Improve the layout of the industrial chain, and Jiangbolong‘s acquisition of 70 equity in Yuancheng Suzhou has officially completed the delivery

    Meanwhile, the target company of this transaction, "Licheng Technology (Suzhou) Co., Ltd.", has been renamed as "Yuancheng Technology (Suzhou) Co., Ltd." (hereinafter referred to as "Yuancheng Suzhou" in Chinese or "Longforce" in English), and is directly controlled by Jiangbolong‘s newly established wholly-owned subsidiary, "Jiangbolong Electronics (Suzhou) Co., Ltd.".

    Licheng Technology and its affiliated companies will continue to provide relevant support services in accordance with the service agreement signed by both parties to ensure the continuous operation of Yuancheng Suzhou.

    Yuancheng Suzhou, formerly known as Ultramicro Semiconductor and Feisuo Semiconductor, became a wholly-owned subsidiary of Licheng Technology in 2009. Its main business includes chip packaging, testing, and SMT, and its main products include flash memory chips, memory chips, and logic chips.

    After the completion of this transaction, Yuancheng Suzhou will officially operate independently and continue to undertake the testing business for the existing customer base. In addition, Yuancheng Suzhou will further increase its investment in research and development and packaging and testing processes, actively introduce high-end packaging and testing equipment and excellent talents in the industry, continuously improve packaging and testing capabilities, and create a high-end packaging and testing base to better provide high-quality services to customers in multiple industries such as artificial intelligence, high-performance computing, smart cars, smartphones, and smart wearables.

    Meanwhile, as a specific measure for Jiangbolong to strengthen its production and manufacturing layout, this acquisition is expected to further enhance its storage chip packaging and testing capabilities and capacity utilization, improve its industrial chain layout, strengthen its business cooperation with storage wafer manufacturers, and form a joint force in improving product quality, quickly responding to customer needs, flexibly customizing product specifications, and providing stable production capacity, Enhance the company‘s market influence and core competitiveness, ultimately enhancing its long-term profitability, and achieving the strategic layout of the company‘s semiconductor storage brand.

    The company has always attached great importance to the global layout of its storage business and actively implemented the domestic and international dual circulation strategy. Since the cross-border acquisition of the Lexar brand in 2017 and the successful implementation of global operations, the company has been continuously exploring ways to enhance its international operational capabilities, create a flexible supply chain and business system, and utilize the advantages of being close to local customers, self-developed technology, comprehensive storage products, and local manufacturing to provide better services to global customers.

     This year, the company‘s self-developed main control chip has also made breakthrough progress. By cooperating with advanced packaging and testing capabilities, it will fully empower the company‘s core memory products in the future, effectively improving the quality, performance, and security of various product lines, and strengthening the company‘s core competitiveness in the storage field.