Shanghai Xinyang plans to acquire Shanghai Huiyan and increase its investment in Bolai Electronics, and will invest in the second-phase project of its second production base.

On February 15, Shanghai Xinyang disclosed a relevant announcement stating that the company will invest in and build the second-phase project of its second production base, acquire Shanghai Huiyan, and increase capital investment in Bolai Electronics.
Investing 320 million yuan to build the second-phase project of the second production base.
The announcement shows that Shanghai Xinyang recently signed an “Investment Cooperation Agreement” with the Management Committee of Hefei Xinzhuan High-Tech Industrial Development Zone, reaching an agreement on the company’s investment in and construction of the second-phase project of its second production base within the jurisdiction of the Hefei Xinzhuan High-Tech Industrial Development Zone Management Committee. The total investment for this project is approximately RMB 320 million, covering an area of 40 mu. The project will primarily focus on the research, development, production, and sales of key process chemical materials for integrated circuits, including chip cleaning solutions and polishing slurries.

The aforementioned project is expected to generate an annual output value of approximately 500 million yuan once it reaches full capacity. Mass production is projected to begin in 2024, and full capacity is anticipated by 2030. The project’s estimated annual total energy consumption is about 2,600 tons of standard coal equivalent.

Acquired 100% equity of Shanghai Huiyan for 33 million yuan.

On the same day, Shanghai Xinyang issued another announcement stating that Shanghai Xinyang Semiconductor Materials Co., Ltd. (hereinafter referred to as “Shanghai Xinyang”) had signed a Share Transfer Agreement with Shanghai Xinhui Asset Management Co., Ltd. (hereinafter referred to as “Shanghai Xinhui”) and Shanghai Ance Semiconductor Technology Co., Ltd. (hereinafter referred to as “Ance Semiconductor”). Under the agreement, the company acquired 100% equity of Shanghai Huiyan Materials Technology Co., Ltd. (hereinafter referred to as “Shanghai Huiyan”) for RMB 33 million.

Publicly available information indicates that Shanghai Huiyan primarily engages in the research and development of polishing liquids used in semiconductor chip manufacturing processes. According to Qichacha, Shanghai Huiyan has a registered capital of 80 million yuan. Among this, Shanghai Xinhui holds a 70% stake, while Ance Semiconductor holds a 30% stake in Shanghai Huiyan. Since both Shanghai Huiyan and Shanghai Xinyang share the same controlling shareholder—Shanghai Xinhui—this transaction constitutes a related-party transaction.

After the transfer is completed, Shanghai Xinyang will hold 100% equity in Shanghai Huiyan.

Shanghai Xinyang stated that, through collaborative development of chemical-mechanical polishing technology, the company has achieved significant results after more than a year of dedicated effort and has already secured orders from some customers. In line with its future business expansion needs, the company plans to acquire all equity interests in Shanghai Huiyan. By leveraging the listed company’s platform and resources, Shanghai Huiyan will be able to secure additional market resources, accelerate the pace of domestic substitution for its products, and sooner achieve the company’s strategic goals, thereby speeding up the realization of the nation’s policy on domestic chip production.

Proposed to increase capital investment in Bolai Electronics by 20 million yuan.

On the same day, Shanghai Xinyang disclosed its investment in the CMP polishing liquid project. In order to continuously expand its business scope and product application areas, tackle national “bottleneck” engineering projects, and create synergies with the company’s CMP polishing liquid project, Shanghai Xinyang signed a capital increase agreement with Suzhou Bolaina Run Electronic Materials Co., Ltd. (hereinafter referred to as “Bolaina Electronics”).

Following mutual consultation and agreement, the company plans to increase its investment in Bolai Electronics by RMB 20 million using its own funds. After the capital increase is completed, the company will hold a 9.1% equity stake in Bolai Electronics.

It is reported that Bolai Electronics primarily engages in the development, production, and sales of grinding and polishing materials. Currently, Bolai Electronics’ grinding fluid-related products have entered the stage of online testing and small-batch production and sales; however, there remains a risk that market development may fall short of expectations. Shanghai Xinyang stated that it will do its utmost to leverage its existing technological and market advantages to mitigate the aforementioned investment risks.

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