Chang Hwa Commercial Bank: Announces that the Board of Directors of CHB has decided to inject NT $ 400 million into its subsidiary, Chang Hwa Bank Venture Capital Co., Ltd., for new ordinary shares

Declaration

1.Name and nature of the underlying assets (if preferred shares, the terms
and conditions of issuance shall also be indicated, e.g., dividend yield,
etc.):The common shares of Chang Hwa Bank Venture Capital Co., Ltd.
2.Date of occurrence of the event:2021/12/28
3.Amount, unit price, and total monetary amount of the transaction:
(1) Volume: 40,000,000 shares
(2) Unit price: NT$ 10 per share
(3) Total monetary amount: NT$ 400,000,000
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):
(1) Counterparty: Chang Hwa Bank Venture Capital Co., Ltd.
    (hereinafter ��CHBVC��)
(2) Relationship: CHBVC is a 100% owned subsidiary of Chang Hwa Commercial
    Bank (hereinafter ��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:
(1) The reason for choosing the related party as trading counterparty:
    To expand investment capacity of CHBVC, the Company approved the
    proposal of CHBVC��s capital injection and subscribing to its new
    common shares.
(2) Previous owner: NA
(3) Relationship of the previous owner with the Company and the trading
    counterparty: NA
(4) Price of transfer, and date of acquisition: NA
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:NA
7.Matters related to the current disposal of creditors' rights (including
types of collaterals of the disposed creditor��s rights; if creditor's
rights over a related party, announcement shall be made of the name of the
related party and the book amount of the creditor's rights, currently being
disposed of, over such related party):NA
8.Profit or loss from the disposal (not applicable in cases of acquisition
of securities) (those with deferral should provide a table explaining
recognition):NA
9.Terms of delivery or payment (including payment period and monetary
amount), restrictive covenants in the contract, and other important terms
and conditions:
Restrictive covenants in the contract, and other important stipulations:
After the Board of CHBVC approves the capital injection, and the Company
submits the application and obtains regulatory approval from the Financial
Supervisory Commission (��FSC��), the Company will subscribe to new common
shares of CHBVC according to the procedure.
10.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:
(1) The manner in which the current transaction was decided: Follow the
    process for subscription of new issuance of common shares.
(2) The reference basis for the decision on price: The price is based on
    the par value of the shares issued by CHBVC.
(3) The decision-making unit: The board meeting of the Company
11.Net worth per share of the Company's underlying securities acquired or
disposed of:NT$ 10.86
12.Cumulative no.of shares held (including the current transaction), their
monetary amount, shareholding percentage, and status of any restriction of
rights (e.g., pledges), as of the present moment:
(1) Current cumulative no. of shares held (including the current
    transaction): 100,000,000 shares
(2) Current cumulative monetary amount (including the current transaction):
    NT$ 1,000,000,000
(3) Shareholding percentage (including the current transaction): 100%
(4) Status of any restriction of rights: None
13.Current ratio of securities investment (including the current trade, as
listed in article 3 of Regulations Governing the Acquisition and Disposal of
Assets by Public Companies) to the total assets and equity attributable to
owners of the parent as shown in the most recent financial statement and
working capital as shown in the most recent financial statement as of the
present:
(1) Current ratio of securities investment (including the current trade)
    to the total assets as shown in the most recent financial statement:
    24.41%
(2) Current ratio of securities investment (including the current trade) to
    the equity attributable to owners of the parent as shown in the most
    recent financial statement: 352.73%
(3) The working capital as shown in the most recent financial statement: NA
14.Broker and broker's fee:NA
15.Concrete purpose or use of the acquisition or disposal:
To expand investment capacity of CHBVC, the Company injects capital into it.
16.Any dissenting opinions of directors to the present transaction:None
17.Whether the counterparty of the current transaction is
a related party:Yes, CHBVC is a wholly owned subsidiary of the Company.
18.Date of the board of directors resolution:2021/12/28
19.Date of ratification by supervisors or approval by
the Audit Committee:2021/12/13
20.Whether the CPA issued an unreasonable opinion regarding the current
transaction:NA
21.Name of the CPA firm:NA
22.Name of the CPA:NA
23.Practice certificate number of the CPA:NA
24.Whether the transaction involved in change of business model:No
25.Details on change of business model:NA
26.Details on transactions with the counterparty for the past year and the
expected coming year:None
27.Source of funds:The Company��s self-owned funds
28.Any other matters that need to be specified:
This case needs to be approved by the FSC.

About the author