Montage Technology (06809): Hengqin company plans to increase capital and expand shares, and introduce a new investor, with a total investment of about 500 million yuan.

Montage Technology (06809) announced that in order to meet the operational development needs of its holding subsidiary Hengqin Company, Hengqin Company plans to increase its capital and introduce new investors. Hengqin Company plans to increase its registered capital from RMB 143.5 million to RMB 165.7 million, with an additional registered capital of RMB 22.2 million, totaling RMB 499.5 million in this round of capital increase. Specifically: (1) New investor Hainan Yunfeng Fund Center (Limited Partnership) ("Hainan Yunfeng") plans to invest RMB 51.75 million, subscribing to Hengqin Company's new registered capital of RMB 2.3 million; (2) New investor YF Hestia II Limited ("YF Hestia II", together with Hainan Yunfeng referred to as "Yunfeng") plans to invest the equivalent of RMB 198 million in US dollars, subscribing to Hengqin Company's new registered capital of RMB 8.8 million; (3) The company plans to invest approximately RMB 250 million, subscribing to Hengqin Company's new registered capital of RMB 11.1 million. As a holding subsidiary of the company, Hengqin Company is mainly engaged in the research and industrialization of new products such as CXL MXC, PCIe Switch chips, and is currently in the research and development stage, requiring financing support. The company's development strategy focuses on the interconnection chip field, and Hengqin Company's business is synergistic with the company's strategy. The capital increase for Hengqin Company in this round is in line with the company's business planning, can supplement the company's capital requirements for operational development, further enhance its research and development capabilities, and will not have any adverse impact on the company's financial condition and operating results. After the completion of this capital increase and expansion, the company's shareholding in Hengqin Company will change from 44.88% to 45.56%. Since the company can determine the election of more than half of the members of Hengqin Company's board of directors, Hengqin Company remains a subsidiary of the company, which does not affect the company's consolidated financial statements.