Estun Automation to form servo joint venture with BOE Sensor Technology

Nanjing Estun Automation Co., Ltd. (Estun Automation) plans to establish a joint venture with Suzhou BOE Sensor Technology Co., Ltd. (BOE Sensor Technology) to develop servo-related businesses. The new company, with a registered capital of RMB 150 million, will be 60% owned by BOE Sensor Technology (RMB 90 million cash contribution) and 40% by Estun Automation (RMB 60 million cash contribution). The joint venture will focus on the R&D, production, and sales of general servo, linear drive, and precision drive products.

Following its formation, the joint venture will enter into a technology license and service agreement with Estun Automation. Under this agreement, Estun Automation will provide necessary technical licenses and services for production and operations, valued at RMB 50 million. This transaction constitutes a connected transaction, as Estun Automation will appoint a director to the joint venture, making it an affiliate.

The initiative aims to leverage both companies' strengths in the servo sector, enhancing sales within the semiconductor and display industries. The board of directors approved the investment and technology licensing agreement, with independent directors confirming the fairness and strategic alignment with the company's overall development.