(September 11, 2020 - Hong Kong) Cogobuy Group (“Cogobuy” or the “Company”, stock code: 400.HK; with its subsidiaries (the ‘Group’)) is pleased to announce the Company’s non-wholly owned subsidiary Comtech Industrial Technology (Shenzhen) Company Limited (“Comtech Industrial”), a technical service platform engaged in chip sales under the name of “Ingdan Innovations”, has reached respective subscription agreements with a total of eight strategic investors, following the introduction of the leading strategic investor Guangdong Finance Fund Management Co., Ltd. (“Guangdong Finance Fund Management”) in August 2020. The investment supports Ingdan Innovations’ rapid development in the trillion-RMB domestic chip market, and will accelerate to the resumption of high growth for the Company’s business.
Pursuant to the strategic investment agreements, the eight investors agreed to inject capital into Comtech Industrial in the aggregate amount of up to RMB165.8 million, for an aggregate equity interest of up to 6.46% of Comtech Industrial. After the transaction, the Company’s shareholding in Comtech Industrial will decrease from 75% to around 70%. Comtech Industrial will continue to be a subsidiary of the Company and the financial results of Comtech Industrial will continue to be consolidated into those of the Group.
Ingdan Innovations is the Group’s technical service platform engaged in chips sales. Ingdan Innovations leverages its network of over 50% of global IC suppliers and top domestic chip companies, and provides chips sales services to over 100 global high-end chip suppliers and tens of thousands of smart hardware companies.
Mr. Jeffrey Kang, CEO of Cogobuy Group, said, “Benefitting from the rapid development of 5G industries and the infrastructure, Cogobuy recorded strong performance in both profit and revenue in the first half of 2020 and brought on Guangdong Finance Fund Management, which belongs to Guangdong’s largest provincial integrated financial platform Ingdan Innovations’ first leading strategic investor. Since then, the group successfully introduced eight strategic investors to invest Ingdan Innovations and raised additional capitals for daily operation. Going forward, we expect to introduce more investors into Ingdan Innovations. The new capital will enable Cogobuy to capture the strong demand for high-end chips, driven by the large-scale expansion of 5G industries, artificial intelligence, Internet of Things, and other new infrastructure in China, indirectly increase our chip sales and market shares and maintain the Group's high growth to prepare for the next momentum.”