Hangzhou Lion Electronics Co Ltd

Lion Micro announced on the evening of August 26 that it has signed a project investment cooperation framework agreement with Nanhu District, Jiaxing City, planning to invest in the construction of a project with monthly production capacity of 200,000 12-inch lightly doped substrate wafers and 120,000 12-inch silicon epitaxial wafers. Total investment is approximately 3 billion yuan, with fixed asset investment of approximately 2.9 billion yuan. After the project reaches full production, annual output value is expected to exceed 1.3 billion yuan, with a construction period of five years. It will rely on the existing factory buildings of its controlling subsidiary Jinruihong Microelectronics Jiaxing Company, and will be implemented by another controlling subsidiary, Jinruihong Angxin Microelectronics Jiaxing Company. The company said the move is based on strong customer demand for epitaxial silicon wafers in the logic chip manufacturing sector. Its lightly doped silicon wafers already cover high value-added areas such as logic chips, high-voltage BCD processes, and PMIC power management, and 12-inch silicon epitaxial wafers have relatively high gross margins and full order books. Jinruihong Angxin is currently implementing an annual production project of 960,000 12-inch silicon epitaxial wafers. If the new project lands, it will form complete production capacity of 200,000 silicon epitaxial wafers per month. Lion Micro's monetary fund balances for 2024 and 2025 were 2.303 billion yuan and 2 billion yuan respectively, with stable operating cash flow. The project will also receive policy support such as equipment investment subsidies and loan interest discounts, with funding mainly from its own and self-raised sources. In the first half of this year, Lion Micro achieved operating revenue of 2.09 billion yuan, up 25.7 percent year on year, and net profit attributable to the parent company of 83.97 million yuan, turning losses into profits.