HK Stock Market Move | Nexchip Semiconductor Corporation (02249) rose nearly 4% recently, planning to increase capital to Anhui Ruijing Semiconductor by transferring all the equity of Hefei Ruijuh Technology.

Nexchip Semiconductor Corporation (02249) rose nearly 4%, and as of the time of writing, it is up 3.55%, trading at HKD 28.64, with a transaction volume of HKD 15,697,500. In terms of news, recently, Nexchip Semiconductor Corporation announced that the company has entered into a capital increase and shareholder agreement with the target company Anhui Ruijing Semiconductor, existing shareholders, and other capital contributors. The agreement involves the company planning to invest RMB 240,916,988.78 by subscribing for the newly registered capital of the target company, corresponding to 100% equity it holds in Hefei Ruijue Technology; and the other capital contributors will collectively subscribe for the newly registered capital of RMB 170,000,000 in cash. This capital increase will help the company further focus on its main business and optimize its industrial layout, as well as integrate the assets related to power device wafer thinning and metallization foundry (BGBM business) into the target company, aligning with the target company's production line construction needs and enhancing the company's asset operational efficiency. Meanwhile, by holding equity in the target company, the company can leverage the respective resources and industrial advantages with other shareholders of the target company to accelerate the business development of the target company and share the potential investment returns brought by its future growth.