Xi'an Yicai to Raise 5.5 Billion Yuan for Wuhan Unit, Stake to Fall to 20%-30%

Xi'an Yicai announced on the evening of August 6 that it plans to introduce strategic investors to jointly make a new investment of 6.5 billion yuan in its wholly-owned subsidiary Wuhan Yicai. The company will contribute 1 billion yuan from its own funds, while strategic investors will contribute a combined 5.5 billion yuan. Upon completion of the financing, the company's stake in Wuhan Yicai will fall from 100% to between 20% and 30%, but it will retain control, and the subsidiary will continue to be consolidated into the company's financial statements. The transaction constitutes a related-party transaction, has been approved by the company's board of directors, and remains subject to shareholder approval.

The Wuhan project had completed preliminary groundwork earlier. In December 2025, the company's board and interim shareholder meeting approved relevant resolutions, with an initial capital contribution of 500 million yuan to establish Wuhan Yicai, which in turn established Wuhan Silicon Wafer as the project implementation entity. The project is now fully underway. The new total investment is 6.5 billion yuan, with a pre-investment valuation of 500 million yuan, and all parties will contribute in cash. The 5.5 billion yuan financing includes follow-on investment shares from the core teams of the company and its controlled subsidiaries, totaling 80 million yuan, of which 30 million yuan is for the current investment and 50 million yuan is an option for additional investment.

The transaction was approved at the second meeting of the company's second board of directors, with related directors abstaining from voting. It remains subject to shareholder approval and does not constitute a major asset restructuring. After the financing is completed, Wuhan Yicai will continue to wholly own Wuhan Silicon Wafer.

The Wuhan project has a planned capacity of 500,000 wafers per month. As of May 2026, the main factory building had been topped out. Equipment move-in is planned for October 2026, with first-phase production capacity expected to commence in the first half of 2027. When all three plants currently under construction reach full capacity, the company's total capacity will exceed 1.8 million wafers per month. The announcement noted that the relevant investors have not yet completed agreement signing and fund settlement, and that due to investment sentiment and the financing environment, there is some uncertainty as to whether the financing target can be fully achieved.