Zhongying Electronics Co., Ltd. (hereinafter referred to as "Zhongying Electronics" or the "Company" or the "Issuer") is a company listed on the Growth Enterprise Market of the Shenzhen Stock Exchange. To meet the capital needs for the development of listed companies and increase the capital strength of listed companies, in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," and the "Administrative Measures for the Registration of Issuance of Securities by Listed Companies" (hereinafter referred to as the "Administrative Measures"), a justification analysis report for the proposed issuance of shares to specific targets has been prepared.
I. Background and Purpose of the Proposed Issuance of Shares to Specific Targets
(I) Background of the Proposed Issuance of Shares to Specific Targets
- Driven by National Strategy and Industrial Policy, Chip Localization Accelerates
In recent years, the state has attached great importance to the independent control and safe development of the semiconductor industry chain. From the "New Energy Vehicle Industry Development Plan (2021-2035)" issued by the State Council, which identifies automotive chips as a core technology, to the release of the "Guidelines for the Construction of the National Automotive Chip Standard System" by the Ministry of Industry and Information Technology, the strategic goal of improving the localization rate of automotive-grade chips has been clearly defined. 2026 marks the beginning of the "15th Five-Year Plan," and the state's strategic deployment for the integrated circuit industry has been further upgraded. The "Outline of the 14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives Through 2035" clearly proposes to "take extraordinary measures to promote breakthroughs in key core technologies in key areas such as integrated circuits, industrial mother machines, high-end instruments, and basic software throughout the entire chain," and lists integrated circuits as the primary "emerging pillar industry," requiring efforts to "refine mature processes, enhance the manufacturing capabilities of advanced processes, and accelerate the development of key equipment, materials, and components."
Currently, the localization rate of automotive chips in China remains at a low level, with some key areas below 10%. The global automotive chip market is dominated by international giants such as Infineon, Renesas, NXP, and Texas Instruments, leaving significant room for domestic substitution. At the same time, the demand for independent and controllable core chips in national strategic emerging fields such as industrial automation and energy storage is equally urgent. Zhongying Electronics' proposed investment projects focus on the R&D and industrialization of high-end industrial-grade (including automotive-grade) chips, which highly aligns with the national top-level strategy and industrial development orientation, and is an important measure to respond to the national call and promote the localization of chips in key areas.
- Explosive Growth in Downstream Application Markets, Sustained Strong Demand for High-End Chips
With the rapid increase in the penetration rate of new energy vehicles and the deep development of automotive electrification and intelligence, the number of chips per vehicle has increased from 600-700 in traditional fuel vehicles to 1,600 in electric vehicles, and even about 3,000 in intelligent vehicles. Among these, MCUs, power semiconductors, and battery management chips are core necessities. At the same time, the installation capacity of industrial and commercial energy storage and household energy storage is experiencing explosive growth, coupled with the continuous improvement of performance requirements for industrial automation, jointly driving the sustained expansion of the automotive-grade and industrial-grade chip markets. However, the high-end chip market has long been dominated by international manufacturers, facing issues such as long delivery cycles, high prices, and lagging technical responses, providing an excellent window of opportunity for domestic chip manufacturers with core technology capabilities.