Summary of Key Points Core Viewpoint The report outlines the fundraising activities and management of Shanghai Yachuang Electronics Group Co., Ltd. as of June 30, 2025, detailing the amounts raised, their usage, and the management protocols in place to ensure compliance with regulatory requirements. Group 1: Fundraising Overview - The company raised a total of RMB 439.8 million from its initial public offering (IPO) and RMB 363 million from the issuance of convertible bonds, with net proceeds of RMB 383.81 million and RMB 353.87 million respectively after deducting issuance costs [2][3][4]. - The funds raised from the IPO were verified by Ernst & Young Huaming Accounting Firm on November 15, 2021, and the funds from the convertible bonds were verified on October 26, 2023 [2][3]. Group 2: Fund Usage and Balance - As of June 30, 2025, the total amount used from the IPO funds was RMB 314.26 million, while RMB 115.56 million was used from the convertible bond funds [9][19]. - The remaining balance in the special accounts for the IPO funds was RMB 79,635.28, and for the convertible bonds, it was RMB 18,709,637.59 [7][8]. Group 3: Fund Management Protocols - The company established special accounts for fundraising management and signed tripartite supervision agreements with banks and sponsors to ensure proper fund storage and usage [5][6]. - The company has implemented a management method for fundraising to protect the rights of small investors, complying with relevant regulations [5][8]. Group 4: Project Updates - The "Automotive Electronics Research Institute Construction Project" has been relocated to a new site, with construction expected to be completed by December 2025 [9][16]. - The "Yachuang Automotive Electronics Headquarters Base Project" has officially commenced construction and is progressing according to the planned schedule [16]. Group 5: Financial Management - The company has utilized idle fundraising temporarily to supplement working capital, with a total of RMB 290 million used for this purpose as of June 30, 2025 [11][12]. - The company has also engaged in cash management using idle funds, ensuring that these activities do not affect the ongoing projects [12][13].

Core Viewpoint - Yachuang Electronics (301099) is planning to acquire a 37.0337% stake in Shanghai Analog Semiconductor Technology Co., Ltd. for approximately 298 million yuan, despite the target company currently being in a loss-making state and having a high valuation increase rate of 467.34% [1][4][5] Group 1: Acquisition Details - The acquisition is part of Yachuang Electronics' strategic development direction, aimed at enhancing its self-developed integrated circuit (IC) business and expanding its product range [5][11] - Shanghai Analog, established in 2018, specializes in high-quality mixed-signal integrated circuit research, design, testing, and sales, focusing on automotive smart drives and signal chain products [5][6] - The target company reported revenues of approximately 51.55 million yuan and 16.96 million yuan for 2024 and Q1 2025, respectively, with corresponding net losses of about 104 million yuan and 15.99 million yuan [6][9] Group 2: Financial Performance - Yachuang Electronics' total short-term and long-term borrowings amount to approximately 1.446 billion yuan, with a rising debt-to-asset ratio from 29.47% in 2021 to 61.36% in 2024, although it decreased to 56.4% in Q1 2025 [9][8] - The company reported revenues of approximately 1.418 billion yuan, 2.203 billion yuan, 2.47 billion yuan, and 3.61 billion yuan from 2021 to 2024, with net profits of approximately 92.41 million yuan, 154 million yuan, 53.26 million yuan, and 124 million yuan, respectively [9][10] Group 3: Industry Context - The integrated circuit industry is experiencing rapid growth, driven by the increasing demand for digitalization and smart technologies, with expectations for further expansion due to advancements in 5G, artificial intelligence, and the Internet of Things [10][11] - Yachuang Electronics has completed four acquisitions since its listing, focusing on expanding its electronic component distribution business and automotive power management IC market [11][12]