Shin Kong Asset Management to Spin Off Assets into New Subsidiary Shin Kong Incubation

Shin Kong Asset Management Co., Ltd. announced that its board has approved a corporate split-off plan. The company plans to transfer certain assets and liabilities to a newly established company, Shin Kong Incubation Co., Ltd., with the record date for the split-off tentatively set for June 1, 2026. Shin Kong Incubation will be wholly owned by Shin Kong Asset Management, making the counterparty a related party, but the transaction will not affect Shin Kong Asset Management’s shareholders’ equity. The purpose of the split-off is to revitalize real estate investment and introduce startup companies into the company’s development plans in Shilin. Shin Kong Asset Management expects to transfer assets of NT$248,911,716 and liabilities of NT$37,027,245, resulting in an estimated business value of NT$211,884,471. Shin Kong Incubation will issue 20,000,000 common shares to Shin Kong Asset Management at NT$10.59422355 per share, with total par value of NT$200,000,000. The difference between the actual book value transferred and the par value of the issued share capital will be recorded as capital surplus. The company stated that because the transferred business will be assigned to a wholly owned subsidiary, the split-off will have no impact on Shin Kong Asset Management’s consolidated net asset value per share or earnings per share. After completion, there will be no change to the operating model, no restrictions on future transfer of the merger-related shares, and no other material agreements. Chairman Wu Hsin-en recused himself from discussion and voting because he is the representative of Shin Kong Incubation. Wu Hsin-hung, a second-degree blood relative of Wu Hsin-en, also recused himself.