Dashengda Plans to Acquire 22.9831% Equity of Xintong Semiconductor for 550 Million Yuan

(Source: Beijing Business Today)

Beijing Business Today News (Reporter Wang Manlei) announced on the evening of March 18 that Dashengda (603687) disclosed a notice stating that the company plans to invest a total of 550 million yuan through equity transfers and capital increases to acquire a 22.9831% stake in XinTong Semiconductor Technology (Xiamen) Co., Ltd. (hereinafter referred to as “XinTong Semiconductor”) upon completion of this transaction.

Specifically, Dashengda plans to acquire a 2.7074% stake in XinTong Semiconductor held by Hainan Dingzheng Private Equity Fund Partnership (Limited Partnership) for 27.86 million yuan, and a 1.5961% stake held by Yangzhou Qiming Equity Investment Partnership (Limited Partnership) for 22.14 million yuan. Additionally, it plans to inject 500 million yuan into XinTong Semiconductor through a capital increase. The capital increase will be completed in two phases: the first phase involves a 250 million yuan increase upon meeting the conditions specified in the capital increase agreement; the second phase, contingent upon the successful tape-out of the company’s third-generation graphics processor and continued fulfillment of the first phase conditions, will involve another 250 million yuan. Meanwhile, the company’s controlling shareholder, Hangzhou Xinshengda Investment Co., Ltd., plans to invest 50 million yuan into XinTong Semiconductor at the same price and conditions as the company, acquiring a 1.9608% stake after the transaction.

The announcement states that XinTong Semiconductor was established in 2019 and is a pioneer in China specializing in the design, research, and sales of general-purpose high-performance graphics processing unit (GPU) chips. Relying on an advanced architecture that deeply integrates graphics rendering, general computing, and artificial intelligence computing capabilities, the modern GPU chip system targets cloud and end-user customers, providing high-performance, sustainable, iterative domestic GPU solutions to meet diverse computing needs from desktop applications to data centers. This transaction constitutes an associated transaction and does not constitute a major asset restructuring.