On June 8th, Suqian Liansheng made a public announcement revealing that it had inked a Joint Venture Intent Agreement alongside Zhu Ronghui and Huizhi Guangxin. The trio intends to pool their resources, jointly investing 10 million yuan to establish a new venture specifically dedicated to the research and development, production, and sales of indium phosphide substrates. Suqian Liansheng will be the primary investor, contributing 7 million yuan and thereby securing a 70% stake in the joint venture.

The project is envisioned to unfold in two distinct phases. In the initial phase, a fixed investment of 100 million yuan will be made, aiming to achieve an annual production capacity of 120,000 indium phosphide substrates ranging from 4 to 6 inches in size. Subsequent to this, the second phase envisages an additional investment of 200 million yuan, which is projected to elevate the production capacity to a staggering 400,000 wafers per annum. However, it is important to note that the finalization of this investment plan is contingent upon approval from the shareholders' meeting, and as such, its realization remains subject to uncertainty.