Core Viewpoint - TCL Technology is participating in the bankruptcy reorganization of its major supplier, Shanshan Group, to strengthen supply chain stability and enhance collaboration in semiconductor display materials [1][2]. Group 1: Investment Details - TCL Technology, through its subsidiary TCL Xiamen Industrial Investment Partnership, is investing up to 500 million yuan in the reorganization of Shanshan Group and its subsidiary Ningbo Pengze Trading [1]. - After the reorganization, TCL Xiamen will acquire 43.7 million shares of Shanshan Co., representing 1.94% of its total share capital, at an approximate price of 11.44 yuan per share [1][2]. - The total investment by the consortium in Shanshan Co. is expected to be 2.23 billion shares, accounting for 9.93% of the total share capital, with a total payment of 2.555 billion yuan [2]. Group 2: Strategic Rationale - The investment is aimed at consolidating the existing partnership between TCL and Shanshan, which is a key supplier of polarizers for TCL's semiconductor display business [2]. - This move is expected to improve the stability of TCL's production supply chain and enhance the efficiency of collaboration in upstream material research and production [2]. Group 3: Financial Context - Shanshan Group was placed under reorganization by court order on February 25, 2023, with over 95% of its debts due within one year [2]. - As of January 15, 2025, Shanshan Group's total interest-bearing liabilities (excluding listed company Shanshan Co.) amounted to 12.621 billion yuan, with short-term debts due within one year totaling 12.037 billion yuan [2]. Group 4: Control Changes - The reorganization investors plan to acquire control of 23.36% of Shanshan Co. through a combination of direct purchases and trust arrangements, leading to a change in the company's controlling shareholder and actual controller [3].

Core Viewpoint - Shenzhen Chuangzhi Xinian Technology Co., Ltd. has submitted its prospectus for an IPO on the Hong Kong Stock Exchange, positioning itself as a leading provider of metallization interconnection plating materials and key process technologies in the semiconductor packaging and PCB manufacturing sectors [2]. Financial Performance - The company reported revenues of RMB 319.6 million, RMB 311.7 million, and RMB 409.9 million for the years 2022, 2023, and 2024 respectively, indicating a projected revenue growth of approximately 31.4% from 2023 to 2024 [4]. - The annual profit and total comprehensive income for the same years were RMB 27.3 million, RMB 19.4 million, and RMB 52.7 million, showing a significant increase in profitability in 2024 [4]. Market Position - According to Frost & Sullivan, the company is the largest domestic wet process plating material provider in China by revenue in 2024 and also the largest one-stop plating solution provider in the Chinese market [2]. Leadership - Yao Cheng, the company's chairman and executive director, holds approximately 66.75% of the voting rights prior to the IPO, indicating strong control over the company [4]. - Yao Cheng has extensive experience in management and strategic planning within the semiconductor industry, having joined the group in 2009 and taking on various leadership roles [5].