Xin Henghui: intends to subscribe with 100 million yuan to increase Rongxin Semiconductor's registered capital

People’s Finance Network, April 1—XinHengHui (301678) announced on April 1 that the company plans to subscribe to an increase in registered capital of RMB 32,180,210 from Rongxin Semiconductor (Ningbo) Co., Ltd. (referred to as the “target company” or “Rongxin Semiconductor”) for a capital contribution of RMB 100 million. Based on the total scale of this round of capital increase of RMB 4 billion, after this transaction is completed, the company will hold 0.5882% of the equity of the target company. The target company is a domestic company that was among the first to introduce market-oriented capital operations in the 12-inch integrated circuit manufacturing industry. It focuses on specialized process technologies across mature nodes from 28 nm to 180 nm. Its principal business revolves around mixed-signal and analog integrated circuit products. It has developed and laid out product areas including CIS image sensor chips, 5V mixed-signal and mixed-signal-to-analog conversion, BCD, HV, and others, and has successfully developed multiple technology and process platforms. Its products are widely used in scenarios such as industrial control, consumer electronics, digital home, mobile communications, and automotive electronics. As the demand for domestically controlled and self-reliant integrated circuit production in China becomes increasingly urgent, breaking the technology monopoly in this field has become a clearly stated directive at the national strategic level. Moreover, with the surge in demand for advanced chips such as AI and high-performance computing, the market continues to grow at a sustained high speed, providing local breakthrough companies with unprecedented large space for growth. The company’s investment in the target company through an equity capital increase is beneficial for improving the company’s strategic planning, achieving synergy across the industrial chain, expanding its strategic development space, cultivating long-term competitive advantages, and creating new profit growth drivers.