Dalian Bio-Chem sells 10% stake to new investor Liu Hongjun

Dalian Bio-Chem Co., Ltd. announced its controlling shareholder, Dalian Tongyun Investment Co., Ltd., and major shareholder Dalian Guangyao Zhixin Shuhong Enterprise Management Consulting Partnership, will each transfer 35,311,182 shares to Liu Hongjun. This represents 5.00% of the company's total share capital from each party. The transaction will result in Liu Hongjun holding 70,622,364 shares, or a 10.00% stake in the company.

Prior to the transfer, Tongyun Investment held 29.96% of the shares, which will decrease to 24.96%, while Guangyao Zhixin's stake will reduce from 25.83% to 20.83%. The total transfer price for both parties amounts to CNY 992,809,193.11 each, to be paid in two installments. The purpose of this equity change is to enhance the integration of the company's semiconductor business team and foster long-term stable development, aligning the core management with the company's growth.

The transfer is pending confirmation by the Shanghai Stock Exchange and completion of ownership transfer registration with China Securities Depository and Clearing Corporation Limited. Liu Hongjun, who previously held no shares, will acquire a significant stake and has committed to a 24-month lock-up period post-transfer. This equity change does not involve a change in control of Dalian Bio-Chem.