Gigadevice Semiconductor completes stock option exercise, boosts capital by $197m

Gigadevice Semiconductor Inc. (SSE:603986) has announced the completion of the second exercise period of its 2023 stock option incentive plan, with 2,286,334 new shares to be listed for circulation on September 10, 2025. This exercise involved 897 eligible employees, who collectively exercised 2,286,334 stock options, representing 0.34% of the company's total share capital. The total proceeds from this exercise amounted to CNY 196,921,947.42, with CNY 2,286,334.00 allocated to share capital and CNY 194,635,613.42 to capital reserves. The company confirmed that the funds raised will be used to supplement working capital.

Following this exercise, Gigadevice Semiconductor's total share capital increased from CNY 664,029,976.00 to CNY 666,316,310.00. The change in share capital did not affect the company's controlling shareholder. The company is in the process of updating its business license to reflect the latest capital increase.

The company's 2025 semi-annual report indicated a net profit attributable to shareholders of CNY 575 million and basic earnings per share of CNY 0.87. Calculating with the new total share capital of 666,316,310 shares, the basic earnings per share will be diluted. However, Gigadevice Semiconductor anticipates that this exercise will not have a significant impact on its financial condition and operating results for the most recent reporting period.