AMT-Ningbo PCM project financing makes significant progress

Ningbo AMT PCM project financing makes significant progress     

At the afternoon of September 14, 2016, the day before the traditional Mid Autumn Festival, The chip project of LELEGE Group made a historical breakthrough; With two years of hard work and  the strong support by our customers, Ningbo AMT financing finally has obtained a great achievement , that is the people's Government of Huaian City ,Jiangsu Province , and Ningbo AMT signed a strategic cooperation agreement and landing on the project cooperation agreement.

Ningbo AMT launched on the high-tech and asset-light company since its founding . Due to lack of fab , AMT made a decision to establish its own foundry to manufacture the PCM memory chip in Ningbo, and the company began to finance the purchase of equipment from a year ago; However ,the financing is very difficult for the IC equipment is extremely expensive, it is hard to success without government investment and support . After contacting with Ningbo AMT, the government of Jiangsu Province; as a leader in Chinese IC industry, is keenly aware of that  Jiangsu Province can become Chinese fourth generation memory base if they take the development of a new generation of memory . As everyone knows, the national invests  $24 billion, 150 billion yuan to build the Yangtze River, Wuhan memory, which making Wuhan to become the third generation storage base. The government of Jiangsu Province shows  great foresight and seizes the business opportunity firstly, it can win the national much more supports in the future,  Finally the Huaian government undertakes the project.

 Huaian PCM project is divided into two stages, and the first stage investment is about 3 billion yuan. The government would offer seed fund and construct financing platform to raise finance from financial institution, State-owned industrial fund, the international investment bank. Ningbo AMT , as the main technical provision , will holds 51% shares in the future project; At the second stage of project the investment is about 10 billion yuan  mainly base on attracting national capital investment. The project in Huaian is expected to start in October, and completed by the end of 2017,  and it will be fully operational in the second half of 2018; Meanwhile , the Ningbo factory will be built into a global experimental center for the company . 

Ningbo AMT will take the historical opportunity to develop in the future, and focus on the following commercial functions: the first is the independent research on development of high-end products and sales, product manufactures will be placed in Huaian fab,  the second is the factory income of consolidated statements ; the third is the income of MCU embedded intellectual property ; the fourth income is from licensing of intellectual property in the future . Since Ningbo AMT can no longer afford to purchase equipment, the cost will be greatly reduced, the commercial structure will be more reasonable, the profit rate will be greatly improved, and the future market price earnings ratio will be even higher than before; At the same time , according to the demand of market , Ningbo AMT would be cooperated with the government, industry giants, large companies to build factories through technical share in the future , to make PCM storage technology have a great development in China; Ningbo AMT will also achieve greater revenue.

The following image shows Ningbo AMT development structure in the future:

The contract signing at  September 14th is just the beginning of the project, the project need to be approved from higher state , site evaluation, undertaking specifically and so on, it will take time . but we believe "we will mount a long wind some day and break the heavy waves,  set our cloudy sail straight and bridge the deep sea” , please looking forward to it . 

     The flow of PCM project signing ceremony: