Ingenic Semiconductor Co.,Ltd. (SZSE:300223) entered into an agreement to acquire 59.99% stake in Beijing Xicheng Semiconductor Co., Ltd. from a group of sellers for CNY 4.6 billion on May 16, 2019. Pursuant to the terms of the transaction Ingenic Semiconductor Co.,Ltd. will pay CNY 1.4 billion in cash and will issue 129.9 million shares of its common stock. On July 31, 2019, the deal terms revised. Ingenic Semiconductor Co.,Ltd. will now acquire the said stake for CNY 5.7 billion. The consideration comprises 129.9 million shares and cash of CNY 1.4 billion. In a related transaction Ingenic Semiconductor Co.,Ltd. agreed to acquire Shanghai Chengyu Asset Management Partnership Enterprise (Limited Partnership).

As of December 31, 2018, Beijing Xicheng Semiconductor Co., Ltd. reported total assets of CNY 6.5 billion, total owner equity of CNY 5.8 billion, revenue of 2.9 billion, operating profit of CNY 281.2 million, and net profit of CNY 245 million. On July 31, 2019, the Board of Directors and shareholders of Ingenic Semiconductor Co.,Ltd. approved the deal. As of November 14, 2019, the China Securities Regulatory Commission approved the transaction. Chen Ze, Zhang Jie, Fan Yufeng, Wang Chengcong, Zhang Lei, Xun Guoliang, Huang Yang, Zhang Ximeng, Chen Hao and Zhou Runnan of Guotai Junan Securities Co., Ltd., Zhang Xi, Xiao Chunan, Gao Bining, Ruan Xiaoli and Qu Teng of Zhong De Securities Company Limited acted as financial advisors, Jiao Fugang, Zhangjing Ping and Zhang Yanan of King & Wood Mallesons, China acted as legal advisors and Chao Xiaoyan and Tian Juan of ShineWing Certified Public Accountants Co., Ltd. acted as accountants for Hefei Junzheng Technology Co., Ltd.

Ingenic Semiconductor Co.,Ltd. (SZSE:300223) completed the acquisition of 59.99% stake in Beijing Xicheng Semiconductor Co., Ltd. from a group of sellers on April 1, 2020. Shanghai Chengyu Asset Management Partnership (Limited Partnership) holds the extant 40.01% stake.