Focusing on semiconductor investment opportunities, Tongfu Microelectronics and Huahong Investment established industrial investment

Recently, Tongfu Microelectronics issued an announcement stating that in order to seize the opportunity of rapid development of the semiconductor industry, further promote the company's industrial development, and effectively integrate industrial resources, Tongfu Microelectronics plans to jointly establish a semiconductor industry investment fund with Shanghai Huahong Investment Development Co., Ltd. (hereinafter referred to as "Huahong Investment") and other investors (the final name is subject to the approval and registration of the market supervision and management department, referred to as the "Industry Fund").

According to the announcement, the industrial fund is in the form of a limited partnership, and the total size of the fund is planned to be RMB 1 billion, of which Huahong Investment plans to subscribe to RMB 400 million of the fund, Tongfu Microelectronics plans to subscribe to RMB 100 million of the fund, and the general partner of the fund is Shanghai Hongfang Enterprise Management Center (Limited Partnership) (tentative name, hereinafter referred to as "Fund GP"), which plans to subscribe to RMB 10 million of the fund. The fund manager is Shanghai Guofang Private Equity Fund Management Co., Ltd. (hereinafter referred to as "Guofang Capital"), and the remaining LP contributions will be raised by Guofang Capital.

Regarding the impact of the establishment of the industrial fund, Tongfu Microelectronics stated that the industrial fund was jointly established with Huahong Investment, Guofang Capital, etc., mainly focusing on investment opportunities in upstream and downstream companies in the semiconductor industry chain. It will be beneficial for the company to use the fund platform to further strengthen cooperation and coordination with Huahong and other upstream and downstream companies in the industry chain, and it will be beneficial to proactively plan the company's future development directions such as advanced packaging, expand the company's upstream and downstream resources, enhance the company's overall competitiveness, and comply with the company's development strategy.

It is worth mentioning that Tongfu Microelectronics achieved outstanding results in the first half of the year. On August 29, Tongfu Microelectronics released its 2021 semi-annual report, stating that in the first half of 2021, the company achieved operating income of 7.089 billion yuan, a year-on-year increase of 51.82%, and net profit of 412 million yuan, a year-on-year increase of 219.13%. Both revenue and profit hit historical highs.