According to Futu News on May 5, Semiconductor Manufacturing International Corporation announced that on April 30, 2020, the board of directors passed a resolution to approve the proposal to issue RMB shares, grant special authorization and related matters, but it is subject to and limited by market conditions, shareholders' approval at the special general meeting of shareholders and necessary regulatory approvals.

The company will apply to the Shanghai Stock Exchange for the issuance of RMB shares. After forming an examination opinion, the Shanghai Stock Exchange will apply to the China Securities Regulatory Commission for the registration of RMB share issuance. After the RMB share issue has been registered with the approval of the CSRC and the share public offering has been completed, the company will separately apply to the Shanghai Stock Exchange for approval for the listing and trading of RMB shares on Science and Technology Innovation Board. RMB shares will not be listed on the Hong Kong Stock Exchange.

The initial number of renminbi shares proposed to be issued does not exceed 1.686 billion shares, accounting for 25 per cent of the total number of shares issued on December 31, 2019 and the total number of renminbi shares to be issued this time. An over-allotment option not exceeding 15% of the number of RMB shares initially issued may be granted. RMB shares will be all new shares and will not involve the conversion of existing shares.

After deducting issuance costs, the funds raised are proposed to be used as total investment for the following projects: about 40 per cent will be invested in the 12-inch chip SN1 project; about 20 per cent will be used as reserve funds for the company's advanced and mature process research and development projects; and about 40 per cent will be used as supplementary liquidity.

The board of directors believes that the RMB share issue will enable the company to enter China's capital market through equity financing and improve its capital structure while maintaining its international development strategy. The board of directors believes that the issuance of RMB shares is in line with the overall interests of the company and its shareholders and is conducive to strengthening the sustainable development of the company.

Attached: announcement PDF document