China Microelectronics: Repeated Change of Name

Hong Kong Wenhui News (Reporter Tuo Ruo Ben) China Microelectronics is a fateful company. It has changed its name several times over the years and changed its main business. Unfortunately, none of them reached the expected target. In early October this year, the group issued another profit warning. It is expected that the results for the six months ended September 30, 2011 will record significant losses.

Wang Yihui, an executive director of the company, explained that this was mainly due to the recent drop in the Hong Kong stock market, which caused the Group’s securities investment losses. However, he stressed that the group currently has more than 40 million yuan in cash, which is sufficient for R&D.

It is understood that the earliest predecessor of China Microelectronics was "Pre-flight Group Co., Ltd.", and the business was originally a garment manufacturer and agent. Afterwards, the company changed its name to “139 Holdings Co., Ltd.” for the sale, purchase and distribution of electronic products, securities investment and trading business. After being acquired by Jinyuan Rice (0677) in 2007, it was renamed Vietnam Holdings Co., Ltd., which operates convenience stores and other retail and commercial businesses in Vietnam.

By October 2010, the company was restructured and renamed China Microelectronics. According to its announcement, given the uncertain economic outlook and the Vietnamese government's conservative attitude toward foreign businesses participating in the retail business, the company has sold its convenience store business in Vietnam at a consideration of RMB 33.2 million to dispose of its discontinued operations. About 26.7 million yuan. The announcement stated that the sale of the transaction would enable the company to avoid further losses that may be caused by the convenience store business and reinvest resources into other investment opportunities.