Goertek (002241.SZ) announced that the company held the 12th meeting of the 5th Board and the 10th meeting of the 5th Supervisory Board on November 10, 2020 according to the policy spirit of “agreements for listed company separates domestic listing pilots of subsidiary company” released by CSRC in order to integrate resources well and expand and strengthen microelectronics business. The deliberation approved “the proposal about planning the separation and listing of holding subsidiary companies”.

It agreed the company to hold the matters of separation and listing of subsidiary company, which is Goertek microelectronics Co., Ltd. (“Gower Microelectronics”), and authorized the company and the management to initiate and separate the preliminary preparatory work of the listing of Goertek Microelectronics, which included but not limited to some matters about the listing, such as the demonstration of feasible plans, the organization and compilation of listing plans, the signature of agreements involved in planning process. Moreover, the listing plans and the matters related to the listing need to be submitted to the board and the shareholders’ meeting of the company and be examined by them.

Goertek Microelectronics Changes, It Starts to Plan and Separate Listing Matters-askpower

Goertek Microelectronics is mainly engaged in design, manufacture and sale of MEMS microphone, MEMS sensor, microsystem modules and other products of company. The products of it are mainly used in smart phone, smart wireless headphone, wearable product, automotive electronics and other fields. According to the study report of the international research organization, Yole Développement, Goertek Microelectronics ranked the 9th in the global MEMS industry revenue and was the only Chinese company that entered the top 10 in the world in 2019.

After the separation, the company will still control Goertek Microelectronics and will not materially affect the continuous operation of the other business segments of the company.