Zhaoyi Innovation (03986) offered shares from December 31 to January 8, and received a subscription of about US$299.7 million from Cornerstone Investment

According to the Zhitong Finance App, Zhaoyi Innovation (03986) will raise shares from December 31, 2025 to January 8, 2025. The company plans to sell 28.915,800 H shares globally, of which Hong Kong sales account for 10%, international sales account for 90%, and overallocation rights of 15%. The sale price of each share is HK$162. H shares will be traded with 100 H shares per trading unit. It is expected that H shares will begin trading on the Stock Exchange at 9:00 a.m. on January 13, 2026 (Tuesday).

We are a multi-chip integrated circuit design company. We provide customers with diverse chip products including Flash, niche dynamic random access memory (DRAM), microcontrollers (MCU), analog chips and sensor chips, which can be used in consumer electronics, automobiles, industrial applications (such as industrial automation, energy storage and battery management), personal computers (PCs) and servers, the Internet of Things, network communication, etc., to meet the various needs of customers, as well as a complete set of systems and solutions including corresponding algorithms and software. Our waferless business model means we focus on the design and development of integrated circuits, while outsourcing the manufacture of integrated circuits to external fabs and outsourced semiconductor assembly and testing (packaging and testing) partners.

In 2022, 2023 and 2024, and the six months ended 2024 and June 30, 2025, we obtained revenue of RMB 8.13 billion, RMB 5.760.8 billion, RMB 7.356 billion, RMB 3.609 billion and RMB 4.15 billion respectively. In the same year/same period, we obtained adjusted net profit (non-IFRS) of RMB 2,256 billion, RMB 258 million, RMB 1.26 billion, RMB 582 million and RMB 672.5 million respectively. The adjusted net profit margins (non-IFRS measures) were 27.7%, 4.5%, 17.1%, 16.1% and 16.2%, respectively.

The Company has cooperated with cornerstone investors Yuanfeng Fund and Huatai Capital Investment (in terms of Yuanfeng Fund OTC swaps), CPE, Shanghai Jinglin and Huatai Capital Investments (in terms of Jinglin OTC swaps), Yunfeng Capital, DAMSIMF, Singularity Asset, 3W Fund, Huaqin Communications Hong Kong Limited, Metazone, Tianjin Trading Co., Ltd., Green Ridge, Xinhua Asset Management, Taikang Life Insurance, Summit, ICBC Wealth Management, GBad Fund Management and Wind Sabre entered into a cornerstone investment agreement, and the cornerstone investors have agreed to subscribe at the offer price or induce their designated entities to subscribe for the number of shares to be purchased for a total amount of approximately US$299.7 million, subject to certain conditions.

Assuming an offering price of HK$147.00 per H share, we estimate that the net proceeds from the global offering will be approximately HK$4.180.7 billion. Of this, about 40.0% will be used to continuously improve our R&D capabilities; about 35.0% will be used for strategic industry-related investments and acquisitions; about 9.0% will be used to expand our global strategy and strengthen our global influence, including strengthening our global marketing and service network; about 6.0% will be used to improve operational efficiency; and about 10.0% will be used for working capital and other general corporate purposes.