Xinfa Announces Subsidiary (Xinke Optoelectronic Materials Co., Ltd.) Acquires Right-of-Use Assets from Related Party

1. Name and nature of the subject property (e.g., land located in Section XX, Subsection XX, Beitun District, Taichung City):
Land: Lots 0549-0000, 0550-0000, 0551-0000, 0554-0000, 0555-0000, 0556-0000, 0557-0000, 0558-0000, 0559-0000, 0560-0000, 0561-0000, 0562-0000, 0563-0000, 0564-0000, 0565-0000, 0566-0000, 0567-0000, 0568-0000, 0571-0000, 0572-0000, 0573-0000, 0574-0000, 0575-0000, 0576-0000, 0577-0000, 0578-0000, 0579-0000, 0580-0000, 0581-0000, 0582-0000, 0587-0000, 0588-0000, 0589-0000, 0590-0000, 0593-0000, 0594-0000, 0595-0000, 0596-0000, 0597-0000, 0598-0000, 0599-0000, 0600-0000, 0601-0000, Qiaoi Section, Daxi District, Taoyuan City
Building: No. 82, Lane 76, Xinguang East Road, Renshan Village, Daxi District, Taoyuan City

2. Date of occurrence: 115/6/15 ~ 115/6/15

3. Board approval date: June 15, Year 115 of the Republic of China

4. Other approval dates: Not applicable

5. Quantity of units (e.g., XX square meters, equivalent to XX ping), unit price, and total transaction amount:
Leased area: Land 59,081.52 square meters (approximately 17,872.16 ping); Building 57,970.57 square meters (approximately 17,536.10 ping)
Unit price: Land NT$132.79/ping (excluding tax); Building NT$135.33/ping (excluding tax)
Rent: NT$2,304,110 per month from July 1, Year 115 to June 30, Year 118; NT$2,373,233 per month from July 1, Year 118 to June 30, Year 121
Lease term: July 1, Year 115 to June 30, Year 121
Right-of-use asset amount: NT$157,995,042

6. Counterparty and its relationship with the company (if the counterparty is an individual and not a related party, name disclosure may be omitted):
Counterparty: Shin Kong Synthetic Fiber Corporation
Relationship with the company: Parent company

7. If the counterparty is a related party, state the reason for selecting the related party as the transaction party, the previous transferor, the relationship between the previous transferor and the company and the counterparty, the previous transfer date, and the transfer amount:
Reason for selecting related party: Lease renewal of existing contract
Previous transferor: Not applicable
Previous transfer date: Not applicable
Previous transfer amount: Not applicable

8. If the owner of the subject asset was a related party of the company within the past five years, disclose the acquisition and disposal date, price, and relationship with the company at the time:
Not applicable

9. Expected gain (or loss) on disposal (not applicable for asset acquisition) (if deferred, list recognition details):
Not applicable

10. Delivery or payment terms (including payment period and amount), contractual restrictions, and other important provisions:
Payment terms: Pay NT$2,304,110 (excluding tax) monthly from July 1, Year 115 to June 30, Year 118; Pay NT$2,373,233 (excluding tax) monthly from July 1, Year 118 to June 30, Year 121
Contractual restrictions and other important provisions: None

11. Method of transaction determination (e.g., bidding, comparison, negotiation), reference basis for price determination, and decision-making unit:
Transaction determination method: Bilateral negotiation
Price determination basis: Reference to rental prices near the plant area
Decision-making unit: Board of Directors

12. Name of professional appraiser firm or company and appraisal amount:
Not applicable

13. Name of professional appraiser:
Not applicable

14. License number of professional appraiser:
Not applicable

15. Whether the appraisal report is for a limited price, specific price, or special price: No or not applicable

16. Whether the appraisal report has not yet been obtained: No or not applicable

17. Reason for not obtaining the appraisal report:
Not applicable

18. If there is a significant difference in appraisal results, state the reason and auditor's opinion:
Not applicable

19. Name of auditor firm:
Not applicable

20. Name of auditor:
Not applicable

21. License number of auditor:
Not applicable

22. Broker and brokerage fee:
Not applicable

23. Specific purpose or use of acquisition or disposal:
For use as production plant and storage warehouse

24. Opinion of director who objected to this transaction:
None

25. This transaction is a related-party transaction: Yes

26. Date of supervisor approval or audit committee consent:
June 15, Year 115 of the Republic of China

27. This transaction involves acquiring real estate or right-of-use assets from a related party: Yes

28. Valuation amount under Article 16 of the 'Regulations on Acquisition or Disposition of Assets by Publicly Issued Companies': Not applicable

29. Valuation amount under Article 17 of the same regulations if the valuation under the previous item is lower than the transaction price: Not applicable

30. Previous date of material information announcement regarding the same event: Not applicable

31. Other explanatory matters:
None