Yieh Hsing Announces Board Resolution to Dispose of Zhen Hua and Zhen Hao Equity
Yieh Hsing's board has resolved to sell its equity in subsidiaries Zhen Hua and Zhen Hao to its parent company, Yeh Hwei Enterprise, at NT$10.3 per share, totaling approximately NT$530 million. The disposal is expected to yield profits of around NT$140 million and will be used to fund plant expansion and working capital needs.
📋 Article Processing Timeline
- 📰 Published: May 4, 2026 at 09:00
- 🔍 Collected: May 5, 2026 at 08:00 (23h 0m after Published)
- 🤖 AI Analyzed: May 5, 2026 at 08:19 (19 min after Collected)
1. Name and Nature of the Target Asset (For preferred shares, specify the agreed terms such as dividend rate, etc.): Zhen Hua International Co., Ltd.: Common Shares. Zhen Hao Hotel Co., Ltd.: Common Shares.
2. Date of Occurrence: November 3, 2025 ~ May 4, 2026.
3. Date of Board Approval: May 4, 2026.
4. Other Approval Dates: Not applicable.
5. Transaction Quantity, Price Per Unit, and Total Transaction Amount:
Zhen Hua: 25,740,000 shares, NT$10.3 per share, Total Amount: NT$265,122,000.
Zhen Hao: 25,740,000 shares, NT$10.3 per share, Total Amount: NT$265,122,000.
6. Transaction Counterparty and Relationship with the Company (If the counterparty is an individual and not an affiliate, their name may be omitted):
Transaction Counterparty: Yeh Hwei Enterprise Co., Ltd.
Relationship with the Company: Parent Company.
7. If the counterparty is an affiliate, state the reason for selecting the affiliate as the counterparty, the previous owner, the relationship between the previous owner, the company, and the counterparty, and the date and amount of the previous transfer:
Reason for selecting affiliate as counterparty: To integrate group resources and enhance operational efficiency.
Relationship between previous owner, the company, and the counterparty: The company is an original investing shareholder.
8. If the owner of the asset has been an affiliate of the company within the past five years, also announce the affiliate's acquisition and disposal dates, prices, and relationship with the company at the time of the transaction:
Not applicable.
9. Matters related to the disposal of claims (including types of collateral attached to disposed claims; if the disposed claim is a claim against an affiliate, also announce the affiliate's name and the book value of the disposed claim against the affiliate):
Not applicable.
10. Disposal Profit (or Loss) (Not applicable for acquisition of securities) (If deferred, list the recognition status):
Profit from disposal of Zhen Hua shares: Approximately NT$73,046,000.
Profit from disposal of Zhen Hao shares: Approximately NT$66,584,000.
As this is an inter-group transaction, according to relevant accounting standards, the disposal profit will be recorded under capital reserves.
11. Delivery or Payment Terms (including payment period and amount), contract restrictions, and other important agreements:
In accordance with the share purchase agreement.
12. Method of Decision for this Transaction, Reference Basis for Price Determination, and Decision-Making Unit:
Mutually agreed upon;
Review report on the reasonableness of share price by an accountant, expert opinion on the reasonableness of share price by an accountant;
Board resolution.
13. Net Asset Value Per Share of the Company Whose Securities Are Acquired or Disposed Of:
NT$7.57.
14. To date, the cumulative quantity, amount, shareholding ratio, and any restrictions (such as pledges) of securities held in this transaction (including this transaction):
Zhen Hua shares: 186,210,000 shares, NT$1,862,100,000, shareholding ratio 37.24%, no pledge.
Zhen Hao shares: 184,210,000 shares, NT$1,842,100,000, shareholding ratio 34.95%, no pledge.
15. To date, the proportion of investment in securities listed in Article 3 of the "Regulations Governing the Acquisition or Disposal of Assets by Publicly Issued Companies" (including this transaction) to the total assets and equity attributable to owners of the parent company in the most recent financial report, and the operating fund amount in the most recent financial report (Note 2):
Proportion of total assets: 4.34%.
Proportion of equity attributable to owners of the parent company: 13.30%.
Operating fund amount: NT$ -3,037,213,000.
16. Broker and Brokerage Fees:
None.
17. Specific Purpose or Use of Acquisition or Disposal:
To fund the company's Pingnan plant expansion project and working capital needs.
18. Opinions of Dissenting Directors on this Transaction:
Not applicable.
19. Is this transaction a related-party transaction?:
Yes.
20. Date of Supervisor's Approval or Audit Committee's Approval:
May 4, 2026.
21. Did the accountant issue a non-reasonableness opinion on this transaction?:
No.
22. Name of Accounting Firm:
Bao Cheng United Certified Public Accountants.
23. Name of Accountant:
Accountant Chang Chun-Hsiu.
