SMIC Ningbo, a company with a stake in SMIC, has issued another statement on the misappropriation of funds by two former executives.

On February 20, SMIC (Ningbo) Co., Ltd. (referred to as "SMIC Ningbo") issued a statement stating that recently, the company's former director and general manager Huang He and former financial officer Wang Ying were sentenced in the first instance of embezzlement of funds., The company has continuously received inquiries from all parties about whether to reach a settlement or understanding with the defendant. The company has repeatedly stated to relevant parties that the company respects judicial justice, safeguards the legitimate rights and interests of the company in accordance with the law, and does not make any reconciliation or understanding with Huang He and Wang Ying.

On November 14, 2023, Huang He and Wang Ying were both sentenced to four years in prison by the People's Court of Beilun District, Ningbo City with (2023) Zhejiang 0206 Criminal Judgment No. 144 for embezzlement of funds. SMIC Ningbo stated that all parties believe that the court of second instance will make a final judgment as soon as possible in accordance with the judicial procedures. The company will always abide by the zero tolerance attitude towards illegal and criminal acts and safeguard the company's legitimate rights and interests in accordance with the law.

Source: SMIC 2023 Semi-Annual Report

According to the 2023 semi-annual report of SMIC International (688981), SMIC Ningbo is a participating company of SMIC, focusing on the development of special process technologies such as high-voltage simulation and optoelectronic integration. SMIC has an indirect shareholding ratio of 15.85. The 2023 semi-annual report of Changdian Technology (600584), another integrated circuit manufacturing and technical service provider, shows that SMIC Ningbo is a related party of the company, and the related transaction is chip sealing and testing, with an amount of 39300 yuan, compared with 1.265 million yuan in the same period last year.

according to the official website, SMIC Ningbo was jointly invested by industry-related strategic partners, industry investment funds and local investment funds, and settled in Beilun District of Ningbo City in 2016. The company focuses on the fields of RF front-end and MEMS sensor special process semiconductors, and adopts specialized special process wafer manufacturing foundry (Foundry). The target market covers many strategic emerging industries such as 5G communication and mobile terminals, intelligent household appliances and industrial control, industrial Internet of Things and medical electronics, and is committed to developing into China's largest special process semiconductor wafer foundry manufacturer with international advanced level in the fields of focus. The official website also mentioned that the company's core technology and management team is based on professional members who have been engaged in special process research and development and production at SMIC, and has absorbed senior management from outstanding domestic and foreign semiconductor companies such as Intel, TSMC, Renesas and Applied Materials. And technical experts.

Regarding the above-mentioned misappropriation of funds, on August 29, 2023, SMIC Ningbo issued a statement mentioning that the company's former director and general manager Huang He (formerly Chinese-American) and former financial officer Wang Ying were suspected of serious violations. The crime has violated the criminal law and is currently in the criminal judicial judgment process. 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.