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- 08/14/2020
USI Closes its Joint Venture Company in Brazil
(2020-8-14 Shanghai) Universal Scientific Industrial (Shanghai) Co., Ltd. (USI, SSE: 601231) is going to close its joint venture company (JVCo) in Brazil. The JVCo was formed by signing a Joint Venture Agreement between Universal Global Electronics Co., Limited, a wholly-owned subsidiary of USI and Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated on February 6, 2018. The main business of this JVCo includes R&D and manufacture of System-in-Package (SiP) modules, which are applied to smart phones and IoT devices.
As a result of the unexpected market conditions, the JVCo has been still in the trial operation without any major commercial activities, failing to meet the agreed contractual terms. Therefore, the two parties agreed to terminate the JVCo.
After its termination, the JVCo will not be included in USI’s consolidated financial statements. This move will not adversely affect the company’s partnership with Qualcomm or its overall business development and profitability.
As a result of the unexpected market conditions, the JVCo has been still in the trial operation without any major commercial activities, failing to meet the agreed contractual terms. Therefore, the two parties agreed to terminate the JVCo.
After its termination, the JVCo will not be included in USI’s consolidated financial statements. This move will not adversely affect the company’s partnership with Qualcomm or its overall business development and profitability.
