Tianjian Shares plans to jointly invest in the quartz crystal industry with Kante Electronics.

China Securities Network, reported by Shanghai Securities News: Tianjian Shares announced on the evening of July 9 that, to deepen its integrated industry layout across optoelectronics, sound, light, and electric technologies, the company plans to sign a strategic cooperation agreement with Beijing Kante Electronics. Together, they will jointly fund the establishment of a joint venture company and invest in building a small-sized, high-precision quartz crystal resonator and oscillator production project.

The company relies on advantages such as its platform, capital, manufacturing bases, and supply-chain resources to lay out a new track; Beijing Kante Electronics has complete technology for crystal frequency devices, production lines, and the market. It needs a large intelligent manufacturing base and external cooperation to provide enablement. The two sides complement and coordinate with each other to carry out long-term, in-depth cooperation.

The registered capital of the joint venture company is 20 million yuan. The company plans to contribute 9.8 million yuan from its own funds by subscription, with a subscription contribution ratio of 49%; Beijing Kante Electronics will subscribe to contribute 10.2 million yuan, with a subscription contribution ratio of 51%. Both parties will jointly provide an initial investment of 20 million yuan to establish the joint venture company as the business operating entity for this strategic cooperation. After the core team is in place, an employee equity incentive platform will be established in the joint venture company in the form of a partnership enterprise to provide equity incentives to the core team.

On July 8, the company held the fourth meeting of the third session of the board of directors, and reviewed and approved the proposal titled “Regarding Signing the Strategic Cooperation Agreement and the Proposed Establishment of a Joint Venture Company for External Investment.” The proposal has been reviewed and approved by the company’s Board of Directors Strategic Committee. After approval by the board of directors, the company has signed the strategic cooperation agreement.

Tianjian Shares stated that, at present, the global market for quartz crystal components and devices is steadily growing, and that small-sized, high-precision quartz crystal oscillators are a core incremental category. This investment and strategic cooperation are an active attempt by the company to expand into a highly promising segmented track. It is conducive to the company’s development of new productive forces, improving the company’s core competitiveness, and aligns with the company’s long-term development strategy as well as the interests of the company and all its shareholders. (Huangpu River)