9 September 2022
HG enters into strategic cooperation framework agreement with GCL
Hong Kong-based HG Semiconductor Ltd has entered into a strategic cooperation framework agreement with Golden Concord Group Ltd, a company ultimately held under a discretionary trust with GCL Technology Holdings Ltd’s founder, chairman & executive director Zhu Gongshan and his family members as beneficiaries.
HG and Golden Concord Group intend to initiate close cooperation in the application of gallium nitride (GaN) power chips in the field of new energy, including (i) Golden Concord Group or its subsidiaries will be involved in equity of HG or its subsidiaries to establish in-depth cooperation; (ii) the parties will establish a domestic new energy joint venture to tap into the application of GaN chips in new energy, including but not limited to technologies and equipment on charging/exchanging batteries, energy storage technology and related equipment and distributed solar inverters; (iii) HG will provide technical support to the JV and jointly develop application products based on silicon-based power chips and third-generation semiconductors; Golden Concord Group will assist HG and the JV to enter into the new energy industry supply chain based on its leading position in the new energy industry.
Golden Concord Group is ultimately held under the investor family trust, which is the shareholder of GCL Technology, GCL New Energy Holdings Ltd, GCL System Integration Technology Co Ltd and GCL Energy Technology Co Ltd. Earlier, HG had entered into an investment agreement with Zhu or his wholly owned entity, pursuant to which HG can conditionally allot and issue 60 million subscription shares and 60 million warrants. Subsequent to the shares and warrants subscription, this strategic cooperation framework agreement again demonstrates Zhu's confidence in the development of HG’s third-generation semiconductor business, and it is believed that the collaboration can give full play to the advantages of both parties in the industry, supply chain, talent, technology and other aspects, in order to achieve innovation and mutual benefits.
HG reckons that the strategic collaboration will further drive and strengthen its capabilities for promoting the application of third-generation semiconductor technology in the new energy sector, and enable it to gradually grow its business by leveraging the experience as well as the financial and industrial resources of Golden Concord Group, helping HG to build its talents, operations, technology, and research and development.
HG says that it aims to continuously pursue innovation and strive to form complementary industrial resources with Golden Concord Group while investing resources in the optimization and development of GaN-related products. HG believes that the cooperation will further drive new collaborative initiatives with Zhu, setting new heights in the development of GaN business in new energy.