Xindonglian (688582.SH) announced on July 19 that its shareholder, the Northern Institute of Electronics ("Electronic Institute"), which holds more than 5% of the company's shares, plans to sign an equity transfer agreement with the Anhui Northern Microelectronics Research Institute Group Co., Ltd. ("Microelectronics Institute"). The Electronic Institute plans to transfer 56,000,000 freely tradable shares it holds through a non-public agreement to the Microelectronics Institute without compensation, for a transfer of shares accounting for 13.9997% of the total share capital of the company.
Before this equity transfer, the Electronic Institute held 80,000,000 shares of the company, accounting for 19.9995% of the total share capital of the company, and the Microelectronics Institute did not hold any shares of the company. The Electronic Institute and the Microelectronics Institute are both controlled by the same controlling shareholder, the China North Industries Group Corporation, and this agreement transfer is an equity transfer between the Electronic Institute and the Microelectronics Institute, which are concerted parties. After the share transfer, the total number of shares held by the Electronic Institute and the Microelectronics Institute remains unchanged.