HONG KONG, Jul 5, 2023 – (ACN Newswire) – IBO Technology Company Limited (“IBO Technology” or the “Company”, together with its subsidiaries, the “Group”; stock code: 2708.HK) is pleased to announce that the Group has entered into a letter of intent with Mr. Teng Da Cheng to invest in Shandong Xingang Electronic Technology Company Limited* (“Xingang Electronics”), strengthening the Group’s capabilities in the PRC’s electronic cigarette field and facilitating the Group’s in-depth deployment in the electronic cigarette market in the PRC.
Mr. Teng Da Cheng is the largest shareholder of Xingang Electronics, holding 49.9% equity interest. Founded in 2001 and headquartered in Weifang, Shandong, Xingang Electronics is mainly engaged in the research and development (“R&D”), production and sales of capacitive/digital switch type airflow sensors, disposable/rechargeable functional airflow sensors, MEMS airflow sensors, electronic, cigarette controller “customised” modules, ECM microphones and MEMS sensors. Xingang Electronics is a professional acoustic device and MEMS sensor product total solution provider and a leading high and new technology enterprise in the field of ECM microphone and MEMS sensor in the PRC. Xingang Electronics sets up R&D centres in Singapore, Beijing, Shenzhen and Qingdao, and has reached strategic cooperation with Chinese Academy of Sciences, Singapore Science and Technology Bureau, Shandong University and Jilin University to build R&D platforms for MEMS microphone /MEMS sensor, equipped with more than 70 technical patents and 100 proprietary technologies, as well as a team of dozens of experts and more than 40 R&D engineers.
Subject to the Group conducting financial, legal and business due diligence on Xingang Electronics and being satisfied with the results, the Group intends to acquire equity interest in Xingang Electronics held by Mr. Teng Da Cheng at a price with reference to valuation of not exceeding 20 times of the annual net profit of Xingang Electronics. Xingang Electronics intends to establish and complete an offshore red chip structure in which Mr. Teng Da Cheng will hold an indirect shareholding in Xingang Electronics through an offshore holding company. After the completion of the offshore red chip structure, the Group has the right to choose to issue shares, convertible bonds, promissory note and cash or such other instrument of the Company to satisfy the consideration. The issue price of the consideration shares or conversion price of the convertible bond shall not be higher than HK$0.75 per share.
Subsequent to the earlier announcement of investment in Hangzhou Yixin Micro Technology Co., Ltd.* (“Hangzhou Yixin”), a company that integrates the research and development, production and sales of constant pressure and constant power airflow sensing chips and the appointment of Mr. Zhong Zhi Xiong, who has extensive industry knowledge and solid management experience in the electronic cigarette industry in the PRC, as co-chief executive officer, the Group announced its intention to invest in Xingang Electronics, which has strong capability in the PRC’s electronic cigarette field, demonstrating its determination to invest in the development of electronic cigarette business in the PRC. The Group develops related business with a multi-pronged approach, and it will help the Group quickly build a solid foundation for future growth and capture golden opportunities in the industry.
Mr. LAI Tse Ming, Chairman and Executive Director of IBO Technology, said, “Being actively committed to diversified business development is the Group’s vision in the future, and the electronic cigarette business in PRC will be one of the Group’s business focuses. We are pleased to have entered into a letter of intent with Mr. Teng Da Cheng to invest in Xingang Electronics, and we are confident that Xingang Electronics will maintain an expedited development and strengthen its presence in the PRC’s electronic cigarette market, thus gradually developing into a world-class provider of electroacoustic/sensor integrated solutions. Looking forward, we strive to continuously identify suitable investment targets in the market with high technology level and huge development potential, such as Hangzhou Yixin and Xingang Electronics. Adhering to the principle of promoting high-quality growth, the Group will step up its efforts in the deployment in the electronic cigarette market in the PRC, to promote the growth of its business scale.”
About IBO Technology Company Limited
IBO Technology Company Limited (Stock code: 2708.HK), a leading digital solutions provider, is principally engaged in providing 5G communication equipment and private network solutions, ITAI terminal products and industry solutions, IoT products and solutions, as well as industrial digital solutions in the PRC. The Group’s businesses mainly cover four areas, namely (i) intelligent terminal products sales; (ii) system integration; (iii) software development; and (iv) system maintenance services. With nearly 20 years penetration in the IoT industry, the Group serves customers from both the public and private sectors in the PRC, including government authorities, large-scale state-owned enterprises and private enterprises. On 29 May 2023, IBO Technology Company Limited announced an investment in Hangzhou Yixin Micro Technology Co., Ltd.*, in order to commence chip manufacturing business.
For more details, please visit: http://www.ibotech.hk/
* The English name is not the official name and is translated for reference purpose only.
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