• Taipower held its 2022 extraordinary general meeting today (December 16) and approved an amendment to its Articles of Incorporation adjusting its capital from the current NT$400 billion to NT$600 billion. It also approved the private placement of NT$150 billion in new shares to be issued for cash by next year (2023).

Taipower held its 2022 extraordinary general meeting today (December 16) and reported accumulated losses reaching one-half of its paid-in capital. It approved an amendment to its Articles of Incorporation adjusting its total capital from the current NT$400 billion to NT$600 billion, and set additional conditions for the issuance of preferred shares. It also approved the private placement of NT$150 billion in new shares to be issued for cash by next year (2023); these shares will be fully subscribed by the Ministry of Economic Affairs. Taipower stated that it expects the government to invest in the “Stable Power Supply Construction Program” to accelerate the implementation of power development and the construction of necessary power grids in order to continue to provide stable power to the country.

Taipower indicated that international fuel prices have increased significantly due to the Russo-Ukrainian War, and that the cost of fuel has increased tremendously. The cost of purchased fuel for this year (2022) was NT$500.7 billion as of October, a $263.5 billion increase compared to the same period last year (2021). Although the electricity price adjustment in July increased electricity revenue by approximately NT$28.8 billion this year, Taipower was still unable to turn a loss into a profit. As of the end of October, Taipower's accumulated losses amounted to NT$172.3 billion, reaching one-half of its paid-in capital of NT$330 billion, which, in accordance with the Company Act, must be reported at the latest shareholders’ meeting. Consequently, the extraordinary general meeting was held today, chaired by Taipower's Acting Chairman, Tseng Wen-Sheng. The meeting also approved an amendment to the Company's Articles of Incorporation and discussed the issue of private placement of common stock.

• The 2022 extraordinary general meeting was chaired by Taipower’s Acting Chairman, Tseng Wen-sheng.

Taipower emphasized that power companies around the world are facing the problem of high fuel costs, and governments in various countries, such as in Europe, the United States, Japan, and Korea, have adopted electricity price adjustments to reasonably reflect the actual cost of the electrical supply. Additionally, some countries have adopted nationalization, direct government subsidies to the power industry, government capital increases, asset restructuring, and credit line increases to raise low interest capital in order to maintain power operations for overall power security. Taipower seeks to cooperate with the government to protect the people's livelihood and the economy, and to continue to promote necessary power construction; it has therefore referenced the international practice of seeking additional government funding for capital expenditure, which would support the continuous implementation of its stable power supply mission.

According to Taipower, in order to raise the necessary funds for the “Stable Power Supply Construction Program”, it is seeking a government investment of NT$150 billion to be used for various major power construction projects. The capital increase will be used to promote power development projects, including the development of renewable energy sources, the construction of additional gas multiple-cycle units, the addition of new energy storage units, the improvement of power generation equipment, and the strengthening of the nation’s power grids to enhance their resilience through decentralization, reinforcement, and defensive engineering.

Taipower further explained that its current paid-in capital is NT$330 billion, and in order to facilitate a future capital increase, the Articles of Incorporation were amended, adjusting the total capital to NT$600 billion. After the extraordinary general meeting approves the capital increase proposal, the Ministry of Economic Affairs will invest NT$150 billion in Taipower in accordance with the central government’s general budget procedures and private placement-related regulations.

Taipower stated that the cash capital increase will be achieved through private placement and that the shares have been fully subscribed by the Ministry of Economic Affairs; this decision was made in consideration of the company’s financial status, major shareholders’ willingness to subscribe, timeliness, and issuance cost. During the extraordinary general meeting, the rights and obligations of the preferred shares and the conditions of issuance were also added to the Articles of Incorporation. Subsequent issuance will be conducted in accordance with the capital market conditions and the investors’ intentions.

Taipower also pointed out that in addition to the capital increase, it will continue to enhance its fuel procurement strategy, conduct asset revaluation, reduce material procurement costs, lower capital costs, save expenses, and strive for reasonable electricity price adjustments in order to actively increase revenue and reduce costs, so that it can continue to carry out its mission of providing a stable power supply.

Spokesperson: Wu Chin-Chung, Chief Engineer

Telephone: (02) 2366-6271 / 0910-192-766

Email: u850899@taipower.com.tw

Contact Person: Chen Li-Jung, Chief Secretary, Board of Directors' Secretariat

Telephone: (02) 2366-6210 / 0911-287-969

Email: u612123@taipower.com.tw