Xinhenghui: Plans to invest 130 million yuan of raised funds in the expansion project for etching and testing.

Xinhenghui announced that the company plans to use part of the over-raised funds of 87.8165 million yuan from its initial public offering and 42.1835 million yuan of its own funds to invest 130 million yuan in the expansion of the etching lead frame production workshop and the expansion project for IoT eSIM chip packaging and testing. The construction period for the project is 16 months. The IoT eSIM chip packaging and testing expansion subproject is expected to achieve an annual operating income of 22 million yuan and a net profit of 5.6876 million yuan upon reaching full production. This matter has been reviewed and approved by the board of directors and the audit committee, but still requires approval from the shareholders' meeting.