Through wholly controlling Jiangsu Secco's indirect holding of South Korea UP Chemical, it became the largest IC precursor manufacturing enterprise in China, filling the domestic gap. In 2016, the company took the lead in achieving the acquisition of UPC Chemical's 96.18% equity in Jiangsu Xianke. At present, Jiangsu Xianke has fully controlled UP Chemical. The company holds a 15.175% stake in Jiangsu Xianke. After the completion of the transaction, the company will indirectly hold 100% equity in UP Chemical. UPChemical's main products are IC precursors, which are electronic specialty gases and are widely used in 16nm, 21nm, 25nm, etc. High-end manufacturing processes for DRAM and advanced 3D NAND Flash. Major customers include SK Hynix and Samsung Electronics' leading memory companies. In the future, they will hopefully build factories in China and cooperate with Changjiang Storage (Shanxi Xinxin), SMIC and other companies. After completion, the company will become the largest IC material company in China, filling the gaps in the domestic market. In the future, 5G application promotion is expected to drive the outbreak of 3D NAND demand. UP performance is expected to exceed expectations.
The acquisition of Komet, the e-special gas layout will fall. Komet's main products are sulphur hexafluoride and carbon tetrafluoride, mainly used in electric high-voltage transmission and distribution equipment and semiconductor manufacturing, industrial grade sulphur hexafluoride Clients include major domestic electrical equipment manufacturers such as Shandong Taikai, Pinggao Group, West Power Group and Shanghai Siyuan, and electrical equipment manufacturers from India, Gulf regions and other countries, and end-users of electronic grade sulfur hexafluoride and carbon tetrafluoride Including Linde Gas, Showa Denko, Kanto Electrochemical, and TSMC and other Japanese and Taiwanese companies. The audited net profit realized by Komay in 2017-2019 is specifically not less than 100 million yuan in 2017. The sum of 2017 and 2018 Not less than 216 million yuan, the sum of three years 2017-2019 is not less than 36,000 yuan.
The company will become the first material listed company that the large fund will directly participate in, and the industry linkage will accelerate the localization of semiconductor key materials. After the completion of the transaction, the national large fund will hold 5.73% of the shares of the listed company and become a controlling shareholder of more than 5%. The company will become the first material listed company directly funded by the National Fund. Since its establishment in September 2014, the national large-scale fund of the scale of 100 billion has played the dual roles of industrial support and financial investment, and is intended to support our integrated circuits. The development of the industrial chain will make up for the weaknesses in the domestic industry, realize import substitution, and help leading companies enter the international first echelon. The major fund is the second largest shareholder of SMIC, Yangtze River Storage, BOE and other mainland leading IC manufacturers. The future industry chain Downstream linkage will help the rapid introduction of the company's products and accelerate the localization of semiconductor key materials.