On December 11, Infineon (002528.SZ) announced that the company plans to increase the capital of its wholly-owned subsidiary Infineon (Hangzhou) Information System Technology Co., Ltd. (hereinafter referred to as “Infineon Systems” or the “subject of the transaction”) by 92,42581 million yuan through debt-for-equity swaps. After the debt-for-equity swap is completed, it plans to transfer 81% of Infineon Systems's shares to Hangzhou Biyang Information Technology Co., Ltd. (hereinafter referred to as “Hangzhou Biyang”), and plans to sign “On Infineon (Hangzhou) Information System Equity Technology Co., Ltd.” “Transfer Agreement” and other relevant agreements relating to this transaction 。 After the transaction is completed, the company still holds 19% of the shares in Infineon Systems, and Infineon Systems will no longer be included in the scope of the company's consolidated statements.

After the agreement comes into effect, the company shall increase the capital of the target company of 924 million yuan of debt enjoyed by the target company as of August 31, 2023 (“debt-for-equity swaps”) to the target company, and pledge 924 million yuan of additional registered capital to the target company. After the debt-for-equity swap was completed, the total registered capital of the target company was 1,044 billion yuan. The acquirer agreed to acquire 81% of the target company's shares at 20,996 million yuan (corresponding to the target company's registered capital of 846 million yuan after the debt-for-equity conversion is completed, hereinafter referred to as the “underlying equity”) after the target company completes the debt-for-equity conversion.

The announcement stated that this equity sale is aimed at further integrating the company's resources, optimizing the company's business structure, and focusing on high-quality main businesses, in line with the company's long-term development strategy. The assets subject to this planned sale have little impact on the company's future profits, and there are no circumstances that harm the interests of the company and its shareholders, especially small to medium shareholders. It is expected that this matter will not have a significant impact on the company's financial position and operating results in 2023. After this transaction is completed, Infineto's system will no longer be included in the scope of the company's consolidated statements.