Jiangsu Zhanxin Semiconductor Technology Co., Ltd.
Special Announcement on Investment Risks of Initial Public Offering and Listing on the ChiNext Market
Sponsor (Lead Underwriter): Huatai United Securities Co., Ltd.
The application of Jiangsu Zhanxin Semiconductor Technology Co., Ltd. (hereinafter referred to as the "Issuer" or the "Company") for an initial public offering of RMB-denominated ordinary shares (A-shares) and listing on the ChiNext market (hereinafter referred to as the "Offering") has been approved by the Listing Committee of the Shenzhen Stock Exchange (hereinafter referred to as the "SZSE") and registered with the China Securities Regulatory Commission (hereinafter referred to as the "CSRC") (Zheng Jian Xu Ke [2026] No. 1264).
The Issuer and the sponsor (lead underwriter), Huatai United Securities Co., Ltd. (hereinafter referred to as "Huatai United Securities", "Sponsor (Lead Underwriter)", or "Lead Underwriter"), have determined through consultation that the number of shares to be issued is 41.12 million, representing 10.00% of the total share capital after the Offering. All shares are newly issued, and there will be no transfer of old shares by existing shareholders. The shares are intended to be listed on the ChiNext market of the SZSE.
The Offering price of 23.45 yuan/share corresponds to a diluted price-to-earnings ratio of 44.23x based on the Issuer's 2025 net profit attributable to shareholders of the parent company (after deducting non-recurring gains and losses, whichever is lower). This is lower than the average static P/E ratio of 73.63x for the "C39 Computer, Communication and Other Electronic Equipment Manufacturing" sector as published by China Securities Index Co., Ltd. on July 21, 2026 (T-4 day), and lower than the average static P/E ratio of 52.56x for comparable companies in the same industry. However, there remains a risk of future share price declines causing losses to investors. The Issuer and the Sponsor (Lead Underwriter) advise investors to pay attention to investment risks, prudently evaluate the rationality of the pricing, and make rational investment decisions.
The Issuer and the Sponsor (Lead Underwriter) specifically draw investors' attention to the following:
- The Offering adopts a combination of targeted placement to investors participating in strategic placement (hereinafter referred to as "Strategic Placement"), inquiry-based placement to qualified offline investors (hereinafter referred to as "Offline Offering"), and pricing-based issuance to public investors holding non-restricted A-shares or non-restricted depository receipts in the Shenzhen market (hereinafter referred to as "Online Offering").
The Offline Offering will be conducted through the SZSE offline issuance electronic platform; the Online Offering will be conducted through the SZSE trading system using the market-cap-based subscription pricing method.