Major Asset Restructuring Terminated! Company with Over 70 Billion Market Cap Issues Sudden Announcement

Deep News12-12 22:30

The termination of the transaction was attributed to discrepancies between the core demands and key issues raised by the target company's management and counterparties, and the prevailing market conditions, regulatory requirements, as well as the interests of the company and all shareholders.

On the same day, the company announced plans to jointly invest with other investors in a special purpose vehicle, Tiansui Xinyuan Technology (Shanghai) Co., Ltd. (hereinafter referred to as "Tiansui Xinyuan"), which will serve as the acquisition entity to obtain control of Pixelworks Semiconductor (Shanghai) Co., Ltd. (hereinafter referred to as "Pixelworks Semiconductor").

Tiansui Xinyuan intends to increase its registered capital by 940 million yuan. The company plans to subscribe to 20 million yuan of the new capital using its 2.11% stake in Pixelworks Semiconductor post-acquisition and contribute 350 million yuan in cash for an additional 350 million yuan in registered capital.

Upon completion of the investment, Tiansui Xinyuan's registered capital will increase to 950 million yuan. The company will hold a 40% stake, becoming the single largest shareholder, and will control the majority of board seats, thereby exercising control over Tiansui Xinyuan.

The company specializes in providing platform-based, comprehensive, and one-stop chip customization services and semiconductor IP licensing, leveraging its proprietary semiconductor IP portfolio.

Its portfolio includes six categories of processor IP—GPU, NPU, VPU, DSP, ISP, and Display Processing IP—along with over 1,600 mixed-signal and RF IPs. The company also offers AI-driven hardware and software chip customization solutions for devices such as smartwatches, AR/VR glasses, AI PCs, smartphones, smart vehicles, robotics, and data center servers.

On October 27, the company reported record-high Q3 revenue of 1.28 billion yuan, up 119.26% quarter-on-quarter and 78.38% year-on-year. Net loss attributable to shareholders narrowed significantly by 75.82% YoY and 73.02% QoQ to 26.85 million yuan, with operating cash flow at -25 million yuan.

Year-to-date, the company's stock has surged over 180%, with a notable 7% gain on December 12.

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