002674SZSE
🚨 Material Event

Announcement on Abnormal Fluctuations in Stock Trading

Xingye Technology Co., Ltd.··4 pages

✨ AI Summary

This announcement addresses the company's stock price experiencing abnormal fluctuations, deviating by over 20% in three consecutive trading days. The company has conducted an internal review and confirmed the fluctuations are primarily due to the recent announcement of its subsidiary acquiring indium phosphide business and assets. The company also highlights risks associated with this acquisition and its existing business.

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Full Translation

AI Translation· gemini_document

Securities Code: 002674

Securities Abbreviation: Xingye Technology

Announcement Number: 2026-049

Xingye Leather Technology Co., Ltd.

Announcement on Abnormal Fluctuations in Stock Trading

The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from any false records, misleading statements, or material omissions.

Special Note:

  1. Xingye Leather Technology Co., Ltd. (hereinafter referred to as the "Company") announced on July 24, 2026, the "Announcement on the Acquisition of Indium Phosphide Business and Assets by a Wholly-Owned Subsidiary." On July 23, 2026, the Company held the Fifth Extraordinary Meeting of the Seventh Board of Directors, which deliberated and approved the "Proposal on the Acquisition of Indium Phosphide Business and Assets by a Wholly-Owned Subsidiary." On the same day, the Company, its wholly-owned subsidiary Jiangsu Xingguang Semiconductor Co., Ltd. (hereinafter referred to as "Jiangsu Xingguang"), and Qingdao Leapond Crystal Technology Co., Ltd. (hereinafter referred to as "Qingdao Leapond"), among other parties, signed the "Acquisition Agreement for Indium Phosphide Business and Assets."

  2. The total assets of the acquired indium phosphide business and assets are RMB 17.0246 million, with net assets of RMB 6.3704 million. Revenue from January to May 2026 was RMB 2.3438 million, with a net profit of RMB -1.4409 million. The existing order backlog does not exceed RMB 2 million. It is estimated that the acquisition of the indium phosphide business and assets will have a minimal impact on the Company's current profit.

  3. The Company's current main business is the processing and sales of natural leather materials. It lacks technical R&D, production operations, and market development experience in the semiconductor new materials field. The Company's existing equipment, technology, personnel, and customer channels are unrelated to the semiconductor new materials field, which may lead to insufficient management adaptability and pose a risk of negatively impacting the future development of the indium phosphide substrate business.

  4. The acquired indium phosphide assets have not been profitable for the past three years. Qingdao Leapond has pledged not to establish new indium phosphide substrate and semiconductor electronic materials production lines in Pizhou City, Jiangsu Province. Apart from this, Qingdao Leapond's R&D, manufacturing, and sales of indium phosphide substrates and semiconductor electronic materials are not restricted in any way. Following the acquisition of the indium phosphide substrate business and assets, there is a risk that this business may not be profitable in the short term.

  5. The products of the acquired assets are mainly 2-inch and 3-inch indium phosphide substrates, which are common in the market. Currently, downstream customers have high thresholds for verifying 4-inch indium phosphide substrate products, which may lead to the risk of customer verification failure. The current downstream customers are primarily epitaxial wafer manufacturers.

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