Why doesn’t the company respond to the country’s call to carry out mergers and acquisitions and restructuring?

Xinlian Integrated Circuit-U: On June 22, 2024, the company announced the "Xinlian Integrated Circuit Manufacturing Co., Ltd.'s Plan for Issuing Shares and Paying Cash to Purchase Assets and Related Transactions" on the website of the Shanghai Stock Exchange: In order to realize the integrated management of 170,000 8-inch silicon-based production capacity, achieve deep integration in internal management, process platform, customized design, supply chain, etc., give full play to the synergy effect, effectively reduce costs, and thus enhance the company's overall competitiveness and execution efficiency, and promote the listed company to achieve profitability as soon as possible, the company intends to purchase 72.33% of the equity of Xinlian Yuezhou Integrated Circuit Manufacturing (Shaoxing) Co., Ltd. from the counterparty by issuing shares and paying cash. This acquisition is in line with the national strategy and leverages the capital market to inject high-quality assets into listed companies. The transaction involves 15 shareholders, including Shaoxing Binhai New Area Xinxing Equity Investment Fund Partnership. After the transaction is completed, Xinlian Yuezhou will become a wholly-owned subsidiary of Xinlian Integrated Circuit.