Supplementary announcement on clarification of
mass media reporting on 2022/07/20.
Date of events
2022/07/20
To which item it meets
paragraph 51
Statement
1.Date of occurrence of the event:2022/07/20
2.Company name:Ruentex Development Co.,Ltd.
3.Relationship with the Company (please enter "the company itself" or
"subsidiaries"):The company itself.
4.Reciprocal shareholding percentage:N/A
5.Name of the reporting media:CredereMedia,Wealth and other mass media.
6.Content of the report:
【Ruentex Group was "dragged down" by Nanshan? Ruentex Development Co.,Ltd.
and Ruentex Industries Ltd.'s second quarter net worth per share pulled an
alert...】
The results predict that in the second quarter of this year,the net value of
PouChen is likely fall below the one hundred billion dollars and the net
value of Ruentex Development Co.,Ltd. is estimated only more than 10 billion
dollars left...
7.Cause of occurrence:Clarification of mass media reporting.
8.Countermeasures:
Due to factors such as the Russian-Ukrainian war, the economic situations of
the world were influenced severely and cause the situation of inflation.To
restrain inflation in March of this year, FED was lifting rates many times.
After lifting rate by 1 yard, other equity of the Company decreased by
approximately 50 billion due to the recognition of the financial assets of
related companies using the equity method in the first quarter.From May to
June,FED still lifted rates by 5 yards,it's estimated to influence
financial assets.
As the current situation, the insurance industry assets are measured at fair
value,but liabilities are still assessed at a fixed interest rate because of
not applying IFRS 17.Due to different interest rates applied by assets(bonds)
and liabilities (policies), the value of bonds decline significantly but
liabilities are not measured by market interest rates in the phase of
lifting rate, the net worth of the life insurance industry is therefore
undervalued.
The company invested in Nanshan Life Insurance Co., Ltd. through Ruen Chen
Investment Holdings Co., Ltd., the comprehensive shareholding ratio is
25.11%.
Due to the net worth of Nanshan Life Insurance Co., Ltd. declines, the net
worth of the Company was also affected. As the U.S. continues to lift rates,
the net worth of Nanshan Life Insurance Co., Ltd. keeps declining.
To keep the equity of the Company, the company has actively searched for
favorable solutions to solve the current problems such as changing accounting
policies of investment properties by fair value measurement to increase the
net worth. However,the relevant improvement measures to increase the net
worth are still subject to the resolution of the board of directors.The
company will keep the same principles and protect the equity of stockholders.
The content of the report is estimated by the media itself,not calculated by
the company.
The financial data of the second quarter will be announced in accordance with
the regulations after the settlement of the company is completed.
9.Any other matters that need to be specified:None.
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Disclaimer
Ruentex Development Co. Ltd. published this content on 20 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 July 2022 15:03:01 UTC.
Ruentex Development Co Ltd is a Taiwan-based company mainly engaged in the construction business. The Company operates through five business segments. The Construction segment is engaged in the land development business, as well as the investment and construction of residential buildings, villas, office buildings and commercial buildings. The Commercial Real Estate segment is engaged in the leasing of commercial real estate. The Construction Materials segment is engaged in the trading of construction materials such as cement and others. The Volume Sales segment is engaged in the operation of department stores, the logistics business, as well as the retail of various groceries, clothing, electrical appliances, fresh products and others. The Company is also engaged in the operation of Other segment. The Company mainly operates in the Taiwan market.
RUENTEX DEVELOPMENT CO.,LTD. 
