BYD Semiconductor will sign a strategic investment agreement with Xiaomi Changjiang Industry Fund and other strategic investors

On the evening of June 15, BYD announced that BYD held the 39th meeting of the 6th Board of Directors and agreed that BYD and BYD Semiconductor signed the "Investment Agreement", "Shareholder Agreement" and its annexes and related supplementary agreements with 30 investment institutions including Hubei Xiaomi Changjiang Industry Fund Partnership (Limited Partnership), Hubei Lenovo Changjiang Technology Industry Fund Partnership (Limited Partnership), Zhuhai Rongyu Investment Management Center (Limited Partnership), Shenzhen Anpeng Venture Capital Fund Enterprise (Limited Partnership), and Zhuhai Shangqi Huajin Automobile Industry Equity Investment Fund (Limited Partnership). According to the pre-investment valuation of the target company of RMB 750,000.00 million, this round of investors intends to increase the capital of BYD Semiconductor by a total of RMB 79,999.9999 million, of which RMB 320.2107724 million will be included in the newly added registered capital of BYD Semiconductor, and RMB 767.97892176 million will be included in the capital reserve of BYD Semiconductor. This round of investors will acquire a total of 7.843129% equity of BYD Semiconductor after the capital increase and share expansion.

It was disclosed that the capital increase funds obtained by BYD Semiconductor from this investment will be used entirely for its main business, including supplementing operating capital, purchasing assets, hiring personnel and research and development, as well as other purposes approved by the investor.

It is reported that BYD Semiconductor's capital increase and share expansion project has attracted many financial and industrial investors. Considering the future business resource integration and cooperation of BYD Semiconductor, BYD Semiconductor plans to continue to introduce strategic investors such as South Korea's SK Group, Xiaomi Group, CMB International, Lenovo Group, CITIC Industry Fund, Houan Fund, SMIC, SAIC Capital, BAIC Capital, Shenzhen Huaqiang, Blue Ocean Huateng, and INVT.

BYD said that benefiting from my country's strong support for the development of new infrastructure, new energy and other industries, as well as the goal of independent and controllable domestic semiconductors, the development of my country's semiconductor industry is expected to continue to maintain a good trend in the future. As a domestic independent and controllable automotive-grade IGBT leader, BYD Semiconductor will fully combine its own and strategic investors' resource advantages to accurately grasp the development opportunities of my country's semiconductor industry, and strive to grow into an efficient, intelligent and integrated new semiconductor supplier. It will also give full play to the positive role of industry policy dividends, and jointly promote the two-way integration of the industry's innovation chain and industrial chain with strategic investors, and jointly promote the acceleration of the localization process of the semiconductor industry.

At present, BYD Semiconductor has completed internal restructuring, equity incentives, introduction of strategic investors, etc. On this basis, BYD Semiconductor will actively promote listing-related work to build an independent capital market operation platform, improve the company's independence, and help the business grow and develop.