24. Accountant's Practice Certificate Number:
Jinguanhui Zheng Zi No. 7178.
25. Does it involve a change in the operating model?:
No.
26. Explanation of Operating Model Change:
Not applicable.
27. Transaction Details with the Counterparty in the Past Year and Expected in the Coming Year:
Not applicable.
28. Source of Funds:
Not applicable.
29. Date of Previous Major Information Release on the Same Matter:
Not applicable.
30. Other Disclosures:
None.
Keywords: Major Information
2. Date of Occurrence: November 3, 2025 ~ May 4, 2026.
3. Date of Board Approval: May 4, 2026.
4. Other Approval Dates: Not applicable.
5. Transaction Quantity, Price Per Unit, and Total Transaction Amount:
Zhen Hua: 25,740,000 shares, NT$10.3 per share, Total Amount: NT$265,122,000.
Zhen Hao: 25,740,000 shares, NT$10.3 per share, Total Amount: NT$265,122,000.
6. Transaction Counterparty and Relationship with the Company (If the counterparty is an individual and not an affiliate, their name may be omitted):
Transaction Counterparty: Yeh Hwei Enterprise Co., Ltd.
Relationship with the Company: Parent Company.
7. If the counterparty is an affiliate, state the reason for selecting the affiliate as the counterparty, the previous owner, the relationship between the previous owner, the company, and the counterparty, and the date and amount of the previous transfer:
Reason for selecting affiliate as counterparty: To integrate group resources and enhance operational efficiency.
Relationship between previous owner, the company, and the counterparty: The company is an original investing shareholder.
8. If the owner of the asset has been an affiliate of the company within the past five years, also announce the affiliate's acquisition and disposal dates, prices, and relationship with the company at the time of the transaction:
Not applicable.
9. Matters related to the disposal of claims (including types of collateral attached to disposed claims; if the disposed claim is a claim against an affiliate, also announce the affiliate's name and the book value of the disposed claim against the affiliate):
Not applicable.
10. Disposal Profit (or Loss) (Not applicable for acquisition of securities) (If deferred, list the recognition status):
Profit from disposal of Zhen Hua shares: Approximately NT$73,046,000.
Profit from disposal of Zhen Hao shares: Approximately NT$66,584,000.
As this is an inter-group transaction, according to relevant accounting standards, the disposal profit will be recorded under capital reserves.
11. Delivery or Payment Terms (including payment period and amount), contract restrictions, and other important agreements:
In accordance with the share purchase agreement.
12. Method of Decision for this Transaction, Reference Basis for Price Determination, and Decision-Making Unit:
Mutually agreed upon;
Review report on the reasonableness of share price by an accountant, expert opinion on the reasonableness of share price by an accountant;
Board resolution.
13. Net Asset Value Per Share of the Company Whose Securities Are Acquired or Disposed Of:
NT$7.57.
14. To date, the cumulative quantity, amount, shareholding ratio, and any restrictions (such as pledges) of securities held in this transaction (including this transaction):
Zhen Hua shares: 186,210,000 shares, NT$1,862,100,000, shareholding ratio 37.24%, no pledge.
Zhen Hao shares: 184,210,000 shares, NT$1,842,100,000, shareholding ratio 34.95%, no pledge.
15. To date, the proportion of investment in securities listed in Article 3 of the "Regulations Governing the Acquisition or Disposal of Assets by Publicly Issued Companies" (including this transaction) to the total assets and equity attributable to owners of the parent company in the most recent financial report, and the operating fund amount in the most recent financial report (Note 2):
Proportion of total assets: 4.34%.
Proportion of equity attributable to owners of the parent company: 13.30%.
Operating fund amount: NT$ -3,037,213,000.
16. Broker and Brokerage Fees:
None.
17. Specific Purpose or Use of Acquisition or Disposal:
To fund the company's Pingnan plant expansion project and working capital needs.
18. Opinions of Dissenting Directors on this Transaction:
Not applicable.
19. Is this transaction a related-party transaction?:
Yes.
20. Date of Supervisor's Approval or Audit Committee's Approval:
May 4, 2026.
21. Did the accountant issue a non-reasonableness opinion on this transaction?:
No.
22. Name of Accounting Firm:
Bao Cheng United Certified Public Accountants.
23. Name of Accountant:
Accountant Chang Chun-Hsiu.
24. Accountant's Practice Certificate Number:
Jinguanhui Zheng Zi No. 7178.
25. Does it involve a change in the operating model?:
No.
26. Explanation of Operating Model Change:
Not applicable.
27. Transaction Details with the Counterparty in the Past Year and Expected in the Coming Year:
Not applicable.
28. Source of Funds:
Not applicable.
29. Date of Previous Major Information Release on the Same Matter:
Not applicable.
30. Other Disclosures:
None.
Keywords: Major Information