Nsing Technologies Inc. (300077.SZ), also known as NSING TECH, has announced a plan to invest in and take a stake in Nanjing YouCun Technology Co., Ltd. This move is aimed at continuously enhancing the company's competitive edge in MCU product technology across the board.

To further strengthen its customized technology advantages in NOR Flash external storage MCUs, in addition to its existing strengths in embedded storage MCU technology, the company intends to use 60 million yuan from its H-share "strategic investment and acquisition" special-purpose raised funds. According to the announcement, this investment will subscribe to 496,196 yuan of newly increased registered capital in Nanjing YouCun, based on a pre-investment valuation of 590 million yuan.

Upon the completion of this transaction, the company will obtain an 8.3333% equity stake in the target company. The difference between the investment amount and the newly increased registered capital will be included in the target company's capital surplus. Following this investment, Nanjing YouCun will become an associate company of Nsing Technologies and will not be included in the company's consolidated financial statements.

The strategic rationale behind this investment is to solidify the company's technical lead in embedded storage MCUs while simultaneously supplementing its capabilities in customized NOR Flash external storage MCU solutions. By investing in a target company with mature NOR Flash R&D and production capabilities, Nsing Technologies aims to improve the controllability of external storage supply, secure long-term strategic synergies, and unlock potential future investment returns, all while ensuring the stable development of its core business. This initiative is expected to bolster the company's overall competitiveness and facilitate the achievement of its broader strategic objectives.