The issue of penalty by the Investment Commission
Source: RNS
Subject:Regarding the issue of the Company's indirect investment in the mainland's Tsinghua Unigroup Ltd and penalty by the Investment Commission
Contents:
1.Date of occurrence of the event:2023/01/19
2.Cause of occurrence:
The Company, via its mainland-based subsidiary Foxconn Industrial Internet Co., Ltd.,(hereinafter referred to as "FII") and through FII's unitXingwei (Guangzhou) Industrial Investment Partnership (Limited Partnership) (hereinafter referred to as "Xingwei Fund"), indirectly invested in Tsinghua Unigroup Ltd. (hereinafter referred to as"Unigroup"). However, no prior approval was sought from the Investment Commission, Ministry of Economic Affairs (hereinafter referred to as the "Investment Commission"), because the equity of Unigroup was obtained indirectly through theXingwei Fund. The investment management and operation of the fund are decided by the fund manager, and the Company does not have authority to directthose investment decisions, leading to the unintentional failure to apply for permission in advance from the Investment Commission. As a result, the Commission imposed a fine of NT$10 million on the Company, in accordance with relevant regulations.
3.Handling procedure:
The Company submitted a voluntary report on July 19, 2022. During the investigation by the Investment Commission, it fully cooperated in providing relevant information and explanations, and announced on December 16, 2022, the Xingwei Fundhad fully disposed of its holdings inUnigroup. After the disposal, the Company no longer holds any shares in Unigroup.
4.Anticipated possible loss or impact:
The penalty amount accounts for 0.00015% of the Company's full year 2022 unaudited, consolidated operating income, and has no significant impact on the Company's shareholders' equity or securities prices.
5.Amount of insurance claims that might be obtained: NA
6.Improvement status and future countermeasures:
The Company will strengthen advocacy of laws and regulations to avoid similar incidents from recurring.
7.Any other matters that need to be specified: None
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