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

Beijing Business Daily News (Reporter Wang Manlei) reported that on the evening of March 18, Dashengda (603687) announced that the company plans to invest a total of 550 million yuan through equity transfer and capital increase to acquire a 22.9831% stake in XinTong Semiconductor Technology (Xiamen) Co., Ltd. (hereinafter referred to as “XinTong Semiconductor”) after the transaction is completed.

Specifically, Dashengda intends to acquire a 2.7074% stake in XinTong Semiconductor before the capital increase 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. The company also plans to inject 500 million yuan into XinTong Semiconductor for the capital increase. The capital increase will be completed in two phases: the first phase involves a 250 million yuan increase under the conditions of the capital increase agreement, and the second phase, contingent on meeting the first phase conditions and the successful tape-out of the third-generation graphics processor, will also involve a 250 million yuan increase. 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 focused on the design, research, development, 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 provides general high-performance, continuously iterative domestic GPU solutions for cloud and end-user customers, meeting multi-scenario computing power needs from desktop applications to data centers. This transaction constitutes an associated transaction and does not constitute a major asset reorganization.