China’s top memory chip maker, Lanchi Technology, had its office searched on-site by South Korean prosecutors

PANews July 17, according to Sina Finance and Economics, Mengrise Technology (688008.SH), a leading domestic memory chip company, announced that on July 15, the Fair Trade Investigation Department of the Central District Prosecutor’s Office in Seoul, South Korea, conducted on-site searches and evidence collection at the company’s Korean office regarding potential violations of antitrust-related regulations. The company is fully cooperating with the various investigation requirements of the prosecutor’s office. As of the date of this announcement, neither the company nor its directors or employees have been accused of any improper conduct by the prosecutor’s office or any government authority. The company’s operations are currently normal.

Mengrise Technology reminds investors that, given the investigation is still at an early stage, the company is currently unable to predict the duration of the investigation or the final outcome. The company will closely follow up on developments and fulfill its information disclosure obligations in accordance with the law. Investors should note that this incident still involves uncertainty and may potentially affect market sentiment and the company’s reputation, but there is currently no evidence indicating any material impact on the company’s financial condition or operations.

Mengrise Technology also announced that, to safeguard the company’s value and the legitimate rights and interests of its investors, it proposed that the company use its own funds to repurchase some of its A-share shares via centralized competitive bidding. The total amount of funds for the share repurchase shall be no less than RMB 300 million (inclusive) and no more than RMB 600 million (inclusive). The repurchase period shall be within 3 months from the date the board of directors approves the repurchase plan.