Fuxin Technology: Subsidiary Fuxin Thermoelectric Devices plans to introduce Yuanzhi Spark through capital increase and share expansion

On the evening of October 27, Fuxin Technology announced that Guangdong Fuxin Thermoelectric Device Technology Co., Ltd., a wholly-owned subsidiary of Guangdong Fuxin Technology Co., Ltd. (hereinafter referred to as “Device Company”) intends to introduce a strategic investor Shenzhen Yuanzhi Spark Private Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as “Yuanzhi Spark”) through capital increase and share expansion.

According to the content of the announcement, Yuanzhi Spark plans to subscribe for the newly added registered capital of the device company of 16 million yuan with a capital increase of 20 million yuan. After the capital increase, Fuxin Technology’s shareholding in the device company dropped from 100% to 83.33%.

In the overview of the transaction, Fuxin Technology stated that due to the high performance requirements of semiconductor thermoelectric devices used in communication, automotive, medical and other industrial fields, the current market in this application field is mainly in the hands of foreign-funded enterprises, which have advanced technology in the aforementioned fields. Development advantages and rich industry experience. However, most domestic enterprises are still in the stage of technological upgrading due to their late start, and there is still a certain gap between the technological level and the international advanced level. The company is a participant and pioneer of a few domestic brands in this field. The device company, a wholly-owned subsidiary of the company, plans to introduce strategic investors through capital increase and share expansion to promote the technological progress and product innovation of the device company.

In addition, according to the content of the announcement, the business scope of the device company is the manufacture of electronic components. Regarding the financial status of the device company, Fuxin Technology introduced that the business in the industrial fields such as communications, automobiles, and medical care has been operated by Fuxin Technology, and the device company has not operated independently since its establishment. Therefore, as of September 30, 2022, the device company’s assets, liabilities and operating income are zero.

Fuxin Technology said that the company is a participant and pioneer of a few domestic brands in the fields of communication, automobile, medical and other industries. After the device company introduces strategic investors, it will develop in-depth synergy with Yuanzhixinghuo, promote the technological progress and product innovation of the device company, and jointly promote the development of the industry. After the completion of this transaction, the company’s shareholding ratio in the device company has been changed from 100% to 83.33%, which does not affect the scope of the company’s consolidated financial statements and does not harm the interests of the company and shareholders. (Proofreading / Li Shuai)