SMIT's subsidiary sells 16% equity of S2C Shanghai
SMIT announced the signing of a share transfer agreement with Zhongwan Private Equity Fund Management Co., Ltd., to sell its subsidiary S2C Holding's 16% equity in S2C Shanghai for a transaction amount of 212 million RMB. This move will provide strategic guidance and industry expertise to S2C Shanghai, supporting the continued growth of its high-tech R&D business, while the company will gain significant returns from its early investment and retain a substantial equity stake to participate in its long-term development
According to the announcement from Guowei Holdings (02239), on September 6, 2025, the company, its subsidiary S2C Holding, and S2C Shanghai signed an equity transfer agreement with the investor Zhongwan Private Equity Fund Management Co., Ltd. Under this agreement, S2C Holding conditionally agreed to sell its 16% equity in S2C Shanghai, while the investor conditionally agreed to purchase that equity for RMB 212 million.
S2C Shanghai is a limited liability company established under Chinese law. The S2C Shanghai Group is a supplier of hardware-based rapid verification systems and software.
S2C Shanghai is a company focused on high-tech research and development, and its business areas require substantial ongoing capital investment to maintain growth and innovation. The introduction of investors will provide S2C Shanghai with strategic guidance and industry expertise, enabling S2C Shanghai to leverage the investor's extensive experience in private equity and venture capital management, and may help it discover and seek new business opportunities and strategic partnerships. The equity transfer will also allow the company to gain significant returns from its early investment in S2C Shanghai while retaining a substantial equity stake to continue participating in S2C Shanghai's long-term development and value creation
