Dentons advises SZSE SME Board-listed Jingce Electronic on issuing convertible corporate bonds

On March 29, 2019, after gaining the approval from the China Securities Regulatory Commission, Wuhan Jingce Electronic Technology Co., Ltd. ("Jingce Electronic") successfully issued a total of RMB 375 million convertible corporate bonds to the public, with a maturity of 6 years. The issue price of the bonds is 100 yuan and the interest rate increases every year, being 0.5% in the first year, 0.8% in the second year, 1.0% in the third year, 1.5% in the fourth year, 2% in the fifth year, and 2.5% in the sixth year. A Dentons China team provided full scope legal assistance on this project.

Jingce Electronic is a listed high-tech enterprise engaged in FPD test research and development, production, sales and services. With its products applied in batches by BOE, Samsung, Sharp, Shenzhen China Star Optoelectronics, CEC-Panda, Foxconn, AU Optronics and other famous enterprises, the company is in an absolutely leading position in the realm of FPD test. Under the guidance of its business philosophy "technology makes the future; quality earns trust", Jingce Electronic adheres to the development strategy of "independent innovation as the core and joint R&D as the wings" and have carried out a series of technical research and innovation on optical testing, automatic control and signal detection (optical, mechanical and electrical) technology. It has proprietary intellectual property rights on its competitive products and its overall technical level has reached the international advanced level.

The funds raised will be used to support Suzhou Hirose Opto Co., Ltd. (a subsidiary of Jingce Electronic) in realizing an annual output of 340 sets of new intelligent display equipment.

Senior Partner Wu Ding, with assistance from Wang Yang and Tu Sisi, led this matter. They conducted legal due diligence, issued an opinion letter and a lawyer's work report, and prepared supplements to the opinion letter. During the post review, partners Liu Zhichao and Zhao Weichang, as independent reviewers, rigorously reviewed this issuance project. The team completed this work in an efficient and orderly matter with their rigorous and conscientious work attitude, and was highly recognized and praised by the client and the sponsor.