2024/12/31
The rent of NT$63,533 shall be paid monthly
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:
price negotiation according to market condition in the area
10.Name of the professional appraisal firm or company and
its appraisal price:N/A
11.Name of the professional appraiser:N/A
12.Practice certificate number of the professional appraiser:N/A
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: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:
Rent to telecom operator for setting up server room
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: NA
25.Date of ratification by supervisors or approval by
the audit committee: NA
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