on the morning of February 20, SMIC (Ningbo) Co., Ltd. (hereinafter referred to as "SMIC Ningbo") issued an official statement that it would not make any settlement or understanding with Huang He, former director and general manager of the company, and Wang Ying, former financial director. The two men were sentenced to four years' imprisonment by the people's Court of Beilun District of Ningbo City on November 14, 2023 on suspicion of misappropriation of funds. The first financial reporter learned that Huang He and Wang Ying have filed appeals against the first instance judgment.

SMIC Ningbo pointed out in the announcement that after the verdict of the first instance, our company continued to receive inquiries from all parties whether to reach a settlement or understanding with the defendant. Our company has repeatedly stated to relevant parties that our company respects judicial justice, safeguards the company's legitimate rights and interests in accordance with the law, and does not make any reconciliation or understanding with Huanghe and Wang Ying.

on the evening of August 29, 2023, SMIC Ningbo issued a statement saying that the former director and general manager of the company, Huang He (formerly Chinese American), and Wang Ying, the former financial director, had violated the criminal law on suspicion of serious crimes and was currently in the criminal justice process. Since Shanghai Heng Park and its de facto controller Chen Hong changed to become a shareholder and director of SMIC Ningbo in 2020, they have not fulfilled their capital contribution and long-term holding company equity, resulting in the company's equity being sealed up and frozen and unable to carry out subsequent financing. In addition, Chen Hong colluded with Huang He and Wang Ying, turning public into private, embezzling and misappropriating company assets and seeking huge personal benefits, causing huge losses to SMIC Ningbo. Huang He and Wang Ying are suspected of embezzlement of funds, embezzlement, and commercial bribery. The amount of money involved is huge and the circumstances are serious, and they may face serious criminal penalties.

According to information from Tianyan Check, SMIC Ningbo was established in 2016 and is an enterprise mainly engaged in the manufacturing of computers, communications and other electronic equipment. The registered capital of the enterprise is 4.429 billion yuan, the paid-in capital is 2.69 billion yuan, and the B round of financing has been completed in 2020. According to the 2023 semi-annual report released by SMIC (688981.SH), SMIC Ningbo's business is mainly focused on the development of special technologies such as high-voltage simulation and photoelectric integration. SMIC SMIC holds 15.85% of SMIC Ningbo's equity through indirect shareholding.

official website information shows that SMIC Ningbo uses specialized special process wafer manufacturing foundry (Foundry), the target market covers 5G communications and mobile terminals, smart home appliances and industrial control, industrial Internet of Things and medical electronics and other strategic emerging industries. The company started process technology development in early 2017, and completed the introduction and trial production of the first batch of products that year. At present, two special process integrated circuit wafer manufacturing production lines have been built and operated, of which the 8-inch N1 production line located in Xiaogang Equipment Industrial Park has been put into operation in November 2018, the N2 project located in Chaiqiao Core Port Town has started construction in June 2020, and the first machine will be moved in as scheduled in June 2021.

The full text of the statement is as follows: