Hesheng New Materials: Yizhi Electronics is a domestic ARM architecture CPU design company with a relatively small business scale and is in a continuous loss state.

Hesheng New Materials announced that the deviation of the closing price of the company's stock for three consecutive trading days exceeded 20%, which is considered abnormal trading fluctuation. Recently, the company discovered media reports stating that "some institutions believe that Hesheng New Materials' acquisition of Yizhi Electronics, a domestic core ARM-CPU manufacturer, will benefit from the increase in CPU prices." The company clarified: On August 1, 2025, the company signed a "Shanghai Yizhi Electronics Technology Co., Ltd. Capital Increase Agreement" with Shanghai Yizhi Electronics Technology Co., Ltd., in which the company invested 250 million RMB in Yizhi Electronics with its own funds or self-raised funds; On April 10, 2026, the company made an additional investment of 233 million RMB in Yizhi Electronics with its own funds or self-raised funds. After the two rounds of capital increase, the company will hold a total of 17.0491% equity of Yizhi Electronics, making it a shareholder of Yizhi Electronics, not the controlling shareholder. Yizhi Electronics is not included in the company's consolidated financial statements. The proposal regarding the additional investment in Yizhi Electronics was approved by the company's 2026 second extraordinary general meeting held on April 27, 2026. The implementation of the additional investment still requires the approval of Yizhi Electronics' shareholder meeting, and there is uncertainty about whether it will be carried out. Investors are advised to make careful decisions and pay attention to investment risks. Yizhi Electronics is a domestic ARM architecture CPU design company with a small business scale and is currently in a continuous loss-making state, with uncertainty about when it will achieve profitability.