Supplemental information of joint venture agreement signed by CSCC and FHS
2021 Aug 03
Date of occurrence of the event:2021/08/03
Company name:China Steel Chemical Corporation
Relationship to the Company (please enter ”head office” or ”subsidiaries”):Head office
Reciprocal shareholding ratios:N/A
Cause of occurrence:
(1)China Steel Chemical Corporation,Formosa Ha Tinh (Cayman) Limited (hereinafter called 'FHC') ,and Formosa Ha Tinh Steel Corporation (hereinafter called 'FHS') had signed an agreement on September 30,2015.According to the information announced on May 6, 2021,it was proposed to setup a joint venture company in Vietnam to replace Formosa Ha Tinh Cscc (Cayman) International Ltd.(hereinafter called 'FHTCC').Due to the new Vietnam competition law, the establishment process has been delayed up to now.With no PEM and lack of consensus of price formula of raw material, both parties agree to postpone the issues of capital injections and underwriting royalties until December 31, 2022.CSCC has the priority to obtain at least 50% of the FHS sales of light oil and refined coal tar.The direction of further cooperation based on future developments.
(2) The annoucement of furher cooperation modality will be made according to the regulations.
Countermeasures:N/A
Any other matters that need to be specified:None.