Date of announcement 2019/03/21
Time of announcement 17:33:22
Date of events 2019/03/21
To which item it meets paragraph 20
Statement
1.Date of occurrence of the event:2019/03/21
2.Method of the present increase (decrease) in investment:
KGI Bank will invest JiangSu Suyin KGI Consumer Finance
Co.,Ltd. (the name to be confirmed) launched by Bank of
JIANGSU in Mainland China.
3.Transaction volume, price per unit, and total monetary
amount of the transaction:RMB 200.4 million.
4.Company name of the invested mainland Chinese company:
JiangSu Suyin KGI Consumer Finance Co., Ltd
(the name to be confirmed).
5.Paid-in capital of said invested mainland Chinese company:
The company is newly established with registered
capital of RMB 600 million.
6.Amount of new capital increment currently planned
by said invested mainland Chinese company:N/A
7.Main business items of said invested mainland Chinese
company:N/A
8.Type of CPA opinion issued for the financial statement
of said invested mainland Chinese company for the most
recent fiscal year:N/A
9.Total equity of said invested mainland Chinese company on
the financial statement for the most recent fiscal year:N/A
10.Amount of profit/loss of said invested mainland Chinese
company on the financial statement for the most recent
fiscal year:N/A
11.Amount of actual investment to date in said invested
mainland Chinese company:0
12.Counterparty to the transaction and its relationship
to the Company:KGI Bank is launching
JiangSu Suyin KGI Consumer Finance Co.,Ltd.
with Bank of JIANGSU、2345.com Co. and Heilan
Home Co.. All co-sponsors are not KGI Bank's
related parties.
13.Where the counterparty to the transaction is an actual
related party, public announcement shall also be made of
the reason for choosing the related party as the
counterparty and the identity of the previous owner
(including its relationship with the company and the
trading counterpart), the date of transfer, and the price:
None.
14.Where a person who owned the subject matter of the
transaction within the past five years has been an
actual related party of the company, public
announcement shall also be made of the dates and
prices of acquisition and disposal by the related
party and such party's relationship to the company
at those times:None.
15.Gain (or loss) on disposal:N/A
16.Terms of delivery or payment (including payment period
and monetary amount), restrictive covenants in the
contract, and other important stipulations:
Paid in accordance with the transaction schedule,
and promised not to transfer its holdings within
5 years after the establishment of the company
(except with the requirements of the administration)
17.The manner of deciding on this transaction, the reference
basis for the decision on price and the decision-making
department:N/A
18.Broker:None.
19.Concrete purpose of the acquisition or disposal:
Leverage this investment as a key to entry the new
consumer finance market in Mainland China. Also, we
will develop the innovated consumer banking business
models in China in order to bring in all the
synergies together.
20.Do the directors have any objection to the present transaction?:
None.
21.Is it a related party transaction?:None.
22.Date of the board of directors’resolution:NA
23.Date of the recognition of the supervisors
or the board of independent directors’resolution:NA
24.Total amount of mainland China area investment
(including the present investment) approved by the
Investment Commission to date:USD 30 million,
equivalent to NTD 922 million (including the present
investment of RMB 200.4 million, the total amount of
mainland China area investment is equivalent to
NTD 1,844 million).
25.Ratio of the total amount of investment (including
the present investment) in the mainland China area approved
by the Investment Commission to date to the paid-in capital
on the financial statement for the most recent period:
2.00% (including the present investment:4.00%)
26.Ratio of the total amount of investment (including
the present investment) in the mainland China area
approved by the Investment Commission to date to the
total assets on the financial statement for the most
recent period:0.14% (including the present
investment:0.27%)
27.Ratio of the total amount of investment (including
the present investment) in the mainland China area approved
by the Investment Commission to date to the shareholders’
equity on the financial statement for the most recent period:
1.58% (including the present investment:3.16%)
28.Total amount of actual investment in the mainland China
area to date:NTD 922 million
29.Ratio of the total amount of actual investment in the
mainland China area to date to the paid-in capital on
the financial statement for the most recent period:
2.00%
30.Ratio of the total amount of actual investment in the
mainland China area to date to the total assets on the
financial statement for the most recent period:0.14%
31.Ratio of the total amount of actual investment in the
mainland China area to date to the shareholders’ equity
on the financial statement for the most recent period:
1.58%
32.Amount of recognized profits and losses on investment in
the mainland China area for the most recent three fiscal years:
NTD -234 million, 2017:NTD -230 million,
2018:NTD -2 million
33.Amount of profit remitted back to Taiwan for the most
recent three fiscal years:0
34.Has the CPA issued an opinion on the unreasonableness of the price
of the current transaction?:N/A
35.Name of the CPA firm:N/A
36.Name of the certifying CPA:N/A
37.The practice certificate number of the CPA:N/A
38.Any other matters that need to be specified:
(1)The agreement signed with the counterparts of
JiangSu Suyin KGI Consumer Finance Co. will expire
on April 12, 2019. Therefore, the relevant documents
will be renewed or re-signed according to the original
conditions.
(2)The case has yet to be CDF and the cross-strait
authorities approved the follow-up after the
relevant procedures.
CDF, on behalf of KGI Bank, supplemented the announcement of February 16, 2017 to invest consumer finance company in Mainland China.
2019-03-21
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