Jingsheng Electromechanical: Plans to establish a joint venture with Applied Materials

On July 30, Jingsheng Electromechanical announced that in order to better implement the company's development strategy and strengthen the company's core competitiveness, the company plans to cooperate with Applied Materials, Inc. (hereinafter referred to as "Applied Materials"). The two parties intend to establish a joint venture by increasing capital in the company's wholly-owned subsidiary, Kesheng Equipment. After the capital increase, Kesheng Equipment's registered capital will be US$150 million in RMB. Among them, the company will increase capital by an equivalent of US$97.5 million and hold 65% of Kesheng Equipment's shares; Applied Materials Hong Kong will increase capital by US$52.5 million in US dollars, and will hold 35% of the joint venture after the capital increase is completed. 

At the same time, Kesheng Equipment will invest US$120 million to acquire Applied Materials' screen printing equipment business in Italy, its wafer inspection equipment business in Singapore, and the assets of the above businesses in China. The products are mainly used in photovoltaics, healthcare, automobiles, consumer electronics and other fields.

The equity structure of Kesheng Equipment before and after this capital increase is as follows: 

Jingsheng Mechanical & Electrical pointed out that the cooperation with a subsidiary of Applied Materials to establish a joint venture and acquire its screen printing equipment and wafer testing equipment business will help to better implement the company's development strategy, strengthen the company's core competitiveness in the photovoltaic field, and will have a positive impact on the company's medium and long-term development. 

Specifically, it will help enrich the photovoltaic equipment product line and build an industrial chain platform company. Jingsheng Electromechanical's products in the photovoltaic industry chain equipment field have added cell equipment links on the basis of crystal growth equipment, intelligent processing equipment and shingled module equipment links, further enriching the company's photovoltaic product line, opening up the whole process from crystal to module process equipment, enhancing the company's comprehensive service capabilities in the photovoltaic industry chain, and building the company into an industrial chain platform company.

In addition, the core technology advantages are strengthened and the overall competitiveness is improved. The screen printing equipment and wafer inspection equipment business segments of Applied Materials are committed to providing photovoltaic product manufacturing solutions to the industry, which will help Jingsheng Electromechanical to continuously innovate solutions to meet the ever-changing needs of customers and continuously improve the company's overall competitiveness.

The joint venture company Kesheng Equipment will fully integrate the advantages of its shareholder companies Jingsheng Electromechanical and Applied Materials to create strong comprehensive competitiveness. Kesheng Equipment will build a manufacturing base in China based on its manufacturing capabilities and cost control advantages accumulated over many years in China, and industrialize the acquired technologies.