Hwatsing Technology (SHA:688120) agreed to acquire the remaining 82% stake it does not own in Xinyu Semiconductor Shanghai for 1.00 billion yuan.

Following the deal, Xinyu Semiconductor Shanghai will become a wholly-owned subsidiary of the high-end semiconductor equipment manufacturer, according to a Wednesday filing with the Shanghai bourse.

Xinyu Semiconductor Shanghai is currently in a loss-making state and expected to continue to lose money in the short term.

Hwatsing Technology said it will invest to achieve continuous iteration and upgrading of ion implantation equipment and new product development.

Shares of Hwatsing Technology were down 1% in recent trade.