(Yicai Global) May 17 -- Sichuan-based chemical firm Em Technology Co. will buy a stake in cash-strapped semiconductor firm Xingshuo Nanotech Co. while injecting CNY20 million (USD3 million) into the Suzhou-based tech company.
Em Technology will use its own funds to buy a 4-percent stake in Xingshuo Nanotech, the buyer said in a statement, adding that the pair will jointly produce polymer materials which are generally used for brighter display screens and lighting products.
The acquisition brings financial relief to the semiconductor firm which reported a net loss of CNY3 million with revenue of CNY842,800 for the first four months of this year and a net loss of CNY10 million last year, which was five-fold the amount of its operating income CNY2 million that year.
Xingshuo Nanotech specializes in developing and selling quantum dots which enhance the colors in digital displays, and according to the statement, many leading manufacturers have used its products in their next-generation screens.
Editors: Emmi Laine, William Clegg