According to the Star Daily on November 13 (reporter Wu Xuguang), jiangsu yoke technology announced on November 12 the completion of its investment in shenyang yichuang precision technology co., ltd. and the purchase of assets.

The company made the decision to jointly invest in shenyang yichuang with shenyang advanced through the board of directors' review on September 12, 2023, and to purchase 90% of the shares held by SK enpulse in SSHK. Recently, it received a notification from shenyang yichuang confirming that an agreement for the transaction has been signed with SK enpulse, and the delivery of the trade has been completed.

jiangsu yoke technology stated that through this acquisition, shenyang yichuang will indirectly hold 90% of the shares in its wholly-owned subsidiary aisi kaixi semiconductor materials (wuxi) co., ltd. (hereinafter referred to as wuxi aisi kaixi or target company) through SSHK. As a result, the company will enter the broad semiconductor equipment cleaning service industry.

With the development of the semiconductor and display panel industries, the products of semiconductor equipment components are increasingly moving towards high precision and other directions, leading to the application of precision cleaning in the broad semiconductor equipment cleaning field.

A new materials analyst from a brokerage stated in an interview with the Star Daily that compared to international industry giants, the precision cleaning service industry for broad semiconductors in China is still in its infancy, with room for improvement in localization and technology levels.

Public information shows that wuxi aisi kaixi was established in February 2020 and mainly engages in semiconductor cleaning business, focusing on providing one-stop precision cleaning services for semiconductor manufacturers. Major customers and future potential clients include global semiconductor giants such as wuxi SK Hynix, wuxi SK Hynix M8 project, wuxi hua hong semi, shanghai hua hong semi, shanghai semiconductor manufacturing international corporation (SMIC), shanghai taiwan semiconductor (TSMC), shanghai hongli semiconductor (GSMC), and suzhou united microelectronics (UMC).

Staff from the securities department of jiangsu yoke technology further explained to the Star Daily reporter that wuxi aisi kaixi primarily engages in the cleaning and maintenance of semiconductor equipment components. Cleaning is an indispensable part of chip manufacturing; during the semiconductor chip manufacturing process, there may be semiconductor etching liquid and grinding liquid adhering to components, and the products and services of wuxi aisi kaixi are used in these key processes.

It is worth mentioning that this acquisition also includes performance targets.

According to the announcement, after the completion of this acquisition, Wuxi Aisikaixi should strive for its business revenue from SK hynix Imc. and/or its affiliates to reach the targets of 0.08 billion yuan, 0.08 billion yuan, 0.1 billion yuan, and 0.1 billion yuan during the period from 2025 to 2028.

From the date of signing this investment framework agreement, if Wuxi Aisikaixi has met the year's business revenue target from Hynix in any year, then the investors of jiangsu yoke technology have the right to choose to exit Shenyang Yichuang through methods such as share repurchase and share swap.

So, how feasible is Wuxi Aisikaixi's performance commitment?

The announcement shows that in June 2022 and 2023, Wuxi Aisikaixi's net income was -10.7418 million yuan and -8.2755 million yuan respectively, indicating a loss.

"The reason Wuxi Aisikaixi incurred losses is that the company mainly provided semiconductor equipment remanufacturing services to Hynix in the early stages, with a relatively single source of customers and the downstream market has not yet truly opened up," an industry insider close to the symbol company said in an interview with the Star Daily.

Jiangsu Yoke Technology stated that with the release of production capacity and the synergistic effects of the listed company, Wuxi Aisikaixi's revenue level and market share will be improved.

"A core commercial logic of this merger and acquisition is that jiangsu yoke technology can save the outsourcing costs for early equipment maintenance by purchasing equity in the symbol company. As for how large the third-party market space can be, there is still uncertainty," the aforementioned brokerage new materials analyst added.