SIWI SCI & TECH (01202) announced that on July 25, 2025, the board of directors approved a proposal to dispose of the company's entire 100% equity interest in Putian New Materials. In accordance with relevant regulations governing the transfer of state-owned assets of Chinese enterprises, the potential disposal will be conducted through public listing at the Chongqing Property Rights Exchange. On August 28, 2025, the company published a public listing notice for the disposal of equity interests at the Chongqing Property Rights Exchange.
The initial public listing period will commence on August 29, 2025, and will be maintained for 20 working days in China. The initial public listing price for the potential disposal will be approximately RMB 118 million. If no potential transferees for the disposal equity emerge after the expiration of the initial public listing period (i.e., September 25, 2025, assuming no circumstances cause delay or extension of the initial public listing period), the public listing period may be extended for 12 months, and the final public listing price may be reduced to no less than 90% of the initial public listing price. Therefore, the final consideration will under no circumstances be lower than approximately RMB 106 million.
The directors believe that the potential disposal will not materially adversely affect the company's principal business and daily operations, and that now is an appropriate time to proceed with the potential disposal. The consideration and terms of the potential disposal are on normal commercial terms, fair and reasonable, and in the overall interests of the company and its shareholders.
After taking into account the initial public listing price of approximately RMB 118 million and estimated expenses (including agency fees, legal costs, ancillary expenses and taxes payable in connection with the potential disposal) of approximately RMB 26.66 million, the net proceeds from the potential disposal will be approximately RMB 91 million.
The company intends to allocate 16.48% for research and development of specialty cables, passive optical products, medium and low-speed optical modules and analog optical modules; 37.36% for research and development of high-end cables, precision cable components, specialty optical cables and components (Phase I) and high-speed optical modules; and 46.15% for research and development of high-speed cables and components, specialty optical cables and components (Phase II), silicon photonics modules, and optical connection systems.