Subsidiary Huan Hong Technology Acquires Real-Property Right-of-Use Asset from Related Party
Original: 代子公司環鴻科技(股)公司公告向關係人取得不動產使用權資產
Summary
ASE Technology Holding is disclosing, on behalf of its subsidiary Huan Hong Technology Co., Ltd., that Huan Hong has entered into a transaction to obtain a right-of-use asset in real property (i.e., a lease recorded under IFRS 16) from a related party. Related-party lease transactions require board approval and public disclosure under Taiwan regulations, and investors should monitor the terms for arm's-length pricing and any concentration of leasing activity with affiliated entities. Full body available on MOPS.
Full Translation
Subject-line translation: 'Announcement on Behalf of Subsidiary Huan Hong Technology Co., Ltd. Regarding Acquisition of Real-Property Right-of-Use Asset from a Related Party.' In substance, ASE Technology Holding (the parent) is filing this material-information disclosure as agent for its subsidiary Huan Hong Technology Co., Ltd. (環鴻科技). The subsidiary has entered into a lease or similar arrangement with a related party (關係人) — an entity or individual within the ASE group's related-party network as defined under IFRS/IAS 24 — under which Huan Hong will record a right-of-use (ROU) asset and corresponding lease liability on its balance sheet in accordance with IFRS 16. Such transactions must be disclosed as related-party dealings and are subject to Taiwan's regulations governing material transactions with affiliates. The disclosure indicates that the economic benefit of occupying or using the real property will flow to Huan Hong, with the counterparty being an insider-related entity rather than a third-party lessor. [Body not available — subject line only. See MOPS for full announcement.]