Intelli-G: Guang Sheng Not Joining Board for Now, Deepening Business Cooperation First

TAIPEI, June 23 (CNA) Compound semiconductor manufacturer Intelli-G (IET-KY) announced a stock swap cooperation with Guang Sheng late last year, joining forces to capture the hot optical communication market, which has garnered significant attention. Intelli-G Chairman Gao Yong-zhong stated today that at this stage, both parties will prioritize deepening business cooperation and are not in a hurry to have Guang Sheng join the board of directors.

Gao Yong-zhong further explained that Intelli-G's operating entity is in the United States, and some products have long-term supply relationships with customers in the defense and special applications sectors. These supply chains have higher requirements for equity structure and corporate governance frameworks. If strategic shareholders obtain board seats, it may involve issues of consolidated financial statement recognition, increasing the complexity of financial management and regulatory operations for both parties.

To maintain cooperation flexibility, Guang Sheng will not join Intelli-G's board of directors for the time being. However, Intelli-G will hold a board election next year, at which time long-term plans may be made.

Intelli-G announced a strategic cooperation with Guang Sheng at the end of 2025. Through a stock exchange, both parties will join forces to seize the business opportunities of next-generation Co-Packaged Optics (CPO). The exchange ratio is 5.1 Intelli-G ordinary shares for 1 Guang Sheng ordinary share. After the stock exchange is completed, Intelli-G will hold approximately 1.79% of Guang Sheng's ordinary shares, while Guang Sheng will hold approximately 15.26% of Intelli-G's shares, becoming the largest single shareholder.

Intelli-G held its shareholders' meeting today. The net profit attributable to the parent company last year was NT$65.3 million, turning a loss of NT$131 million in 2024 into a profit. The earnings per share were NT$1.65. The shareholders' meeting today approved a cash dividend of NT$1 per share.

The shareholders' meeting today also approved a private placement of up to 2.5 million shares. Gao Yong-zhong stated that this private placement plan is mainly to reserve flexibility for introducing strategic partners in the future, and there is no specific target at present.

Gao Yong-zhong stated today that benefiting from the large-scale construction of AI data centers, which drives demand for high-speed optical transceiver modules and optical communication infrastructure, the demand for the company's main products such as Indium Phosphide (InP) continues to increase, driving a significant recovery in operations in 2025. Looking ahead, with the continued demand in the AI optical communication market, coupled with capacity expansion and product portfolio optimization, the company is optimistic that revenue will reach a new high this year. (Editor: Chang Chun-mao) 1150623

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