Tongwei's Yongxiang unit to attract strategic investors

Tongwei Co., Ltd. (SSE:600438) announced that its wholly-owned subsidiary, Yongxiang Co., Ltd., a leading high-purity crystalline silicon enterprise, intends to introduce strategic investors and implement a capital increase and share expansion. As of September 30, 2024, Yongxiang had net assets attributable to the parent company of 25.693 billion yuan. The pre-money valuation of Yongxiang is set at 27 billion yuan. Strategic investors will inject no more than 10 billion yuan in total, acquiring no more than 27.03% of Yongxiang's equity after the capital increase. Tongwei will still hold no less than 72.97% of Yongxiang, ensuring its continued consolidation in Tongwei's financial statements. Yongxiang will use the funds to reduce financial debt and replenish working capital. Tongwei plans to convene its first extraordinary general meeting of 2025 on April 15 to discuss and vote on the proposed issuance of debt financing instruments (DFI).