Gelonghui November 1st 丨Jingrui Electric Materials (300655.SZ) announced that Ruihong (Suzhou) Electronic Chemicals Co., Ltd. (“Ruihong Suzhou”), a holding subsidiary of the company, plans to introduce a strategic investor, Sinopec Group Capital Co., Ltd. (“Sinopec Capital”), due to business development needs, to raise about RMB 850 million through the targeted issuance of 100,830,368 shares to it to raise about RMB 850 million for the R&D, procurement, production and sales of Ruihong's advanced process semiconductor photoresist and supporting reagents business. The company and wholly-owned subsidiaries invest in Fengsu (Jiangsu)) Co., Ltd. (“Shanfeng Investment” for short) and Ruihong Lithium Battery Materials (Suzhou) Co., Ltd. (“Ruihong Lithium Battery”), a wholly-owned subsidiary, have all relinquished the stock subscription rights for Ruihong Suzhou's targeted issuance of shares. At the same time, no priority subscription arrangements have been made for the registered shareholders of Ruihong Suzhou.
After the targeted issuance of shares by Ruihong Suzhou is completed, the proportion of shares directly held by the company and wholly-owned subsidiaries in Ruihong Suzhou will be reduced from 89.90% to 64.84%. The introduction of strategic investors by Ruihong Suzhou will not change the scope of the company's consolidated statement.
The company, Sinopec Capital, and Luo Peinan have signed the “Investment Agreement on Ruihong (Suzhou) Electronic Chemicals Co., Ltd.” regarding Sinopec Capital's investment in Ruihong Suzhou.