Xiamen Hongxin Electronics Group Co., Ltd. (hereinafter referred to as "the Company" or "Hongxin Electronics") guarantees that the content of this announcement is true, accurate, and complete, and that there are no false records, misleading statements, or significant omissions.
On March 20, 2026, the fifth meeting of the fifth board of directors of the Company reviewed and approved the proposal on the capital increase and introduction of external investors for its wholly-owned subsidiary, Shanghai Suihong Huachuang Technology Co., Ltd. (hereinafter referred to as "Suihong Huachuang"). The Company agrees to introduce strategic investor Suzhou Wuyue Hongchuang Venture Capital Partnership (Limited Partnership) (hereinafter referred to as "Hongchuang Fund" or "this round of investors") through a capital increase. The relevant details are announced as follows:
I. Transaction Overview
(1) Capital Increase and Introduction of External Investors by Suihong Huachuang
In accordance with the Company's strategic layout and operational development needs, to accelerate the deployment of the AI computing power business in the Yangtze River Delta region, Suihong Huachuang intends to introduce external investor Hongchuang Fund through a capital increase. The Company, Suihong Huachuang, the Company's actual controller Mr. Li Qiang and his spouse Ms. Wang Xiayun (hereinafter collectively referred to as "Mr. Li Qiang"), and Zhoushan Huhong Zhichuang Equity Investment Partnership (Limited Partnership) (minority shareholder of Suihong Huachuang, hereinafter referred to as "Huhong Zhichuang") intend to sign the "Capital Increase Agreement" with Hongchuang Fund, which will subscribe to the newly registered capital of Suihong Huachuang at a price of RMB 200 million, to be paid in two installments. Upon completion of this capital increase, Suihong Huachuang's registered capital will increase from RMB 100 million to RMB 105.263158 million, and the Company's shareholding in Suihong Huachuang will decrease from 60% to 57%, while Hongchuang Fund will hold 5% of Suihong Huachuang's equity. For details, please refer to "V. Main Content of the Transaction Agreement" under the "Capital Increase Agreement." After the completion of this capital increase, Suihong Huachuang will still be a wholly-owned subsidiary of the Company, and the scope of the Company's consolidated financial statements will not change.
(2) Basic Situation of Suihong Huachuang's External Investment
Based on the trillion-level industrial foundation of Changshu City and the "Artificial Intelligence +" strategic layout, leveraging the Company's core competitiveness in green computing power full-stack solutions and AI ecosystem construction, Suihong Huachuang intends to sign the "Investment Agreement" with the Office of Intelligent Computing Future City of Changshu National University Science and Technology Park (hereinafter referred to as "Intelligent Computing Office"). Suihong Huachuang will invest in the construction of a national core model adaptation reform base in Changshu City and officially commence production by December 31, 2026; during the period from 2026 to 2030, it will complete fixed asset investments in Changshu City totaling no less than RMB 550 million and introduce no fewer than 20 ecological partner enterprises.
(3) Transaction Authority
This transaction is within the approval authority of the Company's board of directors and does not require submission to the shareholders' meeting for deliberation. According to the "Shenzhen Stock Exchange GEM Stock Listing Rules," this transaction does not constitute a related party transaction; nor does it constitute a major asset reorganization as defined by the "Administrative Measures for Major Asset Restructuring of Listed Companies."