Recently, Fibocom released an announcement and mentioned that it had passed the Proposal for Terminating EUHT Module Project and Adjusting Utilization Plan of Fund.
According to the purpose of fund disclosed in the plan for non-public issuing of stock on GEM in 2018, CNY 42.1057 million will be used for EUHT module project. This project has a construction period of one year and mainly focuses on industrial research based on LTE and LIT-A technology. However, during the process, external environment of communication industry changes dramatically, 5G communication technology develops quickly beyond expectation, and downstream market also changes greatly, the market space of 4G ultra high-speed products is below expectation.
Fibocom underlined that, its 5G communication technology project develops quickly now. The company has launched 5G wireless communication module products covering multiple platforms, including Qualcomm, MTK and Unisoc, and its 5G project has a great demand for initial working capital. In view of the market change, for improving utilization efficiency of fund and maximizing shareholders’interest, the company has decided to adjust project plan, terminate EUHT module project and allocate the original fund for EUHT project to 5G communication technology project, thus supplementing its initial working capital required.