Kangxi Communication (688653.SH) terminates the planned major asset restructuring and changes it to a strategic investment.

Zhtng Cijng APP news, Kangxi Communication (688653.SH) announced that the company has previously disclosed its intention to acquire a portion of the equity of Shenzhen Xinzhi Xinxin Technology Co., Ltd. (hereinafter referred to as the "target company" or "Xinxin Xinxin") by means of cash, increasing its shareholding to 51%. After active negotiations, discussions, and communications with the relevant parties involved in the major asset restructuring, the company and the relevant parties believe that the conditions for implementing the major asset restructuring in the short term are not yet mature. At the same time, considering that the company still believes that Xinxin Xinxin has a high technical reserve and rich customer resources in the intelligent control direction of technologies such as Wi-Fi, audio DSP, Bluetooth, and AIoT through due diligence, and that it has strong synergies for the company's development and expansion in the broader IoT market such as smart homes, smart cities, and AIoT, the company has decided to terminate the current major asset restructuring and has proposed a new strategic investment plan. Through acquiring 35.00% of Xinxin Xinxin's shares, the company will eventually hold a total of 37.77% of its shares. The investment plan has been approved by the first meeting of the second term of the Strategic Committee of the Board of Directors and the sixth meeting of the second term of the Board of Directors. This investment is not considered a related party transaction and does not constitute a major asset restructuring. The investment amount is RMB 135 million, based on the total equity valuation of Shenzhen Xinzhi Xinxin Technology Co., Ltd. at RMB 385 million.