Suzhou Hesheng Special Material (002290.SZ) plans to increase its investment in Yizhi Electronics by 250 million yuan to deepen business cooperation.

Suzhou Hesheng Special Material (002290.SZ) announced that the company plans to increase its capital by 250 million yuan to Shanghai Yizhi Electronic Technology Co., Ltd. (referred to as "Yizhi Electronic") with its own funds or self-raised funds. After the investment is completed, the company will hold 10% equity of Yizhi Electronic. The announcement shows that the main business of Yizhi Electronic is the research, design, and sales of high-end processor chips used in servers, workstations, and other computing and storage devices. Yizhi Electronic is a rare target of domestic ARM architecture CPU, positioning itself as a high-end server CPU chip design company, and has accumulated the design of 3 generations of ARM processors, with excellent performance indicators. The company stated that its business with Yizhi Electronic has certain synergies. The company's controlling subsidiary Shanghai Haixi Technology Co., Ltd. (referred to as "Haixi Technology") has been collaborating on technology and business with Yizhi Electronic early on, including high-end server development and promotion, and successfully collaborated in supplying Beijing Tingyu Technology Co., Ltd.; completed joint development and customer expansion of large-scale all-in-one machines, and has successfully developed the DEEPSEEK all-in-one machine based on the Yizhi Electronic CPU, gradually expanding customer introductions. Based on successful business cooperation, Haixi Technology and the company have understood the products, management team, business competitiveness and other detailed information of Yizhi Electronic, and are optimistic about the development prospects of Yizhi Electronic, so they plan to further bind business cooperation by investing in Yizhi Electronic.