Capital increase of 1.3 billion yuan! Jinruihong Microelectronics won the favor of Zhejiang Industrial Fund and others

On October 13, Lianwei announced that the company intends to increase capital in cash to its holding subsidiary Jinruihong Microelectronics (Quzhou) Co., Ltd. (hereinafter referred to as "Jinruihong Microelectronics") and sign a capital increase transaction document with the capital increase party. After the capital increase is completed, the registered capital of Jinruihong Microelectronics will increase from RMB 120 million to RMB 250 million, and the company's shareholding ratio in Jinruihong Microelectronics will be changed to 20.04%. The total amount of this capital increase is RMB 130 million.

According to the disclosure, Jinruihong Microelectronics is a holding subsidiary of the company and an important platform for the company's semiconductor silicon wafer business. In order to meet the capital needs of the "1.8 million pieces of 12-inch integrated circuit silicon wafer project per year". And to improve the stability and enthusiasm of the company's workforce. In order to ensure that key employees at all levels of the company share the operating results brought about by the company's rapid development, Jinruihong Microelectronics intends to absorb key employees of the business segments of Lianwei and its subsidiaries, including the company's directors, supervisors and senior management, to increase capital in Jinruihong Microelectronics through the establishment of a new partnership, and indirectly hold Jinruihong Microelectronics' equity.

Prior to this capital increase, Liangwei's holding subsidiary Zhejiang Jinruihong Technology Co., Ltd. (hereinafter referred to as "Zhejiang Jinruihong") held 33.41% of its equity.

It was disclosed that Zhejiang Industrial Fund Co., Ltd. was established on May 29, 2015 with a registered capital of RMB 2 billion. Its major shareholders are Zhejiang Financial Holding Co., Ltd. with 97.5% and Zhejiang Innovation Development Investment Co., Ltd. with 2.5%.

As of December 31, 2019, the total assets of Zhejiang Industrial Fund Co., Ltd. were RMB 23,997,835,870.01, the net assets were RMB 23,895,935,195.95, the operating income in 2019 was RMB 0, and the net profit was RMB 236,340,521.70.

Liangwei stated that after the capital increase of Jinruihong Microelectronics, the company still has a controlling stake in Jinruihong Microelectronics. At the same time, it can also achieve the diversification of Jinruihong Microelectronics' equity structure, which will help expand the brand and social influence, meet the company's production and operation needs, help optimize the company's financial structure, further improve the company's operational capabilities, and meet the company's strategic development goals. There is no situation that harms the interests of the company and small and medium-sized shareholders.