GKCT: Plans to acquire 35.00% of Shenzhen Xinchongxin Technology Co., Ltd. for 135 million yuan

GKCT announced that the company has decided to terminate the cash acquisition of a partial equity stake in Shenzhen Xinchips Technology Co., Ltd., which aimed to increase its shareholding ratio to 51%, and instead change it to a strategic investment plan. According to the new plan, the company will acquire 35.00% of Xinchips for 135 million yuan, resulting in a total holding of 37.77% of its shares. This investment does not constitute a related party transaction and does not constitute a major asset restructuring. After the investment is completed, the company will account for its equity in Xinchips in accordance with "Accounting Standard for Enterprises No. 2 - Long-term Equity Investments," classifying the accounting subject as long-term equity investments, with subsequent measurement using the equity method. The termination of the major asset restructuring plan and its change to a strategic investment will not adversely affect the company's business operations, production activities, or financial condition, nor will it harm the interests of the company and its shareholders, especially minority shareholders