AMEC: Added to the US "Entity List" has no material impact on the company's production and operations

According to an exclusive Reuters report, on January 14, 2021, the U.S. government added nine Chinese companies to the blacklist of entities "linked to the Chinese military," covering sectors such as smartphones, semiconductor equipment, aerospace, and spatiotemporal data services:

Reuters reported that, under relevant investment bans, U.S. investors must sell their shares in "blacklisted" companies by November 11 this year.

It is reported that at the end of 2020, Trump signed an executive order prohibiting U.S. investors from investing in companies owned or controlled by the Chinese military.

In response, Advanced Micro-Fabrication Equipment (Shanghai) Inc. (hereinafter referred to as " AMEC ") announced on the 15th that it had noticed this morning a notice on the U.S. Department of Defense website adding Advanced Micro-Fabrication Equipment Inc. (AMEC) to the list of Chinese military companies.

The announcement states that after AMEC was added to the Chinese Military-Industrial Complex Companies List, U.S. persons will be restricted from trading in securities issued by AMEC and related derivatives: 60 days from the list's publication date, U.S. persons may not purchase AMEC securities; 365 days from the list's publication date, U.S. persons may not trade AMEC securities.

AMEC stated that the aforementioned situation has no material impact on the Company's production and operations, and the Company's current import and export business is operating normally.

AMEC emphasizes that the company has always adhered to lawful and compliant operations, strictly abiding by all relevant laws and regulations in its operating locations, including export control regulations. The company's products and services have never been involved in any military applications. The company has not received any investment from the military, has no connection with the Chinese military, and has not provided products to any military end-users.

At the same time, the Company stated that it will continue to monitor relevant information and strictly fulfill its information disclosure obligations in accordance with applicable laws and regulations. Investors are advised to be aware of investment risks.

By the midday close, AMEC rose over 2%, trading at 185.5 yuan, with a market capitalization of 99.22 billion yuan.

Data shows that AMEC is a semiconductor manufacturing equipment manufacturer in China. The company's current products mainly focus on key equipment such as plasma etching equipment for front-end integrated circuit production and MOCVD equipment for LED epitaxial wafer production, and it also provides TSV etching equipment for integrated circuit packaging and testing and MEMS chip processing. In terms of etching equipment, the company's equipment has been applied to global advanced 7nm and 5nm integrated circuit processing and manufacturing production lines. In the field of MOCVD equipment, the company's MOCVD equipment continues to be massively put into mass production on the production lines of leading industry customers, maintaining its leading position in the industry. In the future, while conducting independent research and development of products, the company will also expand its product and market coverage in the integrated circuit field and the pan-semiconductor field through external growth paths such as investment and mergers and acquisitions, and continue to explore innovative applications of core technologies in national economy and people's livelihood, constantly promoting the healthy development of the enterprise.

In August last year, when responding to investors' questions about the impact of the China-US trade dispute on the company's performance and operations, AMEC stated that since its establishment, it has always strictly complied with relevant domestic and international laws and regulations. As of now, the China-US trade dispute has not had a significant adverse impact on the company's performance and business operations.

On January 14, 2021, Zhao Lijian, spokesperson for the Chinese Ministry of Foreign Affairs, stated in response to relevant questions that China's position on the issue has been consistent and clear. The Chinese government has consistently encouraged Chinese enterprises to conduct international economic cooperation in accordance with market principles, international rules, laws, and regulations. We oppose the politicization of economic and trade issues, the abuse of state power, the overgeneralization of national security concepts, and the unwarranted suppression of foreign enterprises. The U.S. side should genuinely respect the principles of market economy and fair competition, abide by international economic and trade rules, and provide an open, fair, just, and non-discriminatory business environment for enterprises from all countries, including Chinese companies, investing and operating in the United States.