FUTURE MACH LTD (01401.HK): Subsidiary to Subscribe RMB 20 Million in Fourth Angel Round of Zhichen Semiconductor, Holding 0.97%
NewTimeSpace News: On 14 August 2026, Future Machine Limited (stock code: 01401) announced that Shenzhen Xingji Quantum, an indirect wholly-owned subsidiary of the Company, together with other new investors, entered into a fourth angel round capital increase agreement with the shareholders of the target company. Under the capital increase agreement, Shenzhen Xingji Quantum will subscribe for new registered capital of the target company of RMB 50,073.57 at a subscription price of RMB 20 million, as part of the aggregate new registered capital of RMB 633,430.68 to be issued under the capital increase agreement. Upon completion of the capital increase, the registered capital of the target company will be RMB 5,140,052.12, and the Company will indirectly hold approximately 0.9742% equity interest in the target company through Shenzhen Xingji Quantum.
According to the announcement, the target company is Zhichen Semiconductor (Shenzhen) Co., Ltd., principally engaged in the research, development and sale of software and hardware related to chips and artificial intelligence technologies. The target company successfully completed its first three angel rounds of financing during the period from July 2025 to June 2026, raising an aggregate of RMB 369.68 million, with its registered capital increasing to RMB 4,506,621.44; the Company did not participate in the first three rounds and held no interest in the target company prior to the capital increase agreement. The subscription amount was determined after arm's length negotiation, fully taking into account the successful completion of the first three rounds of investment, technological achievements and the existing equity structure, as well as the target company's strong future growth prospects, market potential in the semiconductor and artificial intelligence fields and expected business milestones.
In respect of the rationale, the Directors consider that the continued integration of artificial intelligence into smartphones and smart terminals, together with the global promotion of 5G networks, will drive enormous demand for smartphones and smart terminal products, and that the rapid development of general AI and large models will make AI-enabled smartphones and multi-form AI on-device products mainstream. The Company successfully completed the allotment and issue of 500,000,000 shares by way of rights issue in November 2025, raising net proceeds of approximately HKD 138 million, of which approximately 14.5% (approximately HKD 20 million) will be used for selected mergers, acquisitions and strategic investments, with a particular focus on exploring potential opportunities in the artificial intelligence field. Based on the high recognition of the target company's industry, its future business development strategy and its founder and team, the Company believes that the capital increase is in line with the Group's long-term development strategy and is conducive to its strategic positioning in the semiconductor and artificial intelligence fields. As one or more of the applicable percentage ratios of the transaction exceed 5% but are less than 25%, the transaction constitutes a discloseable transaction of the Company and is exempt from the circular and shareholders' approval requirements.
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