Zhitong Financial App News, Huanlian News (01473) announced that the company's wholly-owned subsidiary entered into an investment agreement with Shenzhen Precision Control Integrated Semiconductor Co., Ltd. the group agreed to subscribe for about 2.4% of the expanded share capital of Fine Control Integrated Semiconductors, with a cash consideration of RMB 8 million, which will be allocated from the group's internal resources.
It is reported that Precision Control Integrated Semiconductor is a Shenzhen-based innovation enterprise for analog and mixed signal integrated chips, specializing in designing, developing and selling high-end precision control products for optical communications, industrial control, new energy, medical devices and artificial intelligence Internet of things (AIoT), with design departments in India, the United States and the people's Republic of China, with customers all over the world.
According to the announcement, the Group's investment in highly controlled integrated semiconductors will create synergy for the Group's existing business, in particular, it will provide the Group with the opportunity to jointly develop complex devices used in industrial control, new energy (such as automotive and energy storage), medical and AIoT by making use of its expertise in high-end integrated circuit design and marketing. The board of directors is of the view that investment in precision-controlled integrated semiconductors will broaden the group's product portfolio, extend the group's industrial chain, and further strengthen the group's position in the optical components market. It will complement the Group's existing portfolio of optical devices through industry-leading high resolution and highly integrated optical controllers.
The investment in precision-controlled integrated semiconductors marks an important milestone in further improving the Group's market position in new energy, automotive industry control, medical devices and AIoT, and the Board believes that it will be conducive to the further business development of the Group and in the interests of the company and its shareholders as a whole.