Sanan Optoelectronics recently announced plans to integrate its RF business and optical chip business as part of its efforts to concentrate company resources, optimize strategic layout, and streamline business scope and management systems.

The company will integrate the RF business conducted by Quanzhou Sanan Semiconductor Technology Co., Ltd. ("Quanzhou Semiconductor") into its wholly-owned subsidiary, Quanzhou Sanan Integrated Circuit Co., Ltd. ("Quanzhou Integrated"). Meanwhile, the optical chip business conducted by Xiamen Sanan Integrated Circuit Co., Ltd. ("Xiamen Integrated") will be integrated into the company's wholly-owned subsidiary, Quanzhou Sanan Optoelectronic Technology Co., Ltd. ("Quanzhou Optoelectronics").

Additionally, Sanan Optoelectronics will transfer the 100% equity of Sanan Japan Technology Co., Ltd. ("Sanan Japan Technology"), which is engaged in filter research and development and held by Hong Kong Sanan Integrated Circuit Technology Co., Ltd. ("Hong Kong Integrated"), to Quanzhou Integrated for a total consideration of 90 million Japanese yen based on the actual investment amount (Quanzhou Integrated is now mainly engaged in filter business research and development, sales, and production); and transfer the 100% equity of Hong Kong Integrated held by Xiamen Integrated to Sanan Optoelectronics (Hong Kong) Co., Ltd. for a total consideration of 11.4 million US dollars based on the actual investment amount.

This integration involves business integration and equity structure adjustments among Sanan Optoelectronics' wholly-owned subsidiaries and wholly-owned subsidiaries' subsidiaries. The integration will be conducted by transferring assets and liabilities at book value. Assets owned by Quanzhou Semiconductor and necessary for normal operations of Quanzhou Integrated, including the land use right of the Dongdi plot currently owned by Quanzhou Semiconductor, above-ground buildings and structures, production equipment related to the RF business, inventory, patents, proprietary technology, and related liabilities associated with the RF business, will be transferred to Quanzhou Integrated at book value. Additionally, labor relations of employees engaged in the RF-related business of Quanzhou Semiconductor will also be transferred.

Sanan Optoelectronics stated that after the internal integration is completed, the company's RF business will be carried out by Quanzhou Integrated and Xiamen Integrated, while the optical chip business will be conducted by Quanzhou Optoelectronics. This internal integration will further promote and enhance business development, collaboration, and integration, strengthening market competitiveness.