Wingtech Technology: Plans to jointly invest with Gree Ventures to acquire OFILM Apple camera business

On the evening of April 12, Wingtech Technology issued an announcement stating that it plans to jointly invest with Zhuhai Gree Venture Capital Co., Ltd. (hereinafter referred to as "Gree Venture Capital") to establish Zhuhai Delta Technology Co., Ltd. as the designated acquisition entity to acquire 100% of the equity and related operating assets of Guangzhou Delta Imaging Technology Co., Ltd.

The announcement shows that the registered capital of Zhuhai Delta Technology Co., Ltd. is RMB 3 billion, of which Wingtech Technology Co., Ltd. contributed RMB 2.1 billion in cash, accounting for 70% of the registered capital, and Gree Venture Capital contributed RMB 900 million in cash, accounting for 30% of the registered capital.

On March 29, Wingtech Technology issued an announcement, announcing that it had reached an agreement with OFILM on the acquisition of OFILM's specific customer camera business. Wingtech Technology will complete the acquisition of OFILM's specific customer camera business for RMB 2.42 billion.

At that time, the announcement disclosed that Wingtech Technology signed the "Equity Purchase Agreement on Guangzhou Delta Imaging Technology Co., Ltd." with OFILM, and the "Asset Purchase Agreement on Jiangxi Jingrun Optics Co., Ltd." with OFILM and Jiangxi Jingrun Optics Co., Ltd. The company intends to purchase 100% of the equity of Guangzhou Delta Imaging Technology Co., Ltd. held by OFILM and the equipment related to the supply of cameras to specific overseas customers owned by Jiangxi Jingrun Optics Co., Ltd. in cash. The transaction price of 100% equity of Guangzhou Delta is based on the appraisal value and is determined to be 1.7 billion yuan after negotiation; the transaction price of the target equipment owned by Jiangxi Jingrun is based on the appraisal value and is determined to be 720 million yuan (tax included) after negotiation, and the total transaction price is 2.42 billion yuan.

On April 9, Wingtech Technology and Gree Ventures signed the "Capital Contribution and Shareholder Agreement", stipulating that the registered capital of Zhuhai Delta is RMB 3 billion, of which Wingtech Technology will contribute RMB 2.1 billion in cash, accounting for 70% of the registered capital, and Gree Ventures will contribute RMB 900 million in cash, accounting for 30% of the registered capital.

It is worth mentioning that Guangzhou Delta is the former production base of Sony (China) Co., Ltd. in South China (Guangzhou, China), and its main business is the production and sales of micro cameras and related components. Sony's South China production base was acquired by OFILM in 2017 and completed the transaction. It has the industry's top camera module development and packaging technology, and has the qualifications and capabilities to supply to the world's top smartphone brand customers. OFILM entered Apple's supplier list and became its main camera supplier precisely because of the acquisition of Sony's South China production base.

On March 16, OFILM disclosed an "Announcement on Major Changes in the Business of a Specific Customer", stating that a specific overseas customer plans to terminate its procurement relationship with OFILM and its subsidiaries, and OFILM will no longer obtain existing business orders from the specific customer in the future.