Hubei Science Investment Bondholders Reject 39% Wuhan Xinxin Stake Sale, Yangtze Memory's 33B IPO Sets Record

The bondholder meeting of Hubei Science and Technology Investment Group did not approve the transfer of a 39% stake in Wuhan Xinxin. On August 26, Hubei Science and Technology Investment Group Co. , Ltd. disclosed the meeting resolution announcement, showing the transfer was voted "not approved," with 31.00% in favor, 0.50% against, and 0.00% abstentions. As the votes cast did not reach two-thirds of total voting rights, no valid resolution was formed. The core asset of the transaction was a 39% stake in Wuhan Xinxin, with the buyers being Hubei Science Investment's subsidiaries Optics Valley Semiconductor and Guangxin Qihang. According to Yangtze Memory's recently filed prospectus, the stake transfer was completed on July 9, 2026.

Yangtze Memory is China's only memory IDM with independent 3D NAND flash R&D and production capabilities. According to TrendForce data, from January to March 2026, the company ranked third globally and first in China among NAND flash manufacturers by both sales value and shipment volume. In this IPO, Yangtze Memory plans to raise 33 billion RMB, surpassing Changxin Technology's 29.5 billion RMB and SMIC's 20 billion RMB, making it the largest proposed fundraising on the STAR Market. In May 2026, Yangtze Memory and Wuhan Xinxin each advanced key capital moves on the same day—Yangtze Memory officially initiated its IPO tutoring, while Wuhan Xinxin withdrew its previously submitted STAR Market listing application.

According to Hubei Science Investment's major asset restructuring announcement on July 17, in June 2026, its subsidiaries Optics Valley Semiconductor and Guangxin Qihang signed agreements with Yangtze Memory and Wuhan Xinxin, stipulating that Yangtze Memory would transfer a 9.00% stake in Wuhan Xinxin to Optics Valley Semiconductor and a 30.00% stake to Guangxin Qihang. After the transaction, Optics Valley Semiconductor directly and indirectly holds a total of 43.4423% of Wuhan Xinxin (including the previously held 4.4423%), becoming its largest shareholder. Based on calculations, the target company's revenue accounts for more than 50% of Hubei Science Investment's audited 2025 revenue, meeting the threshold for major asset restructuring.

In its prospectus disclosed on August 21, Yangtze Memory stated that after the transaction, its stake in Wuhan Xinxin would drop from 68.19% to 29.19%, and Wuhan Xinxin would no longer be consolidated into its financial statements. Shen Meng, director of Chanson Capital, analyzed that the vote results showed very few against or abstentions; the core issue was that the number of bondholders attending the meeting did not meet legal requirements. Those who attended largely approved.

Hubei Science Investment is the parent company of Optics Valley Semiconductor, not the acquirer or transferor in this transaction. Its bondholder meeting cannot replace Optics Valley Semiconductor's internal decision-making. If Optics Valley Semiconductor and Yangtze Memory each lawfully fulfilled their internal decision procedures, the stake transfer is valid, and the bondholder meeting's rejection generally does not constitute a direct denial of Optics Valley Semiconductor's acquisition. However, Hubei Science Investment pushing Optics Valley Semiconductor to complete the delivery before the meeting constitutes a procedural reversal, and bondholders can claim breach of contract based on the prospectus, even demanding early debt repayment.

Shen Meng analyzed that this divestment of Wuhan Xinxin shares by Yangtze Memory involves the asset scale and structure of the listed entity.