Contract Signed Nearly Four Years Without Substantial Construction! A Listed Company Terminates 5 Billion Investment Project in Hefei

After nearly four years of signing the relevant agreement, Bomin Electronics Co., Ltd. (Bomin Electronics, 603936) has decided to terminate an industrial base project with a total investment plan of 5 billion yuan.

According to an announcement by Bomin Electronics on March 17, after negotiations with the Hefei Economic and Technological Development Zone Management Committee (hereinafter referred to as Hefei Economic Development Zone Management Committee), both parties agreed to terminate the investment cooperation for the “Bomin IC Packaging Substrate Industrial Base Project” and to cancel the wholly-owned subsidiary established for this purpose. The matter has been approved by the company’s board of directors and is pending shareholder approval.

The project dates back to May 2022. At that time, Bomin Electronics signed a strategic cooperation agreement with the Hefei Economic Development Zone Management Committee. In January 2023, the company further announced that it had signed an “Investment Agreement” with the Hefei Economic Development Zone Management Committee, planning to invest in a ceramic substrate and IC packaging substrate industrial base within the zone, with a total investment of about 5 billion yuan. To promote the project, the company established a new wholly-owned subsidiary, Hefei Borui Zhixin Microelectronics Co., Ltd. (hereinafter referred to as Borui Zhixin), in June 2023. The announcement shows that, prior to this termination, Borui Zhixin’s registered capital had not been fully paid and no actual business operations had been conducted.

Regarding the reasons for terminating the investment, Bomin Electronics stated in the announcement that since signing the investment agreement, the company and the Hefei Economic Development Zone Management Committee had conducted multiple rounds of communication regarding the project’s implementation. In recent years, macroeconomic trends, industry market conditions, and the financing environment have undergone significant changes, increasing market uncertainties in related fields and making project investment risk management more difficult.

Meanwhile, the company’s “Bomin Electronics Next-Generation Electronic Information Industry Expansion Project (Phase I)” in Meizhou is progressing. The total investment is 3 billion yuan, and the core factory has gradually entered trial production and capacity ramp-up stages in 2025, expected to reach operational status by December 2026. The company states that once fully operational, this project will have the capacity to produce high-end PCB products such as high multi-layer boards, HDI boards, and special boards, capable of handling the company’s future 2 to 3 years of additional orders.

Based on the above, the company said that after careful consideration, it decided to terminate this investment to avoid redundant fixed asset investments and improve asset utilization. According to the timeline disclosed in the announcement, the company initiated a feasibility study on the termination of the investment in January 2026, sent a termination confirmation letter to the Hefei Economic Development Zone Management Committee on February 25, and received their approval on March 16.

Bomin Electronics stated that this external investment project has not yet engaged in substantive construction activities, has not incurred related investment expenditures, and has not resulted in any creditor-debtor disputes. The termination of the investment and the cancellation of the subsidiary will not have a significant adverse impact on the company’s production, operations, or financial condition.

Despite the termination of the Hefei project, the company emphasized that its layout in the semiconductor packaging materials sector remains unchanged. The company states that it has sufficient core technology reserves for ceramic substrate business, has established a ceramic substrate production base in Shenzhen, with an AMB ceramic substrate capacity of 150,000 sheets/month and a DPC ceramic substrate capacity of 80,000 sheets/month, and has achieved mass supply to customers, including leading third-generation semiconductor power module companies, overseas automotive supply chain companies, and top domestic lidar manufacturers.

According to the company’s official website, Bomin Electronics was founded in 1994. Bomin Electronics Co., Ltd. (formerly Meizhou Bomin Electronics Co., Ltd.) was established in 2005 and listed on the Shanghai Stock Exchange in December 2015, with stock code 603936. The company is located in the Dongsheng Industrial Park of Meizhou Economic Development Pilot Zone, covering about 80 acres, with over 2,500 employees. It owns double-sided multilayer PCB factories, conventional HDI factories, high-end HDI factories, FPC factories, and a supporting SMT production line, making it one of the largest and most advanced high-end circuit board manufacturers in the Meizhou region.