Taitron has received the credit rating results from Fitch Ratings today, obtaining a long-term issuer credit rating of 'A' and a domestic long-term rating of 'AA+ (twn)', with a stable outlook. The main reason is the support from the state-owned enterprises, and Fitch expects the government to provide additional support if necessary. Taitron pointed out that, in addition to Fitch Ratings, it has also received an international long-term credit rating of 'A-' from S&P and a domestic long-term credit rating of 'twAA+' from China Credit Rating, both of which are investment-grade ratings. The Fair Trade Commission approved the merger application of Taiwan Smart Power Company in July, authorizing six businesses, including China Steel, CPC, Chunghwa Telecom, TSMC, UMC, and East Steel, to jointly operate the power purchase and sales business. Taitron has recently completed the latest round of capital increase of NT$1.55 billion, increasing the number of shareholders to 14. The 14 shareholders of Taitron include CPC, Chunghwa Telecom, China Steel, Taiwan High Speed Rail, Yaohua Glass, ITIC, TSMC, UMC, Changan Petrochemical, East Steel, East Electric Group, MegaChip, Delta Electronics, and World Semiconductor. Each shareholder holds approximately between 5% to 12.5%. The state-owned enterprises under the Ministry of Economic Affairs and the Ministry of Transportation collectively hold more than half of the shares. Fitch stated that, considering Taitron as a public policy enterprise and its strong association with the government, Fitch 'penetrates' Taitron's direct shareholders to the Taiwan government (AA/stable), and strongly expects the Taiwan government to provide additional support to Taitron if necessary. Fitch pointed out that the Taiwan government is deeply involved in the design and establishment of Taitron. Fitch expects the government to maintain a majority stake in Taitron through its related entities to exert strong influence on Taitron. By the end of 2025, government-related entities will hold 52.3% of Taitron's shares and appoint four out of seven board members. According to the shareholder agreement, any transfer of Taitron's shares must be approved by at least 50% of the shares, ensuring the government maintains stable control. Fitch further stated that, in addition to the initial investment of NT$1.65 billion by the end of 2025, Taitron does not require any financial support, and it is expected that Taitron will need very little ongoing support from the government budget, as its shareholders will ensure the company fulfills its contractual obligations by taking over the contracts of defaulting buyers. Fitch stated that the overall credit status of Taitron's shareholders is good, supporting their ability to assume the defaulted contracts, especially government-related shareholder entities, which consume more than 5 billion kWh of electricity annually, and have the capacity to fully absorb Taitron's expected annual power supply of 4 billion kWh if needed. The credit quality of the aforementioned shareholders is associated with the sovereign or has a rating of 'A' or higher. However, Fitch assessed Taitron's standalone credit status as 'bbb', one major reason being the fixed profit margin in sales contracts, which limits Taitron's ability to raise prices when costs increase, thus the revenue risk is rated as 'weaker'. Taitron stated that it has already contacted the developers of Blocks 3-1 and 3-2, and once the new board of directors is formed, it will proceed with the procurement evaluation and decision-making, expecting to hold a board meeting by the end of August.