Issued Date: 2019/9/27
Issued By: iST
With the trade war between China and the United States, Integrated Service Technology Inc. (TWSE: 3289, hereinafter as iST Taiwan) announced today (Sep. 27) that to maintain a role of neutral third party laboratory, and be more focused on serving international customers, iST Taiwan has signed a Shares Purchase Agreement (hereinafter as SPA) with Suzhou Sushi Testing Group Co.,Ltd (hereinafter as Chinasti) to transfer 100% shares of its subsidiary, Integrated Service Technology (Shanghai) CO.,LTD (hereinafter as iST Shanghai) to Chinasti by resolution of the board of directors.
Chinasti is an equipment and verification solution provider for environmental and reliability testing. The predecessor of Chinasti is Suzhou Testing Instrument Plant, which established on 1956. In 2015, Chinasti was launched in Shenzhen Stock Exchange (SZSE) coded 300416.
In China’s industry, Chinasti has its leading position and development strength with the award of the most influential brand in China’s machinery industry in 2009, then further than that, its technology center was identified as” provincial enterprise technology center” in 2013. This SPA will help integrate iST Shanghai’s supply chain upstream and downstream in China and benefit its future operation and development. In addition, the two sides of Chinasti and iST Taiwan will retain opportunities for future cooperation.
As for iST headquarters in Taiwan, its role of third party laboratory can be more neutral with this SPA, which can provide a better confidentiality to its customers in Europe and the United States under the trade war between China and the United States.
The sale amount of iST Shanghai’s 100% share is less than RMB¥ 280 million, and the potential disposal benefits that iST group obtained is estimated at about NTD$260 million in accordance with the IFRS accounting standards. However, the actual financial statements should be based on the financial report data after the verification and approval of accountants.
This SPA is expected to be completed by the end of 2019, prior to this, there will be no impact on consolidated revenues and earnings this year.
After completing this SPA, revenues of iST Shanghai will not be included in the consolidated revenues report of iST group, which may have some impact on the short-term consolidated revenues. However, the impact on iST headquarters in Taiwan for the long-term revenues will be small due to the strong demand of customers in verification market.
The benefits that iST Taiwan obtains through this SPA will be continue investing in Taiwan’s industry to strengthen the value of Taiwan’s supply chain services in the world.
Suzhou Sushi Testing Group Co.,Ltd (Chinasti, SZSE: 300416) is an equipment and verification solution provider for environmental and reliability testing. The predecessor of Chinasti is Suzhou Testing Instrument Plant, which established on 1956. In 2008, introduced strategic investors and established Suzhou Sushi Testing Instrument Ltd. In 2011, changed into Suzhou Sushi Testing Instrument Co.,Ltd. On January 22, 2015, was listed on Shenzhen Stock Exchange Growth Enterprises Market (GEM). On August 25, 2017, officially established Suzhou Sushi Testing Group, meanwhile changed Suzhou Sushi Testing Instrument Co.,Ltd into Suzhou Sushi Testing Group Co.,Ltd. Click this for more information: http://www.chinasti.com
About Integrated Service Technology
Founded in 1994, iST began its business from IC circuit debugging and modification and gradually expanded its scope of operations, including Failure Analysis, Reliability Verification, Material Analysis, Automotive Electronic Verification Platforms and Signal Integrity Testing Services. iST has offered full-scope verification and analysis services to the IC engineering industry, its customers cover the whole spectrum of the electronics industry from IC design to end products.
In response to iST’s mission of providing integrated solutions to customers, iST not only focuses on its core laboratory services but also enters the mass production services of wafer backend process. http://www.istgroup.com