On the evening of June 7, China Resources Micro announced that its wholly-owned subsidiary, Huawei Holding, planned to sign an investment agreement with the National Integrated Circuit Industry Investment Fund Phase II Co., Ltd. (hereinafter referred to as the "Big Fund Phase II") and Chongqing Xiyong Micro Electronics Industrial Park Development Co., Ltd. to initiate the establishment of Runxi Microelectronics (Chongqing) Co., Ltd. The registered capital of the project company is planned to be 5 billion yuan, including 950 million yuan invested by Huawei Holdings with its own capital, accounting for 19% of the total registered capital.
The announcement shows that the newly established Runxi Microelectronics will become the main body of the semiconductor wafer production line project. The total investment of the project is 7.55 billion yuan. After completion, it is expected to form a production capacity of 30000 pieces of 12 inch medium and high-end power semiconductor wafers per month, and the supporting construction of 12 inch epitaxial and wafer processing capacity.
In addition, according to the agreement, Chongqing Xiyong will transfer its 15% equity of the project company to a subsidiary of China Resources Group (Microelectronics) Co., Ltd. (currently not established) within 3 months after the project company is established and the relevant parties have fulfilled the approval procedures. The transfer price or total investment amount of the underlying equity shall be subject to the transaction procedures of state-owned assets. The second phase of Big Fund and Huawei Holding promised to give up the corresponding preemptive right.
How will the seats on the board of directors of Runxi Microelectronics be allocated in the future? It is disclosed that the board of directors of the project company will be composed of seven directors, of which Huawei Holdings has the right to appoint one director as the chairman; Chongqing Xiyong has the right to appoint three directors, one of whom is the vice chairman; The Fund II has the right to appoint 2 directors; One employee representative director of the project company.
The agreement also stipulates the withdrawal mechanism of relevant shareholders: after six years from the date of establishment of the project company, Big Fund Phase II or Chongqing Xiyong has the right to require Huawei Holdings to do their best to urge the company to purchase all or part of the equity of the project company held by them at that time; In principle, all shareholders will facilitate the project company to buy back and reduce its capital if the project company has sufficient repurchase capability if it is not fully acquired by the company.
CR Micro said that the move was in line with the company's strategic objectives and long-term interests. By optimizing the industrial layout and moderately expanding the capacity scale of power semiconductor, the company's market competitive advantage can be enhanced, the core competitiveness of the company's products can be further improved, so as to enhance the company's sustainable development ability and further establish the company's leading position in the domestic power semiconductor field.
According to the first quarter report of China Resources Microenterprise, the operating revenue in the first quarter of this year increased by 47.92% year on year and the net profit attributable to the parent company increased by 251.85% year on year due to the abundance of orders in hand and the high overall capacity utilization rate.