Shengyi Electronics' 2.5 Billion Yuan Private Placement: Fundraising Expected to Be Reduced, Major Shareholder Sells Over 800 Million Yuan, Exiting "Precisely"

Recently, Shengyi Electronics issued a revised announcement for a private placement, once again bringing this former “A-Share A” leader into the spotlight of the capital market. After reporting a 343% increase in net profit attributable to shareholders, the company also adjusted its original 2.6 billion yuan private placement plan to 2.53 billion yuan, with the remaining 70.5 million yuan all allocated to the “supplementary working capital” project.

On the surface, this appears to be a strategic expansion following a successful quarter—rising demand for AI servers and high-end PCBs has created a supply shortage, making expansion seem logical. However, questions arise as strategic investors chose to exit precisely before the private placement, and despite having ample cash on hand, the company still sought market financing.

On November 20, 2025, Shengyi Electronics released a notable announcement: shareholder Dongguan Technology Innovation Investment Group (referred to as “Kechuang Jin”) plans to reduce its holdings of unrestricted circulating shares in the company by no more than 8.3182 million shares, accounting for 1% of the total share capital, through centralized bidding within three months after 15 trading days from November 21, 2025. The actual cash obtained from this reduction amounts to 840 million yuan.

Interestingly, just three days earlier, on November 17, the company’s board of directors had approved the private placement plan. The share reduction period coincides precisely with the critical phase between the announcement of the private placement plan and its submission for review.

Even more noteworthy is that Kechuang Jin’s shares originate from strategic allocations during the IPO. This means that, as early investors with the most insight into the company’s fundamentals, they chose to exit decisively after four years of dormancy, at a time when the company’s performance was at its best, the stock price was at its peak, and the benefits of the private placement were about to be realized. Although the reason given for the reduction was “funding needs,” this explanation clearly cannot dispel market doubts: if the company’s future prospects are truly as bright as depicted in the private placement plan, why would the original strategic shareholders be unwilling to grow with the company?

According to the revised private placement plan, the fundraising projects include: the construction of an AI computing HDI production base, with an annual capacity of 167,200 square meters, to be built over 36 months; and a high-multilayer computing power circuit board project, with an annual capacity of 700,000 square meters, to be developed in two phases over 30 months.

The company’s outlook on market prospects is quite optimistic. According to Prismark data, the compound annual growth rate (CAGR) for AI server-related HDI is expected to reach 16.3%, and high-multilayer boards with more than 18 layers are projected to achieve a 16.2% CAGR from 2024 to 2029. This forecast supports the company’s expansion decision.

However, the PCB industry is highly cyclical. Currently, the surge in AI server demand has indeed caused a shortage of high-end PCBs, but many competitors are also betting heavily on expansion. When all players ramp up capacity simultaneously, and the projects come online in two years, the market landscape may have already changed.

In 2025, Shengyi Electronics delivered a seemingly impressive report card: total revenue of 9.494 billion yuan, up 102.57% year-over-year; net profit attributable to shareholders of 1.473 billion yuan, a substantial increase of 343.76% year-over-year.

Note: This article is generated with AI tools and does not constitute investment advice. The market carries risks; invest cautiously.