SMIT (02239) plans to sell 7.8125% of the total registered capital of Shenzhen Hongxin for 266.2 million yuan.

SMIT (02239) announced that on April 2, 2026, its wholly-owned subsidiary, National Micro Group (Shenzhen) Limited, plans to sell 7.8125% of the total registered capital of Shenzhen Hongxin to Shanghai Linker Xunlun Entrepreneurship Investment Partnership Enterprise (Limited Partnership) for approximately RMB 266.2 million. It is reported that Shenzhen Hongxin was established by the Group in January 2018 as a platform for developing backend EDA tools, in line with the Group's strategy of establishing a full-process EDA system. Shenzhen Hongxin has conducted several rounds of fundraising to meet the funding needs for research and development expenses and intellectual property acquisitions. As of the date of this announcement, the Group holds a minority stake of 7.8125% in the total registered capital of Shenzhen Hongxin. The IC and related industries (including EDA) have been designated as national strategic emerging industries, receiving high attention and support from the government. After many years of development, the EDA industry is now entering a consolidation phase. The sale of assets is in line with the strategic development needs of Shenzhen Hongxin itself, as well as with the Group's plan to narrow its EDA investment layout. Since the Group has decided to stop developing EDA products, the Board believes that the sale will not have any negative impact on the Group's business prospects. The Board considers the sale of assets to be a good opportunity to realize the Group's investment in Shenzhen Hongxin at a higher price and at an appropriate time.