【Rongcheng Electric】Announces Board of Directors' Approval of Capital Plan Change for the 2nd Domestic Unsecured Convertible Corporate Bonds
Rongcheng Electric's Board of Directors resolved on April 9, 2026, to change the capital plan for its 2nd domestic unsecured convertible corporate bonds. The construction of the operational headquarters, originally scheduled for completion in Q3 2023, was delayed due to design changes, COVID-19, and rising raw material costs. The total project cost increased from NT$552,318 thousand to NT$741,318 thousand, with completion now expected in Q1 2025. Annual rent savings are projected to decrease from NT$24,714 thousand to NT$12,965 thousand, but the overall benefits remain positive.
📋 Article Processing Timeline
- 📰 Published: April 9, 2026 at 09:00
- 🔍 Collected: April 10, 2026 at 08:00 (23h 0m after Published)
- 🤖 AI Analyzed: April 15, 2026 at 11:54 (123h 54m after Collected)
1. Date of Board of Directors Resolution for Change: 2026/04/09
2. Date of Original Plan's Effective Declaration: 2020/12/24
3. Date of Supplementary Issuance: Not applicable
4. Reason for Change: The company originally planned to raise funds to build its operational headquarters. However, due to design changes, repeated discussions with manufacturers on detailed planning, delayed application for construction permit changes, and the impact of the COVID-19 pandemic causing labor shortages, as well as the impact of global inflation leading to rising raw material prices and labor shortages in the construction industry, the overall project progress was delayed and costs increased. Therefore, the original planned capital needs and execution schedule were adjusted.
5. Previous and Current Capital Raising Plans:
(1) Original capital raising plan: Construction of operational headquarters, with a total project cost of NT$552,318 thousand (of which NT$500,000 thousand was raised, and the remaining was covered by self-owned funds), expected to be completed in Q3 2023.
(2) Revised capital raising plan: Construction of operational headquarters, with the total project cost adjusted to NT$741,318 thousand (NT$500,000 thousand raised, and the remaining NT$241,318 thousand covered by self-owned funds), expected to be completed in Q1 2025.
6. Estimated Execution Progress: 2020 to Q1 2025
7. Estimated Completion Date: Q1 2025
8. Estimated Potential Benefits: After the construction of the operational headquarters, the company can improve overall management efficiency and corporate image, and enhance the autonomy of space utilization. Based on market estimates, annual rent expenses can be saved by approximately NT$12,965 thousand, which will contribute to the company's long-term operational development.
9. Difference from Original Estimated Benefits: The original estimated annual rent savings were approximately NT$24,714 thousand. After the change, due to increased construction costs and depreciation, the estimated annual rent savings are approximately NT$12,965 thousand. However, the overall benefits are still positive and have gradually become apparent.
10. Impact of this Change on Shareholders' Equity: Although the project cost increased due to project delays and cost increases, the company has successfully completed the construction of the operational headquarters and put it into use, and the earnings per share have continued to grow in recent years, indicating no significant adverse impact on shareholders' equity, and the long-term impact is limited.
11. Summary of Original Underwriter's Evaluation Opinion: According to the underwriter's evaluation, due to the change in the plan amount exceeding 20% of the total raised capital, the evaluation opinion on the plan change was "No evaluation, unable to express an opinion."
12. Other Matters to be Specified: None
2. Date of Original Plan's Effective Declaration: 2020/12/24
3. Date of Supplementary Issuance: Not applicable
4. Reason for Change: The company originally planned to raise funds to build its operational headquarters. However, due to design changes, repeated discussions with manufacturers on detailed planning, delayed application for construction permit changes, and the impact of the COVID-19 pandemic causing labor shortages, as well as the impact of global inflation leading to rising raw material prices and labor shortages in the construction industry, the overall project progress was delayed and costs increased. Therefore, the original planned capital needs and execution schedule were adjusted.
5. Previous and Current Capital Raising Plans:
(1) Original capital raising plan: Construction of operational headquarters, with a total project cost of NT$552,318 thousand (of which NT$500,000 thousand was raised, and the remaining was covered by self-owned funds), expected to be completed in Q3 2023.
(2) Revised capital raising plan: Construction of operational headquarters, with the total project cost adjusted to NT$741,318 thousand (NT$500,000 thousand raised, and the remaining NT$241,318 thousand covered by self-owned funds), expected to be completed in Q1 2025.
6. Estimated Execution Progress: 2020 to Q1 2025
7. Estimated Completion Date: Q1 2025
8. Estimated Potential Benefits: After the construction of the operational headquarters, the company can improve overall management efficiency and corporate image, and enhance the autonomy of space utilization. Based on market estimates, annual rent expenses can be saved by approximately NT$12,965 thousand, which will contribute to the company's long-term operational development.
9. Difference from Original Estimated Benefits: The original estimated annual rent savings were approximately NT$24,714 thousand. After the change, due to increased construction costs and depreciation, the estimated annual rent savings are approximately NT$12,965 thousand. However, the overall benefits are still positive and have gradually become apparent.
10. Impact of this Change on Shareholders' Equity: Although the project cost increased due to project delays and cost increases, the company has successfully completed the construction of the operational headquarters and put it into use, and the earnings per share have continued to grow in recent years, indicating no significant adverse impact on shareholders' equity, and the long-term impact is limited.
11. Summary of Original Underwriter's Evaluation Opinion: According to the underwriter's evaluation, due to the change in the plan amount exceeding 20% of the total raised capital, the evaluation opinion on the plan change was "No evaluation, unable to express an opinion."
12. Other Matters to be Specified: None