Sunny Friend Environmental Technology : Announcing the Company’s reduction of its accumulated shareholdings of the subsidiary Chin Hsin Environmental Engineering Co., Ltd. by more than 10%.

 Announcing the Company's reduction of its accumulated
shareholdings of the subsidiary Chin Hsin Environmental
Engineering Co., Ltd. by more than 10%.

1.Name of the major subsidiary、Article 7 paragraph 3 subsidiary deemed as
the listed company, or a subsidiary of a listed company applies for listing
of securities in an overseas securities market for trading:
Chin Hsin Environmental Engineering Co., Ltd.
2.Cause of occurrence of the event (reduce the percentage of shareholding,
contributions or lose control ):reduce the percentage of shareholding
3.Method of shareholding or contributions reduction (Please specify the
date, reason, method, reduction percentage, volume, unit price, and total
amount each time):
(1)Date：2021/09/27
   Reason：Total number of new shares issues 15 % by employees
   Method：Chin Hsin company's cash capital increase and issuance
   of new shares
   Reduction percentage：The Company's shareholdings decreased from
   100% to 91.65%
   Volume：16,698,000shares
   Unit price：NT$10
   Total amount：NT$166,980,000
(2)Date：2022/08/05
   Reason：the Company's waiver to participating in the subscription
   of new shares for cash capital increase of Chin Hsin company
   Method：Chin Hsin company's cash capital increase and issuance of
   new shares
   Reduction percentage：The Company's shareholdings decreased from
   91.65% to 68.74%
   Volume：10,000,000shares
   Unit price：NT$15
   Total amount：NT$150,000,000
4.Method of loss of control(Please specify the date, reason, and method):
NA,only reduced the shareholdings percentage, not the managerial control
5.Equity (or capital) recipient or counterparty (please list separately for
each transaction):
(1)Employees of Chin Hsin company and those of the Group.
(2)Pursuant to Article 267 of the Company Act, 15 % of shareholding
1,500,000 shares, are to be subscribed to by employees of Chin Hsin
company and controlled or subordinate companies that meet certain
criteria and the remaining 8,500,000 shares are to be subscribed to
by the shareholders of the Company in proportion to their shareholdings.
If the shareholders forfeit the subscription or do not subscribe to
sufficient shares, the chairman of Chin Hsin company is authorized to
contact specific persons for subscription at the issue price.
6.Relationship with counterparty (Please specify the relationship with
counterparty each time):None
7.Gains (or losses) on disposal (Please specify the gains (or losses) on
disposal each time.If there is no gains (or losses), please fill in "NA"):NA
8.Cumulative reduction of shareholding in major subsidiaries, Article 7
paragraph 3 subsidiary deemed as the listed company, or a subsidiary of a
listed company applies for listing of securities in an overseas securities
market for trading so far (including the current transaction):31.26%
9.Shareholding in major subsidiaries, Article 7 paragraph 3 subsidiary
deemed as the listed company, or a subsidiary of a listed company applies
for listing of securities in an overseas securities market for trading at
present (including the current transaction):68.74%
10.Name of independent expert and his/her opinion on reasonableness of
pricing in each transaction:
CPA Sheng-Ping Huang of Qin Xin United Accounting Firm.
The price in each equity transaction is fair and reasonable.
11.Name of independent expert and his/her opinion on the impact of reduction
of shareholding or loss of control on the rights of the listed company's
shareholders:
CPA Sheng-Ping Huang of Qin Xin United Accounting Firm.
There is no material impact on the rights of the Company's shareholders.
12.Any effect on the ongoing listing of the parent company:No
13.Date of the audit committee resolution:2022/08/05
14.Details of audit committee resolution:
The committee approved the proposal unanimously with no changes.
15.Date of the board of directors resolution:2022/08/05
16.Details of board of directors resolution:
The board of directors approved the proposal unanimously with no changes.
17.Any other matters that need to be specified:None