Huaqin Co.,Ltd. (03296) plans to inject RMB1 billion in capital into Jingyi Integration.

Huaqin Co.,Ltd. (03296) announced that its wholly-owned subsidiary plans to jointly increase capital, together with Nexchip Semiconductor Corporation and Hefei Construction Investment, in Jingyi Integration, a wholly-owned subsidiary of Nexchip Semiconductor Corporation, at a price of RMB1.00 per registered capital, with the parties intending to contribute a total of RMB9.1 billion in cash. Among them, the company's wholly-owned subsidiary plans to contribute RMB1 billion. Before this capital increase, Hefei Qinhe did not hold any equity in Jingyi Integration; after completion of this capital increase, Hefei Qinhe will hold 9.01% equity in Jingyi Integration. Jingyi Integration is the construction entity for Nexchip Semiconductor Corporation's Phase IV project, with a total investment of RMB35.5 billion. It is currently building a 12-inch wafer manufacturing production line with a capacity of approximately 55,000 wafers per month, focusing on 40nm and 28nm CIS, OLED and logic processes, with products widely applicable to fields such as OLED display panels, AI phones, AI computers, smart cars and artificial intelligence. The company's participation in Jingyi Integration through its wholly-owned subsidiary is an upstream layout in the industrial chain around its main business, mainly for the following considerations: First, it helps the company strengthen industrial synergy with upstream wafer manufacturing enterprises, improve relevant layouts in the industrial chain, integrate advantageous resources of all parties, and enhance supply chain coordination capabilities and comprehensive competitive advantages; Second, the target company's key process directions and product application areas are relevant to the company's smart hardware products and customer application scenarios.