Lion Micro plans to acquire a 58.69% stake in Guojing Semiconductor, which has a 12-inch wafer automatic production line and has been put into production.

On February 8, Lionwei issued an announcement on the signing of the "restructuring Framework Agreement of Guojing (Jiaxing) Semiconductor Co., Ltd." and equity acquisition intention by its holding subsidiary.

On February 7th, Jin Ruihong Microelectronics (Quzhou) Co., Ltd., a holding subsidiary of Lion Micro, signed a "restructuring Framework Agreement on Guojing (Jiaxing) Semiconductor Co., Ltd." with Shanghai Kangfeng Investment Management Co., Ltd., Shanghai Zhe Zhong Group Co., Ltd., and Jiaxing Kangjing Semiconductor Industry Investment Partnership (Co., Ltd.). Jin Ruihong Microelectronics is proposed to take a 58.69% stake in Guojing Semiconductor, and Jiaxing Kangjing holds a 41.31% stake in Guojing Semiconductor.

Lion said that Guojing Semiconductor's main products are 12-inch silicon wafers for integrated circuits, all infrastructure construction has been completed, and the automatic production line for 12-inch silicon wafers for integrated circuits has been put into production, which is in the stage of customer introduction and product verification. If this reorganization is successfully completed, Jin Ruihong Microelectronics will become the largest shareholder of Guojing Semiconductor, and the company will acquire the control of Guojing Semiconductor. The transaction items of this agreement meet the requirements of the state on the integration of related industries and resource sharing, achieve the goal of energy saving and consumption reduction, reduce competition in the same industry, and optimize allocation. It is helpful to further expand the production scale of the company's existing 12-inch silicon wafers for integrated circuits and improve the company's market position in the 12-inch silicon wafers for integrated circuits, which is in line with the company's development strategy and long-term planning, and in the interests of all shareholders of the company.

However, the agreement signed this time is only a framework agreement, and the parties will sign a formal equity transfer agreement after the adoption of the above restructuring plan by their respective internal decision-making bodies and after audit, evaluation and further consultation, and there is uncertainty about the transaction. Prior to the signing of the formal agreement, the signing of this intention agreement will not have a significant impact on the company's operation and performance in 2022.