APT Electronics Co., Ltd. Announces Major Investment in New RMB668 Million Semiconductor Fund

Key Highlights for Investors

• Significant Capital Commitment: APT Electronics will invest RMB268 million, representing 40.12% of the total RMB668 million capital of a new semiconductor-focused investment fund.
• Strategic Industrial Focus: The fund will target investments in the semiconductor and integrated circuit sector, one of Guangzhou’s 15 strategic industrial clusters, and will prioritize key government-supported industries.
• Potential Related Party Transaction: The fund intends to invest in Guangdong AccoPower Semiconductor Co., Ltd., controlled by APT’s executive Director Mr. Xiao Guowei David; if consummated, this could constitute a connected transaction under Hong Kong Listing Rules.
• Fund Structure and Governance: The fund is structured as a limited partnership with APT Electronics as a Limited Partner and Wanlian Tianze as General Partner and manager. The investment committee and partner meeting mechanisms are designed to ensure controls and oversight.
• Listing Rules Implications: The transaction qualifies as a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules, triggering reporting and announcement obligations.
• Expected Financial Impact: The fund will be classified as a financial asset, not a subsidiary, in APT Electronics’ consolidated financial statements.
• Strategic Rationale: This investment aligns with APT’s ambitions in third-generation semiconductor applications, such as new energy vehicles, advanced display, photovoltaics, energy storage, and AI data centers.

Detailed Article

APT Electronics Co., Ltd. (Stock Code: 2551), a leading provider of intelligent vision products and system solutions listed on the Hong Kong Stock Exchange, has announced a major discloseable transaction that could have far-reaching implications for its shareholders and the broader semiconductor industry.

Formation of a Strategic RMB668 Million Investment Fund

On February 24, 2026, the Board of APT Electronics approved the company’s participation as a Limited Partner in the proposed “Guangzhou Tianze Jingxin Venture Investment Fund Partnership (Limited Partnership).” This fund will have a total capital commitment of approximately RMB668 million, with APT Electronics committing RMB268 million, or 40.12% of the total. Other key partners include:

• Wanlian Tianze Capital Investment Co., Ltd. (General Partner and Fund Manager)
• Guangzhou Emerging Industry Development Fund Management Co., Ltd.
• Guangzhou Listed Company High Quality Development Fund Partnership Enterprise
• Guangzhou Nansha Technology Financial Holding Group Co., Ltd.
• Guangzhou Nansha Artificial Tongzhi Venture Capital Partnership

The fund will be established as a limited partnership under PRC law and is focused on the semiconductor and integrated circuit sector—an area designated as a strategic priority in Guangzhou’s “12218” modern industrial system.

Governance, Management, and Investment Process

Wanlian Tianze will serve as the General Partner, managing all investment, management, and operational activities of the fund. The fund’s Investment Committee will consist of five members:

• Two appointed jointly by Wanlian Tianze and the High Quality Development Fund
• One appointed by Nansha Technology Financial Group
• One appointed by APT Electronics
• One appointed by the Emerging Fund

Decisions of the Investment Committee require approval by at least four members, ensuring that no single party has unilateral control. The Partners’ meeting will be held at least annually, with key decisions—such as amendments to the Partnership Agreement or changes in capital commitments—requiring unanimous consent.

Investment Terms and Exit Strategy

The fund will operate with a seven-year term, comprised of a four-year investment period and a three-year exit period. The exit period can be extended once by two years, and potentially further with unanimous partner approval. Should the partners not agree to further extensions, the fund will be liquidated with a focus on maximizing asset value.

Fund Economics: Capital Contributions, Fees, and Profit Sharing

• APT Electronics’ Contribution: RMB268 million, to be paid in cash from internal resources within 24 months of signing the Partnership Agreement.
• Management Fees: 1% of paid-in capital during the investment period, 0.1% of unrecouped investment during the exit period, and no fee during the extension or liquidation periods.
• Profit Distribution:
  • Return of capital to all partners in proportion to paid-in contributions.
  • Distribution of profits until all partners achieve a 10% annualized simple return.
  • Any excess profits: 5% to the fund manager, 95% to all partners according to their contributions.
• Losses: Losses due to fund manager negligence are borne by the manager; other losses are shared in proportion to paid-in capital.

Potentially Price-Sensitive Information

• Investment in Guangdong AccoPower: The fund is expected to prioritize investments in Guangdong AccoPower, which is controlled by APT’s executive Director Mr. Xiao Guowei David. If this investment is approved, it could constitute a connected transaction, requiring further disclosures and possibly impacting investor perceptions of governance and related party dealings.
• Material Impact on Financials: The size of APT’s capital commitment (RMB268 million) and the classification of the fund interest as a financial asset (not a subsidiary) could have implications for the company’s balance sheet and financial ratios.
• Strategic Expansion: The move reinforces APT’s ambition to be a key player in third-generation semiconductors and related high-growth sectors—new energy vehicles, advanced display, photovoltaics, energy storage, and AI data centers. This diversification and vertical integration could enhance the company’s competitive positioning and long-term value creation.

Rationale and Potential Shareholder Impact

The board states that the fund will enable APT Electronics to participate in the growth of Guangzhou’s strategic industries, create collaborative customer development opportunities, and foster an integrated ecosystem spanning the supply chain. The transaction is expected to create value for shareholders by providing medium- to long-term capital support for key projects, boosting the company’s growth trajectory and strengthening its industry influence.

Conclusion

This discloseable transaction represents a substantial strategic and financial commitment by APT Electronics to the future of China’s semiconductor industry. Shareholders should monitor follow-up disclosures, especially regarding the potential investment in Guangdong AccoPower, due to related party considerations. The company’s active participation in this government-guided, market-oriented fund has the potential to significantly influence its mid- and long-term business outlook and share price.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are advised to make their own independent judgment and consult their professional advisers before making any investment decisions. The information presented may be subject to change and further regulatory disclosures.

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