en.Wedoany.com Reported - On June 30, China's Meichuang Shares announced that the company signed a "Capital Increase and Share Expansion Agreement" with China's Longteng Semiconductor Co., Ltd. and its actual controller Xu Xichang on June 29. China's Meichuang Shares plans to use its own funds of 300 million yuan to subscribe for 12 million new shares of Longteng Semiconductor, corresponding to a registered capital of 12 million yuan. Upon completion of this investment, China's Meichuang Shares will hold a total of 12 million shares of Longteng Semiconductor, representing a shareholding ratio of 5.729%.
The price per share for this capital increase is 25 yuan, with the premium portion included in Longteng Semiconductor's capital reserve. In addition to Meichuang Shares, Longteng Semiconductor's capital increase also introduced other investors, who subscribed at the same price of 25 yuan per share, for a total of 36.2 million shares, with a total investment of 905 million yuan, including 125 million yuan in debt-to-equity swaps. Based on the disclosed structure, the total funds raised in this round exceed 1.2 billion yuan, with Meichuang Shares contributing 300 million yuan as one of the financial investment participants. The company has requested the board of directors to authorize management to handle the specific matters involved in this investment, and subsequent steps will proceed with capital contributions, business registration changes, and equity registration.
China's Longteng Semiconductor is primarily engaged in the research, design, and manufacturing of power semiconductor devices, with products including SGT MOSFET, SJ MOSFET, and VDMOS, applied in fields such as consumer electronics, LED lighting, and industrial power supplies.
Power semiconductors perform functions such as power conversion, switching control, voltage regulation, and power management, serving as fundamental components in power supplies, drives, electronic controls, and energy conversion systems. SJ MOSFET is suitable for high-voltage, high-efficiency power supply scenarios, VDMOS is commonly used in medium-to-high voltage power switches, and SGT MOSFET targets power conversion needs requiring higher efficiency and lower conduction losses. Although consumer electronics, LED lighting, and industrial power supplies differ in their end-product forms, they all rely on stable, efficient, and reliable power devices for support. If Longteng Semiconductor continues to expand its R&D and manufacturing capabilities, the capital increase will help strengthen its product iteration, capacity building, customer certification, and supply chain assurance.
China's Meichuang Shares' original core business is centered on electroplated diamond wire, serving long-term applications in hard and brittle material processing such as photovoltaic silicon wafer cutting, sapphire cutting, and magnetic material cutting. This investment in Longteng Semiconductor represents an external investment outside its main business. The company's announcement also clarifies that this investment is a financial investment, and Meichuang Shares will not participate in the daily operations and management of the target company, nor will it lead to changes in the company's main business. In other words, Meichuang Shares has not directly transitioned into power semiconductor manufacturing; at this stage, it is closer to participating in the growth opportunities of the semiconductor industry chain through equity investment.
Such cross-industry investments require distinguishing between "industrial synergy" and "financial investment." Meichuang Shares' core capabilities are concentrated in diamond wire manufacturing and hard and brittle material cutting consumables, while Longteng Semiconductor's core business lies in power device R&D, design, and manufacturing—these are not part of the same main business line. By investing 300 million yuan to acquire a 5.729% equity stake, Meichuang Shares gains exposure to the target company's future growth returns, but it will not directly alter the company's revenue structure, product mix, or business model in the short term. Longteng Semiconductor must still rely on its own product capabilities, customer acquisition, manufacturing efficiency, and market demand to realize growth.
The announcement also notes that the target company is experiencing sustained losses and has a high debt-to-asset ratio, introducing uncertainty risks for this investment. The power semiconductor industry is highly cyclical, with product prices, downstream demand, capacity utilization, customer certification cycles, and technological iterations all impacting business performance. Meichuang Shares' use of its own funds for the capital increase avoids directly increasing debt pressure but also means this investment will tie up the company's available capital. If Longteng Semiconductor subsequently improves operations, ramps up product volumes, and enters higher-value application areas, Meichuang Shares can share in the appreciation through its equity holdings; if the target company's losses widen or market progress falls short of expectations, investment returns and asset values may also face volatility.
