SJSemi Corporation (688820) has made an announcement regarding its strategic move to bolster the capital of its wholly-owned subsidiary, SJSemi Jiangyin, by a substantial sum of US$570 million (equating to roughly RMB 3.855 billion). This capital increase will be executed via another of its wholly-owned entities, SJSemi Hong Kong, with the primary objective of supplanting the self-raised funds that were initially invested in projects financed through raised capital.

This significant decision has already received the green light at the 16th gathering of the inaugural session of the company's board of directors. Consequently, it bypasses the need for presentation and deliberation at the shareholders' meeting. Upon completion of the capital augmentation, the registered capital of SJSemi Jiangyin will witness a surge, escalating from US$1.68 billion to an impressive US$2.25 billion. Despite this infusion, SJSemi Jiangyin will persist as a fully-owned subsidiary under the umbrella of SJSemi Corporation, maintaining its integral role within the corporate structure.