On December 18, Gelonghui reported that Q TECH (01478.HK) announced that on December 18, 2024, the company entered into a share subscription agreement with its joint venture company, Xinju Technology Co., Ltd. (Xinju Technology) (a company listed on the Taiwan Over-The-Counter Securities Exchange, stock code: 3630), under which Xinju Technology conditionally agreed to issue, and the company conditionally agreed to subscribe for 20 million shares of common stock that Xinju Technology intends to issue, equivalent to approximately 9.8% of Xinju Technology's total outstanding common shares after the private placement.

According to the share subscription agreement, the company is to pay a tentative placement price of NT$21.0 per share for the private placement (approximately RMB 4.7), amounting to a total price of about NT$0.42 billion. The tentative placement price is determined with reference to a certain discount based on Xinju Technology's closing price, which is approximately 84.0% of the closing price shown by Xinju Technology on the Taiwan Over-The-Counter Securities Exchange on the trading day before the signing of the share subscription agreement.

If the private placement is completed, the company will directly and indirectly hold 85.33 million shares of common stock in Xinju Technology, equivalent to approximately 41.8% of Xinju Technology's total outstanding common shares after the completion of the private placement.

The company upholds the vision of "bringing light to machines" and has always placed a high emphasis on continually promoting vertical chain integration, firmly advancing the implementation of platform strategy, component strategy, and system integration strategy. Lenses are key components in camera modules for various mobile terminals, such as smart driving, Smart Phones, and Internet of Things (IoT) intelligent terminals. The company will continue to increase its investment in the lens business and work hard to enhance its business development. Although Xinju Technology has performed poorly in recent years due to macro factors and industry cycles, it still possesses good research and development and process technology capabilities in the lens field. Through this private placement, the company will continue to work on promoting Xinju Technology's capability enhancement in lens applications for Smart Phones, AR/VR, IoT, etc., gradually helping Xinju Technology improve its operational management and marketing capabilities, and achieve better vertical chain integration with the group, further propelling the group towards becoming a provider of intelligent visual system solutions.