HUAQIN's stock plummeted 5.96% during intraday trading on Wednesday, following the company's announcement of a major acquisition.
The company revealed plans to acquire an additional 5% stake in Nexchip Semiconductor Corporation for RMB 2.65 billion in cash, increasing its total holding to 11%. The transaction involves purchasing approximately 100.4 million shares from Powerchip Venture Capital at RMB 26.41 per share.
This significant cash outlay for the semiconductor foundry investment appears to have concerned investors, leading to the sharp price decline. The acquisition is classified as a discloseable transaction under Hong Kong listing rules and is subject to regulatory approvals.