Jinruihong Microelectronics received a capital increase of 1.3 billion yuan to promote 12-inch silicon wafers

On October 12, Leon Micro announced that it plans to increase the capital of its holding subsidiary Jinruihong Microelectronics (Quzhou) Co., Ltd. (hereinafter referred to as “Jinruihong Microelectronics”).

The announcement shows that Jinruihong Microelectronics is a subsidiary of Leon Micro Holdings. Before this capital increase, Zhejiang Jinruihong Technology Co., Ltd. (hereinafter referred to as “Zhejiang Jinruihong”), a subsidiary of Leon Micro Holdings, held 33.41% of its shares.

In order to meet the follow-up working capital needs of Jinruihong Microelectronics, Leon Micro intends to increase the capital of Jinruihong Microelectronics, and plans to sign a capital increase transaction document with the capital increaser. The total capital increase is RMB 1.3 billion, which will be made in cash. After the capital increase is completed, the registered capital of Jinruihong Microelectronics will increase from 1.2 billion yuan to 2.5 billion yuan, and the shareholding ratio of Leon Micro in Jinruihong Microelectronics will be changed to 20.04%.

The capital increase parties include Zhejiang Jinruihong, Zhejiang Industrial Fund Co., Ltd., Quzhou Dahuayuan Construction Investment Development Co., Ltd., Xianyou Hongyi Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as “Xianyou Hongyi”), Xianyou Hongqian Enterprise Management Partnership (limited partnership), with capital contributions of 100 million yuan, 500 million yuan, 500 million yuan, 161.36 million yuan, and 38.64 million yuan, of which some limited partners of Xianyou Hongyi are directors, supervisors and senior management of Leon Micro personnel, this matter constitutes a connected transaction.

Source: Leon Micro Announcement

The announcement pointed out that Jinruihong Microelectronics is an important platform for Leon Micro’s semiconductor silicon wafer business. The funds raised from this capital increase are mainly used for Jinruihong Microelectronics’ working capital and to accelerate the construction of the 12-inch integrated circuit silicon wafer project.

Leon Micro said that after the capital increase of Jinruihong Microelectronics, the company still has a controlling stake in Jinruihong Microelectronics, and at the same time it can realize the diversification of the equity structure of Jinruihong Microelectronics, which will help to expand the brand and social influence, in line with the company’s production. The operating needs will help optimize the company’s financial structure and further improve the company’s operating capabilities.

According to the data, Leon Micro was established in March 2002, focusing on the research and development and manufacturing of semiconductor materials, semiconductor chips and related products. Its main business is the research and development, production and sales of semiconductor silicon wafers and semiconductor discrete device chips, as well as semiconductor Manufacture and sale of finished discrete devices.

Zhejiang Jinruihong, a subsidiary of Leon Micro Holdings, has long been committed to the research and development and production of semiconductor silicon wafers with high technology content and high added value, and has complete processes and production capacity for silicon single crystal ingots, silicon grinding wafers, silicon polishing wafers, and silicon epitaxial wafers. . In 2009, the company started mass production and sales of 8-inch semiconductor silicon epitaxial wafers.

On September 11 this year, Leon Micro was successfully listed on the main board of the Shanghai Stock Exchange. The prospectus shows that the funds raised by Leon Micro’s public offering will be invested in the project with an annual output of 1.2 million integrated circuits and 8-inch silicon wafers and an annual output of 120,000 6-inch second-generation semiconductor radio frequency integrated circuit chips.

While expanding the output of 8-inch semiconductor wafers, Leon Micro also accelerated the industrialization of 12-inch semiconductor wafers and continued to promote the Jinruihong Microelectronics 12-inch wafer project. According to the prospectus, as of the end of March 2020, a total of 498 million yuan has been invested in the project. The project is still in the equipment purchase stage, and the production line will be gradually installed and debugged after the equipment arrives on site one after another.

According to the plan, Jinruihong Microelectronics’ 12-inch integrated circuit silicon wafer project will reach an annual output of 1.8 million after the completion of the construction.

  

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