Just now! SMIC announced the sale of SMIC’s equity!

On the evening of April 22, SMIC announced that it plans to transfer all the equity interests of its holding subsidiary SJ semiconductor Corporation (hereinafter referred to as the “target company”) (SMIC Changjiang Semiconductor), accounting for about 55.87% of the total issued share capital of the target company. %!

  Just now! SMIC announced the sale of SMIC’s equity!

The announcement stated that, provided that all conditions have been fulfilled or waived in writing by the relevant parties, the payment of the Sale Shares and the transfer of the Sale Shares will take place on one or more Closing Dates, and all parties to the Transaction shall use their best endeavours to procure the Closing Date no later than April 30, 2021.

According to the data, SMIC and its subsidiaries are one of the foundry companies of integrated circuits, providing foundry and technical services for different technology nodes from 0.35 micron to 14 nanometers. Headquartered in Shanghai, China, the group has a global manufacturing and service base.

The Target Company was established in August 2014 and is an exempted company with limited liability incorporated in the Cayman Islands. As at the date of this announcement, it is owned as to 55.87% by the Company, National Integrated Circuit Fund, Jiangsu Changjiang Electronics Technology Co., Ltd. and Qualcomm Corporation respectively , 29.31%, 8.62% and 5.86% equity, the remaining 0.34% equity is jointly held by several employees of the target company. Changdian Technology is an integrated circuit system integration and packaging and testing service provider. Qualcomm is focused on the development and commercialization of fundamental technologies for the wireless industry.

  

According to IFRS, the Target Group’s net profit before tax and after tax (audited) for the financial year ended December 31, 2019 was approximately US$1.8 million, and the net profit for the financial year ended December 31, 2020 Net income before and after tax (audited) was approximately $8.1 million.

According to the Target Group’s audited accounts prepared in accordance with International Financial Reporting Standards, the Target Company’s total assets, total liabilities and net assets as of December 31, 2020 were approximately US$478 million, US$187 million and US$291 million, respectively. The Target Group’s total revenue (audited) for the fiscal year ended December 31, 2020 was US$217 million.

The announcement mentioned that the company intends to use the net proceeds from the transaction for the daily operations of the company.

  

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