Xianddao Semiconductor Plans Non-Public Offering Not Exceeding 3.51 Billion Yuan for Four Industrialization Projects

Shanghai Securities News China Securities Journal Report: On March 21, Lead Intelligent Electric disclosed a pre-plan for issuing A-shares to specific targets in 2026. The company plans to raise no more than 3.51 billion yuan from its controlling shareholder’s related party, Lead Technology Group Co., Ltd., to fund four industrialization projects in semiconductor, new materials, and scientific instruments.

The purpose of this issuance is to strengthen the foundation of the main business, enhance long-term competitiveness, and further deepen strategic transformation. The targeted private placement aims to raise no more than 3.51 billion yuan, with all funds, after deducting issuance costs, to be used for four business-related industrialization projects. After completion, the company’s capital structure will be significantly optimized, and the asset-liability ratio will be further reduced, providing solid financial support for major project implementation and business expansion.

Notably, the issuance target is Lead Technology Group Co., Ltd. (“Lead Technology”), controlled by the company’s actual controller, Mr. Zhu Shihui. After the issuance, Lead Technology and its concerted action partner, Lead Hui Xin (Shanghai) Technology Investment Co., Ltd., will increase their combined shareholding from 24.27% to 39.57%, further consolidating the company’s control. Lead Technology has committed that the shares subscribed in this offering will not be transferred within 36 months from the end of the issuance, demonstrating the controlling shareholder’s recognition of the company’s long-term value and strategic confidence.

According to the announcement, the private placement projects focus on key segments of the semiconductor industry chain, including semiconductor optical components, precision parts and subsystems, high-end scientific instruments, and materials business upgrades and transformations.

Specifically, the semiconductor optical components R&D and industrialization project aims to break through key technologies of high-end optical components and special light sources such as ultra-high-pressure mercury lamps and short-arc xenon lamps, providing technical support for domestic advanced integrated circuit manufacturing systems; the semiconductor precision parts and subsystems R&D and industrialization project will focus on core subsystems like reaction chamber modules, deposition modules, and transmission modules, promoting localization of semiconductor equipment parts; the high-end measurement equipment and life sciences instruments R&D and industrialization project will develop high-end scientific instruments such as mass spectrometry, chromatography, spectroscopy systems, and high-performance microscopes, seizing the localization development window; the bismuth material business upgrade and transformation project will focus on high-end bismuth compounds like scintillation crystal-grade ultra-high-purity bismuth oxide, expanding downstream applications in semiconductors, new energy, and pharmaceuticals.

These projects are closely aligned with policies and market demands for independent control of the semiconductor industry and localization of high-end scientific instruments. As the projects are gradually implemented, they are expected to become significant drivers of the company’s future performance growth.

Lead Technology Group will participate in the private placement using its own or self-raised funds. This not only provides financial support to the listed company and optimizes its capital structure but also leverages its industrial resources and technological capabilities in raw material supply, R&D, and customer resources to support the company’s technological breakthroughs and market expansion in semiconductor components and new materials.

The company states that this private placement is a key move at the intersection of industry opportunities and its own transformation needs. It will strictly follow the pre-plan requirements to ensure smooth and efficient project implementation, accelerate production and results, and continuously focus on core technology R&D, optimize business layout, strengthen industry chain collaboration, and enhance core competitiveness. The company is committed to safeguarding the legitimate rights and interests of all investors and aims to achieve shared growth of company value and investor benefits. (Lu Yishi)