Shanghai Stonehill Technology's Subsidiary Nullmax (Cayman) Plans to Introduce a Leading Domestic Automotive-Grade Chip Company in Series C Funding

Stock News12-05

Shanghai Stonehill Technology Co., Ltd. (002195.SZ) announced that its subsidiary Nullmax (Cayman) intends to initiate a Series C funding round with a maximum target of $100 million. The first step involves introducing a leading domestic automotive-grade chip company as a strategic investor through a capital increase, given their strong business synergies.

The Series C investor plans to invest $10 million in Nullmax (Cayman), valuing the subsidiary at $425 million pre-money. Based on the exchange rate published by China Foreign Exchange Trade System on the agreement signing date, this translates to approximately RMB 3.0068 billion, marking a 9.04% increase from Nullmax (Cayman)'s post-money valuation of RMB 2.7575 billion in its previous Series B round.

Upon completion of the capital increase, the Series C investor will hold a 2.45% stake in Nullmax (Cayman). This transaction is expected to enhance strategic cooperation between Nullmax and the investor.

Due to the investor's requirements and considerations for Nullmax (Cayman)'s future independent listing and business development, Richfield BVI, Stonehill Technology Limited, and Yanheng Limited signed a termination agreement for the voting rights proxy arrangement. This ends Richfield BVI's proxy over 21.88% of Nullmax (Cayman)'s voting rights.

Post-transaction, Richfield BVI's voting rights in Nullmax (Cayman) will decrease from 50.20% to 27.62%. With the termination of the voting rights proxy, Richfield BVI will no longer control Nullmax (Cayman), and the subsidiary will no longer be consolidated in the company's financial statements. However, this change will not impact the net profit attributable to shareholders or equity in the consolidated financial statements.

Shanghai Stonehill Technology remains Nullmax (Cayman)'s largest single shareholder, and the transaction will not affect the company's AI business collaborations across various sectors.

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