It is reported that the annual caps for the framework agreement as of 2018, 2019 and 2020 will be 2.5 billion U.S. dollars, 2.75 billion U.S. dollars and 3.2 billion U.S. dollars respectively.
National IC Fund, through its wholly-owned subsidiary Xinxin (Hong Kong), holds approximately 15.06% equity interest in the Company and is therefore a connected person of the Company at the issuer level pursuant to the Listing Rules. The Group and National Integrated Circuit Fund hold respectively The north has a registered capital of approximately 51% and 32%, therefore, CSIC North is the Company's affiliated subsidiary and is a related party of the Company.
As one or more of the applicable percentage ratios of 5% or more but less than 25% of the annual caps of the Continuing Connected Transactions constitute non-exempt continuing connected transactions under Chapter 14A of the Listing Rules, The Framework Agreement and the Specific Non-Exempt Continuing Connected Transactions are required to comply with the reporting, announcement and independent shareholders' approval requirements under Chapter 14A of the Listing Rules.