On December 4th, the "Star Market Daily" reported (Reporter Chen Junqing) Recently, Sai Microelectronics stated on the investor interaction platform that, affected by external objective factors, the company has stopped promoting the construction of the 12-inch MEMS manufacturing line project with a total investment of 5.1 billion in Hefei High-tech Zone. This news has attracted widespread market attention.

Regarding the above situation, a reporter from "Star Market Daily" called Sai Microelectronics Securities Department today (December 4th), and the staff informed the reporter that, "The agreement initially signed for this project is similar to an MOU, and there has been no actual construction and production, which has no impact on the company." Regarding whether the project will be restarted in the future, the person stated, "Currently, there is no hope to restart the project."

With regard to issues related to the project, a reporter from the "Star Market Daily" also called the Hefei High-tech Industrial Development Zone Semiconductor Investment Promotion Center, but as of the deadline, no relevant reply has been received.

▍The agreement for the Hefei project has been signed for more than two and a half years now

Regarding the project details, in January 2022, Sai Microelectronics disclosed in an announcement that on January 1, 2022, the company signed a 'Cooperation Framework Agreement' with the Hefei High-tech Industrial Development Zone Management Committee to construct a 12-inch MEMS production line with a design capacity of 0.02 million wafers per month, with an expected annual revenue of around 3 billion yuan after reaching full production. Since the signing of this agreement, it has been more than two and a half years.

In terms of project investment, the registered capital of Sai Microelectronics' Hefei project company is planned to be set at 4 billion yuan, with Sai Microelectronics planning to contribute around 1.44 billion yuan, holding approximately 36%, the Hefei High-tech Zone Commission with subordinate state-owned platforms contributing around 1 billion yuan, holding approximately 24%, the project core team contributing around 0.4 billion yuan, holding approximately 10%, and other social capital contributing around 1.2 billion yuan, collectively holding approximately 30%.

The "Star Market Daily" reporter noted that apart from the manufacturing line project in Hefei, Sai Microelectronics is also constructing MEMS wafer pilot lines and R&D platforms in Huairou, Beijing, and Shenzhen.

Specifically, on April 10, 2024, sai microelectronics inc. signed a 'Strategic Cooperation Agreement' with the Huairou District People's Government in Beijing on April 10, 2024, planning to build a high-level 6/8 inch MEMS wafer pilot production line and research and development platform in the Science City Industrial Transformation Demonstration Zone, providing research and development support capabilities for the design, manufacturing, and testing of MEMS sensors, and driving the aggregation and development of the MEMS sensor industry in Huairou District.

On August 2, 2023, sai microelectronics inc. announced that the company and its wholly-owned subsidiary, Sai Lexie International, plan to sign an 'Investment Contract' with related parties of the Deep Investment Group, Yuanzhi Xinghuo, Huada Songhe, Keliante, and Sai Leicryst., jointly establish Sai Lexie Shenzhen.

The registered capital of the company is 1.5 billion yuan, of which the company's wholly-owned subsidiary, Sai Lexie International, invested 0.45 billion yuan, holding 30% of its equity.

Sai Microelectronics Inc. stated that the purpose of this investment in setting up Sai Lexie Shenzhen and investing in the MEMS project in Shenzhen is to fully utilize the superior resources of the South China Greater Bay Area concept, actively seize the development opportunities of the semiconductor and smart sensor industry, the Shenzhen production line and the Beijing production line effectively complement each other, to meet the demands of MEMS process manufacturing from different regions and industries at a greater extent.

Regarding the construction status of the above two production lines, the securities department personnel mentioned to the 'Star Daily' reporter: 'Both the Beijing and Shenzhen production lines of the company are currently under construction.'

The first and second largest shareholders of the company successively reduced their shareholdings within the year.

The 'Star Daily' reporter noticed that this year, sai microelectronics inc.'s first and second largest shareholders have been actively announcing their shareholding reduction plans.

On the evening of December 3, sai microelectronics inc. announced that the National Integrated Circuit Industry Investment Fund Co. Ltd. (referred to as the 'Big Fund') has cumulatively reduced 8.7246 million shares of the company through centralized bidding and block trading from November 7, 2024, to December 2, 2024, accounting for 1.19% of the company's total share capital. After this equity change, the percentage of the Big Fund's shares decreased from 10.0452% to 8.87%.

In this regard, a person from the Investor Relations Department of Sai Microelectronics Inc. told the journalist of 'Star Daily' that 'The large funds reducing their holdings is a normal occurrence in the four stages of fundraising withdrawal, with the aim of realizing profits.'

It is understood that on October 16 this year, Sai Microelectronics received a 'Notice of Share Reduction Plan' from Big Fund. The reduction plan will last for three months after fifteen trading days from October 16, with a total share capital reduction of 1.5% by the company. This includes reducing no more than 1% of the total share capital through centralized bidding and not exceeding 0.5% of the total share capital through block trades.

In addition to Big Fund, Yang Yunchun, the actual controller of Sai Microelectronics and its top shareholder, has also had multiple shareholding reduction plans.

According to Sai Microelectronics' announcement on November 7, the company's controlling shareholder and actual controller, Yang Yunchun, plans to reduce no more than 0.80% of the company's total share capital through centralized bidding to repay the outstanding stock pledge debt. Yang Yunchun holds 0.184 billion shares of the company, accounting for 25.18% of the total share capital, of which 91.85 million shares have been pledged.

In addition, Yang Yunchun has had two more share reduction plans between 2021 and 2023.

On October 27, 2021, Yang Yunchun announced a reduction plan through centralized bidding and block trades to reduce up to 3% of the company's shares. By February 17, 2022, a total of 11,690,316 shares were sold, accounting for 1.5942% of the total share capital.

After the completion of the reduction on February 17, 2022, Yang Yunchun announced a new reduction plan to reduce no more than 14,665,781 shares through block trades, i.e., not more than 2% of the total share capital. This reduction was terminated on April 25, 2023, with a total reduction of 1.6786% of the total share capital.

Regarding the impact of the reduction on the company, the aforementioned personnel from the Sai Microelectronics Securities Department stated that 'The major shareholder selling shares in large quantities will put pressure on the stock price. There will be few corresponding investments to buy in the short term, and the stock price will decline to some extent, with the overall impact being manageable.'

As of today's close on December 4th, Sai Microelectronics Inc. stock price fell by 4.72%, closing at 20.19 yuan per share.