Nexchip Semiconductor Corp. A

Nexchip Semiconductor announced after market close on September 30 that it plans to use its 100% equity stake in wholly owned subsidiary Hefei Jingwei Technology Co., Ltd., valued at 908.2533 million yuan, to increase capital in Anhui Jingmei Photomask Co., Ltd. Upon completion, Nexchip Semiconductor's direct shareholding in Anhui Jingmei will rise from 16.6667% to 32.1599%, and Anhui Jingmei's registered capital will increase from 1.2 billion yuan to approximately 3.247 billion yuan. The pricing of this capital increase is based on an appraisal, with Anhui Jingmei's pre-investment valuation at 1.291 billion yuan. Each investor will subscribe at a price of 1.0758 yuan per unit of registered capital, of which 844.2585 million yuan will be credited to registered capital and 63.9948 million yuan to capital reserve. This transaction constitutes a related-party transaction, as Anhui Jingmei is a 30%-controlled company of the company's controlling shareholder, Hefei Construction Investment Holding Group Co., Ltd., and the company's current chairman, Cai Guozhi, serves as Anhui Jingmei's legal representative and chairman. Related directors recused themselves from voting during board deliberations, and the matter still requires approval by the company's shareholders' meeting. Nexchip Semiconductor stated that this transaction will help revitalize existing assets, achieve centralized allocation and efficient use of photomask production resources, and enhance supply chain stability and self-reliance.

Nexchip, stock code 688249, announced on August 31 that the company and other investors have signed capital increase and shareholder agreements with Anhui Ruijing Semiconductor Co., Ltd. and its existing shareholders. Nexchip subscribed approximately 241 million yuan in capital using 100% equity of its wholly-owned subsidiary Hefei Ruiyu Technology Co., Ltd., and will directly hold a 26.43% stake in Anhui Ruijing upon completion of the capital increase. Anhui Ruijing was established in January 2026 and is located in Wuhu, Anhui Province. It mainly engages in wafer backside grinding and metallization foundry services for power devices, known as BGBM business, and plans to build a wafer process production line with monthly capacity of 40,000 wafers. Nexchip stated that because the BGBM business differs from its current process platforms focused on display driver chips, image sensors, power management chips, and logic chips, it has not classified BGBM as a core business. This capital increase is intended to divest that business and further focus on its main operations. After the transaction, the number of directors nominated by Nexchip will not reach more than half of the seats on Anhui Ruijing's board, so Nexchip cannot control Anhui Ruijing and the scope of consolidated financial statements remains unchanged. This adjustment comes as the power semiconductor industry recovers. According to Omdia data, the global power semiconductor market was about 75.5 billion US dollars in 2025, with the China market reaching 29.1 billion US dollars, accounting for about 39% of the global share, and it is expected to reach 38.1 billion US dollars by 2028. In the first half of 2026, Nexchip achieved revenue of 5.957 billion yuan, up 14.59% year on year, and net profit attributable to the parent of 245 million yuan, down 26.12% year on year, ranking eighth among global wafer foundries.

Nexchip shareholder Huaqin Communications Hong Kong Limited increased its holdings in the company's H shares by 22.89 million shares through centralized bidding on the Hong Kong Stock Exchange between July 16 and July 24, 2026, accounting for 1.03% of the company's total share capital. Following this increase, Huaqin Technology Co., Ltd., Hefei Qinhe Electronic Technology Co., Ltd., and Huaqin Communications Hong Kong Limited together hold a total of 245 million shares in Nexchip, raising their combined shareholding to 11.03%. In the first quarter of 2026, Nexchip achieved revenue of 2.912 billion yuan and a net profit attributable to the parent company of 50.66 million yuan.

Huaqin Technology's wholly owned subsidiary Huaqin Communications acquired a total of 2 million H-shares of Nexchip through the Hong Kong Stock Exchange, representing approximately 0.09% of Nexchip's total issued share capital, for a total consideration of HK$65.77 million, or about HK$32.95 per share. After the acquisition, Huaqin Technology's shareholding in Nexchip increased to approximately 10.91%. In the first quarter of 2026, Huaqin Technology achieved revenue of 40.746 billion yuan and net profit attributable to the parent company of 1.061 billion yuan.

Nexchip Semiconductor globally offered 216 million H shares at an offer price of HK$32.30 per share, with estimated net proceeds of approximately HK$6.779 billion. The company disclosed the offering details in an announcement on July 10. In the first quarter of 2026, Nexchip Semiconductor achieved revenue of RMB 2.912 billion and net profit attributable to the parent company of RMB 50.66 million.

China's Nexchip Semiconductor is seeking to raise up to HK$6.98 billion, equivalent to $890.26 million, in a Hong Kong share sale. The chip firm is offering 216.2 million shares at a maximum price of HK$32.30 each, with trading of the H shares expected to begin on July 10. Nexchip plans to use about 53.6% of the proceeds for research and development and optimization of its 22 nm technology platform, and some of the funds for production initiatives based on AI technology. The company, however, sees lower net profit for 2026 compared to a year ago, mainly due to anticipated depreciation costs from its new production facility. Cornerstone investors include a unit of Chinese automotive firm Chery Automobile.