Lextar's Jiangsu Subsidiary Undergoes Policy-Related Relocation; Transaction Price Not Less Than RMB 120 Million

Lextar announced that its subsidiary Wellypower will dispose of factory buildings and land use rights due to a policy-related relocation, with an estimated disposal gain of NT$526 million (same currency below). Calculated based on Lextar's current capital of NT$5.117 billion, the contribution per share is NT$1.03. Lextar's new Chuzhou plant is expected to reach full production capacity by year-end.

The factory land to be disposed of by Wellypower is located at No. 682, Fengting Avenue, Weiting Town, Suzhou Industrial Park, Suzhou City, Jiangsu Province. To cooperate with the local Suzhou government's relocation plan, Lextar's board of directors passed a resolution on November 8, 2018 to sell the land, factory buildings, and related renovations to Suzhou Industrial Park or its designated entity, and authorized the chairman to negotiate terms related to the policy-related relocation with Suzhou Industrial Park on the condition that the total price is not less than RMB 120 million. Once the agreement is completed, further announcements will be made regarding related matters.

The final transaction amount was set at NT$629 million, with an estimated disposal gain of NT$526 million. Calculated based on Lextar's current capital of NT$5.117 billion, if the disposal gain is fully recognized, it will contribute NT$1.03 to Lextar's EPS, significantly boosting non-operating profits.