Saiwei Electronics: Plans to acquire 0.5455% equity of Jimsi for RMB 30 million

On December 10, Saiwei Electronics issued an announcement on the external investment of its wholly-owned subsidiary. Based on the company's overall strategic plan, in order to further improve the company's industrial chain layout in the semiconductor field and strengthen long-term cooperation and contact with upstream suppliers, on December 10, 2021, the company's wholly-owned subsidiary Microchip Technology signed the "Equity Transfer Agreement" with Jimsi and some of its shareholders. Microchip Technology used its own funds of RMB 30 million to acquire a total of 0.5455% of Jimsi's equity transferred by Jimsi shareholders Pang Jinming, Hui Keqing, Mo Kewei, Xu Haiqiang, and Wuxi Pure Micro Semiconductor Co., Ltd. Jimsi's other shareholders have agreed and waived their preemptive right to purchase this equity transfer. This transaction will not result in changes in the scope of the company's consolidated financial statements. After the completion of this transaction, Jimsi will become a subsidiary of the company.

According to the overall plan of this equity transaction of Jimsi, after the completion of this transaction, the equity structure of Jimsi will be as follows (the company does not consider whether the transaction plans of other new shareholders will change, and does not consider whether this equity transaction of Jimsi will still increase or decrease new shareholders):

It was disclosed that GMC was established in 2014 and is headquartered in Wuxi City, Jiangsu Province. It is a well-known domestic company in semiconductor remanufacturing equipment and polishing liquid supply systems. At the same time, GMC also provides project services such as installation and commissioning of factory equipment, equipment relocation, equipment modification, spare parts maintenance, and production and sales of raw materials and consumables. In 2017, it became a high-tech enterprise in Jiangsu Province.

Saiwei Electronics said that the company takes semiconductor business as its core, faces the era of Internet of Things and artificial intelligence under the background of high-frequency communication, focuses on developing MEMS process development and wafer manufacturing business on the one hand, and actively deploys GaN materials and devices business on the other hand, and is committed to becoming a well-known semiconductor technology enterprise group based on local and international development. Jimsi is currently a well-known local enterprise in semiconductor remanufacturing equipment and polishing liquid supply system in China. The purpose of the company's investment this time is to combine industrial resources, give full play to the advantages of both parties, and promote future business cooperation.

The transaction is planned to be invested with Microchip Technology's own funds, which will not affect the company's normal production and operation activities, and will not have a significant adverse impact on the company's current financial situation and operating results. This transaction will not lead to changes in the scope of the company's consolidated financial statements. After the completion of this transaction, Jimsi will become a subsidiary of the company. This investment is part of the company's overall strategic layout of the core semiconductor business, and there is no situation that harms the interests of the company and all shareholders.