For $2.09 million, Trek Technology will purchase a 20% share in China Chips Star Semiconductors (CCSS). That comes out to 2,750,000 common shares. Trek Technology may designate representatives to the CCSS board after the acquisition, with a maximum of one-third of the directors serving as nominees.
CCSS is a Shenzhen-based company that was founded in 2022 and primarily serves the electronics and telecommunications industries in China. It also has branches in Hong Kong and Nanjing. The company offers vast portfolio of storage solutions. Despite being a relatively new business, CCSS has $4.44 million in sales and $4.11 million in net assets as of July 31.
Trek Technology’s goals for expansion are in line with this investment, which will strengthen its market position in China.
Trek Technology will pay US$1.6 million ($2.1 million) for 2,750,000 common shares, or 20% of China Chips Star Semiconductors, as per the terms of the agreement.
The group may designate its representatives to be appointed as directors, representing no more than one-third of the CCSS board of directors, following the conclusion of the proposed acquisition.
According to the press release, CCSS, which specializes in offering a variety of enterprise-grade and upscale industrial storage solutions, has “done well financially.” CCSS reported US$5.6 million in sales revenue, US$736,000 in operating profit, and US$2 million in net assets for the FY2023 that concluded on December 31, 2023.
As per the reports, the planned acquisition will facilitate “a larger presence of the group in the profitable China market” and allow both groups to collaborate on research and development.
