Equity transfer + capital increase, Jinko Electronics indirectly invests in Core Energy

On February 24 this year, Jinko Electronics disclosed an important investment plan, planning to invest in Core Energy Semiconductor through equity funds and enter the third-generation semiconductor-related industry layout. Recently, this investment matter has made substantial progress.

On April 8, Jinko Electronics announced that Guangzhou Tianze and the seller had entered into an equity transfer agreement. Guangzhou Tianze planned to acquire the total registered capital of Core Energy Semiconductor for approximately 8.1562 million yuan (accounting for approximately 3.26% of the equity of Core Energy Semiconductor as of the date of this announcement), at a price of approximately RMB 23.0989 per registered capital. The total consideration for the equity transfer will be RMB 188.4 million.

On the same day, Guangzhou Tianze and Core Energy Semiconductor entered into a capital increase agreement, according to which Guangzhou Tianze was required to subscribe for approximately 17.5177 million yuan in new registered capital of Core Energy Semiconductor (accounting for approximately 6.54% of the total expanded equity of Core Energy Semiconductor after the completion of the capital increase) at a price of approximately RMB 25.6655 per registered capital. The total consideration for the capital increase will be RMB 449.6 million.

Based on the two arrangements of equity transfer and capital increase, Guangzhou Tianze will eventually hold a total of approximately 9.5799% of the equity of Core Semiconductor, assuming that the registered capital of Core Semiconductor will not change. As a limited partner, Jinko Electronics holds approximately 40.12% of Guangzhou Tianze's equity. Therefore, through indirect shareholding, its actual economic interest in Core Semiconductor is approximately 3.8435%, and the related investment amount is approximately 256 million yuan.

From the perspective of investment structure, Guangzhou Tianze mainly focuses on investing in the semiconductor and integrated circuit industries of the 15 strategic industrial clusters in the construction of Guangzhou's "12218" modern industrial system, and gives priority to supporting government strategic industries.

Core Energy Semiconductor and Core Yueneng are national high-tech enterprises focusing on the R&D, production and sales of third-generation semiconductor silicon carbide power chips, devices and modules. Their products are widely used in new energy vehicles, new displays, photovoltaics, energy storage, AI data centers and other industries. Core Energy Semiconductor is a rare domestic silicon carbide IDM company that can achieve domestic substitution. It is a "unicorn" innovative enterprise in Guangzhou and a key construction project of Guangdong Province's "Strong Core Project".

For this investment, Jinko Electronics stated that investing in Core Energy Semiconductor is a proactive strategic choice from "endogenous development" to "epitaxial layout", aiming to further improve the layout of the "third-generation semiconductor" industrial cluster and deeply release the synergistic value of the industry chain.

On the one hand, it helps to meet the comprehensive needs of leading customers represented by new energy vehicles, and provides customers with integrated solutions and service systems of "optoelectronic semiconductors + power semiconductors" through overall collaboration or even joint development, improving project introduction efficiency and long-term cooperation stickiness; on the other hand, in emerging tracks such as Micro LED and AR+AI display, both parties have their own advantages in product research and development, process implementation, mass production and manufacturing, and have strong synergy effects.