Taiji Industry subsidiary sells accounts receivable to boost cash flow

Wuxi Taiji Industry announced that its subsidiary, Hynix Semiconductor (Wuxi) Co., Ltd., will sell up to $85 million in accounts receivable to China Construction Bank Wuxi Taihu New City Branch. This transaction, covering accounts receivable from SK Hynix Inc. for November and part of December 2025, aims to shorten collection times and improve the subsidiary's asset-liability structure and cash flow. The total service fee for this non-recourse factoring deal is estimated at $28.50 million.

The company's board of directors approved the "Proposal on the Sale of Accounts Receivable by the Subsidiary Hynix Semiconductor" on December 10, 2025. This decision aligns with the company's objective to support Hynix Semiconductor's normal operations and future investments.

The transaction is within the board's approval authority and does not require shareholder approval. The pricing, based on market conventions and similar transactions, is considered fair and reasonable, utilizing the overnight SOFR rate for service fee calculations.