Nexchip Semiconductor Corporation (688249.SH) plans to increase capital in Anhui Jingmei with subsidiary equity valued at RMB 908 million.

Nexchip Semiconductor Corporation (688249.SH) has announced that the company plans to jointly increase capital in Anhui Jingmei with other investors at a price of RMB 1.0758 per registered capital. Among this, the company intends to use 100% equity of its wholly-owned subsidiary Hefei Jingwei Technology Co., Ltd. (hereinafter referred to as "Hefei Jingwei"), valued at RMB 908 million, to subscribe to RMB 844 million of Anhui Jingmei's newly added registered capital. After the completion of this capital increase, the company's direct shareholding ratio in Anhui Jingmei will change from 16.6667% to 32.1599%. The photomask industry is a capital- and technology-intensive industry, and project construction, equipment procurement, and R&D investment all require substantial financial support. This capital increase will effectively enhance Anhui Jingmei's capital strength and financial reserves, provide strong support for its subsequent capacity construction, technological R&D, and market expansion, and help it accelerate the formation of large-scale production capacity. At the same time, the photomask business in which Anhui Jingmei is engaged was spun off from Nexchip Semiconductor Corporation's original photomask business, and its development positioning is highly synergistic with the company's main business. Through this transaction, the company will inject Hefei Jingwei's main assets (i.e., machinery and equipment related to photomask production, construction in progress, and externally purchased intangible assets) into Anhui Jingmei by means of equity contribution, which will help revitalize the company's existing assets, realize the centralized allocation and efficient utilization of photomask production resources, further open up the collaborative chain between wafer manufacturing and photomask supporting facilities, and enhance the stability and independent controllability of the supply chain. In addition, this transaction will help improve the company's investment income and asset operating efficiency. By participating in the capital increase through equity contribution, the company can, without additional cash expenditure, invest assets with industrial synergy value into key links of the industrial chain. This not only optimizes resource allocation, but is also expected to share in the long-term returns brought by the growth of the photomask industry, which is in line with the overall interests of the company and all shareholders.