The Company plans to establish a joint venture company in Taiwan with Ampacs Corporation for NT$90 million and then invest in a subsidiary in Vietnam

2022/04/28

Ability Enterprise Co., Ltd.

The Company

Not applicable

I. The main contents of the joint venture agreement between the Company and Ampacs Corporation are as follows:
(I) To establish a joint-venture company whose name is not fixed yet and its location will be in the same area as the location of the subsidiary of Ampacs, Ampacs International Company Limited, in Binh Duong Province in Vietnam.
(II) The registered capital is NT$150,000,000 with details as follows:
(1) Ability Enterprise Co., Ltd.:  NT$90,000,000, holding 60% shares
(2) Ampacs Corporation: NT$60,000,000, holding 40% shares.
The capital will be wired by installment to the joint-venture company depending on its operation situation.
II. Effects on the finance and business of the Company:
The Company can share the business risk with the joint venture partner, Ampacs Corporation (hereinafter referred to as Ampacs), which has experience and resources in Vietnam.
In the future, the Company will lead the customer service and core manufacturing technology, and Ampacs will manage the operation of plants. To achieve the multi-benefits of the joint venture, both parties will work together to plan the production bases needed for business growth and develop high-quality and globally competitive products to meet customers' demands.
III. Specific purpose:
The establishment of a new overseas production plant is to meet the customers’ demand and to enhance our competitiveness in the international market. Vietnam has lower production costs, tax incentives, and a complete supply chain compared to Southeast Asian countries. Therefore, the Company plans to invest in Vietnam.

N/A

This proposal shall be submitted to the Audit Committee and shall have the resolution from the Board of Directors. Then, the contract signing and company establishment procedures can be executed. If any change or amendment is required due to the laws and regulations or the requirements of local authorities, it shall be changed or amended after the relative proposals are sent to the Board of Directors for authorization on the chairman to directly negotiate with Ampacs.