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Issued by: Chang Wah Electromaterials Inc.
Issued on: March 25, 2024

Chang Wah Electromaterials Inc. (CWE, 8070.TW) announced today the successful signing of a five-year, NT$3 billion sustainability-linked syndicated loan agreement with 12 banks, receiving strong participation from the banking syndicate. In anticipation of the Company’s business expansion over the next five years, this funding will enhance its medium- to long-term financial resources, supporting future strategic initiatives.

The syndicated loan was arranged by Taishin International Bank, which acted as the lead arranger and facility agent, with Taipei Fubon Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, KGI Bank, Far Eastern International Bank, and Land Bank of Taiwan serving as joint arrangers. The loan also received participation from 11 additional banks, including Bank of Taiwan, Bank SinoPac, Bank of East Asia, Yuanta Commercial Bank, and Chang Hwa Bank. Initially targeting NT$2.5 billion, the strong demand from the banking syndicate resulted in an oversubscription, with the final agreement secured for NT$3 billion. This underscores the financial sector’s confidence in CWE and the Group’s operations and future prospects.

The NT$7.2 billion syndicated loan previously signed by CWE is set to mature in September 2024. In light of the funding requirements for its long-term strategic initiatives, the Company has today completed the signing of a NT$3 billion, five-year syndicated loan agreement with the banking syndicate. The reduction in the loan amount is mainly due to the significant increase in CWE’s cash position and net worth. As of the end of 2023, the Company’s cash and cash equivalents have surpassed NT$7 billion, a notable rise from NT$3 billion at the end of 2019.

Over the past five years, CWE has also experienced substantial growth in net worth, rising from NT$8 billion in 2019 to NT$19.5 billion in 2023. With the current share capital of approximately NT$689 million, the cumulative increase in net worth is equivalent to 16 times the Company’s share capital. Additionally, the net worth growth in the past year alone is equivalent to 4.5 times the share capital. Based on a par value of NT$10 per share, the current net worth per share has exceeded NT$200, reflecting CWE’s exceptional long-term operational achievements.

In addition to the NT$3 billion syndicated loan, and with plans to reduce its holdings in non-core businesses in the future, CWE is expected to have over NT$10 billion in available funds. The Company will actively evaluate investment opportunities and potential targets, with the possibility of expanding its business through acquisitions.