Xinwei Communication plans to acquire all or part of the equity of Juyongchang Electronics with cash

On the evening of December 11, Xinwei Communication issued an announcement stating that in order to promote the company's development in the field of electronic technology applications, adhering to the purpose of "complementing each other's strengths, mutual benefit and win-win, and common development", the company and Li Jun, Li Xiang, Yin Honghui, Li Gangqiang, and Li Ying (hereinafter collectively referred to as "Party B") intend to sign a "Cooperation Framework Agreement" (hereinafter referred to as the "Agreement").

Xinwei Communication intends to acquire all or part of the equity of Suzhou Juyongchang Electronic Technology Co., Ltd. (hereinafter referred to as the "Target Company" or "Juyongchang") held by Party B in cash. The "Cooperation Framework Agreement" to be signed this time is a framework agreement reached by the above two parties through friendly negotiations. The specific cooperation matters involved in this agreement need to be signed separately. The specific cooperation details need to be further clarified.

According to its disclosure, Juyongchang was established in May 2018, with its factory located at No. 183, Yisheng Road, Wujiang District, Suzhou City, and registered capital of 20 million yuan. The company currently mainly produces chip alloy resistors, which are used in the fields of impact current resistance and high power such as drones, robots, and electric vehicles, and are mainly used in current sampling or short-circuit protection.

Xinwei Communication said that Juyongchang has the ability to research and develop and produce chip resistors, and has mastered the patents and technologies of adjustable stamping dies, which can achieve higher output efficiency; Juyongchang focuses on lean production and cost control, and can achieve higher operating benefits and product gross profit.

Xinwei Communication pointed out: "The establishment of this cooperative relationship is mainly based on the principle of complementary advantages and mutual benefit. It is based on the use of each other's advantageous resources, combined with the technical development capabilities and industrialization foundation of Juyongchang in the field of basic components, and also gives full play to the company's leading advantages in production and operation management, major customer platforms and market development, so as to maximize the interests of both parties in the field of electronics. At the same time, this cooperation will help the company to continuously improve the layout of related industries in the field of passive components, further enhance the company's comprehensive competitiveness and service capabilities, build a technology-driven enterprise, and create more value for customers."