Maxscend Microelectronics announces share issuance to fund RF chip expansion

Maxscend Microelectronics has announced a private placement of up to 160,482,959 A-shares, aiming to raise up to 3,475,000,000 yuan for an RF chip manufacturing expansion project (3,000,000,000 yuan) and working capital (475,000,000 yuan). This initiative follows a period where the company's net profit declined to 401,826,600 yuan in 2024 and incurred a net loss of -147,393,300 yuan in H1 2025, primarily due to increased competition and higher depreciation costs.

The company's asset-liability ratio stood at 30.04% in H1 2025, up from 8.61% in 2022, reflecting increased borrowing for its Fab-Lite strategic transition. Maxscend emphasizes that the new issuance will improve its financial structure and reduce risks. The total investment for the expansion project is 4,182,432,600 yuan. The company will cover the remaining project costs with its own funds or other financing.

The expansion project, which started in January 2021 and is expected to be fully operational by January 2026, aims to enhance RF SOI process technology and is currently in the climb phase. It will focus on expanding manufacturing capacity for RF switches and LNAs, which are core components of RF modules.