Hangzhou Mdk Opto Electronics (688079.SH): Optical Semiconductor Unit to Introduce Strategic Investor Fuzhe Shaoxin

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Hangzhou Mdk Opto Electronics Co., Ltd. (688079.SH) announced plans to introduce a strategic investor through its subsidiary Zhejiang Mdk Optical Semiconductor Co., Ltd. (referred to as "Optical Semiconductor Company" or "Target Company"). The investor, Zhejiang Fuzhe Shaoxin Integrated Circuit Industry Fund Partnership (Limited Partnership) ("Fuzhe Shaoxin"), intends to invest RMB 200 million in cash into Optical Semiconductor Company based on a pre-investment valuation of RMB 2.18 billion. Upon completion, Fuzhe Shaoxin will hold an 8.40% stake in the subsidiary.

The investment proceeds will be primarily used for Optical Semiconductor Company's core business operations and other purposes approved by Fuzhe Shaoxin. The funds cannot be directly or indirectly transferred to Hangzhou Mdk Opto Electronics or its affiliates for any purpose.

This strategic investment will strengthen Optical Semiconductor Company's financial position, better support its capital requirements for business development, and create synergies by leveraging multiple resources to enhance its core competitiveness and sustainable growth capabilities.

Following the capital increase, Hangzhou Mdk Opto Electronics will remain the controlling shareholder, and Optical Semiconductor Company will continue to be consolidated in its financial statements.

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