Announcement the impact of the Company's
Shareholders' Equity due to the recent changes in the
international economic situation.
Date of events
2022/07/28
To which item it meets
paragraph 51
Statement
1.Date of occurrence of the event:2022/07/28
2.Company name:Ruentex Industries Limited
3.Relationship to the Company (please enter "head office" or
"subsidiaries"):head office
4.Reciprocal shareholding ratios:N/A
5.Cause of occurrence:According to the TWSE Letter No. 1111802966
6.Countermeasures:
In 2021, the overall world economy was affected by factors such as the
Russian-Ukrainian war,and the interest rates lifted many times by FED,
which has increased the life insurance industry's unrealized losses on
assets.In addition, the current insurance industry assets are measured at
fair value, but the liability side cannot be measured at fair market value
because IFRS 17 has not yet been applied, resulting in an underestimation of
the net value of the life insurance industry.
The company invested in Nanshan Life Insurance Co., Ltd. through Ruen Chen
Investment Holdings Co.,Ltd.,the comprehensive shareholding ratio is 26.62%.
The net worth of the company dropped from NT$ 107.0 billion at the beginning
of 2022(net worth per share of NT$ 153.3) to NT$ 58.3 billion at the end of
March 2022(net worth per share of NT$ 83.57). After the company changed its
accounting policy,at the end of March 2022 net worth is NT$ 70.733 billion
(net worth per share of NT$ 101.38). As the U.S. continues to lift rates,
the net worth of Nanshan Life Insurance Co., Ltd. keeps declining. In order
to avoid a severe drop in the net worth of the company caused by
non-operational factors, which will affect the rights of investors, the
company has proposed to make changes in response to this situation. The
accounting policy changes investment properties to fair value measurement
to account for this. After the company changed its accounting policy, the
investment property is measured by fair value.After adding the adjustment
amount due to the change in accounting policy(the net worth increased about
12.543 billion on 2022/6/30 due to the change in accounting policy),the net
value of the company as of the end of June 2022 will increase by about
NT$ 4.0 billion(about@NT$5.73 per share).
The decrease in the net worth of the company is mainly due to the
impact of the decline in the net worth of the investment, which is
not caused by normal business. The relevant improvement measures to increase
the net worth are passed by the board of directors.
At present, the company has passed the resolution of the board of directors
for cash capital increase in response to this situation, and is expected to
issue 370 million shares to respond.
7.Any other matters that need to be specified:
The above-mentioned net worth at the end of June 2022 is before audit
and the actual number should still be based on the financial report
for the second quarter of 2022 approved by the board of directors.
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Ruentex Industries Limited published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 10:24:38 UTC.
Ruentex Industries Ltd is a Taiwan-based company principally engaged in the manufacture of textile products, the retail and wholesale businesses. The textile products are divided into four categories. Pre-dyed series include lattice cloth, oxford cloth, elastic cloth and non-iron cloth. Printed and dyeing series include printed cloth and flannel cloth. Pile dyeing series include stretching cloth and corduroy cloth. Home and office series include bed sheet cloth and cloth for office chairs. The apparel brands under the Company include NAUTICA, Eden Park and LULU GUINNESS, among others. The retail and wholesale business mainly sells the agency rights of major brands in various countries and operates mass merchandising stores in Taiwan. The Company distributes its products within domestic market and to overseas markets.
RUENTEX INDUSTRIES LTD. 
