Huatian Technology plans to increase capital on a large scale in 3 subsidiaries to promote the development of IC high-end packaging and testing
On the evening of November 9, Huatian Technology issued an announcement that the 17th meeting of the 6th Board of Directors of the company reviewed and approved the proposal to increase the capital of three subsidiaries and implement the investment projects with raised funds. The three capital increase projects will promote the development of Huatian Technology in the field of high-end packaging and testing of integrated circuits.
High-density system-in-integrated circuit packaging and testing scale-up project
Huatian Technology announced that the company intends to use the raised funds of 1.030 billion yuan to increase the capital of its wholly-owned subsidiary Huatian Technology (Xi’an) Co., Ltd. System-level integrated circuit packaging and testing scale-up project”.
According to the announcement, Huatian Xi’an was established in January 2008. Its business scope includes the design, R&D, production and sales of semiconductor integrated circuits and semiconductor components; the sales of semiconductor packaging and testing raw materials (except for goods and technologies prohibited or restricted by the state), etc.
According to the announcement, Huatian Xi’an is a wholly-owned subsidiary of Huatian Technology. This time, the registered capital of Huatian Xi’an will be increased by 1.030 billion yuan at the price of 1 yuan/unit of registered capital. After the capital increase, the registered capital of Huatian Xi’an will be changed from 1.817 billion yuan to 2.847 billion yuan, and Huatian Technology will still hold 100% of its equity.
Storage and RF Class 2 IC Packaging and Testing Industrialization Project
It is reported that on July 6, 2018, Huatian Technology and Nanjing Pukou Economic Development Zone Management Committee signed the “Investment Agreement” for the Nanjing Integrated Circuit Advanced Packaging and Testing Industry Base Project. The project company (i.e. Huatian Nanjing) was registered and established with a registered capital of 2.5 billion yuan.
The data shows that Huatian Nanjing was established in September 2018, and its business scope includes semiconductor integrated circuits, semiconductor component research and development, design, production, and sales.
Huatian Technology announced that it used the raised funds of 1.38 billion yuan this time, and paid 1 billion yuan of it to Huatian Nanjing through Huatian Technology (Xi’an) Investment Holdings Co., Ltd. (hereinafter referred to as “Huatian Investment”). With the paid-in registered capital, the remaining 380 million yuan will be added to Huatian Nanjing.
The specific situation is that Huatian Technology used the raised funds of 1.38 billion yuan this time to increase the registered capital of Huatian Investment by 1.380 billion yuan at the price of 1 yuan per unit of registered capital; Huatian Xi’an, a wholly-owned subsidiary of Huatian Technology, will use the same proportion. The principle of capital increase is to increase the registered capital of Huatian Investment by 590 million yuan with its own funds of 590 million yuan.
After the capital increase is completed, the registered capital of Huatian Investment will increase from RMB 1 billion to RMB 2.970 billion. After Huatian Technology increases its capital to Huatian Investment, Huatian Investment will use 1 billion yuan of it to pay the subscribed but not paid registered capital to Huatian Nanjing, and the remaining 380 million yuan will increase its capital to Huatian Nanjing. The capital increase of 1.380 billion yuan invested by Huatian Technology in Huatian this time is all used for the implementation of Huatian Nanjing’s “Storage and RF IC Packaging and Testing Industrialization Project”.
The announcement shows that, as of the disclosure date of this announcement, Huatian Technology holds 60% equity of Huatian Nanjing through its wholly-owned subsidiary Huatian Investment, and 1 billion yuan of the registered capital of Huatian Nanjing has not yet been paid in. Nanjing Pukou Development District Hi-Tech Investment Co., Ltd. (hereinafter referred to as “Nanjing Hi-Tech”) holds a 40% stake in Huatian Nanjing. In addition, Nanjing Hi-Tech voluntarily waived the right of pre-emption for the above-mentioned capital increase, and agreed to Huatian Investment to subscribe for all the above-mentioned capital contributions. The capital contributions of the parties are as follows:
Image source: Screenshot of Huatian Technology Announcement
The announcement pointed out that the capital increase price is based on the registered capital of Huatian Nanjing corresponding to the audited net asset value as of December 31, 2020, that is, every 1 yuan of registered capital corresponds to RMB 1.03, and the registered capital of Huatian Nanjing is increased by RMB 371 million. Yuan. After the capital increase, the registered capital of Huatian Nanjing will increase from 2.5 billion yuan to 2.871 billion yuan. After the capital increase is completed, the subscribed capital contribution and shareholding ratio of all Huatian Nanjing shareholders are as follows:
Image source: Screenshot of Huatian Technology Announcement
TSV and FC integrated circuit packaging and testing industrialization project
Huatian Technology intends to use the raised funds of 900 million yuan to increase the capital of its wholly-owned subsidiary Huatian Technology (Kunshan) Electronics Co., Ltd. (hereinafter referred to as “Huatian Kunshan”) for its implementation of the raised funds investment project “TSV and FC integrated circuits”. Packaging and Testing Industrialization Project”.
According to reports, Huatian Kunshan was established in June 2008 with Xiao Zhiyi as its legal representative. Its business scope includes R&D, manufacturing, packaging and testing of integrated circuits.
According to the announcement, Huatian Kunshan is a wholly-owned subsidiary of Huatian Technology. This time, the raised funds are 900 million yuan, and the registered capital of Huatian Kunshan is increased by 900 million yuan at the price of 1 yuan/3 units of registered capital. After the capital increase, the registered capital of Huatian Kunshan will increase from 940 million yuan to 1.84 billion yuan, and Huatian Technology will still hold 100% of its equity.
In addition, Huatian Technology stated that the above capital increase in subsidiaries does not constitute a connected transaction, nor does it constitute a major asset reorganization stipulated in the “Administrative Measures for Major Asset Restructuring of Listed Companies”.
Regarding this large-scale capital increase, Huatian Technology stated that it will use the raised funds to increase the capital of its three subsidiaries, Huatian Xi’an, Huatian Nanjing, and Huatian Kunshan, to meet the needs of the company’s raised funds for the implementation of investment projects, and to help the subsidiaries. The smooth development of the company’s fundraising investment projects is in line with the company’s long-term planning and development strategy. After the raised funds are in place, the asset scale of the three subsidiaries will be further expanded and the financial structure will be improved, which will help enhance their profitability and further enhance the company’s overall advantages.
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