News Release: Ferrotec Holdings Corporation(6890 TSE Standard)
July 18, 2024

Notice of the Capital Investment (Construction of a New Factory) by a Sensor BusinessSubsidiary in Lishui, ChinaFerrotec Holdings Corporation (Representative Director: He Xian Han; hereinafter “the Company”) announces that, at themeeting of the Board of Directors held yesterday, we resolved to invest 522.33 million yuan (approx. 11.6 billion yen) to construct
a new factory for Ferrotec (Zhejiang) Sensor Technology Co., Ltd. (hereinafter “FTSL”), which is a sensor business subsidiaryin China. Details are as follows.
This matter is capital investment in relation to an investment agreement disclosed in “Notice of the Conclusion of anInvestment Agreement between Our Subsidiary Managing the Business in China and Lishui City, Zhejiang, China” dated
December 15, 2023. Please also refer to the disclosure entitled “Notice of the Establishment of a New Company (SpecifiedSubsidiary) for the Sensor Business in Lishui, Zhejiang, China” released on November 14, 2023 to learn about FTSL, which isthe investment target.
Please note that we called FTSL “Ferrotec (Zhejiang) Information Technology Co., Ltd.” up to the notice on December 15,2023. However, from this disclosure, we will call FTSL “Ferrotec (Zhejiang) Sensor Technology Co., Ltd.” as it is its officialname.
1. Outline of the capital investment(1)

Investment amount522.33 million yuan (approx. 11.6 billion yen) *1 Chinese yuan = 22.16 yen[Breakdown]
Factory building: 456.57 million yuan (approx. 10.1 billion yen)
Machinery and equipment: 65.76 million yuan (approx. 1.5 billion yen)(2)

Location(3)

Total floor area of the

Economic Development Zone, Liandou District, Lishui City, People’s Republicof China
Approx. 120,000 m2building(4)

ScheduleStart of building construction: July 2024
Completion of the building: January 2025
Completion of equipment delivery: January 2025

(5)

Scheduled date of start ofMarch 2025

operation
2. Overview of the subsidiary as of June 30, 2024
(1)

Name

Ferrotec (Zhejiang) Sensor Technology Co., Ltd. (FTSL)(2)

Address

Economic Development Zone, Liandou District, Lishui City, People’s Republic(3)

Title and name of(4)Contents of business(5)

Capital(6)Date of establishmentof China
He Xian Han, Representative Director

Representative
Manufacturing and sale of electronic materials, such as sensors, developmentof related technologies, etc.
2 billion yuan (approx. 41.5 billion yen) *1 Chinese yuan = 22.16 yen
November 27, 2023
Shareholder

Shareholdingratio(7)

Major shareholders andshareholding ratio

Ferrotec Holdings Corporation

44.8%

Shanghai Shenhe Investment Co., Ltd. (FTS)

6.2%

Lishui Nancheng New District Investment Development

29.0%

Co., Ltd.
Lishui High Tech Financial Investment Holdings Co.,

20.0%

Ltd.
(8)

Relationship between FTSL

CapitalFTSL is a subsidiary 51.0% of whose voting rights are heldNews Release: Ferrotec Holdings Corporationand the companies(6890 TSE Standard)relationshipby the Company and FTS, a consolidated subsidiary of thePersonnel

The director of the Company concurrently serves as director

relationshipof the subsidiary.

Business

Nothing is applicable.

Company.

relationship
3. Future outlook
The impact on the business performance of the Company for the current fiscal year through this matter is expected to beminor. However, we will promptly disclose relevant items as soon as they are confirmed.