Hongxin Electronics plans share offering for AI, FPC growth

Xiamen Hongxin Electronics Technology Group Inc. plans a non-public offering of shares, with its actual controller Li Qiang as the sole subscriber. The offering aims to raise between 300 million yuan and 600 million yuan, to be used entirely for supplementing working capital. This move is expected to enhance the company's financial strength, reduce its asset-liability ratio, which stood at 79.55% as of September 30, 2025, and strengthen its core competitiveness in the AI and FPC sectors.

The offering is crucial for Hongxin Electronics as its AI and FPC businesses enter a critical expansion phase, leading to increasing working capital needs. The company's revenues were 5,549.808 million yuan for the first nine months of 2025, with a net profit attributable to shareholders of 90.5148 million yuan, marking a turnaround from previous losses. Li Qiang's full subscription underscores confidence in the company's future prospects and aims to solidify control.