Explanation of the impact of the United States' policies such as reciprocal tariffs on this group
Promulgator :Hiroca Holdings Ltd. Date posted :114/04/06
1.Date of occurrence :114/04/06
2. Company Name: Guanghua Holdings Limited
3. Relationship with the Company (please enter "our company" or "Subsidiary"): Our company
4. Mutual shareholding ratio: Not applicable
5. Cause of occurrence: Since President Trump was elected, the United States has announced a series of tariff measures, including those to the world on April 2, 114/14
Announce the "reciprocal tariff" rates for various countries.
6. Response Measures:
The relevant impacts and response measures are respectively described as follows:
The proportion has been decreasing year by year. By the end of 2024, the revenue proportion had dropped to approximately 12%. It is expected that the relevant tariffs will have an impact on the Group this year
It is still controllable. Furthermore, the Group is not only actively discussing with customers how to jointly share the impact brought by the current tariffs
In addition to the amount, discussions were also held with the client, including adjusting product quotations and relocating production bases to areas with less impact
(such as the Mexican factory of this group) and other options.
(2) Made in Mexico
The vast majority of products from the Mexican factory of this group are shipped to local customers in Mexico for assembly and then sold to the United States.
The remaining products directly shipped to the United States do not need to bear the freight charges after leaving the factory according to the transaction conditions agreed upon with the customer
And derivative expenses such as tariffs. Therefore, the tariff policies currently introduced have a limited impact on the Group's factory in Mexico.
As Mexico has been exempted from the reciprocal tariffs this time, the Group will also continue to monitor market trends and communicate with customers in the future
Maintain close communication and make use of the newly planned production capacity in Mexico to provide customers with more diverse options or reduce the impact of tariffs
The selection of production sites.
7. Other matters to be noted (If the event occurs or the resolution is made by a publicly traded company or above, this major information is also included.
Matters that have a significant impact on shareholders' equity or securities prices as stipulated in Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act:
None.