S2C Shanghai shares owned by Guowei Holdings (02239) are injected into the joint construction of an EDA integrated platform by Wuxi Yake Hongyu Electronics

Zhitong Finance App News, Guowei Holdings (02239) announced that on October 13, 2026, Wuxi Yake Hongyu Electronics Co., Ltd. (target company), S2C subscribers (including S2C Holding), major shareholders of the target company and other subscribers have entered into an agreement. Based on this (i) the S2C subscribers have conditionally agreed to subscribe, and the target company has conditionally agreed to issue S2C target capital at a cost of about RMB 1,223.1 billion. Each will inject some of its S2C capital into the target company for payment. Approximately 86.35% of S2C Shanghai's shares; and (ii) other subscribers have conditionally agreed to subscribe for the target company's total registered capital of approximately RMB 22.834,600 at a cost of approximately RMB 518 million.

This includes S2C Holding's intention to inject about 13.75% of its shares in S2C Shanghai (that is, related S2C capital) into the target company at the cost of subscribing to the target company's registered capital of RMB 85882.99 million (that is, the relevant target capital), accounting for about 10.12% of the target company's shares held immediately after the share exchange was completed, and about 7.98% of the target company's shares immediately after the capital injection was completed.

As of the date of this announcement, S2C Holding held 13.75% of S2C Shanghai's shares, while other S2C subscribers held a total of 72.60% of S2C Shanghai's shares.

As of the date of this announcement, the company held approximately 97.50% of S2C Holding's shares. S2C Shanghai Group is a supplier of EDA and rapid verification solutions. Target Group is the world's leading supplier of FPGA prototyping and simulation tools and solutions, focusing on the field of innovative SoC/ASIC design.

According to the announcement, the transaction will integrate the resources and capabilities of S2C Shanghai Group and target companies to create a more complete and competitive EDA platform for product projects. The merged entity is expected to benefit from synergies in technology development, supply chain management and market expansion. Furthermore, the consolidated entity's shareholder base will expand to include reputable investment funds and strategic investors, and will therefore have stronger financial resources to support future growth plans and R&D efforts in the rapidly evolving semiconductor verification tools market.

The transaction provides the Group with an excellent investment opportunity, enabling the Group to join hands with other established leading investors and well-known companies in the semiconductor industry to participate in the growth prospects of the target company's new EDA business platform.