“Science and Technology Innovation Board Daily”, November 12 (Reporter Qiu Siyu) Another example of a semiconductor merger and acquisition was announced yesterday evening (November 11). This time, the trend is blowing towards the materials sector.

Huahai Chengke announced that the company is planning to purchase 100% of Warwick Electronics' shares and raise supporting capital (hereinafter referred to as “this transaction”) through a combination of cash and issuing shares.

According to reports, this transaction is expected to constitute a major asset restructuring, but it does not constitute a related transaction. It will not lead to a change in the actual controller of the company, and will not constitute a restructuring and listing. Trading of the company's shares has been suspended since the opening of the market on November 12, 2024, and is expected to be suspended for no more than 5 trading days. The specific plan of this transaction is subject to the information disclosed in subsequent announcements.

Huahai Chengke did not disclose the transaction price or details of Warwick Electronics' performance in the announcement. However, it is worth mentioning that on September 20 of this year, Debon Technology announced that the company signed an “Purchase Intent Agreement” with the existing shareholders of Warwick Electronics to acquire 53% of the shares of the Hengshuo Warwick Company and obtain control over it through cash.

At the time, Warwick Electronics' 100% equity parties initially negotiated a price range of 1.4 billion yuan to 1.6 billion yuan.

At the same time, Warwick Electronics also made performance promises. At that time, the transaction performance commitment period was 2024 to 2026. Following preliminary negotiations between relevant parties, Warwick Electronics expects to achieve net profit of not less than 53 million yuan in 2024, and a total net profit of not less than 0.185 billion yuan for the three-year commitment period from 2024 to 2026.

However, in the end, the two deals came to an end. Debon Technology announced on November 1 that Warwick Electronics unilaterally issued a notice to terminate the share acquisition transaction for some reason, and the share acquisition matters could no longer be carried out.

Back to Warwick Electronics itself, according to public information, the company was founded in 2000, and its main business is R&D, production and sales of semiconductor and integrated circuit packaging materials. The company's main products are epoxy molding compounds (EMC). It currently has 12 production lines, and has more than 100 models of products such as the Hysol brand and the KL, GR, and MG series. Downstream customers include Infineon, Ansemi, Anshi Semiconductors, Changdian, Huatian, Tongfu Microelectronics, and Silan Micro.

According to PRISMARK statistics, in 2023, Hengsuo Warwick ranked third in sales among global epoxy encapsulants companies, ranked fourth in sales, and ranked first in sales and sales among domestic epoxy encapsulants companies.

In terms of financing, Tianyan Research shows that Warwick Electronics has experienced a total of two rounds of financing. In 2022, the company completed Series B financing invested by Zheshang Venture Capital; in 2021, it completed Series A financing invested by Yongli Group.

In terms of shareholders, as of the disclosure date of this announcement, Zhejiang Yongli Industrial Group Co., Ltd. held 35.5463% of Warwick's shares and Hangzhou Shuhui Industrial Co., Ltd. held 35.5463% of the shares. The two were the top two shareholders of Warwick Electronics and were also counterparties that signed an agreement with Debon Technology at the time.