Konka Group Co., Ltd (000016.SZ) plans to increase its holdings by 78% in the video and audio chip design company Hongjing Microelectronics and raise funds to support the acquisition.

Announcement by Konka Group Co.,Ltd (000016.SZ): The company intends to purchase 78.00% of the equity of Hongjing Microelectronics Technology Co., Ltd. ("Hongjing Microelectronics") held by 17 trading parties including Liu Wei by issuing shares, and to raise supporting funds. The issuance price for the purchase of assets by issuing shares is 3.64 yuan per share. It is expected that this transaction will not constitute a major asset restructuring. The announcement shows that Hongjing Microelectronics, which the company intends to acquire in this transaction, is a video and audio chip design company with technical advantages in multimedia chip design. The company's consumer electronics business, optoelectronic business, and Hongjing Microelectronics' semiconductor business can form vertical synergy. The listed company can enhance its independent controllable core chip capabilities in high-end display terminals, and improve the core competitiveness of its products. It is reported that through the acquisition of Hongjing Microelectronics, the company can further improve its layout in the semiconductor industry chain and bring synergistic growth potential to the company's packaging and testing business and PCB business. In addition, the chip products of Hongjing Microelectronics can be widely used in commercial displays, high-speed rail screens, automotive screens, security monitoring, medical equipment, education terminals, radio and television, industrial manufacturing control, and other fields. By acquiring the target company, the company can expand the application areas of its semiconductor business, enter more high-value-added markets, and bring new growth points to the company.