Fangda Chemical and China Ordnance Industry No. 214 Research Institute Signed a Comprehensive Strategic Cooperation Agreement

The China Securities Newsletter Fangda Chemical (000818) announced on the morning of April 9 that the company and the China Ordnance Industry Research Institute (herein referred to as 'the 24th Institute') had established long-term stability through friendly consultations. The co-development of the cooperative relationship signed the "Comprehensive Strategic Cooperation Agreement" on April 8, 2018.

It is understood that the China Ordnance Industry No. 24 Research Institute is a professional research institute directly under the China Weapons Industry Corporation engaged in microelectronics technology and applied research. It was founded in 1979. The 214th is the first batch of mixed ownership of scientific research institutes. One of the reform pilot institutes has rich experience and top technology in military electronics technology and scientific research. The main technical and professional direction of the 214th is: Semiconductor Integrated Circuits and Special Devices, Highly Reliable MEMS Devices, Thin Film Integrated Circuits , Thick Film Hybrid Integrated Circuits, MCM Multichip Modules, Microwave Millimeter Wave Integrated Devices and Components Based on LTCC Technology, Electronic Modules and Electronic Information System Integration Components/Components, Electronic Components Reliability Test.

The company said that it has reached a comprehensive strategic cooperation with the 124 institutes on technical cooperation, business development, and capital operation. The company will form a technical cooperation with the company in terms of IC, chip business and other related businesses on February 14, and the company will Its own platform advantages assisted in the implementation of asset optimization and industrial integration in 2014. Within the scope of cooperation, it involved a specific professional service, and the parties signed a separate contractual agreement. Since the signing of the agreement, the strategic cooperation period is 5 years. After the expiration of this agreement, the two parties may sign a supplementary agreement separately after consultation.

The company stated that this cooperation fully utilized the advantages of both parties and achieved complementary advantages. Through technical cooperation, joint research and development, etc., the company’s technology and R&D capabilities and efficiency in integrated circuit design, manufacturing, chip design, and manufacturing can be improved. This will increase the overall competitiveness of listed companies. The signing of the cooperation agreement will help the subsidiary companies of the listed companies’ military operations to achieve synergy with the February 14th, realize the information, technology and resources sharing between the company and the 24th, and optimize resources. Configuration, cost savings, further consolidate the company's strategic approach to the development of its military business.

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