Announced by CTBC Financial Holdings on behalf of Taiwan Life Insurance participating in the capital increase of Junlong Life Insurance by RMB 300 million

1.Date of occurrence of the event:2023/03/31
2.Method of the current increase (decrease) in investment:
Direct investment in Chinese company
3.Amount, unit price, and total monetary amount of the transaction:
Total monetary amount of the transaction – RMB 300 million (The mainland
investee plans to increase capital of RMB 600 million, and Taiwan Life
Insurance subscribes for 50%).
4.Company name of the mainland Chinese investee:
Junlong Life Insurance Co., Ltd.
5.Paid-in capital of aforementioned mainland Chinese investee:RMB 1.5 billion
6.Amount of capital increase currently planned for the aforementioned
mainland Chinese investee:The mainland investee plans to increase its
capital by RMB 600 million, and Taiwan Life Insurance subscribes 50%, RMB
300 million.
7.Main businesses of the aforementioned mainland Chinese investee:
Life insurance
8.Type of CPA opinion in the latest annual financial statements of the
aforementioned mainland Chinese investee:Unqualified opinion
9.Total equity of the aforementioned mainland Chinese investee in the latest
annual financial statements:RMB 707,901,569 in 2022
10.Amount of profit/loss of the aforementioned mainland Chinese investee in
the latest annual financial statements:
Net loss after tax of RMB 174,539,610 in 2022
11.Amount of actual investment in the aforementioned mainland Chinese
investee, up to the present moment:RMB 750 million
12.Trading counterparty and its relationship with the Company:
Joint venture company
13.Where the trading counterparty is a related party, announcement shall
also be made of the reason for choosing the related party as trading
counterparty and the identity of the previous owner, its relationship with
the Company and the trading counterparty, and the previous date and monetary
amount of transfer:NA
14.Where an owner of the underlying assets within the past five years has
been a related party of the Company, the announcement shall also include the
date and price of acquisition and disposal by the related party, and its
relationship with the Company at the time of the transaction:NA
15.Profit (or loss) upon disposal:NA
16.Terms of delivery or payment (including payment period and monetary
amount), restrictive covenants in the contract, and other important terms
and conditions:lump-sum payment of RMB 300 million.
17.The manner in which the current transaction was decided, the reference
basis for the decision on price, and the decision-making unit:
The decision-making unit - Taiwan Life Board of Directors
18.Broker:NA
19.Concrete purpose of the acquisition or disposal:
Strengthen the capital structure of the Joint venture company.
20.Any dissenting opinions of directors to the present transaction:NA
21.Whether the counterparty of the current transaction is a related party:Yes
22.Date of the board of directors resolution:2023/03/31
23.Date of ratification by supervisors or approval by
the Audit Committee:2023/03/30
24.Total amount of investment in mainland China (including the current
investment) approved by the Investment Commission, up to the present moment:
About NTD 5.04 billion
25.Ratio of the total amount of investment in mainland China (including the
current investment) approved by the Investment Commission, up to the present
moment, to the paid-in capital on the latest financial statements:
8.09%
26.Ratio of the total amount of investment in mainland China (including the
current investment) approved by the Investment Commission, up to the present
moment, to the total assets on the latest financial statements:
0.24%
27.Ratio of the total amount of investment in mainland China (including the
current investment) approved by the Investment Commission, up to the present
moment, to equity attributable to owners of the parent on the latest
financial statements:
5.39%
28.Total amount of actual investment in mainland China, up to the present
moment:
About NTD 3.72 billion
29.Ratio of the total amount of actual investment in mainland China, up to
the present moment, to the paid-in capital on the latest financial
statements:
5.98%
30.Ratio of the total amount of actual investment in mainland China, up to
the present moment, to the total assets on the latest
financial statements:
0.17%
31.Ratio of the total amount of actual investment in mainland China, up to
the present moment, to equity attributable to owners of the parent on the
latest financial statements:
3.98%
32.Amount of recognized profit (loss) on investment in mainland China for
the last three years:
Recognized profit NTD 27 million in 2020
Recognized profit NTD 57 million in 2021
Recognized loss NTD 378 million in 2022
33.Amount of profit remitted back to Taiwan for the last
three years:
NTD 0 in 2020
NTD 0 in 2021
NTD 0 in 2022
34.Whether the CPA issued an unreasonable opinion regarding the current
transaction:NA
35.Name of the CPA firm:NA
36.Name of the CPA:NA
37.Practice certificate number of the CPA:NA
38.Any other matters that need to be specified: The transaction will be
invested after obtaining the approval of the Insurance Bureau, FSC and the
Investment Board, Ministry of Economic Affairs.