Shanghai Sinotec (Group) Co., Ltd. (SHSE:603121) agreed to acquire Wuxi Senmic Sensor Technology Co., Ltd from Bo Weizhong, Jiang Yun, Zhou Jingxun and Zhu Yeru for approximately CNY 150 million on December 1, 2020. Shanghai Sinotec signed the share transfer agreement to acquire Wuxi Senmic Sensor from Bo Weizhong, Jiang Yun, Zhou Jingxun and Zhu Yeru on December 2, 2020. Bo Weizhong, Jiang Yun, Zhou Jingxun and Zhu Yeru will transfer 46.67%, 20%, 16.67% and 16.66% of stake in Wuxi Senmic Sensor respectively. Under the terms of the agreement, Shanghai Sinotec will acquire the stake of Wuxi Senmic Sensor in four phases where 51% stake will be acquired in the first phase, 18% stake in the second phase in 2021, 15% stake in the third phase in 2022 and 16% stake in the fourth phase in 2023. As of June 7, 2022, Shanghai Sinotec has completed commercial registration and owns 84% as of now. The transaction has a transaction price adjustment mechanism. The total equity transfer price corresponding to the four-phase delivery does not exceed CNY 151.05 million, of which the first payment is CNY 45.9 million. The payment consideration for periods 2-4 will be dynamically adjusted based on the performance of Wuxi Senmic Sensor.

As of December 31, 2019, Wuxi Senmic Sensor reported total assets of CNY 44.71 million, net assets of CNY 34.44 million, revenue of CNY 40.12 million and net profit of CNY 5.34 million. The transaction was approved by the Board of Director of Shanghai Sinotec on the 9th session of the company’s 2nd directorate on December 1, 2020. On June 7, 2021, Wuxi Senmic Sensor completed the change of business registration of the second phase of its share transfer, i.e. 18% stake, and Shanghai Sinotec now holds 69% stake in Wuxi Senmic Sensor.

Shanghai Sinotec (Group) Co., Ltd. (SHSE:603121) completed the acquisition of Wuxi Senmic Sensor Technology Co., Ltd from Bo Weizhong, Jiang Yun, Zhou Jingxun and Zhu Yeru on July 7, 2023.