Huitong Energy(SH:600605) Sou Hu Cai Jing·2025-08-13 00:05Core Viewpoint - Huitong Energy plans to acquire a 7.43% stake in Xinghua Chip (Shaoxing) Semiconductor Technology Co., Ltd. for a total transaction price of 195 million yuan, marking its first investment in the semiconductor industry [1][11] Group 1: Investment Details - The investment consists of acquiring 1.82% equity for 45 million yuan and subscribing to 150 million yuan of new registered capital [1] - Huitong Energy intends to further increase its investment or acquire more shares after the first production line reaches its designed capacity, with a maximum investment price of 2 yuan per share [1] - Xinghua Chip, established in November 2022, focuses on semiconductor photomask manufacturing and is recognized as a major industrial project in Zhejiang Province for 2024 [1][10] Group 2: Company Background and Financials - Huitong Energy has transitioned from real estate to focus on light asset businesses such as property leasing and home decoration after divesting its real estate development business in 2023 [4] - The company reported a revenue growth of 5.03% to 137 million yuan for 2024, but its net profit is expected to decrease by 70.76% to 79.29% year-on-year, primarily due to previous compensation from property expropriation [4][5] - As of the first quarter of 2025, Huitong Energy's cash reserves reached 650 million yuan, down from 1.46 billion yuan at the end of the previous year [4] Group 3: Strategic Shift and Industry Context - The new actual controller, Huang Ying, has a background in semiconductor investments, which aligns with Huitong Energy's strategic shift towards hard technology sectors [5][6] - The semiconductor industry is experiencing a significant influx of capital, driven by macroeconomic policies, inventory cycles, and AI innovations, creating a favorable environment for investments [9][10] - Huitong Energy's focus on photomasks is strategic, as the global photomask market is dominated by a few companies, and domestic production is less than 20% for high-end photomasks [10]