Representing the subsidiary Empire Resources, Inc. to announce Applicable to reaching the ceiling on losses for individual contracts of derivative transactions.

 Representing the subsidiary Empire Resources, Inc.
to announce Applicable to reaching the ceiling on losses
for individual contracts of derivative transactions.

1.Type of contract:Swap contract for Aluminum
2.Date of occurrence of the event:2022/03/08
3.Contract price:
The contract amount which reached the ceiling on losses set forth in the
procedures for individual contract of derivative transactions is
US$1,383 thousand and EUR690 thousand (NT$60,441 thousand)
4.Monetary amount of margin or royalties paid:None.
5.Ceiling on losses for aggregate or individual contracts set forth in the
Procedures:20% of contract amount.
6.Reason for derivative transaction:Hedge Purpose.
7.Item(s) being hedged:Aluminum
8.Monetary amount of the hedged item(s):NT$1.7 billion
9.Profit (loss) of the hedged item(s):
The company has same position for Aluminum Inventory, it will also reflect
the price increase to offset the MTM loss.
10.The losses (including realized and unrealized losses) assessed using fair
value:
The unrealized loss reached the ceiling on losses set forth in the procedure
for individual contracts of derivative transactions is US$389 thousand and
 EUR212 thousand (NT$17,555 thousand).
11.Reason for occurrence of the losses and the impact to the Company:
The unrealized loss from the market price of Aluminum increased, but the
company will also reflect the price increase from inventory to offset the
MTM loss.
12.Contract period:None.
13.Restrictive covenants:None.
14.Other important terms and conditions:None.
15.Any other matters that need to be specified:
The company already hedged Aluminum 6,650T of February 28, 2022.