HUAQIN Co., Ltd. (HUAQIN) announced that its wholly owned subsidiary, Hefei Qinhe Electronic Technology Co., Ltd., has signed a Share Transfer Agreement to purchase 100.38 million A-shares—equivalent to 5.0% of Nexchip Semiconductor Corp.—from Taiwan-based Powerchip Innovation Investment Holdings Co., Ltd. for RMB2.65 billion in cash, or RMB26.41 per share.

Payment Terms • 30% of the consideration (roughly RMB0.80 billion) will be deposited in a jointly managed account within five business days of signing. • The remaining 70% (about RMB1.86 billion), adjusted for tax withholdings, will be paid within five business days after share transfer registration is completed and confirmed by China Securities Depository and Clearing Corporation (CSDC).

Post-transaction Structure • HUAQIN’s equity interest in Nexchip will rise from 6.0% (acquired in July 2025) to 11.0%. • Powerchip Innovation’s holding will fall from 13.07% to approximately 8.07%. • All shares will be settled in cash from HUAQIN’s internal resources.

Regulatory Classification Aggregated with the 2025 purchase, the deal exceeds the 5% but remains below the 25% asset ratio threshold under Hong Kong Listing Rule 14.07, classifying it as a discloseable transaction. It requires announcement but not shareholder approval. Completion is conditional on Shanghai Stock Exchange compliance confirmation and CSDC registration.

Strategic Rationale HUAQIN views Nexchip as a key partner for upstream–downstream integration in semiconductor manufacturing, aiming to deepen resource sharing and enhance its competitiveness in smart-device solutions that leverage AI, IoT, big data and communications technologies.

Profile of Nexchip Semiconductor • Revenue: RMB9.25 billion (2024) and RMB10.89 billion (2025); RMB2.91 billion in Q1 2026. • Profit before tax: RMB0.48 billion (2024), RMB0.47 billion (2025), and RMB28.57 billion in Q1 2026. • Net profit attributable to shareholders: RMB0.53 billion (2024), RMB0.70 billion (2025), and RMB50.66 billion in Q1 2026. • Total assets stood at RMB54.71 billion as of 31 March 2026, with net assets attributable to shareholders at RMB21.92 billion.

Cautionary Note Because completion hinges on regulatory and procedural approvals, the acquisition may not proceed as planned. Investors are advised to exercise caution when dealing in HUAQIN securities.