Hefei Jingyi IC, a subsidiary of Crystal Synthesis (02249), received a capital increase of 9.1 billion yuan

Zhitong Finance App News, Jinghe Integration (02249) issued an announcement. On November 5, 2026, the board of directors reviewed and approved the capital increase. The Company plans to enter into capital increase agreements with target companies Hefei Jingyi Integrated Circuit, Hefei Construction Investment and Hefei Qinhe. The Company, Hefei Construction Investment and Hefei Qinhe will use a total cash of RMB 9.1 billion to subscribe the target company to increase the registered capital of RMB 9.1 billion. After the capital increase is completed, the Company's shareholding ratio in the target company will be reduced from 100% to about 63.96%, but the target company is still a subsidiary of the Company and will continue to be included in the Group's consolidated financial statements.

This capital increase will help enhance the capital strength of the target company and lay a solid financial foundation for it to promote the construction of a 12-inch wafer manufacturing production line. Considering the large investment scale and long construction period of the Phase IV project, the company plans to introduce joint funding from Hefei Construction Investment and Hefei Qinhe to broaden the target company's funding sources and reduce the financial pressure on the company to independently undertake subsequent capital investment for the project. At the same time, this capital increase will also help the company optimize resource allocation, reserve more cash for its core business development and cope with potential market fluctuations. At the same time, joint investment by various investors helps share capital investment and related investment risks in the target company's development process, supports the long-term steady development of the target company, and ultimately enhances the company's core competitiveness and promotes long-term high-quality development.

The company selected other investors to participate in this capital increase, taking into account their recognition of the long-term growth value of the target company and its investment orientation focusing on industrial collaboration and strategic layout. The Company believes that joint investment with investors with long-term investment intentions will help support the target company to advance project construction and operation according to its business development needs, and promote the consistency of the interests of all parties in the long-term development of the target company. In addition, the target company may further introduce other investors according to project construction and business development needs in the future to continue to broaden funding sources and support its long-term development.

According to the capital increase agreement, unless the investors agree in writing in advance, the target company shall use all of the proceeds from this capital increase for its daily operations, including but not limited to the purpose of supplementing working capital, purchasing equipment, and repaying debts related to the production and operation of the main business. The target company will arrange the use of funds based on the progress of the project, actual operating needs, and the receipt of funds contributed by each investor, and abide by the use restrictions agreed in the capital increase agreement.

Although the Company's shareholding ratio in the target company will decrease, the target company is still a subsidiary of the Company and will continue to be included in the Group's consolidated financial statements. While introducing external capital and sharing capital investment and related investment risks, the company can still share the potential benefits brought by the target company's future development according to its shareholding ratio. This capital increase will not have a significant adverse impact on the company's financial position and business.