SIWI SCI & TECH plans to sell 100% equity of Putian New Materials

According to the announcement from Zhitong Finance APP, SIWI SCI & TECH (01202) announced that on July 25, 2025, the board of directors approved the proposal to sell the company's entire 100% equity in Putian New Materials. In accordance with the relevant regulations on the transfer of state-owned assets of Chinese enterprises, the potential sale will be conducted through public listing at the Chongqing Property Exchange.

On August 28, 2025, the company published a public listing announcement for the sale of equity at the Chongqing Property Exchange. The initial public listing period will start on August 29, 2025, and will last for 20 working days in China.

The initial public listing price for the potential sale is expected to be approximately RMB 118 million. If there are no potential transferees for the equity by the end of the initial public listing period (i.e., September 25, 2025) (assuming no circumstances cause the initial public listing period to be delayed or extended), the public listing period may be extended for 12 months, and the final public listing price may be adjusted to no less than 90% of the initial public listing price. Therefore, the final price will not be less than approximately RMB 106 million under any circumstances.

The directors believe that the potential sale will not have a significant adverse impact on the company's main business and daily operations; and that the current timing is appropriate for the potential sale, with the price and terms of the potential sale being established on general commercial terms, which are fair and reasonable, and in the overall interest of the company and its shareholders.

Taking into account the initial public listing price of approximately RMB 118 million; and estimated expenses (including agency fees, legal fees, supporting expenses, and taxes payable due to the potential sale) of approximately RMB 26.6595 million, the net proceeds from the potential sale are expected to be approximately RMB 91 million. The company plans to allocate 16.48% for the research and development of special cables, passive optical products, medium and low-speed optical modules, and analog optical modules; 37.36% for the research and development of high-end cables, precision cable components, special optical cables and components (Phase I), and high-speed optical modules; and 46.15% for the research and development of high-speed cables and components, special optical cables and components (Phase II), silicon optical modules, and optical connection systems