GalaxyCore subsidiary plans to invest RMB 86.57 million to establish a partnership

On October 16, GalaxyCore issued an announcement stating that in order to respond to the national call and seize the current opportunity of restructuring and integration of the integrated circuit industry, drive the development of the industrial chain and create good investment returns through industrial project investment, the company's wholly-owned subsidiary GalaxyCore Shanghai plans to cooperate with Jianguang Asset, Shanghai Lingxu, and Dianlian Technology to invest in the establishment of Jianguang Guanghui (Chengdu) Equity Investment Management Center (Limited Partnership).

The announcement shows that the total amount of capital subscribed by the partnership is 227 million yuan. Gpixel Shanghai intends to invest 86.5736 million yuan of its own funds as a limited partner, with a subscribed capital ratio of 38.07%. The fund's investment target is the equity of Lingsheng Technology. The executive partner shall complete the fund's investment in Lingsheng Technology within 6 months from the date of effectiveness of the partnership agreement and obtain 7.042% of the equity of Lingsheng Technology.

GalaxyCore said that the main investment target of the fund invested this time is Lingsheng Technology. By investing in this partnership, the company will strengthen its strategic cooperation with Lingsheng Technology in chip products and enhance the competitiveness of the company's products.

As we all know, the semiconductor chip industry is the core of the information technology industry. It is a strategic, basic and leading industry that supports economic and social development and ensures national security. The current and future period is an important strategic opportunity and critical period for the development of my country's semiconductor chip industry.

Founded in May 2018, Lingsheng Technology is mainly engaged in the research and development of smart Internet of Things, mobile communication mobile phone chips and their derivatives. The downstream application industries are mainly the research and development and integration of mobile communications, Internet of Things, and artificial intelligence. It focuses on the design and sales of cellular communications and smart Internet of Things SOC chip products developed with Qualcomm's core technology support.

The industry targeted by Lingsheng Technology closely revolves around the widespread application of pan-5G in the future, has a very good industrial prospect, is in line with the encouragement direction of the national industrial policy, and is conducive to improving the country's overall semiconductor chip capabilities and levels. Since its establishment, Lingsheng Technology has gradually accumulated a large number of customers. The first AIoT smart network chip has been mass-produced and used by many leading customers in China. Chips in the fields of AI vision and Internet of Things applications and smartphone SOC types are also about to be released. The launch of these products will greatly increase the market space and business volume of Lingsheng Technology.

GalaxyCore's main products are CMOS image sensors and display driver chips. CMOS image sensors include photosensitive modules and digital modules. The SOC (System-On-Chip) digital image processing chip is an effective extension and enhancement of the digital module, which plays an important role in improving digital image performance.

The SOC digital image processing chip first receives the digital image information output by the CMOS image sensor, and then uses a series of digital image algorithms to process the original image information, and finally obtains a more optimized image effect and realizes richer imaging functions, such as improved dynamic range, reduced noise, and improved resolution.

GalaxyCore believes that the cooperation with Lingsheng Technology is of great strategic significance to both parties. First, end customers can use the combination of GalaxyCore's SOC digital image processing chip and Lingsheng Technology's mobile phone baseband chip to greatly improve the performance of mobile phone photography, making their smart phone products more competitive. Second, in the post-smartphone era, mobile phone manufacturers have an increasing demand for differentiation. Through this investment, GalaxyCore and Lingsheng Technology will accelerate product research and development collaboration, form a flexible system-level customized solution, and quickly respond to the differentiated functional needs of mobile phone manufacturers.