Cathay Financial Holdings Announces Subsidiary Cathay Life's Acquisition of Ordinary Shares in Bao Shan Water Corporation

Announcement Date: June 27, 115
Statement Date: June 26, 115
Statement Time: 17:04:36
Company Code: 2882
Company Name: Cathay Financial Holdings
Subject: Announcement on Behalf of Subsidiary Cathay Life Insurance Regarding the Acquisition of Ordinary Shares in Bao Shan Water Corporation
Applicable Clause: Clause 20
Factual Date: June 26, 115

Details:
1. Name and Nature of the Subject Asset (For preferred shares, specify issuance terms such as dividend rate):
Bao Shan Water Corporation
Ordinary Shares

2. Factual Date: June 26, 115 ~ June 26, 115

3. Board Approval Date: Not applicable

4. Other Approval Dates:
Approval Level: Approved by General Manager
June 26, 115 (Minguo Year)

5. Number of Units, Unit Price, and Total Transaction Amount:
(1) Transaction Quantity: 63,000,000 shares
(2) Unit Price: Approximately NT$10.00 per share
(3) Total Transaction Amount: Approximately NT$630,000,000

6. Counterparty and Relationship with the Company (If the counterparty is a natural person and not a related party, name disclosure may be omitted):
(1) Bao Shan Water Corporation
(2) Relationship with Company: None

7. If the counterparty is a related party, state the reason for selecting them, the previous transferor, the relationship between the previous transferor and the company and counterparty, transfer date, and transfer amount:
Not applicable

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

9. Matters related to the disposal of receivables (including types of collateral attached to disposed receivables; if receivables from related parties are disposed, state the related party’s name and book value):
Not applicable

10. Gain (or loss) from disposal (not applicable for acquisition of securities; if deferred, list and explain recognition):
Not applicable

11. Delivery or Payment Terms (including payment period and amount), contractual restrictions, and other important agreements:
(1) Full cash payment
(2) Conducted according to contract terms

12. Decision-making method for this transaction, reference basis for price determination, and decision-making unit:
Based on internal evaluation report and approval authority of the company

13. Net asset value per share of the securities-issuing company acquired or disposed:
NT$9.96

14. Cumulative holdings of the securities involved in this transaction (including this transaction) to date, in terms of quantity, amount, ownership percentage, and any restrictions on rights (e.g., pledge status):
(1) 63,000,000 shares
(2) NT$630,000,000
(3) Ownership ratio: 25.0%
(4) None

15. Cumulative securities investments under Article 3 of the 'Regulations on Acquisition or Disposition of Assets by Publicly Issued Companies' (including this transaction) as a percentage of total assets and equity attributable to owners of the parent company in the company’s latest financial statements, and the amount of working capital in the latest financial statements:
(1) Percentage of total assets: 74.25%
(2) Percentage of shareholders’ equity: 778.86%
(3) Working capital in latest financial report: NT$14.82 billion

16. Broker and brokerage fees:
Not applicable

17. Specific purpose or use of the acquisition or disposal of securities:
For life insurance fund deployment in accordance with insurance laws

18. Dissenting opinions from directors regarding this transaction:
None

19. Whether this transaction is a related-party transaction: No

20. Date of auditor’s acknowledgment or audit committee approval:
Not applicable

21. Whether the accountant issued a non-reasonable opinion: Not applicable

22. Name of accounting firm:
Not applicable

23. Name of accountant:
Not applicable

24. Accountant’s license number:
Not applicable

25. Whether it involves a change in business model: No

26. Explanation of business model change:
Not applicable

27. Transaction history with the counterparty in the past year and expected in the next year:
Not applicable

28. Source of funds:
Available funds from insurance operations

29. Previous date of material information release on the same event: Not applicable

30. Other explanatory matters:
None