Important content tip:
● Contract type: overseas operation contract
● Contract amount: The total contract amount is USD 46.4 million, about RMB 324.8 million (including tax, converted into RMB at the exchange rate of 7.00).
● Impact on the current performance of listed companies: The performance of the contract will have a positive impact on the company’s operating performance. The signing of this contract is the result of the company’s active exploration of overseas markets, which is conducive to the company’s continuous improvement of overseas business layout and improvement of its competitive advantage in overseas markets.
● Risk warning: 1. The products involved in this agreement are export products, and the adjustment of international trade policies and monetary policies, exchange rate fluctuations and other market, legal and political risks may occur during the performance of the contract. 2. If the contract is affected by unpredictable or force majeure factors during the performance, it may lead to the risk that the contract cannot be fully performed or terminated.
I. Overview of the transaction
Recently, Ningbo Samsung Intelligent Electric Co., Ltd. (hereinafter referred to as "Samsung Intelligent"), a wholly-owned subsidiary of Ningbo Samsung Medical Electric Co., Ltd. (hereinafter referred to as "Samsung Medical" or "the Company"), and Saudi MEMF Electric Industries Co., Ltd. (hereinafter referred to as "Memf") signed two business contracts on smart meter projects, with Samsung Intelligent as the supplier. Provide smart meter products and smart meter semi-parts with a total contract amount of USD 46.4 million, or about RMB 324.8 million (including tax, converted into RMB at the exchange rate of 7.00). MEMF is a local comprehensive electrical equipment manufacturer in Saudi Arabia.
Second, the situation of the other party to the contract
Company name: Saudi Memf Electrical Industries Co., Ltd.
Registration time: September 1, 2016
Place of registration: Riyadh11383-2nd industrial area-KSA.
Registered capital: 150,000,000 rials
Main business: manufacturing and sales of distribution equipment, single-phase and three-phase metering meters, meter boxes, circuit breakers and low-voltage transformers.
Whether there is any relationship with the company: the company and its subsidiaries do not have any relationship with Saudi MEMF Company.
Third, the main terms of the contract
1. Transaction object: smart meters and semi-parts of smart meters.
2. Contract amount: USD 46.4 million, about RMB 324.8 million (including tax, converted into RMB at the exchange rate of 7.00).
3. Payment method: payment by letter of credit.
4. Conditions for entry into force of the contract: This contract shall come into force after being signed until December 31, 2024.
5. Place of signing the contract: Riyadh, Saudi Arabia
Fourth, the impact of contract performance on the company
The total amount of the two operating contracts is USD 46.4 million, or about RMB 324.8 million (including tax, converted into RMB at the exchange rate of 7.00), accounting for 5.53% of the company’s audited operating income in 2018. The performance of the contract will have a positive impact on the company’s business work and performance, but it will not affect the independence of the company’s business operation. The signing of this contract is the result of the company’s active exploration of overseas markets, which is conducive to the company’s continuous improvement of overseas business layout and improvement of its competitive advantage in overseas markets.
V. Risk warning
1. The products involved in this agreement are export products, and the adjustment of international trade policies and monetary policies, exchange rate fluctuations and other market, legal and political risks may occur during the performance of the contract.
2. If the contract is affected by unpredictable or force majeure factors during the performance, it may lead to the risk that the contract cannot be fully performed or terminated.
Investors are advised to make careful decisions and pay attention to preventing investment risks.
VI. Documents for reference
Business Contract I
Operating Contract II
It is hereby announced.
Board of Directors of Ningbo Samsung Medical Electric Co., Ltd.
Press release issued on March 6, 2020