Component Distributor Serial System Selling Inactive Subsidiary For US$1

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  • This sale, as per serial systems, will not have a material impact on the it’s net tangible assets
  • The deal includes a net loss of US$2,000

Electronics component distributor Serial System is selling its subsidiary that dealt in distributing semiconductor components for the automotive industry. This subsidiary was inactive in business for the entire 2019.

Serial System’s board of directors announced that the deal will incur a net loss of US$2,000. This deal will result in Serial System transferring 70 per cent stake in the subsidiary in question to the buyer.

CX Technology will consolidate its ownership

After the deal, minority shareholder CX Technology will consolidate its ownership of Xuanhong Automotive Electronics and a subsidiary. The Xuanhong group has a net liability position of about US$51 as on 29 February 2020.

The value of the deal, as per the company was reached keeping in mind group’s inactive status and its financial position.

Serial Microelectronics(HK) Limited, had also entered into a distribution agreement in July 2019 with NASDAQ-listed Neonode Inc., an optical sensing technology company to promote and sell its optical sensor products in China, Taiwan and Hong Kong.

“For the electronic components sector, our 91 per cent -owned subsidiary Serial
Microelectronics Limited has entered into a joint-venture agreement in January 2019 with LSD Science and Technology (Hong Kong) Co., Limited, subsidiary of a company listed on the China OTC Stock Exchange,” read company’s official statement.

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